The extension of the export obligation period under the advance authorisation scheme for chemicals to 18 months will provide timely and much-needed relief to exporters of man-made fibre (MMF) textiles and technical textiles, the government said on Saturday.
These measures will improve ease of doing business as well as improve competitiveness of Indian products, the Textile Ministry stated.
The government on Thursday said the export obligation period against the import of products that are subjected to mandatory quality norms by the chemicals ministry, under the advance authorisation scheme, has been extended from the existing six months to 18 months.
The move assumes significance as the US has imposed steep 50% tariffs on Indian goods entering the US market.
"In respect of QCOs (quality control orders) notified by the Ministry of Textiles, the EO period under Advance Authorisation had already been extended from 6 months to 18 months. Together, these measures provide timely and much-needed relief to exporters of man-made fibre (MMF) textiles and technical textiles. These measures will improve ease of doing business as well as improve the competitiveness of Indian products," an official statement said.
Under the Advance Authorisation Scheme, duty-free imports of inputs are permitted for use in physical exports, without the mandatory requirement of compliance with QCOs for such imports. This flexibility ensures the continued availability of critical raw materials for the textile industry and facilitates uninterrupted export performance, the Textile Ministry stated.
Notably, around 18% of all Advance Authorisations are issued for the textile sector, underlining the significance of this facilitation measure.
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