DGFT: Exporters To Be Able To Apply For Input-Output Norms On Ad-Hoc Basis

The Directorate General of Foreign Trade on Thursday said it has implemented an automated system for ad-hoc input-output norms fixation for goods, as it aims to promote ease of doing business for exporters.

Exporters are allowed to import duty-free raw material or inputs for manufacturing goods for exports purposes only under an advance authorisation scheme. For this scheme, the Directorate General of Foreign Trade has fixed standard input-output norms for almost all categories of products.

Depending on these norms, a licence is issued for duty-free imports. For example, if 10 kg steel is required to make a 100-meter long pipe, licence will be given under the scheme for duty-free import of 12 kg of steel as there would be some wastage also in the manufacturing process.

DGFT provides a sector-wise list of Standard Input-Output Norms, under which exporters may choose to apply for the licence.

Alternatively, exporters may apply for their own ad-hoc norms in cases where the SION does not suit the exporter.

"In line with ongoing efforts to modernise and streamline foreign trade procedures, ad-hoc Input-Output Norms will be determined through a rule-based, system-driven process, with the aim of improving the ease of doing business for exporters, while reducing time and effort for both DGFT and concerned exporters," the ministry said in a statement.

Since the announcement of the new Foreign Trade Policy in April 2023, DGFT has been actively revamping its systems to expand automated, rule-based processes under the policy framework.

These improvements encompass post-issuance audit capabilities and risk mitigation functions, it said.

(With Text Inputs From PTI)