DGFT automates ad-hoc Input Output Norms Fixation
Amendment: In exercise of powers conferred in Para 1.03 & 2.04 of Foreign Trade Policy 2023, DGFT announced on 20th Jun 2024, the implementation of system-driven process to determine ad-hoc Input-Output norms, through an amendment to Handbook of procedures 2023 (source: PIB)
Implication: The amendment is intended to streamline and automate the process of fixation of norms and Notification of new SIONs under advance authorization scheme, inline with govt’s initiatives for ease of doing business and trade facilitation.
Present system: advance authorization scheme under FTP, facilitates duty-free importation of inputs for export production, including replenishment of inputs or duty remission. Eligibility of inputs is determined by Sector-specific Norms Committees, based on input-output norms.
Previously in July 2023, DGFT made an press release about enhancement in norms fixation workflow. whereby a user-friendly and searchable database of ad-hoc norms fixed in previous years was created and matching norms can be used by any exporter while applying for Advance Authorisation under the "No-Norm Repeat" basis, without requiring a Norms committee review, reducing the workload and enabling faster processing.
Revised procedure: In furtherance to the above, another revision to procedure was made where, Adhoc Input-output norms may also be decided in a Rule-based IT environment without reference to Norms committee. However, a certain percentage of cases, as flagged by risk management system (RMS) may be referred to Norms Committee for validation and review.
In cases where ad-hoc norms have already been arrived by Norms committee, the committee may recommend Notification of SION on case-to-case basis.
Since the announcement of the new FTP in April 2023, several key processes have already transitioned to Rule-based automatic process.
migrated process include: a) Issuance & amendment of Importer-Exporter Code b) Issuance of Status holder certificates c) renewal of Registration-Cum-Membership Certificate d) functions related to Advance Authorizations e) certification for installation under the EPCG Scheme