Home India Ministry of Commerce and Industry Enabling provisions for import of inputs that are subjected ...
Date: 05-Nov-2024 Category: Extra Ordinary State: Union Government Country: India

Enabling provisions for import of inputs that are subjected to mandatory Quality Control Orders QCOs by Advance Authorisation holders EOU and SEZ regarding

Issued by Ministry of Commerce and Industry · Directorate General of Foreign Trade

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Executive Summary & Key Takeaways

Description of the Gazette Notification

  • This public notice from the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, amends Appendix 2Y of the Foreign Trade Policy (FTP) 2023. Appendix 2Y lists Ministries/Departments whose mandatory Quality Control Orders (QCOs) are exempted by the DGFT for goods used in manufacturing export products.
  • The amendment adds the Ministry of Heavy Industries to the list of exempted Ministries/Departments.

Key Changes

  • Addition of the Ministry of Heavy Industries to Appendix 2Y of the FTP 2023. This means that QCOs issued by the Ministry of Heavy Industries will now be exempted for inputs used in the manufacture of export products by Advance Authorisation holders, Export Oriented Units (EOUs), and Special Economic Zones (SEZs).
  • The amendment is effective immediately, following Notification No. 71/2023 dated March 11, 2024.

Impact Analysis

Impact on Exporters

  • Action Item: Exporters should review their supply chains to identify any potential benefits from this amendment. They may need to update their import procedures and documentation accordingly.

Impact on Importers

  • Action Item: Importers should review their export-oriented supply chains and update their procedures to take advantage of the exemption.

Impact on Government Agencies

  • Action Item: Relevant government agencies should update their internal procedures and guidelines to reflect the changes in Appendix 2Y.

Key Entities Referenced

Directorate General of Foreign Trade (DGFT): The issuing authority of the public notice, responsible for regulating foreign trade in India. Ministry of Commerce and Industry: The parent ministry under which the DGFT operates. Foreign Trade Policy (FTP) 2023: The overarching policy document governing India's foreign trade, which includes Appendix 2Y. Appendix 2Y of FTP 2023: A list of Ministries/Departments whose mandatory Quality Control Orders (QCOs) are exempted by the DGFT for inputs used in export manufacturing. Ministry of Heavy Industries: The newly added entity to the exempted list in Appendix 2Y. Notification No. 71/2023: The notification dated March 11, 2024, which forms the basis for the current amendment. Advance Authorisation holders, EOUs, and SEZs: Entities that benefit from the exemption on QCOs for inputs used in export manufacturing.
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