DGFT implements system-driven rule based Faceless Automation for ad-hoc Input Output Norms Fixation

NEW DELHI : In line with ongoing efforts to modernize and streamline foreign trade procedures the Directorate General of Foreign Trade (DGFT) has decided that 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. These changes align with a broader policy shift towards a facilitating regime that embraces technological interfaces and collaborative principles.

To further streamline and automate the process of establishing ad-hoc Norms and notifying new Standard Input-Output Norms (SION) under the Advance Authorisation scheme, DGFT previously announced an amendment through Public Notice No. 51/2023 dated 14.03.2024, amending para 4.14 and 4.06 of the Handbook of Procedures 2023. These amendments aim to enhance the ease of doing business and trade facilitation.

Moreover, DGFT is actively pursuing similar automation initiatives for other Foreign Trade Policy processes and procedures, emphasizing its commitment to modernization and efficiency enhancement in trade facilitation.

DGFT administers the Advance Authorisation Scheme of the Foreign Trade Policy, facilitating duty-free importation of inputs for export production, which includes replenishment of inputs or duty remission. The eligibility of inputs is determined by sector-specific Norms Committees based on input-output norms.

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 FTP framework. These improvements encompass post-issuance audit capabilities and risk mitigation functions. Notably, several processes, including the issuance and amendment of Importer-Exporter Code (IEC), issuance of Status Holder Certificates, renewal of RCMC, and the issuance, revalidation, extension, and invalidation of Advance Authorizations, as well as certification for installation under the EPCG Scheme, are already being conducted through a Rule-Based Automatic process.