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Corporate Laws Central Ministry of Commerce and Industry Foreign Trade (Development and Regulation) Act, 1992

Enabling provisions for import of inputs that are subjected to mandatory Quality Control Orders (QCOs) by Advance Authorisation holders and EOU-reg

07-Mar-2024 | Notification No.69/2023

DGFT has issued notification on enabling provisions for import of inputs that are subjected to mandatory Quality Control Orders (QCOs) by Advance Authorisation holders and EOU. By virtue of this notification para 4.18A is inserted i.e Importability of items under Advance Authorisation without mandatory Quality Control Orders (QCOs). Key highlights;- Import of Inputs under Advance Authorisation, without compliance to the mandatory QCOS, shall be subjected to the following conditions: (i) Import of inputs under the Advance authorisation without compliance to the mandatory QCOs shall be with pre-import condition. Such inputs shall be utilised in the manufacturing of the export product (making normal allowance for wastage) and shall be exported under the same authorisation. (ii) Exemption from mandatory QCOS shall be specifically endorsed in the Advance authorisation, upon the request of the authorisation holder. Imports under Authorisation without specific endorsement of exemption shall be made in accordance with mandatory QCOS. (iii) Any unutilised imports or the products manufactured with inputs imported without compliance to the mandatory QCOs, shall not be transferred to DTA, even after regularisation of default in fulfilment of export obligation. For the purpose of this para, unutilised imports means imported inputs (without compliance of mandatory QCOs) which have not been accounted for, as per SION/Ad-hoc Norms, in the product exported under the same authorisation.

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