February 23, 2023

Govt removes condition for Advance Authorisation for specified deemed exports

On 17th September 2021, the Government of India has revised the policy for Advance Authorisation Scheme for deemed exports. The government has removed the condition that limited the application of Advance Authorisation for specified deemed exports. This decision has been taken to promote the manufacturing and export of goods from India.

Under the Advance Authorisation Scheme, an exporter can import duty-free inputs that are required for the manufacture of export products. The duty exemption is only applicable when the finished goods are exported. This scheme helps in reducing the cost of manufacturing and making Indian products more competitive in the global market.

Specified deemed exports are those transactions where the goods do not leave the country physically but are meant for exports. For example, goods supplied to a manufacturer who is producing goods for export or goods supplied to a project that is being executed outside India. Earlier, the Advance Authorisation Scheme was available only for specified deemed exports. But now, the scheme has been extended to all categories of deemed exports.

This policy change will benefit the MSME sector and start-ups as they can now import inputs without paying duty and manufacture goods for all types of deemed exports. It will also encourage investment in the manufacturing sector and create employment opportunities. This will further help in achieving the ‘Atmanirbhar Bharat’ initiative that aims to make India self-reliant in the manufacturing sector.

The Directorate General of Foreign Trade (DGFT) has issued a public notice regarding this policy change. The interested exporters can apply for Advance Authorisation through the online portal of DGFT. The exporters have to submit the required documents and comply with the conditions mentioned in the policy.

The removal of the condition for Advance Authorisation for specified deemed exports is a positive step towards the growth of the manufacturing and export sector in India. It will help in boosting the ‘Make in India’ initiative and make Indian products more competitive in the global market.


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