DGFT proposes to revise the export obligation period for certain sectors
The Commerce Ministry’s DGFT department on Tuesday proposed changing the export obligation period for certain sectors such as spices, pharmaceuticals and tea, with an aim to facilitate outbound shipments.
The government has sought comments from all concerned stakeholders on the proposed changes within 15 days.
The government allows the duty-free import of inputs used in the production of goods for export purposes only under an advanced authorization scheme, subject to the export obligation period.
Within this period, exporters must ship the goods within a certain period or risk fines.
To change the export obligation period, the Directorate General of Foreign Trade (DGFT) has proposed to amend an appendix to the Foreign Trade Policy Procedural Manual 2023.
According to the DGFT, there have been many protests from Export Promotion Councils (EPC) and exporters regarding the revision of the Annex.
“This has been requested to facilitate exports and operate within a more trust-based ecosystem. This Directorate proposes a revision of the export obligation period as mentioned in Annexure – 4J… All stakeholders are advised to share their comments/suggestions/viewpoints regarding the proposed changes,” the DGFT said.
This appendix discusses the sectors and their respective export obligation periods.
The proposed changes include wheat, raw sugar, natural rubber, corn and walnut in the list. Wheat exports are currently banned in India.
The DGFT, in the proposed amendments, has relaxed the obligation period for spices (12 months), coconut oil (6 months of 90 days), silk in any form (12 months of 9 months), wheat (6 months), raw sugar (6 months). months), natural rubber (12 months), corn (6 months) and walnut (6 months).
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
First print: June 19, 2024 | 12:46 pm IST