DGFT implements automated system for adhoc input-output norms fixation

The commerce ministry's arm DGFT on Thursday said it has implemented an automated system for adhoc input-output norms fixation for goods, with a view to promote ease of doing business for exporters.

Exporters are allowed to import duty-free raw material or inputs for manufacturing goods for exports purposes only under an advance authorisation scheme. For this scheme, the Directorate General of Foreign Trade (DGFT) has fixed standard input-output norms for almost all categories of products.

Depending on these norms, a license is issued for duty-free imports. For example, if 10 Kg steel is required to make a 100 meter long pipe, license will be given under the scheme for duty-free import of 12 kg of steel as there would be some wastages also in the manufacturing process.

DGFT provides a sector-wise list of Standard Input-Output Norms (SION), under which exporters may choose to apply for the license.

Alternatively, exporters may apply for their own adhoc norms in cases where the SION does not suit the exporter.

"In line with ongoing efforts to modernize and streamline foreign trade procedures, adhoc 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," the ministry said in a statement.

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 policy framework.

These improvements encompass post-issuance audit capabilities and risk mitigation functions, it said.