Advance Authorisation Scheme
- It allows duty-free import of inputs, which are physically incorporated in an export product.
- In addition to any inputs, packaging material, fuel, oil, and catalysts which is consumed/utilized in the process of production of export products, are also allowed.
- DGFT provides a sector-wise list of Standard Input-Output Norms (SION) under which the exporters may choose to apply.
- Alternatively, exporters may apply for their own ad-hoc norms.
- Advance Authorisation covers manufacturer exporters or merchant exporters tied to supporting manufacturer(s).
Quality Control Orders
- QCOs are regulatory measures introduced by the government to establish quality standards for specific products or product categories. These orders ensure that products meet prescribed quality, safety, and performance requirements before they can be manufactured, imported, stored, or sold in the country.
- The primary objective of QCOs is to prevent the import of sub-standard and cheaper items into the domestic market and to ensure that customers have access to quality products that meet necessary standards.
- QCOs cannot be challenged at the World Trade Organization (WTO) if they are imposed for reasons related to health, safety, environment, deceptive trade practices, or national security.
- To ensure compliance with the quality standards set forth in the QCOs, the Bureau of Indian Standards (BIS) play a crucial role.
- The textile industry has welcomed the relaxation of the mandatory Quality Control Order (QCO) for polyester fibre, filament yarn and spun yarn imported under the advance authorisation scheme by EoUs (Export Oriented Units) and SEZ industries.
- Southern India Mills’ Association (SIMA) said the Ministry of Chemicals and Fertilizers (Department of Chemicals and Petrochemicals) issued QCO for polyester staple fibres, various filament yarns and spun yarn; mandating every user to purchase the products only from BIS licence holders in local and export markets.
- QCOs have been in place for the Textile sector since April 2021.
- Applications submitted by foreign firms for licences were pending before the BIS authorities impacting exporters.
Dig Deeper: Read about QCOs issued by various ministries.
