The Directorate-General for Foreign Trade (DGFT) implements the prior authorization scheme as part of the foreign trade policy, which allows for the duty-free import of inputs for export purposes. The eligibility of inputs is determined by the Sectoral Standards Committees on the basis of the input-output standards.
To make the standard-setting process more efficient, the DGFT has created an easy-to-use and searchable database of Ad-hoc Standards set in previous years. These standards can be used by any exporter without requesting a standards committee review, as outlined in the Foreign Trade Policy 2023. The database is hosted on the DGFT website (https://dgft.gov.in) and allows users to search using Export or Import Item Description, Specifications or Indian Tariff Classification ITC (HS) Codes.
To access the database, the exporter or the public can visit the DGFT website at Services –> Prior Authorization/DFIA –> Ad Hoc Rules. If an ad-hoc policy matches the item description, specifies waste, and complies with provisions outlined in the Handbook of Practices (HBP), applicants may choose to seek prior authorization on a ‘repetition without policy’ basis. This option allows users to obtain prior authorization without reapplying to the Regulatory Committee, reducing workload and allowing for faster processing, subject to provisions as outlined in FTP/HBP.
This trade facilitation measure simplifies the pre-authorization and standard-setting process, resulting in shorter delivery times for exporters, easier doing business and reduced compliance burdens.
