The government on Saturday said that the extension of the export obligation (EO) period under the advance authorisation scheme for chemicals to 18 months will provide timely and much-needed relief to exporters of man-made fibre (MMF) textiles and technical textiles.
The Textile Ministry said the move will improve ease of doing business and enhance the competitiveness of Indian products.
On Thursday, the government announced that the EO period against imports of products subjected to mandatory quality norms by the chemicals ministry, under the advance authorisation scheme, has been extended from the existing six months to 18 months. The step comes at a time when the US has imposed steep 50 per cent tariffs on Indian goods.
”In respect of QCOs (quality control orders) notified by the Ministry of Textiles, the EO period under Advance Authorisation had already been extended from 6 months to 18 months. Together, these measures provide timely and much-needed relief to exporters of man-made fibre (MMF) textiles and technical textiles. These measures will improve ease of doing business as well as improve the competitiveness of Indian products,” an official statement said as reported by PTI.
The Advance Authorisation Scheme allows duty-free imports of inputs for use in physical exports, without the mandatory requirement of compliance with QCOs for such imports. This flexibility, according to the ministry, ensures the continued availability of critical raw materials for the textile industry and facilitates uninterrupted export performance.
Around 18 per cent of all Advance Authorisations are issued for the textile sector, underlining the importance of this facilitation measure, the ministry added.
The government on Thursday said the export obligation period against the import of products that are subjected to mandatory quality norms by the chemicals ministry, under advance authorisation scheme, has been extended from existing six to 18 months.
The move assumes significance as the US has imposed a steep 50 per cent tariffs on Indian goods entering the US market. According to exporters, the chemicals sector is also expected to get impacted from these high duties.
"The Export Obligation Period against the import of the products that are subjected to mandatory QCOs (quality control orders) by the Department of Chemicals and Petrochemicals, under Advance Authorisation has been extended from existing 06 months to 18 months," the directorate general of foreign trade (DGFT) said.
*With Agency Inputs
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