DGFT Proposes Review To Amend Export Obligation Period For Certain Sectors

The Directorate General of Foreign Trade, an agency of the commerce ministry, on Tuesday suggested amendments to the export obligation period for sectors including spices, pharmaceuticals, and tea, aiming to boost outbound shipments.

The government has requested feedback from all relevant stakeholders on the proposed amendments within a 15-day period.

The government permits the duty-free import of inputs for manufacturing goods exclusively for export purposes under an advanced authorisation scheme, subject to an export obligation period.

During this period, exporters are required to ship goods within the designated timeframe, as failure to do so will incur penalties.

To amend the export obligation period, the directorate general of foreign trade (DGFT) has proposed to amend an appendix to the foreign trade policy's handbook of procedures for 2023.

According to the DGFT, there have been a lot of representations from export promotion councils (EPC) and exporters regarding the review of the appendix.

'This has been requested to facilitate exports and operate within a higher trust-based ecosystem. This directorate is proposing a review of the export obligation period as mentioned in Appendix 4J... All stakeholders are advised to provide their comments, suggestions, and views with regard to proposed amendments,' the DGFT said.

This appendix talks about the sectors and their respective export obligation periods.

The proposed changes include wheat, raw sugar, natural rubber, maize and walnuts in the list. Exports of wheat are banned in India at present.

DGFT has proposed amendments that extend the export obligation period for various commodities. The new periods are set as follows: spices for 12 months, coconut oil for 6 months (up from 90 days), silk in any form for 12 months (up from 9 months), and wheat, raw sugar, natural rubber, maize, and walnut each for 6 months.

(With Text Inputs From PTI)