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19 August 2016

Special Advance Authorisation Scheme for export of apparels, introduced

Special Advance Authorisation Scheme for promotion of export of apparel articles and clothing accessories of Chapter 61 or 62 of ITC (HS) has been introduced. Notification No. 21/2015-20, dated 11-8-2016 issued by Directorate General of Foreign Trade (DGFT) in the Indian Ministry of Commerce, inserts Para 4.04A in the Foreign Trade Policy 2015-20, with effect from 1-9-2016.
 
The scheme allows duty-free import of input fabric, including interlining, by actual users for the purpose of use in export of articles of apparel and clothing accessories. It may be noted that these imports have to be based on Standard Input-Output Norms (SION) prescribed by the DGFT or under prior fixation of norms for fabric only. Further, such authorisation, including fabric imported using the authorisation, are non-transferable.
 
Drawback, both All Industry Rate (AIR) and Brand Rate, would also be available for non-fabric inputs used in such exports. Notification Nos. 45/2016-Cus. and 110/2016-Cus. (N.T.), both dated 13-8-2016, have been issued by the Indian Ministry of Finance to make the scheme effective from 1st of September and to amend the AIR Drawback Schedule to provide for alternate AIRs.
 
CBEC Circular No. 37/2016-Cus., dated 13-8-2016 in this regard further clarifies certain declarations to be made in the shipping bills for such physical exports.

 

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