Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, Maulana Azad Road, New Delhi
Policy – 4 Division

TRADE NOTICE NO. 10/2019-20

Date: 09 May 2019

To,
Members of Trade, Export Promotion Councils, RAs of DGFT

Subject: Low Usage of Self-Ratification scheme under para 4.07 A of the Foreign Trade Policy

As is already known that Government has notified a Self-Ratification scheme for Advance Authorization (under para 4.07 A of the FTP 2015-20) for Authorized Economic Operators (AEOs) in the interest of ease of doing business. The scheme allows Advance Authorizations to be taken on self declaration and self ratification basis for cases where Standard Input Output Norms (SION) is not notified, without the need of going through the process of norms fixation/ratification by the concerned Norms Committee (NCs).

2. Trade and Industry is being encouraged to avail this scheme by becoming AEOs as outlined by CBIC vide its circular no. 33/2016 dt. 22.07.2016, as amended, and by circular no. 26/2018 dt. 10.08.2018.

3. However, it is observed that in-spite of more than 3500 AEO already registered with CBIC, there are comparatively very few AEOs, who are using this scheme to get their advance authorizations.

4. All AEOs who are users of duty exemption scheme, are requested to make full use of Self Ratification Scheme. EPCs and RAs of DGFT are also requested to inform the concerned members of trade and disseminate information about this scheme during the interaction with the members so that the AEOs may increase the usage of this facility provided under para 4.07 A in order to reduce transaction time and costs.

This issue with the approval of competent authority.

Issued from File No. 01/94/180/284/AM19/PC-4

(Vijay Kumar)
Additional Director General of Foreign Trade