DGFT Notification: Mandatory Self-Ratification for Advance Authorization 2024
DGFT simplifies the Advance Authorization process through a new self-ratification scheme for Status Holders and specific authorized exporters in 2024.
The Directorate General of Foreign Trade (DGFT) has further streamlined the ease of doing business by enhancing the Self-Ratification Scheme under the Advance Authorization framework. This allows certain categories of exporters to bypass the Norms Committee when Standard Input-Output Norms (SION) are not fixed. The move is intended to reduce the turnaround time for obtaining export authorizations, enabling manufacturers to fulfill urgent international orders without delay.
What this means for exporters
As per DGFT Notification guidelines, the self-ratification facility is primarily available to Authorized Economic Operators (AEOs) and Status Holders. Under this route, exporters can calculate the required quantity of duty-free inputs based on their internal consumption data, provided it is certified by a Chartered Engineer. This initiative places greater trust on the exporter while maintaining accountability through post-export audits.
Furthermore, by utilizing the DGFT online portal for self-ratification, exporters can significantly reduce the administrative burden of waiting for SION fixation. It is crucial, however, to maintain meticulous records of input-output ratios, as the DGFT reserves the right to verify the consumption details at a later stage. We recommend that exporters review their AEO status to take full advantage of this expedited clearance process for raw material imports.