DGFT Notification: Mandatory Self-Ratification for Advance Authorizations

The Directorate General of Foreign Trade (DGFT) has recently refined the norms for the Advance Authorization Scheme to facilitate 'Ease of Doing Business' for exporters. By focusing on a self-ratification route, the government aims to reduce the time-consuming process of waiting for the Norms Committee to fix input-output ratios for new products. This mechanism allows Status Holders and certain experienced exporters to self-declare the waste and input requirements for their export products. Under the Foreign Trade Policy 2023 guidelines, this self-ratification is subject to post-export audit, ensuring that while the process is accelerated, compliance remains robust. This is particularly beneficial for manufacturers dealing with innovative products where Standard Input-Output Norms (SION) are not yet established. ## Key points for manufacturers As per DGFT Notification and Chapter 4 of the Foreign Trade Policy, exporters using the self-ratification path must maintain meticulous records of consumption. If the post-export audit finds any excess duty-free imports compared to the actual consumption, the exporter is liable to pay the difference in customs duty along with interest. Exporters should ensure that their technical descriptions and HSN codes are perfectly aligned with their shipping bills and bills of entry. We advise SME exporters to perform a self-audit of their input-output calculations before filing the application on the DGFT portal to avoid future reconciliation issues.