Special Advance Authorisation Scheme to boost apparel export
Under the scheme known as Special Advanced Authorisation Scheme, an exporter can get special advance authorisation for import of fabrics relevant to the export products, on the basis of standard input-output norms (SION) or prior fixation by the norms committee at the Directorate General of Foreign Trade (DGFT). The authorisation will be issued for the import of only the relevant fabrics, including inter-lining, as input. No other input, packing material, fuel, oil or catalyst will be allowed for import under this authorisation. However the exporters will be eligible for the All Industry Rate (AIR) of duty drawback for non-fabric inputs. The usual value addition has to be achieved. The scheme comes into effect from September 1.
The fabrics imported under the scheme will be subject to pre-import conditions and be physically incorporated in the export products (making normal allowance for wastage). The export obligation must be fulfilled through physical export only. The special advance authorisation and the fabrics imported cannot be transferred even after completion of export obligation. However, the fabrics imported may be transferred to job workers (other than in units located in areas eligible for area-based exemption from central excise duty) as permitted by the central excise authorities. Invalidation of the authorisation will not be permitted.
For full text of the notification No. 21/2015-20 dated 11.08.2016, Click here.