DGFT rolls out Faceless Automation system to fix Input-Output Norms for exporters

In line with ongoing efforts to modernise and streamline foreign trade procedures the Directorate General of Foreign Trade (DGFT) has decided that ad-hoc Input Output Norms will be determined through a rule-based, system-driven process, aimed at improving the ease of doing business for exporters, the Commerce Ministry said on Thursday.

The DGFT administers the Advance Authorisation Scheme of the Foreign Trade Policy, facilitating duty-free import of inputs for export production, which includes replenishment of inputs or duty remission. 

The eligibility of inputs is determined by sector-specific Norms Committees based on input-output norms.

The switch to faceless automation aligns with a broader policy shift towards a facilitating regime that embraces technological interfaces and collaborative principles, according to the Ministry's statement.

The DGFT is actively pursuing similar automation initiatives for other Foreign Trade Policy processes and procedures, emphasizing its commitment to modernisation and efficiency enhancement in trade facilitation.

Since the announcement of the new Foreign Trade Policy in April 2023, the DGFT has been actively revamping its systems to expand automated, rule-based processes under the FTP framework. 

These improvements encompass post-issuance audit capabilities and risk mitigation functions. 

Notably, several processes, including the issuance and amendment of Importer-Exporter Code (IEC), issuance of Status Holder Certificates, renewal of RCMC, and the issuance, revalidation, extension, and invalidation of Advance Authorizations, as well as certification for installation under the EPCG Scheme, are already being conducted through a Rule-Based Automatic process.