QCOs

DGFT Expands Exemption List for Quality Control Orders (QCOs) under Advance Authorization, EOU, and SEZ

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In line with recent updates to Quality Control Orders (QCOs) from various ministries and departments, the Directorate General of Foreign Trade (DGFT) has issued Public Notice No. 31/2024-25 dated 05th November 2024.

This notice amends Appendix-2Y, adding the Ministry of Heavy Industries to the list of ministries/departments exempted from mandatory QCO requirements for exports under Advance Authorization holders, EOUs, and SEZs.

With this addition, the Ministry of Heavy Industries is now included at Sr. No. 6 in the list, joining the Ministry of Steel, DPIIT, Ministry of Textiles, Ministry of Mines, and the Department of Chemicals & Petrochemicals (Sr. Nos. 1 to 5).

Exporters dealing with QCO requirements issued by the Ministry of Heavy Industries can now avail exemptions under this public notice by adhering to the existing guidelines.

For full details, please refer to the official public notice.

DGFT enables provision for Import of Inputs without QCOs under AA and EOU

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In a move to assist and enable exporters importing inputs without mandatory compliance under various Quality Control Orders (QCO) under AA or by EOU Units, the DGFT issued notification and added a new para 4.18A and amended para 6.07 (k).

The Notification No. 69/2023 Dated 07.03.2024 can be downloaded from the DGFT Website or link here: https://content.dgft.gov.in/Website/dgftprod/4c0e420c-70dd-488f-8b88-5b9a7347bad2/Noti69%20eng.pdf

The Conditions to be fulfilled for the exemption under AA are:

1. Import without compliance to mandatory QCOs will be subject to Pre-Import Condition

2. Exemption from Mandatory QCOs will be specifically endorsed on AA upon request of the AA holder.

3. Inputs imported with mandatory QCOs will not be transferred to DTA event after regularization of export default.

4. If unutilized, required procedure of destruction and duty payment with interest needs to be followed.

5. Exemption from QCO will be available only for Physical Exports and not for Deemed Exports.

6. Facility of Clubbing is not available for these authorisations.

Also, the Notification amends the para 4.24 of FTP not allowing Import of Inputs without mandatory QCOs under DFIA.

For EOUs, amendment is done to para 6.07 to allow import of inputs without mandatory QCOs subject to conditions and undertakings.

DGFT has also issued Public Notice No. 47/2023 dated 07.03.24 which notified Appendix 2Y which provides list of Ministries/Departments who’s notification on Mandatory QCOs are exempted by the above notification.

Currently 2 Ministry / Departments are notified
1. Ministry of Steel (Mos)
2. Department of Promotion and Industry and Internal Trade (DPITT)

Public Notice can be downloaded from the link here:
https://content.dgft.gov.in/Website/dgftprod/e345325b-70a9-4796-ba24-183fc0bcb8be/PN47%20eng.pdf

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