DGFT Enhances Norm Fixation Process: Streamlining Trade Operations

Streamlining Norm Fixation Process: DGFT Issues Public Notice

The Directorate General of Foreign Trade (DGFT) has issued Public Notice No. 15/2023 dated March 14, 2024, introducing amendments to Para 4.06 and Para 4.14 of the Handbook of Procedures 2023 (HBP 2023). These amendments aim to enhance the efficiency of the process for fixing norms and notifying new Standard Input-Output Norms (SIONs) under the Advance Authorisation Scheme, thereby promoting ease of doing business and facilitating trade.

Amendments to Para 4.14: Rule-Based Decision Making

Under Para 4.14 of HBP 2023, a new sub-para (iii) has been added, allowing for the determination of Ad-hoc Input-Output Norms in a rule-based IT environment without the involvement of the Norms Committee. However, a certain percentage of cases flagged by the Risk Management System (RMS) may still be referred to the Norms Committee for validation or review.

Insertion of Sub-Para in Para 4.06: Case-Specific Recommendations

A new sub-para 4.06 (vii) has been inserted in HBP 2023, stipulating that in cases where ad-hoc norms have already been established by the Norms Committee, the committee may recommend the notification of SION on a case-to-case basis.

Impact of the Public Notice

The amendments to Para 4.06 and Para 4.14 of HBP 2023 represent a significant step towards streamlining and automating the process of norm fixation and SION notification under the Advance Authorisation Scheme. By leveraging rule-based decision-making and enabling case-specific recommendations, these changes aim to enhance ease of doing business and facilitate smoother trade operations. Through this Public Notice, the DGFT underscores its commitment to fostering a more efficient and transparent regulatory framework, conducive to the needs of businesses engaged in international trade.