Import/Export

India expands its Special Advance Authorization Program to include the clothing industry

Published: April 4, 2023
Author: DIGITAL MEDIA EXECUTIVE

The Special Advance Authorization Program for the apparel and clothing industry has been extended by the Indian government as a part of the new Foreign Trade Policy 2023, which was unveiled today by the minister of textiles, commerce, and industry, Piyush Goyal. With the help of these vouchers, imports of inputs are permitted duty-free in exchange for benefits on exports.

Many accessories and other items are imported to be used in the production of clothing. The programme allows duty-free importation of components that are actually incorporated into export goods. Also, the use of packing materials, fuel, oil, and catalyst throughout the export product’s manufacturing process is authorised.

Norms specifically established for that export product are used to calculate the amount of inputs permitted for a certain product, taking considering the waste produced throughout the production process into consideration. Exporters may opt to submit their applications under one of the Standard Input-Output Norms (SION) listed by industry by the Directorate General of Foreign Trade (DGFT). If the SION does not meet their needs, exporters may even use their own ad hoc criteria.

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