Low Usage of Self-Ratification Scheme under Para 4.07A of Foreign Trade Policy

Circular No.ES/42/2019-20                                  May 17, 2019                  

To: Members of the Council             

Sub:  Low Usage of Self-Ratification Scheme under Para 4.07A of Foreign Trade Policy

Dear Member,

This is to inform you that O/o DGFT has issued Trade Notice No. 10/2019-20 dated 9th May, 2019 requesting all Authorized Economic Operators (AEOs) who are users of duty exemption scheme to make full use of Self Ratification Scheme in order to reduce transaction time and costs.

SELF- RATIFICATION SCHEME

  • This scheme has been notified by the government for Advance Authorization (under para 4.07 A of the FTP 2015-20) for Authorized Economic Operators (AEOs) in the interest of ease of doing business.

  • The Scheme allows Advance Authorizations to be taken on self declaration and self ratification basis for cases where Standard Input Output Norms (SION) is not notified, without the need of going through the process of norms fixation/ratification by the concerned Norms Committee (NCs).

O/o DGFT has observed that in-spite of more than 3500 AEO already registered with CBIC, there are comparatively very few AEOs, who are using this scheme to get their advance authorizations. Hence, DGFT has requested the members of Trade to avail this scheme by becoming AEOs as outlined by CBIC vide its Circular No.33/2016 dated 22.07.2016, as amended, and by Circular No. 26/2018 dt. 10.08.2018.

Members may kindly make a note of the above and do the needful by making full use of Self Ratification Scheme.

Thanking you,            

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR