Request a Demo
On June 6, 2024, India's Directorate General of Foreign Trade (DGFT) released the Public Notice No.10/2024-25 to exempt mandatory Quality Control Orders (QCOs) for import of chemicals notified by the Department of Chemicals & Petro-chemicals (DCPC) meant solely for export. This exemption applies to Advanced Authorization Holders and Export Oriented Unit (EOUs).
As per the Foreign Trade Policy 2023, Advanced Authorization is issued to allow duty free import of input, which is physically incorporated in export product (making normal allowance for wastage). It can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer. “EOU” means Export Oriented Unit for which a letter of permit has been issued by Development Commissioner.
Regulatory Background
On March 7, 2024, DGFT has released the Notification No. 47/2023 to create a list of Ministries/Departments whose notifications on mandatory QCOs are exempted for import meant solely for export purposes (Appendix 2Y) for Advanced Authorization Holders and EOUs.
As amended by Public Notice No. 10/2024-25, the Appendix 2Y now adds the Department of Chemicals & Petro-chemicals to the list. The revised list is provided below:
| SL.No. | Name of Ministries/ Department |
| 1. | Ministry of Steel |
| 2. | Department for Promotion of Industry and Internal Trade (DPIIT) |
| 3. | Ministry of Textiles |
| 4. | Ministry of Mines |
| 5. | Department of Chemicals & Petro-chemicals (DCPC) |
Benefits to Chemical Industries
The Department of Chemicals and Petrochemicals, which oversees the QCOs for 66 chemicals under the Bureau of Indian Standards (BIS) Act & Regulations. Specifically, 63 chemicals fall under Scheme-I (ISI Scheme), while 3 chemicals are categorized under Scheme-II (CRS). This means that the mandatory QCOs for these 66 chemicals may be exmept if solely for export.
In an effort to enhance chemical exports of Indian chemicals industries, this initiative shall waive mandatory QCOs for imported chemicals intended exclusively for export purposes for Advance Authorization holders and EOUs.
Contact Us
If you encounter any difficulties regarding the clarification on exemption of mandatory QCOs for export purposes, please do not hesitate to contact us at [email protected].
