June 22, 2024

Exporters Under AA, EOU & SEZ Exempted From Mandatory QCO

The Directorate General of Foreign Trade (DGFT) has taken steps to alleviate the burden on exporters operating under Advance Authorisation (AA), Export Oriented Units (EOU), and Special Economic Zones (SEZ).

DGFT has done this by enabling provisions to exempt inputs from mandatory Quality Control Orders (QCOs) issued by the Ministry of Steel, DPIIT, and Ministry of Textiles.

“Since the inception of QCOs, CITI has consistently appealed to the Government for this exemption,” Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI) said.

“The matter was brought to the attention of the Minister of Textiles Piyush Goyal during meetings of the MMF Textile Advisory Group (TAG),” he added.

“Recognising the issue’s significance in sustaining export performance and fostering growth, the Textile Minister pledged full support and we commend him for facilitating this relief on time,” Mehra stated.

Mehra also emphasised the industry’s commitment to supporting the Government’s initiatives to enhance product quality.

According to the CITI Chairman, QCOs represent a positive step towards improving end-product quality, and the textile industry is dedicated to collaborating with the government in their implementation.

He also acknowledged the challenges posed by the demand-supply gap for certain raw materials not readily available domestically and underscored the significance of the exemption provisions.

“These exemptions will offer much-needed relief to exporters under AA, EOU & SEZ, laying a robust foundation for achieving the target of US$ 100 billion textile & apparel exports by 2030,” he concluded.

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