- Why in news
- On 17 April 2026, the Commerce Ministry announced reforms to Norms Committees under DGFT to clear pending Advance Authorisation applications faster. Technical members rose from 12 to 22.
- What it is
- The Advance Authorisation and Duty-Free Import Authorisation (DFIA) schemes let exporters import inputs duty-free if the inputs are physically incorporated in export products. DGFT runs them under the Foreign Trade Policy. Authorisations follow Standard Input Output Norms (SION), and sector-specific Norms Committees fix norms where none exist.
- Administered by
- DGFT runs both the Advance Authorisation and DFIA schemes under the Foreign Trade Policy.
- What the schemes allow
- Duty-free import of inputs that are physically incorporated in export products.
- Basis of authorisation
- Authorisations are generally issued against notified SION. Where SION is absent, self-declared norms are examined and finalised by Norms Committees.
- Norms Committees
- Seven are operational under DGFT. They include technical authorities and domain experts from relevant Ministries.
- Capacity increase
- Ten more technical members were nominated, raising Technical Authorities from 12 to 22.
- Outcome
- From January to 7 April 2026, 38 meetings took up 3,925 cases and disposed of 1,770.
- No application or fee
- Exporters need not apply or pay any composition fee.
- Schemes covered
- Applies to Advance Authorisation, including Annual Requirement and Special Advance Authorisation, and to EPCG.
- Compliance check
- DGFT Regional Authorities verify EO compliance when issuing the EODC, or at closure or regularisation.
Don’t confuse with Advance Authorisation vs DFIA: Both allow duty-free import of inputs for exports under DGFT. DFIA is a separate authorisation scheme, so do not treat the two names as the same thing.
Don’t confuse with SION vs ad-hoc norms: SION are notified standard norms. Ad-hoc norms are fixed by Norms Committees when no SION exists.
Don’t confuse with Advance Authorisation vs EPCG: Advance Authorisation covers duty-free import of inputs used in export products. EPCG covers import of capital goods against an export obligation.
Don’t confuse with EO extension vs composition fee: The new extension is automatic and free. The existing FTP route lets exporters seek extensions on paying a composition fee.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Faster norms fixation cuts transaction costs and authorisation time for exporters, especially MSMEs.
- Predictable approvals support export competitiveness and ease of doing business.
- Eases cash flow and compliance stress for exporters hit by shipping disruptions.
- Avoids penalties and keeps exporters in the schemes during temporary shocks.
Problems
- A small pool of technical experts caused pendency, as members had overlapping duties.
- Self-declared norms need verification, which risks delay or misuse.
- Extension is temporary and covers only authorisations expiring in a fixed window.
- Underlying disruptions may last longer than August 2026.
Way forward
- Convert recurring cases into SION to reduce repeat approvals.
- Keep monitoring pendency and case ageing, and maintain adequate technical members.
- Monitor the situation and extend or tighten relief as needed.
- Strengthen logistics resilience and diversify export routes and markets.
Put in your answer
Pendency data: Between January and 7 April 2026, 1,770 of 3,925 cases taken up were disposed of.
Trade facilitation example: DGFT used an automatic, fee-free extension of export obligations as a response to geopolitical supply chain disruption.
- 2017Mains GS3 · Q2Why manufacturing failed labour-intensive exports; measures for labour-intensive exports.
- 2015Mains GS3 · Q10Issues hindering Special Economic Zones' success in taxation, governing laws, administration.
- 2025Mains GS3 · Q2Challenges to Indian economy from protectionism and bilateralism, and how to meet them.
- 2020Prelims Q56Which statements on TRIMS, including quantitative import restrictions and trade-related measures, are correct?
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Duty-free import schemes under Foreign Trade Policy are lasting topics, but this is a procedural reform; UPSC rarely asks about it.
Worth revising until Prelims 2027: most news questions come within two years of the event.