According to industry sources, the government has allowed Export Oriented Units (EOUs), Special Economic Zone (SEZ) units, and Advance Authorisation holders to import VSF without adhering to the QCO under pre-import conditions. Under the Advance Authorisation scheme, exporters are typically granted 18 months to re-export duty-free imported raw materials. While this timeline was initially applied to QCO-exempted imports as well, it was later shortened to 180 days.
Exporters had urged the government to restore the original 18-month period. Responding to the appeal, the government has now agreed to reinstate the extended timeline.
“We are delighted that our request for a relaxation in the export obligation period has been accepted by the authorities,” CITI chairman Rakesh Mehra said. “The step will prove immensely beneficial for companies as they will now get more time to discharge their export obligations.”
He pointed out that CITI has been working closely with the authorities on the issue of quality control orders (QCOs) to ensure their effective implementation.
ALCHEMPro News Desk (KUL)
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