CITI welcomes the provisions for exempting inputs imported under AA, EOU & SEZ from mandatory QCOs

New Delhi, March 13, 2024: The Directorate General of Foreign Trade (DGFT) has taken steps to alleviate the burden on exporters operating under Advance Authorization (AA), Export Oriented Units (EOU), and Special Economic Zones (SEZ) by enabling provisions to exempt inputs from mandatory Quality Control Orders (QCOs) issued by the Ministry of Steel, DPIIT, and Ministry of Textiles.

Shri Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry, expressed gratitude for this initiative, highlighting the challenges faced by export houses reliant on imported inputs affected by the implementation of QCOs. “Since the inception of QCOs, CITI has consistently appealed to the Government for this exemption,” said Shri Mehra.

He elaborated on the efforts, stating, “The matter was brought to the attention of the Hon’ble Union Minister of Textiles, Shri Piyush Goyal, during meetings of the MMF Textile Advisory Group (TAG). Recognizing the issue’s significance in sustaining export performance and fostering growth, the Hon’ble Minister pledged full support. The industry commends him for facilitating this relief on time.”

Shri Mehra also emphasized the industry’s commitment to supporting the Government’s initiatives to enhance product quality. “The QCOs represent a positive step towards improving end-product quality, and the textile industry is dedicated to collaborating with the Government in their implementation, thus aligning Indian textile products with international standards,” he said.

Acknowledging the challenges posed by the demand-supply gap for certain raw materials not readily available domestically, Shri Mehra 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.