To design the support measures for exporters, the government has asked them to submit details of non tariff measures (NTB) they face across global markets.
Under the Export Promotion Mission (EPM) approved on November 12 by the Cabinet, the government has proposed support for export quality and technical compliances. This would involve the government bearing the costs of testing, certification, and audits required to meet global standards.
What the DGFT notification say?
“As part of designing the Support for Export Quality and Technical Compliance, the Directorate General of Foreign Trade (DGFT) is undertaking a comprehensive mapping of mandatory and voluntary Non-Tariff Measures (NTMs), including certifications, testing requirements, inspections, audits, labelling norms, and other regulatory compliance conditions,” a trade notice said.
“To build an accurate and actionable database, exporters, Export Promotion Councils, Commodity Boards, and Industry Associations are requested to furnish information on relevant NTMs and certification requirements,” the notice added. Seven says have been provided to the exporters’ bodies to submit their response.
What would be required from the exporting organisations?
The export organisations would be required to submit the name and nature of the certification, inspection and testing. Whether mandatory or voluntary and the sectors it impacts. They will also have to mention the approximate cost and validity, and the country or region where it is applicable.
The DGFT has also asked for the list of recognised labs or certifying bodies and any additional compliance challenges faced by exporters.
“Non-submission may result in the relevant certifications or NTMs not being prioritised in the creation of the database, which may consequently affect future support measures proposed under the EPM or other interventions,” the notice by DGFT said.
To reduce the cost of credit for exporters and help them access overseas markets that are facing unprecedented turmoil the government approved a Rs 25060 crore EPM that will run for six years till 2030-31.
The mission has two components – Niryat Protsahan and Niryat Disha. The outlay for Niryat Protsahan is Rs 10,401 crore while for Niryat Disha Rs 14,659 crore has been kept aside.
Niryat Protsahan is for reducing the cost of credit. It provides for interest subvention for Micro Small and Medium Exporters.
In Niryat Disha components of the mission support to exporters will be for market access. The government will bear the cost of testing, certification and audits required to meet the multiple standards that are imposed by importing countries. The outlay under Niryat Disha will also support participation in international trade delegations, buyer-seller meets and product demonstrations for both goods and services.
