DGFT Enables Automated Issuance of Free Sale and Commerce Certificates to Promote Ease of Doing Business

Key Highlights:

• The Directorate General of Foreign Trade (DGFT) has enabled automated issuance of Free Sale and Commerce Certificates (FSC).
• This initiative aims to promote Ease of Doing Business for the exporting community.
• FSCs are issued to exporters for items not covered under the Drugs & Cosmetics Act, 1940.
• The automated system will reduce processing time and lower the compliance burden for eligible applications.

Detailed Insights:

• Previously, FSCs were issued manually by Regional Authorities (RAs) of DGFT after scrutiny and verification.
• The new mechanism allows for automatic issuance of eligible applications without manual routing.
• Applications requiring verification or not meeting automated parameters will still be processed manually by RAs.
• Certain auto-approved applications may be flagged for review under the system's risk management parameters.
• The measure is expected to improve predictability, facilitate faster issuance, and enhance transparency for exporters.

Key Concepts Involved:

• Directorate General of Foreign Trade (DGFT): Principal government body responsible for formulating and implementing India's Foreign Trade Policy.
• Free Sale and Commerce Certificates (FSC): Documents issued to exporters confirming that their products are freely sold in India and meet quality standards.
• Ease of Doing Business: A government initiative to simplify regulations and procedures, making it easier for businesses to operate.
• Drugs & Cosmetics Act, 1940: Indian legislation regulating the import, manufacture, distribution, and sale of drugs and cosmetics.