Local Sale of Duty-Exempt Imports Violates Export Obligations under Advance Authorization: Delhi HC

The Delhi High Court ruled that the local sale of duty-exempt imports violates export obligations under the Advance Authorization Scheme. The case involved a company that had imported goods duty-free for the purpose of manufacturing products for export but had sold them locally instead. The Advance Authorization Scheme allows duty-free imports for the purpose of export production, and the court emphasized that using the goods for local sales was a breach of the conditions. The ruling serves as a reminder to businesses involved in such schemes that they must strictly adhere to export obligations and conditions set forth in the Foreign Trade Policy. The decision is expected to reinforce the integrity of India’s export promotion programs.