Duty Free Quota Free Scheme

Duty Free Quota Free Scheme

News: According to a report by the LDC Group at the World Trade Organization (WTO), approximately 85% of the 11,000 products offered at zero tariffs by India to least developed countries (LDCs) under the duty-free quota-free (DFQF) scheme remain unutilized.

About:
 The Scheme requires all developed and developing country members to provide preferential market access for all products originating from all LDCs.
 The decision to provide duty-free quota-free (DFQF) access for LDCs was first taken at the WTO Hong Kong Ministerial Meeting in 2005.
 India became the first developing country to extend this facility to LDCs in 2008, providing market access to 85% of India’s total tariff lines to better integrate LDCs into the global trading system and improve their trading opportunities.
 The scheme was expanded in 2014, providing preferential market access on over 98% of India’s tariff lines to LDCs. India offers 11,506 preferential tariff lines to LDCs, of which 10,991 are duty-free.

Why Low utilization?
 Lack of awareness among exporters about the scheme and its benefits.
 Incomplete or inaccurate data regarding utilization rates.
 Significant amounts of LDC exports entering India under non-preferential (most favoured nation) tariff route, despite being covered by DFQF.