Latest Policy

Salient features of Foreign Trade Policy 2015-2020 announced on April 1, 2015.
  1. The Foreign Trade Policy (FTP) comes into force with effect from 01.04.2015 and shall remain in force up to 31st March, 2020, unless otherwise specified.

  2. Government has focused on cutting down the transaction time and cost thereby rendering Indian exports more competitive.

  3. MSME clusters’ have been identified, based on the export potential of the product and the density of industries in the cluster, for focussed interventions to boost exports.

  4. Outreach activities shall be organized in a structured way with the help of Export Promotion Councils as ‘industry partners’ and other willing ‘knowledge partners’ in academia and research community to achieve the objective of Niryat Bandhu Scheme.

    Forthcoming e-Governance Initiatives are:

    (i) Message exchange for transmission of export reward scrips from DGFT to Customs.
    (ii) Message exchange for transmission of Bills of Entry (import details) from Customs to DGFT.
    (iii) Online issuance of Export Obligation Discharge Certificate (EODC).
    (iv) Message exchange with Ministry of Corporate Affairs for CIN & DIN information.
    (v) Message exchange with CBDT for PAN.
    (vi) Acceptance of payment through debit / credit card for payment of application fee under FTP.
    (vii) Open API for submission of e-IEC application.
    (viii) Mobile Applications for FTP.

  5. Single Window in Customs: To facilitate trade, the importer and exporter would lodge their clearance documents at a single point only. Required permission if any, from other regulatory agencies would be obtained online without the trader having to approach these agencies. This would reduce interface with Governmental agencies, dwell time and cost of doing business.
  6. Only one IEC is permitted against on Permanent Account Number (PAN). If any PAN card holder has more than one IEC, the extra IECs shall be disabled.
  7. Mandatory documents required for export of goods from India:
    (a) Bill of Lading/Airway Bill
    (b) Commercial Invoice cum Packing List*
    (c) Shipping Bill/Bill of Export
  8. Merchandise Exports from India Scheme (MEIS): A new scheme merging 5 different schemes (Focus Product Scheme, Market Linked Focus Product Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, VKGUY) MEIS has been notified. Exports of notified goods/products with ITC[HS] code, to notified markets as listed in Appendix 3B, shall be rewarded under MEIS. Duty Credit Scrips shall be granted as rewards under MEIS and SEIS. Duty Credit Scrips and goods imported / domestically procured against them shall be freely transferable.Exports of Handloom products bearing notified ITC HS codes are eligible for 5% of duty credit scrip to traditional markets (30 nos.), emerging & focus markets (139 nos.) and other markets (30 nos.).Exports of Handloom products through courier or foreign post office using e-commerce platform are eligible for benefit under MEIS.
  9. Status Holder:Status Holders are business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade.

    StatusCategory

    ExportPerformance

    FOB/FOR(asconverted)

    Value(inUS$million)

    One Star Export House

    3

    Two Star Export House

    25

    Three Star Export House

    100

    Four Star Export House

    500

    Five Star Export House

    2000

    The exports by IEC holders under the following categories shall be granted double weightage for calculation of export performance for grant of status.

    a. Micro, Small & Medium Enterprises (MSME) as defined in Micro, Small & Medium Enterprises Development (MSMED) Act 2006.
    b. Manufacturing units having ISO/BIS.
    c. Units located in North Eastern States including Sikkim and Jammu & Kashmir.
    d. Units located in Agri Export Zones.

    Double Weightage shall be available for grant of One Star Export House Status category only.

    Full text of Foreign Trade Policy 2015-2020 available at www.dgft.gov.in

Highlights of Union Budget 2015-16

Highlights of Union Budget for the year 2015-16 presented in the Parliament on February 28, 2015. Features having relevance to export sector in general are as follows:

Funding the Unfunded
  • MUDRA Bank will be responsible for refinancing all Micro-finance Institutions which are in the business of lending to such small entities of business through a Pradhan Mantri Mudra Yojana.
  • A Trade Receivables discounting System (TReDS) which will be an electronic platform for facilitating financing of trade receivables of MSMEs to be established.
  • Comprehensive Bankruptcy Code of global standards to be brought in fiscal 2015-16 towards ease of doing business.
  • Postal network with 1,54,000 points of presence spread across villages to be used for increasing access of the people to the formal financial system
Infrastructure
  • Ports in public sector will be encouraged, to corporatize, and become companies under the Companies Act to attract investment and leverage the huge land resources.
  • An expert committee to examine the possibility and prepare a draft legislation where the need for multiple prior permission can be replaced by a pre-existing regulatory mechanism. This will facilitate India becoming an investment destination.
Financial Market
  • Forward Markets commission to be merged with SEBI
  • Section-6 of FEMA to be amended through Finance Bill to provide control on capital flows as equity will be exercised by Government in consultation with RBI.
  • India Financial Code to be introduced soon in Parliament for consideration.
  • Vision of putting in place a direct tax regime, which is internationally competitive on rates, without exemptions.
  • Government to bring enabling legislation to allow employee to opt for EPF or New Pension Scheme. For employee’s below a certain threshold of monthly income, contribution to EPF to be option, without affecting employer’s contribution.
Tourism
  • Visas on arrival to be increased to 150 countries in stages.
Skill India
  • Less than 5% of our potential work force gets formal skill training to be employable. A national skill mission to consolidate skill initiatives spread across several ministries to be launched.
  • An autonomous Bank Board Bureau to be set up to improve the governance of public sector bank.
Tax Proposal
  • Efforts on various fronts to implement GST from next year.
  • Proposal to reduce corporate tax from 30% to 25% over the next four years, starting from next financial year.
  • Rationalisation and removal of various tax exemptions and incentives to reduce tax disputes and improve administration.
Broad themes:
  • Job creation through revival of growth and investment and promotion of domestic manufacturing – “Make in India”.
  • Improve ease of doing business – Minimum Government and maximum governance.
Make in India
  • Revival of growth and investment and promotion of domestic manufacturing for job creation.
  • Basic Custom duty on certain inputs, raw materials, inter mediates and components in 22 items, reduced to minimise the impact of duty inversion.
Ease of doing business – Minimum Government Maximum Governance
  • Simplification of tax procedures.
  • Penalty provision in indirect taxes are being rationalised to encourage compliance and early dispute resolution.
  • Central excise/Service tax assesses to be allowed to use digitally signed invoices and maintain record electronically.
  • Tax Administration Reform Commission (TARC) recommendations to be appropriately implemented during the course of the year.
  • Online central excise and service tax registration to be done in two working days.
  • Time limit for taking CENVAT credit on inputs and input services increased from 6 months to 1 year.
  • Service-tax plus education cesses increased from 12.36% to 14% to facilitate transition to GST.
Swachh Bharat
  • Services by common affluent treatment plant exempt from Service-tax.
Others
  • Service-tax exemption:
  • Transport of goods for export by road from factory to land customs station.
  • Enabling provision made to exclude all services provided by the Government or local authority to a business entity from the negative list.
Full text of the budget available at http://indiabudget.nic.in/index.asp.
All Industry Rates of Duty Drawback

Revised All Industry Rates of Duty Drawback has been announced and the rate revision is effective from 15.11.2016. Members may download the complete schedule from the link http://www.cbec.gov.in/resources//htdocs-cbec/customs/dbk-schdule/dbk-sch2016.pdf

Interest equalization scheme (earlier known as interest subvention scheme)

Interest Equalisation scheme is now extended for another five years with effect from 1st April, 2015, on Pre & Post Shipment Rupee Export Credit. Members may download from the link http://pib.nic.in/newsite/PrintRelease.aspx?relid=131591 for complete information.