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New Foreign Trade Policy

News

  • Commerce and Industry Minister Nirmala Sitharaman unveiled the Prime Minister Narendra Modi-led government’s new Foreign Trade Policy (2015-2020).
  • The government’s new foreign trade policy (2014-19) to rev up exports is expected to be put in place by October-end and will have a strong thrust on manufacturing to bring it in sync with the Prime Minister Narendra Modi’s ‘Make in India’ goal.

Key Takeaways

  • Focus in Foreign Trade Policy is to support services and exports.
  • Have taken a number of very important initiatives.
  • Will focus on export of high value addition products.
  • Focussed on improving ease of doing business in new policy.
  • Challenge is to address infra bottlenecks, complex procedures, manufacturing.
  • Need to ensure local products and services are globally competitive.
  • Market diversification is a key focus of Foreign Trade Policy 2015-2020

 

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  • India to be made a significant participant in world trade by 2020.
  • Merchandize exports from India (MEIS) to promote specific services for specific Markets Foreign Trade Policy.
  •  FTP would reduce export obligations by 25% and give boost to domestic manufacturing.FTP benefits from both MEIS & SEIS will be extended to units located in SEZs.
  • Agricultural and village industry products to be supported across the globe at rates of 3% and 5% under MEIS. Higher level of support to be provided to processed and packaged agricultural and food items under MEIS.
  • Industrial products to be supported in major markets at rates ranging from 2% to 3%.
  •  Served From India Scheme (SFIS) will be replaced with Service Export from India Scheme (SEIS).
  • Branding campaigns planned to promote exports in sectors where India has traditional Strength.
  • SEIS shall apply to ‘Service Providers located in India’ instead of ‘Indian Service Providers’.
  • Business services, hotel and restaurants to get rewards scrips under SEIS at 3% and other specified services at 5%.
  • Duty credit scrips to be freely transferable and usable for payment of customs duty, excise duty and service tax.
  • Debits against scrips would be eligible for CENVAT credit or drawback also.
  • Nomenclature of Export House, Star Export House, Trading House, Premier Trading House certificate changed to 1,2,3,4,5 Star Export House.
  • The criteria for export performance for recognition of status holder have been changed from Rupees to US dollar earnings.
  • Manufacturers who are also status holders will be enabled to self-certify their manufactured goods as originating from India.
  • Reduced Export Obligation (EO) (75%) for domestic procurement under EPCG scheme.
  • Online procedure to upload digitally signed document by Chartered Accountant/Company Secretary/Cost Accountant to be developed.
  • Inter-ministerial consultations to be held online for issue of various licences.
  • No need to repeatedly submit physical copies of documents available on Exporter Importer Profile.
  • Validity period of SCOMET export authorisation extended from present 12 months to 24 months.
  • Export obligation period for export items related to defence, military store, aerospace and nuclear energy to be 24 months instead of 18 months.
  • Calicut Airport, Kerala and Arakonam ICDS, Tamil Nadu notified as registered ports for import and export.
  • Vishakhapatnam and Bhimavarm added as Towns of Export Excellence.
  • Certificate from independent chartered engineer for redemption of EPCG authorisation no longer required.
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