Upon mid-term review the Central Government on December 5, 2017 released revised Foreign Trade Policy 2015-20 (“the FTP”)
Key changes brought in the FTP now are summarized below.
1. Merchandise Exports from India Scheme (“MEIS”)
- Rate of reward under MEIS for specified products listed in Table 2 to Appendix 3B of the FTP increased by 2%, which will be applicable for exports undertaken from November 1, 2017 to June 30, 2018.
- Table 3 added to Appendix 3B specifying ineligible export categories/ sectors under MEIS.
2. Service Exports from India Scheme (“SEIS”)
- Note 1 to Appendix 3D of the FTP amended to extend services export and rates of rewards under SEIS from April 1, 2017 to March 31, 2018
- Rate of reward under SEIS for specified service appended to Appendix 3D of the FTP increased by 2%, which will be applicable for service exports undertaken from November 1, 2017 to June 30, 2018
- Note 5 added to Appendix 3D of the FTP specifying ineligible export categories/ sectors under SEIS
- List of services where payment received in Indian Rupees, which can be treated as receipt in Deemed Foreign Exchange as per guidelines of Reserve Bank of India, expanded to include ‘Ground Handling Services’
3.Trust based self ratification scheme
- New trust based self-ratification scheme introduced under Advance Authorisation enabling duty free inputs for export production where no SION/ valid Adhoc Norms specified, or where SION notified but exporter intends to use additional inputs in manufacturing process
- The scheme initially be available to Authorised Economic Operators
- The scheme not available to certain specified export products/ inputs listed in Paragraph 4.07A of the FTP
- Re-export of imported goods found defective and unsustainable for use allowed.
5.Export Oriented Units (“EOUs”)
- The concept of DTA sale from EOUs on concessional and full duty removed along with limit of entitlement of DTA sale. EOU units now allowed to sell all finished goods manufactured by them in DTA as specified in LOP
- Restriction on DTA sale of motor cars, alcoholic liquors, books and tea removed
- Requirement for obtaining procurement certificate in relation to inter-unit supply done away with.
DISCLAIMER: The Information contained in this article is of a general nature and does not constitute a professional advice on the FTP. Before taking any decision based on above information, please consult relevant Notifications and Public Notices.