Aiming to nearly double India’s exports of goods and services to USD 900 billion by 2020, the commerce ministry on 1st April 2015 announced its new Foreign Trade Policy (2015-2020):
- Reduced Export Obligation (EO) for domestic procurement under EPCG.
- MEIS to promote specific services for specific Markets Foreign Trade Policy.
- Visakhapatnam and Bhimavaram in Andhra Pradesh recognised as Towns of Export Excellence.
- FTP would reduce export obligations by 25% and give boost to domestic manufacturing.
- MEIS (Merchandise Exports from India Scheme) and Services Exports from India Scheme (SEIS) incentives to be provided to units based 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).
- SEIS shall apply to ‘Service Providers located in India’ instead of ‘Indian Service Providers’.
- Calicut Airport, Kerala and Arakonam ICDS, Tamil Nadu notified as registered ports for import and export.
- Certificate from independent chartered engineer for redemption of EPCG authorisation no longer required.
- 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.
- 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.
CLICK HERE TO DOWNLOAD FOREIGN TRADE POLICY 2015-20
