Foreign Trade Consulting

We offer complete consultancy on foreign trade policy and procedure. This includes advising, preparing, submission and obtaining the following benefits from the concerned regional licensing authorities:

Highlights of mid-term review of foreign trade policy 2015-20 effective from 05.12.2017

This is for your information that Department of Commerce under Ministry of Commerce & Industries of Govt. of India has released mid-term review of Foreign Trade Policy 2015-20 on 05th Dec 2017; highlights of the same are given hereunder for your information.

1. Merchandise Exports From India Scheme (MEIS)

Incentives for two Sub-sectors of textiles i.e. readymade garments & made ups increased from 2% to 4%. Now, the MEIS incentives available at 2, 3, 4 and 5% of the FOB value of Exports to promote export of notified goods manufactured/produced in INDIA.

Incentives for exports by MSMEs/Labour intensive industries such as leather, agriculture, carpet hand tools ,marine products, rubber products, ceramic, sports goods, medical and scientific products and, electronic and telecom components increased by-2%.

2. Remission of Duties and Taxes on Exported Products (RoDTEP)

To compensate the taxes/duties/ levies, at the central, state and local level, which are not being refunded under any other mechanism, the Government has announced Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme to all eligible exports of goods with effect from 1st January, 2021.

RoDTEP scheme will replace the MEIS incentive earlier available for the merchandise exports.

The rate of reward with the eligible goods are yet to be notified by the Government.

The refund would be credited in an exporter’s ledger account with Customs and used to pay Basic Customs duty on imported goods. The credits can also be transferred to other importers.

2. Services Exports From India Scheme (SEIS)

SEIS incentives have been increased by 2% for Business, Legal Accounting, Architectural, Engineering, Educational, Hospital, Hotel and Restaurants services.

4. MEIS/SEIS Duty credit scrip’s validity period has been increased from 18 months to 24 months.

5. GST rate on Sale of MEIS/SEIS Duty credit scrips reduced to 0%.

6. Advance Authorization Scheme:

Authorized Economic Operator: AEO certificate holders allowed duty free input for export production with self declaration instead of getting ratification of NORMs committee. Now AEO certified exporters will self certify the requirement of duty free raw materials /inputs and take an Authorization from DGFT.

AEO certified importer have been notified for deferred payment of Customs duty.

Duty Drawback continued with revised rate for drawback of BCD and remnant to central Excise duty on petroleum products.

7. Export Promotion of Capital Goods Scheme (EPCG):

• Power for extension in Export Obligation Period (EOP) or Block wise extension or condonation of delay in submission of installation certificate delegated to Regional offices of DGFT.
• Shifting of capital goods allowed from one unit to other unit.
• Clubbing has been allowed in respect of those authorizations where Export obligation period has been expired.
• Negative list of item introduced under EPCG scheme (items notified under Appendix 5F cannot be imported under EPCG scheme).

8. EOU/EHTP/STP/BTP Units

• May import and /or procure from bonded warehouse in DTA or from international exhibition held in India without payment of customs duty / IGST / GST compensation cess.
• Restriction on limit on entitlement of DTA sale has been removed.
• Inter unit transfer has been allowed on payment of applicable duty & taxes.
• Goods exported and found defective /damaged or returned by the importer shall be allowed clearance by the Customs Authority.
• Import of Second hand goods for the purpose of repair /refurbishing/ recondition/ reengineering have been made free.
• Export of replacement goods has been eased for issuing export licence on replacement items which are restricted or in SCOMET list.

8 (a). Transport & Marketing Assistance (TMA) Scheme

A new chapter 7(A) /scheme is added in the Foreign Trade Policy 2015-20 by the Govt. The Scheme titled “Transport & Marketing Assistance (TMA) will be provided on export of all agriculture Products covered in HSN Chapters 1 to 24 including marine and plantation products, exported to permissible Regions/countries (Regions- West Africa, EU Gulf, North America,ASEAN,Russia &CIS,Far East Oceana,China,South America).
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9. Enhanced value limit on Free of Cost (FOC) Exports

• Status holders shall be entitled to export freely exportable items on free on cost basis subject to annual limit of Rs.1 Crore or 2% of Average annual realization during the preceding 3 licensing years, whichever is lower.
• For Pharma exports the annual limit would be 2% of Average annual realization during the preceding 3 licensing years.

10. Goods & Services Tax (GST) related matter:

• Under GST, on exports of finished goods, there is an option of either obtaining refund of GST paid or getting exemption from payment of GST on submission of LUT.
• Under Advance Authorization, EPCG and 100% EOU scheme exporter have been extended the benefit of sourcing inputs /capital goods from abroad as well as domestic supplier without upfront payment of GST.
• Merchant exporters have been allowed to pay nominal GST @ 0.1% for procuring goods from domestic supplier for exports.

11. Steel Import Monitoring System (SIMS)

DGFT vide their Notification no 33/2015-20 dated 28 September, 2020 inserted policy condition from ‘Free’ to ‘Free subject to compulsory registration’ under Steel Import Monitoring System (SIMS) for all items of Chapter 72, 73 and 86. (Earlier, this was for only 284 specified Hs codes of Chapter 72, 73 and 86)

Key points are as under:-

• The importer shall require iron & steel items importers to submit advance information in an online system for import of items
• The Importer has to apply for online registration not earlier than the 60th day and not later than the 15th day before the expected date of arrival of import consignment.
• The registration Number granted shall remain valid for a period of 75 days.
• Registration fee of Rs 1 per thousand subjects to a minimum of Rs.500/- and a maximum of Rs 1 Lakh on the aggregate CIF value of imports.

12. Ease of Trading:

• Contact @ DGFT service for complain resolution have been activated on DGFT website.
• Exporters / Importers can also voice their concerns / suggestions on DGFT portal at contact @ DGFT.
• New Logistics division created in the commerce department to the bring together various stake holders viz. logistics service provider, buyers, customs, DGFT, Railways, Ports, Airports, inland waterways, costal shipping etc on single platform.

Our FTP Services

• Foreign Exchange Management Act (FEMA) Consultant
• Certificate of Import Export Code (IEC)
• Registration cum-membership Certificate (RCMC)
• Specific Authorisations for restricted items
• Clarification/relaxation etc. from DGFT Committee
• Merchandise Exports from India Scheme (MEIS)
• Focus Market Scheme (FMS)
• Focus Product Scheme (FPS)
• Market linked Focus Product Scheme (MLFPS)
• Vishesh Krishi & Gram Udyog Yojana Scheme (VKGUY)
• Service Exports from India Scheme (SEIS)
• Served From India Scheme (SFIS)
• Annual Advance Authorization
• Duty Free Import Authorizations
• Revalidation of import license
• Extension & Enhancement of import License
• Export Promotion Capital Goods (EPCG) Authorisations
• Closure of EPCG/Advance Authorisations
• Deemed Exports benefits
• Transport & Marketing Assistance (TMA) Scheme
• Special Economic Zone Related Matters
• 100% EOU Consultants
• Target Plus Scheme