2Foreign Trade Policy & Procedures 2015-20 Ajay Sahai Director General & CEOFEDERATION OF INDIAN EXPORT ORGANISATIONS
3Digital InitiativesFor reward schemes, facility of uploading digitally signed documents by CA / CS / CoA being developed.Uploading of documents for Chapter 4 and 5 of FTP in the next phase.Facility to upload documents in Exporter / Importer Profile. No need to submit permanent records/ documents repeatedly, once uploaded.Landing documents of export consignment as proofs for notified market can be digitally uploaded.Online inter-ministerial consultations for approval of export of SCOMET items, Norms fixation, Import Authorisations, Export Authorisation.
4Trade FacilitationFacility of 24x7 Customs clearance for specified imports/ imports has been made available at 17 airports and 18 sea ports across the country.Time Release Study by CBEC for measuring actual performance.3 Mandatory documents for exports and imports.Online complaint Registration and Monitoring.Online filing for exports from EDI ports: Hard copy of application/documents dispensed with.Single Window at Customs.
5Importer Exporter Code(IEC) One PAN one IEC.Directors/ Partners/ProprietorsPANDIN/ DPINPAN details of signatory.Incomplete applications to be rejected, could be re-opened in 90 days else treated as withdrawn.Profile to be updated upon change immediately else at-least once in a year.
6Rules of OriginRules for determining Origin clearly defined in paragraph of HB.Manufacturer Status holders eligible for self certification for Non –Preferential ROO.Approved Exporter Scheme for Self Certification for Preferential ROO : Appendix 2F.AES to be effective when incorporated into specific agreement with partner country(ies).
7Miscellaneous Provisions Application fee through NEFT / Credit/Debit Cards or TR 6 : Facility of DD /Pay order withdrawn.One application for one EDI ports: clubbing of applications for multiple EDI Ports withdrawn ..Clear procedure for placing in DEL and placing it in abeyance.For any benefit to a supporting manufacturer, the names of both supporting manufacturer and merchant exporter to figure in the concerned export documents, especially in ARE-1 / ARE-3 / Shipping Bill / Bill of Export/ Airway Bill.
8Merchandise Exports from India Scheme(MEIS) Schemes such as FPS, MLFPS, FMS, AIIS, IEIS and VKGUY [offering separate duty credit scrips with varying conditions] have been merged into a single Scheme viz., MEIS with no conditions attached thereto.MEIS Entitlement : 2% / 3% / 5% of FOB value of notified goods exported to notified markets [based on three distinct categories framed and covered in Appendix 3B].
9Category C: Other Markets (70). MEIS (Contd…)Country Groups:Category A: Traditional Markets (30) - European Union (28), USA, CanadaCategory B: Emerging & Focus Markets (139): Africa (55), Latin America and Mexico (45), CIS countries (12), Turkey and West Asian countries (13), ASEAN countries (10), Japan, South Korea, China, Taiwan,Category C: Other Markets (70).
10MEIS (Contd…)Features:FOB value of exports in free foreign exchange or FOB value of exports given in the Shipping Bills in free foreign exchange, whichever is less, shall be considered.Supplies made from DTA units to SEZ units which were eligible for FPS benefit hitherto [in the range of 2% to 5%], have now been specifically included in the ineligible categories.Declaration of intent even for exports under Chapter-4 & 5The ineligible categories of sectors have been expanded .
11E-CommerceExports of notified goods using E commerce upto Rs 25,000 eligible for MEIS.Can be exported in manual mode from FPO at Delhi, Mumbai and ChennaiAlso through courier terminal at Delhi, Mumbai and Chennai AirportsRequired to submit express operator landing certificate /online web tracking reports for MEISCategories needs to be expanded with inclusion of all garments.
12SEIS Threshold : USD 15000 in last FY For individuals and Proprietorship : USD in last FYOnly Mode 1 and Mode 2 services eligible.Under SFIS, the benefit was to ‘Indian Service Providers’. SEIS applies to ‘Service Providers located in India’ instead of ‘Indian Service Providers’.and 5% of NFE for Notified Services.NFE defined .
13Service provider to have active IEC when rendering services. SEIS (Contd…)IEC holder if manufacturer and service provider, forex earning and total expenses to be considered for Service Sector only ?Service provider to have active IEC when rendering services.Export turnover of services unit under SEZ ineligible.Scrip to be used for imports of goods (clarity on CG), service tax payment , EO default, Composition fee and fee .
14SEIS (Contd…)The entitlement rates under SEIS (3% / 5%) are substantially lower as compared to the entitlement of 10% under SFIS scheme.Sector using SFIS in optimum manner worse affected. Others get actual benefit.The list of notified services is largely the same as in case of the SFIS scheme. However, the list of notified services and the rates of rewards will be reviewed after
15Status Holder Change in name : New name to be reflected at all places Criteria in USDOne Star Export House : US$ 3 MillionTwo Star Export House : US$ 25 MillionThree Star Export House : US$ 100 MillionFour Star Export house : US$ 500 MillionFive Star Export House : US$2000 Million
16CriterionThreshold to be achieved as Aggregate exports in current + Previous 2 FYsFor granting status, export performance is necessary in at least two out of three years.For deemed exports, FOR value of exports in Indian Rupees shall be converted into US$ at the exchange rate notified by the CBEC, as applicable on 1st April of each FY.
17Double WeightageDouble weightage for (i)MSME. (ii) Manufacturing units having ISO/BIS. (iii) Units located in North Eastern States including Sikkim and Jammu & Kashmir. (iv) Units located in AEZs. A shipment can get double weightage only once in any one of the above category.Double Weightage shall be available for grant of One Star Export House Status category only.Double weightage withdrawn for Focus Areas, Units having WHO –GMP; HACCP, SEICMM Level II above, Services Exports
18New FacilitiesTwo star and above Export houses shall be permitted to establish Export Warehouses.Three Star and above Export House shall be entitled to get benefit of Accredited Clients Programme (ACP) as per the guidelines of CBEC (website: ACP covers all Status Holders ?The status holders would be entitled to preferential treatment and priority in handling of their consignments by the concerned agencies.
19New Facilities (Contd…) Manufacturers status holders (Three Star/Four Star/Five Star) to self-certify their manufactured goods as originating from India for preferential treatment under various trading agreements (PTA). Gradually to be extended to all Status Holders.Manufacturer Status Holders to be eligible to self-certify their goods as originating from India as per Para (d) of Hand Book of Procedures.Status holders to be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rs 10 lakh or 2% of average annual export realization during preceding three licencing years whichever is higher
20Advance Authorisation Scheme Imports under Advance Authorisation exempted from Transition Product Specific Safeguard Duty also . Earlier, the exemption was for Basic Custom Duty, Additional Customs Duty, Education Cess, Anti-dumping Duty and Safeguard Duty.Supplies against Para 7.02 (c ) (d) and (g) not exempted from Anti-dumping Duty and Safeguard Duty and Transition Product Specific Safeguard Duty .Advance Authorization for annual requirement only for notified in SIONNo Advance Authorization for annual requirement if any inputs fall in App-4J
21Advance Authorisation Scheme (Contd…) Eligibility for Authorisation on self declared norms reduced from 500% to 300% for Status Holders.Non Status Holder to be eligible for 300% or Rs 10 Cr whichever more.A detailed list of items (including vegetables/edible oils, Cereals, Spices etc.) issued which are in-eligible for importation on self declaration basis.Representation against the decision of norms Committee to be made within 90 days of hosting. Composition fee of Rs 5000 for delayed representation.EO extension request with a self-declaration that unutilized inputs are available.
22DFIA DFIA only for products under SION. No DFIA if SION prescribes any input with AU condition.DFIA facility not available for G&J sector.Separate DFIA for each SION and each port.DFIA imports only exempted from BCD. ACD for non excisable goods?Online application to Regional Authority before starting export under DFIA.
23No transitional arrangement for DFIA ? DFIA (Contd…)Exports to be completed within 12 months from the date of online filing.Applicant to indicate file number on the export documents viz. Shipping Bill / Airway Bill/ Bill of Export / ARE-1 / ARE-3, Central Excise certified Invoice.Request for issuance of transferable Duty Free Import Authorisation within a period of twelve months from the date of export or six months (or additional time allowed by RBI for realization) from the date of realisation whichever later.No transitional arrangement for DFIA ?
24EPCGFor indigenous sourcing of Capital Goods, the specific Export Obligation reduced by 25% of the EO stipulated.Provision related to EPCG Authorization on Annual Requirement and Technological Upgradation of existing EPCG Machinery has been omittedThe limit on value of spares imported has now been relaxedEO to be fulfilled through goods manufactured from EPCG machine
25EPCG (Contd…)Units registered with BIFR/ Rehabilitation Department of State Government, to get extension of EO for 3 years from 12 years earlier, if not specifically mentioned in the BIFR order.Export of restricted goods under the authorisation now allowed, subject to the approval from Exim Facilitation CommitteeValidity of the authorization is now limited to 18 month from the date of issue of such authorizationTime period for seeking extension of EO period increased from 30 days to 75 days from the expiry of original EO period
26Conversion from EOU to EPCG In case where standalone EOU/ SEZ unit converts:Maintenance of average EO not requiredEO would be 6 times of the proportionate duty saved amount of the depreciated value of Capital GoodsIn case one unit of the firm/ company opts to de-bond from EOU to EPCG Scheme, while other units are DTA units:Average EO would be fixed by excluding the exports made by the de-bonding unit from the total exports of the firm/ companyEO would be 6 times of the proportionate duty saved amount of the depreciated value of Capital Goods of the de-bonding unit
27EPCG (Contd…)CE certificate also accepted for installation certificate for Excisable Unit also.Clubbing of authorization restricted only in cases where endorsed products on the authorization are same/ similar.Authorisation holder given option of suo-motto payment of duty and interest .Period for maintenance of records after redemption of authorizations has been reduced to 2 years.
28EOU SchemeFTP permits an EOU, to export a prohibited item on a case to case basis, provided raw materials are imported and there is no procurement of raw material from DTA.EOU units to achieve Positive NEE cumulatively in 5 years . In genuine cases of hardship, the period of 5 years can be extended for a period of upto 1 year by BoA.Time period for validity of LoP/LoI has been revised for faster implementation with an initial validity of 2 years (as oppose to 3 years earlier)
29EOU Scheme (Contd…)Applications for setting up of units under EOU, including all units in services sector, shall be approved or rejected by the Units Approval Committee within 15 days.EOUs, EHTPs, STPs have been allowed to share infrastructural facilities among themselves after getting approval from Inter-Ministerial Standing Committee.Earlier , units are permitted to transfer capital goods to other EOUs, EHTPs, STPs, SEZ units. Now if transferred capital goods rejected by the recipient, the same can be returned to the supplying unit, without payment of duty
30EOU Scheme (Contd…)Inter unit transfer of goods/services have been allowed among EOUs, EHTPs, STPs, and BTPs to facilitate group of those units to source inputs centrally in order to obtain bulk discount.A simplified procedure to be provided to fast track the de-bonding / exit of the STP/ EHTP units which has not availed any duty benefit on procurement of raw material, capital goods etc.EOUs have been allowed facility to set up Warehouses near the port of export.
31EOU Scheme (Contd…)Authorised employees/persons of IT related EOU/STP/EHTP/BTP have been allowed the facility to work from a place outside the unitSTP / EHTP units, software EOUs have been allowed the facility to use all duty free equipment/goods for training purposes (including commercial training).EOUs having physical export turnover of Rs. 10 Cr (Rs. 15 Cr earlier) and above, have been allowed the facility of fast track clearances of import and domestic procurement of goods.
32Deemed ExportsThe categories of supplies bifurcated between manufacturer and main/sub-contractor.Manufacturer:Supply of goods against Advance Authorisation / Advance Authorisation for annual requirement / DFIA;Supply of goods to EOU / STP / EHTP / BTP;Supply of capital goods against EPCG Authorisation;Supply of marine freight containers by 100% EOU (Domestic freight containers-manufacturers)The rest of the supplies are entitled for deemed export benefit by main/sub-contractors.
33Deemed Exports( Contd…) Earlier , DE benefit for supply of goods to nuclear power projects awarded through ICB was not available. Such supplies are now entitled for the benefit.The benefit of deemed export earlier available to projects funded by UN agencies has been extended to supplies made to UN or International Organization for their official use also .Exemption/refund against supply to DFIA is not available since CVD is not exempted.
34Deemed Exports( Contd…) Removal of agency :International Fund for Agricultural Development (IFAD)Organisation of Petroleum Exporting Countries (OPEC) Fund;Yen Credit channelised through Japan International Cooperation Agency (JICA) (development component only)Swedish International Development Agency (SIDA)Cases on random basis to be selected and scrutinized by internal audit team, headed by Joint DGFT.
35QUALITY COMPLAINTS AND TRADE DISPUTES A New Chapter on “Quality Complaints And Trade Disputes “ Introduced.For resolving such disputes at a faster pace, a Committee on Quality Complaints and Trade Disputes (‘CQCTD’) is being constituted in 22 offices with members from EPCs/FIEO/APEDA/EICs.CQCTD proceedings will only reconciliatory in nature .Aggrieved party is free to pursue any legal recourse.