NEW FOREIGN TRADE POLICY 2015-2020

Minister of Commerce & Industry Smt. Nirmala Sitharaman released the much awaited Foreign Trade Policy - 2015-20

The Major highlights are given below for your ready reference:

1. Merchandise Export from India Scheme (MEIS) : A New Scheme introduced in place of existing (five) Chapter 3 Schemes. 

2. The benefit under MIES will be determined based on Exporting Product and Exporting Country divided in various Groups. The benefit will range between 2% to 5% of FOB Value of Exports.

3. Served From India Scheme (SFIS) is being replaced by a New Scheme - Services Export from India Scheme (SEIS)

4. All Service Providers of Notified Services located in India will be eligible for the benefits regardless of their constitution or profile of service provider.

5. The SEIS benefit of 3% or 5% will be based on Net Foreign Exchange Earned. 

6. The Duty Credit Scrips issued under both MEIS and SEIS will
    a. without any actual user condition
    b. Freely Transferable
    c. No longer restricted for any specified types of goods.
    d. Can be used for payment of Customs Duty /Excise Duty/Service Tax 

7. The units in SEZ will also be allowed to claim incentive under MIES and SIES Schemes.

8. The Nomenclature of Status Holder Scheme has been changed to One, Two, Three, Four and Five Star Export House.

9. The Criteria for Export performance for the recognition of status holder have been also changed from Rupees to US Dollar. The Minimum Export Performance in FOB Value during current and previous 2 Years is now 3 Million USD.

10. Manufacturer Status Holders will now enabled to Self Certify Country of Origin from India to qualify under various PTA, FTA, CECAs and CEPAs

11. To Boost "Make in India" Specific Export Obligation under EPCG will be reduced to 75% if goods are procured from domestic capital goods manufacturer.

12. Hard Copies of CA /CE / CS Certificates will not be required for various application. Online Upload facility of its soft copy will be made available in the new Online Application Process for Chapter 3 & Chapter 4 Schemes. 

13. Document Records of EPCG Authorisation will now be required to be maintainedonly for 2 Years after redemption.

14. A facility has been created to upload documents in Exporter Importer Profile which will hold copies of IEC, PAN, RCMC, Industrial Licence etc.. Once uploaded, No separate submission of these copies will be required with each application.

15. Communication with Exporter/Importer will be done through SMS/Email and thus mandatory fields like mobile no. and email address will be added in the IEC data base.

16. Application of refund of TED will now be made online.

17. EOUs, EHTPs, STPs have now been allowed 
      a) Share Infrastructural facilities among themselves
      b) Inter unit transfer of goods and Services
      c) To set up facility of Warehouses near the port of export.

18. Goods falling in the category of handloom products, books/periodicals, leather footwear, toys and customized fashion garments, having FOB Value upto Rs. 25,000/- per Consignment (finalized using e-commerce platform) shall be eligible for benefits under FTP.

19. e-Commerce Exports will allowed to be done under Manual Mode through Foreign Post Offices at New Delhi, Mumbai and Chennai and under Courier Regulations through Airports at Delhi, Mumbai and Chennai Only.

20. A New Chapter is introduced to resolve Quality Complaints and Trade Disputes. A Committee on Quality Complaints and Trade Disputes (CQCTD)  is being constituted. 

21. Vishakhapatnam and Bhimavaram in Andhra Pradesh are to be recognised as towns of export excellence for product category - Seafood.

22. New ANF & Appendices have also been notified along with the new FTP. 

Please note that specific Application, procedures and documentation will have to be prepared, applied and submitted as defined under the New FTP and Handbook of Procedures to avail of any of the said benefits under the new   FTP.

The Official Highlights of the NEW FTP is available on the below link: 
(Highlights of the FTP 2015-20)

Govt does a volte-face on wheat exports

Alluding to unfavorable global market conditions, the Union government has put off the decision to allow wheat exports.

Surprisingly, the move comes just after the Agriculture Minister, Mr Sharad Pawar's announcement that the four-year ban on wheat exports had been revoked.

Government sources, however, disclosed that exports of rice and wheat products (maida and atta) would resume soon and the Commerce Ministry was working on last minute modalities for clearing the way.

The government's decision on wheat exports comes in the backdrop of Russian Black Sea wheat flooding the global markets, Ministry officials said, who pointed out that Russia was selling its wheat for $244 a tonne against the Indian variety priced at $300 a tonne.

According to another official, even if the government permits wheat exports, shipments would be delayed, while wheat stocks from Russia had already reached the international markets.

Pointing out that setting a minimum export price at this point would be of no help to traders, the official said that the decision on wheat exports had, therefore, been deferred for now.

It may be recalled that the Empowered Group of Ministers (EGoM) on food, headed by the Finance Minister, Mr Pranab Mukherjee, had only last week given in-principal approval to lift the ban on wheat exports. The EGoM had also decided to allow exports of one million tonnes of common rice, in addition to keeping the overall limit on wheat product exports at 6.5 lakh tonnes.

Fieo welcomes move to permit rice exports

The Federation of Indian Export Organisations (FIEO) Southern Region has welcomed the Group of Ministers' recent decision to permit exports of 10 lakh tonnes of non-Basmati rice.

Mr Walter D'Souza, Regional Chairman, Fieo, Southern Region, requested the authorities to issue the necessary notification at the earliest.

Calling attention to the export potential of rice from Southern India, Mr D'Souza said that exporters in the region had already risen higher in the value chain after the branding of the fine variety of rice as Sona Masoori quality, which has become among the most sought after varieties in a short time.

The ban on non-Basmati rice exports since more than three years had put exporters in serious trouble, said Mr D'Souza, considering that they had put in their valuable time and energy for marketing the said variety.

DGFT: No export limit on cotton and yarn waste

The Directorate-General of Foreign Trade (DGFT) has apprised about the
Union government's decision to exempt cotton and yarn waste from the
extra cap of 10 lakh bales imposed on exports of the natural fiber for
the 2010-11 season.
The DGFT said the ceiling would not apply to export of cotton waste,
including yarn waste and garneted stock, though other conditions
regarding registration of export contracts would be applicable.
It may be recalled that the government had decided on June 8 to allow
exports of an extra 10 lakh bales (170 kg each) of cotton during the
current season, following a sharp decline in prices in the domestic
market.
In October last year, the government had imposed a quantitative
restriction of 55 lakh bales on cotton exports. However, with prices
plunging 38 per cent from April onwards, they have crashed to over Rs
40,000 per candy (356 kg) currently in the domestic market after
reaching a peak of Rs 62,500 per candy in March-end.

Government gives nod to export extra 5 lakh tone sugar

As I have published previously, after the review of Director General of Foreign Trade The Union government has decided to permit export of an extra five lakh tonnes (lt) of sugar under the open general licence (OGL).

Approved by the Empowered Group of Ministers (EGoM), headed by the Finance Minister, Mr Pranab Mukherjee, the move is a shot in the arm for the domestic industry as it will be able to take advantage of rising global prices.

Taking $ 725 or Rs 32,575 as the price of a tonne, free-on-board, the effective realisation for exports from Maharashtra, after taking away Rs 2,000 towards freight and handling expenses at Jawaharlal Nehru Port or Mumbai Port, would work out to Rs 30,575, which is more than the prevailing ex-factory price of Rs 25,000 a tonne on domestic sales in Maharashtra or Rs 27,000 in Uttar Pradesh.

Of the five lakh tonnes quota permitted earlier, the Directorate of Sugar has already allocated 4.26 lt to individual factories and issued release orders for 4.21 lt, in addition to the 51,500 tonnes allotted to neighbouring countries.