Introduction: The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce & Industry, Government of India, issued Trade Notice No. 38/2023-24 on 16th February, 2023. This notice addresses concerns and provides clarification regarding the implications of Notification No. 60 dated 13th February, 2024, specifically related to the ITCHS based Export policy from Chapter 1-39 of Schedule 2 of ITCHS.
Detailed Analysis: Notification No. 60, released on 13th February, 2024, has introduced changes in the ITCHS based Export policy for chapters 1-39. The primary objective is to simplify Schedule 2 of ITCHS Export policy, 2018, bringing clarity to the policy applicable against each ITCHS Code. It’s important to note that while the policy for chapters 1-39 is streamlined, the policies for other chapters in Schedule 2 remain unchanged.
The mapping of ITCHS Codes with the existing Export policy is a significant trade facilitation measure. It aims to provide exporters and industries with clarity on the policies applicable to items falling under each 8-digit ITCHS Code. Additionally, this initiative facilitates the integration of data with ICEGATF, streamlining the transfer of export licensing details with customs into an online export licensing system. The overall goal is to reduce compliance burdens and enhance the ease of doing business.
Efforts are underway to extend this mapping to policies related to the rest of the chapters, encompassing 8-digit HS Codes. The clarifying point is that the Export Policy notified through DGFT Notification 60 dated 13.02.2024 does not introduce new policy changes or amendments. The policies applicable before this notification will continue, emphasizing the mapping of the existing policy against each 8-digit ITCHS Code for Chapters 1-39.
Conclusion: In conclusion, DGFT Trade Notice 38/2023-24 sheds light on the intricacies of Notification No. 60 dated 13.02.2024, emphasizing the mapping of ITCHS Codes to existing Export policies for Chapters 1-39. This trade facilitation measure not only provides clarity to exporters but also aligns with the government’s efforts to transition to an online export licensing system, reducing compliance burdens and fostering ease of doing business. It is crucial for stakeholders to understand that this notification does not introduce new policies but rather streamlines and clarifies existing ones. Any further clarification or feedback can be directed to export-dgft@nic.in.
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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Trade Notice No. 38/2023-24 – DGFT | Dated 16th February, 2023
To
1. All Regional Authorities of DGFT
2. All Customs Commissionerates
3. Members of Trade and Industry
Subject: Clarification regarding Notification No. 60 dated 13.02.2024.
Reference is invited to Notification No. 60 dated 13th February, 2024 where ITCHS based Export policy from Chapter 1-39 of Schedule 2 of ITCHS has been notified.
It is clarified that the policy notified, only simplifies the Schedule 2 of ITCHS Export policy, 2018 for chapters 1-39 bringing clarity into the policy applicable against each ITCHS Code and the Table A of the Schedule 2 of ITCHS Export policy 2018 and the policies of all chapters in the schedule remains unchanged.
The exercise of mapping the ITCHS Codes with the existing Export policy is a Trade Facilitation measure aimed at providing clarity to the exporters and industry on the policies applicable for export of items falling under each 8 digit ITCHS Code. This will also enable integration of data with ICEGATF, to ensure seamless transfer of export licensing details with customs to move completely to an online export licensing system. This will reduce the compliance burden and promote ease of doing business. Efforts are also being made to map the policy pertaining to rest of the chapters to 8 digits HS Code.
It is thus, clarified that the Export Policy notified vide DGFT Notification 60 dated 13.02.2024 does not include any new policy changes or amendments and the policies as applicable before the issuance of this notification shall continue. The Export policy earlier was not 8 digit ITCHS based and this notification of the export policy of Chapters 1-39 has mapped the existing policy against each 8 digit ITCHS Code.
Any clarification/feedback/Input on the Notification No. 60 dated 13.02.2024 may be sent at export-dgft@nic.in.
(S.K Mohapatra)
Joint Director General of Foreign Trade
E-mail : mohapatra.sk.Anic.in
(Issued from F.No. 01/91/191/121/AM23/EC/E-35174)
