CA Daulal Daga
The much awaited Foreign Trade Policy was released by the Commerce Minister Nirmala Sitharaman on 1 st April 2015.
Amendments in DGFT Notifications
Merchandise Exports from India Scheme (MEIS) – Schedule of country groups, ITC (HS) code wise list of products with reward rates under Appendix 3B: The DGFT has notified the Appendix 3B which contains Table 1-List of Country Groups and Table 2-ITC (HS) code wise list of products with reward rates under MEIS. DGFT P/Notice No 02/2015-20 Dated 1st April 2015
Services Exports from India Scheme (SEIS) – Schedule under Appendix 3D notified: DGFT has notified Appendix 3D – List of eligible services, rates and conditions for rewards under the Services Exports from India Scheme (SEIS). The services and rates of rewards notified shall be applicable for services export made between 1-4-2015 to 30-09-2015 only. The list of services/rate is subject to review with effect from 1-10-2015. The rate of reward for eligible services is subject to conditions as specified in FTP and HBP. For Educational Services, SEIS reward shall not be available on Capitation Fee. Under Maritime Transport Services marked with *[9A (a), (b) and (c)], the reward shall be limited to Operations from India by Indian Flag Carriers only. DGFT P/Notice No 03/2015-20 Dated 1st April 2015
Track and Trace system for export of Pharmaceuticals and drug consignments. DGFT has notified the procedure for implementation of the Track and Trace system for export of pharmaceutical and drug consignments. The exports of the drugs having manufacturing date prior to 01.04.2015 will be exempted for requirement of barcode labelling and data uploading on central portal. With effect from 01.07.2015, all drugs with manufacturing date on or after 01.04.2015 can be exported only if both the tertiary and secondary packaging carry bar coding as applicable and the relevant data as prescribed by DGFT is uploaded on the central portal. DGFT P/Notice No 04/2015-20 Dated 1st April 2015.
Amendments in Central Excise in relation to Foreign Trade Policy
Excise Exemption to Post Export EPCG duty credit scrip: Government has exempted goods when cleared against a Post Export EPCG duty credit scrip issued by the Regional Authority in accordance with paragraph 5.12 of the Foreign Trade Policy which provides for duty remission in proportion to export obligation fulfilled . Notification No 18/2015-Central Excise, dt 01/04/2015.
Consequential Amendment: To include the latest notifications, Notification No. 33/2012-Central Excise dated the 9th July, 2012, is amended. Notification No 19/2015-Central Excise, dt 01/04/2015.
Amendments in Custom in relation to Foreign Trade Policy
Customs Duty exemption to EPCG Goods: EPCG Scheme allows import of capital goods for pre-production, production and post-production at Zero customs duty. This allows is valid only if the Revenue Department allows it by a notification. Now, the Customs Notification exempts the goods imported covered by a valid authorisation issued under the Export Promotion Capital Goods (EPCG) Scheme in terms of Chapter 5 of the Foreign Trade Policy permitting import of goods at zero customs duty. Notification No 16/2015-Cus, dt 01/04/2015.
Customs Duty exemption to Post Export duty credit scrip: As per para 5.12 of the Policy, Post Export EPCG Duty Credit Scrip(s) shall be available to exporters who intend to import capital goods on full payment of applicable duties in cash and choose to opt for this scheme. Basic Customs duty paid on Capital Goods shall be remitted in the form of freely transferable duty credit scrip(s). Now the Customs has notified the exemption. Notification No 17/2015-Cus, dt 01/04/2015.
Advance Authorization: As per para4.02 of the Policy, Advance Authorisation is issued to allow duty free import of input, which is physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, catalyst which is consumed / utilised in the process of production of export product, may also be allowed. Advance Authorisation is also issued for inputs in relation to resultant product. Now the Customs Notification is issued to exempt materials imported into India against a valid Advance Authorisation issued by the Regional Authority in terms of paragraph 4.03 of the Foreign Trade Policy. Customs has notified the exemption. Notification No 18/2015-Cus, dt 01/04/2015.
Duty Free Import Authorization Scheme (DFIA): As per para 4.25 of the Policy, Duty Free Import Authorisation is issued to allow duty free import of inputs. In addition, import of oil and catalyst which is consumed / utilised in the process of production of export product, may also be allowed. Duty Free Import Authorisation shall be issued on post export basis for products for which Standard Input Output Norms have been notified. Now the Government has issue the Customs exemption notification to exempt materials imported into India against a valid Duty Free Import Authorization. Notification No 19/2015-Cus, dt 01/04/2015.
Advance Authorization for Annual Requirement: Exporters having past export performance (in at least preceding two financial years) shall be entitled for Advance Authorisation for Annual requirement. Advance Authorisation for Annual Requirement shall only be issued for items notified in Standard Input Output Norms (SION), and it shall not be available in case of adhoc norms. Government has notified the Customs exemption. Notification No 20/2015-Cus, dt 01/04/2015.
Advance Authorization for deemed export: Government has granted exemption to materials required for the manufacture of the final goods when imported into India against Advance Authorisation for deemed export granted by the Regional Authority in terms of paragraph 4.05 (c) (iii) of the Foreign Trade Policy permitting import of the said materials Notification No 21/2015-Cus, dt 01/04/2015.
Advance Authorization for export of prohibited items: Government has exempted materials imported into India against an Advance Authorisation issued in terms of paragraph 4.03 read with paragraph 4.18 (i) of the Foreign Trade Policy meant for export of a prohibited item in terms of paragraph 4.05 of the Handbook of Procedures. Notification No 22/2015-Cus, dt 01/04/2015.
Consequential Amendment: To include the latest notifications, Notification No. 104/2009-Customs, dated the 14th September, 2009, is amended Notification No 23/2015-Cus, dt 01/04/2015.