Introduction : The Government of India, through the Ministry of Commerce & Industry, Department of Commerce, Directorate General of Foreign Trade, has issued Notification No. 62/2023-DGFT on 29th February 2024. This notification brings about a significant amendment in Para 2.39 of the Foreign Trade Policy, 2023.
The amendment, exercised under Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, and in accordance with the Foreign Trade Policy, 2023, modifies Para 2.39. The existing Para allowed merchanting trade involving the shipment of goods from one foreign country to another without touching Indian ports, provided there is an Indian intermediary. The revised Para extends this permission to merchanting trade involving the shipment of goods within one specific foreign country.
The key change lies in the expansion of merchanting trade to include shipments within a specific foreign country, allowing Indian intermediaries to be involved. However, compliance with RBI guidelines is still mandatory, with exceptions for goods in the CITES Appendices or under SCOMET.
Conclusion : The amendment aims to facilitate and broaden merchanting trade activities by including shipments within specific foreign countries. Indian intermediaries can now participate in such trade, subject to adherence to RBI guidelines. The exclusion of certain goods from this permission ensures regulatory control over sensitive items listed in the CITES Appendices or under SCOMET. This alteration in Para 2.39 reflects the government’s efforts to adapt and optimize foreign trade policies for a more dynamic and efficient global trade environment. Stakeholders are advised to review the amendment carefully to align their practices with the revised regulations.
***
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Notification No. 62/2023-DGFT | Dated: 29th February, 2024
Subject: Amendment in Para 2.39 of the Foreign Trade Policy, 2023 – reg.
S.O. 969(E).— In exercise of powers conferred by Section 5 of Foreign Trade (Development &Regulation) Act, 1992, read with paragraph 1.02 of the Foreign Trade Policy, 2023, as amended from time to time, the Central Government hereby amends Para 2.39 of Foreign Trade Policy, 2023 as under:
|
Existing Para |
Revised Para |
| Merchanting trade involving shipment of goods from one foreign country to another goods foreign country without touching Indian ports, involving an Indian intermediary is allowed subject to compliance with RBI guidelines, except for goods/items in the CITES and SCOMET list. | Merchanting trade involving shipment of from one foreign country to another foreign country without touching Indian ports, or shipment of goods within one specific foreign country, involving an Indian intermediary is allowed subject to compliance with RBI guidelines, except for goods in the CITES, or under SCOMET. |
Effect of the Notification: Merchanting Trade carried out within one specific foreign country is permitted subject to compliance with RBI guidelines, except for goods listed in the CITES Appendices or under SCOMET.
This is issued with the approval of Minister of Commerce & Industry.
(Santosh Kumar Sarangi)
Director General of Foreign Trade &
Ex-officio Addl. Secretary to Government of India
Email: [email protected]
