Simplified Laws Guide to Taxation and Legal Concern
Foreign Trade Policy (it is also called as ‘EXIM Policy) is a set of guidelines and instructions in matters related to the import and export of goods in India. Indian EXIM Policy contains various policy related decisions taken by the government in the sphere of Foreign Trade, i.e., with respect to imports and exports from the country and more especially export promotion measures, policies and procedures related thereto.
The latest EXIM Policy for the period 2015-20 was announced on 1st April 2015 by the Commerce Ministry, Government of India.
The salient features of the new Foreign Trade Policy (FTP) are as under –
- Government aims to double India’s exports to $900 billion by 2020.
- The incentive for exports and SEZ will be continued / rationalized.
- Merchandise Export from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) launched. Earlier there were 5 different schemes for rewarding merchandise exports with different kinds of duty scrips with varying conditions attached to their use. Now all these schemes have been merged into a single scheme, namely Merchandise Export from India Scheme (MEIS). Served From India Scheme (SFIS) has been replaced with Service Exports from India Scheme (SEIS). Thus SEIS provides for rewards to all Service providers of notified services, who are providing services from India, regardless of the constitution or profile of the service provider.
- Higher level of rewards under MEIS for export items with High domestic content and value addition
- Export obligation under EPCG scheme reduced to 75% to Promote domestic capital goods manufacturing.( which is currently 90% of the normal export obligation)
- FTP to be aligned to Make in India, Digital India and Skills India initiatives
- Duty credit scrips made freely transferable and usable for payment of custom duty, excise duty and service tax
- Business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade are proposed to be recognized as Status Holders and given special treatment and privileges to facilitate their trade transactions, in order to reduce their transaction costs and time
- Trade facilitation and ease of doing business initiatives such as online filing of documents, paperless trade, exporter may upload the scanned copy of Bill of Entry under his digital signature, Under EPCG scheme, obtaining and submitting a certificate from an independent Chartered Engineer, confirming the use of spares, tools, refractory and catalysts imported for final redemption of EPCG authorizations has been dispensed with, Online applications for refunds: Online filing of application for refund of TED is being 11 introduced for which a new ANF has been created.
10. Export promotion mission to take on board state Governments
11. Unlike annual reviews, FTP will be reviewed after two-and-Half years
12. Higher level of support for export of defence, farm Produce and eco-friendly products
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Thought for the day
Telling the truth and making someone cry is better than telling a lie and making someone smile.
