Foreign Trade Policy 2015-20

FEDERATION OF INDIAN EXPORT
ORGANISATIONS
Workshop on
new Foreign
Trade Policy
2015-20
Foreign Trade Policy

&
Procedures

ORGANISATIONS
2015-20
Ajay Sahai
Director General & CEO

ORGANISATIONS

ORGANISATIONS
Digital Initiatives
For reward schemes, facility of uploading digitally signed
documents by CA / CS / CoA being developed.
Uploading of documents for Chapter 4 and 5 of FTP in the
next phase.
Facility to upload documents in Exporter / Importer Profile. No
need to submit permanent records/ documents repeatedly,
once uploaded.
Landing documents of export consignment as proofs for
notified market can be digitally uploaded.
Online inter-ministerial consultations for approval of export of
SCOMET items, Norms fixation, Import Authorisations, Export
Authorisation.

ORGANISATIONS
Trade Facilitation
Facility of 24x7 Customs clearance for specified imports/
imports has been made available at 17 airports and 18
sea ports across the country.
Time Release Study by CBEC for measuring actual
performance.
3 Mandatory documents for exports and imports.
Online complaint Registration and Monitoring.
Online filing for exports from EDI ports: Hard copy of
application/documents dispensed with.
Single Window at Customs.

ORGANISATIONS
Importer Exporter Code(IEC)

One PAN one IEC.
Directors/ Partners/Proprietors
PAN
DIN/ DPIN
PAN details of signatory.
Incomplete applications to be rejected, could be reopened in 90 days else treated as withdrawn.
Profile to be updated upon change immediately else
at-least once in a year.

ORGANISATIONS
Rules of Origin
Rules for determining Origin clearly defined in
paragraph 2.108 of HB.
Manufacturer
Status
holders
eligible
for
self
certification for Non Preferential ROO.

Approved Exporter Scheme for Self Certification for
Preferential ROO : Appendix 2F.
AES to be effective when incorporated into specific
agreement with partner country(ies).

ORGANISATIONS
Miscellaneous Provisions
Application fee through NEFT / Credit/Debit Cards or TR
6 : Facility of DD /Pay order withdrawn.
One application for one EDI ports: clubbing of
applications for multiple EDI Ports withdrawn ..
Clear procedure for placing in DEL and placing it in
abeyance.
For any benefit to a supporting manufacturer, the names of
both supporting manufacturer and merchant exporter to
figure in the concerned export documents, especially in
ARE-1 / ARE-3 / Shipping Bill / Bill of Export/ Airway Bill.

ORGANISATIONS
Merchandise Exports from India Scheme(MEIS)

Schemes such as FPS, MLFPS, FMS, AIIS, IEIS and
VKGUY [offering separate duty credit scrips with varying
conditions] have been merged into a single Scheme viz.,
MEIS with no conditions attached thereto.
MEIS Entitlement : 2% / 3% / 5% of FOB value of
notified goods exported to notified markets [based
on three distinct categories framed and covered in
Appendix 3B].

ORGANISATIONS
MEIS (Contd)
Country Groups:
Category A: Traditional Markets (30) - European Union
(28), USA, Canada
Category B: Emerging & Focus Markets (139): Africa
(55), Latin America and Mexico (45), CIS countries
(12), Turkey and West Asian countries (13), ASEAN
countries (10), Japan, South Korea, China, Taiwan,
Category C: Other Markets (70).

ORGANISATIONS
MEIS (Contd)
Features:
FOB value of exports in free foreign exchange or FOB
value of exports given in the Shipping Bills in free
foreign exchange, whichever is less, shall be
considered.
Supplies made from DTA units to SEZ units which were
eligible for FPS benefit hitherto [in the range of 2% to
5%], have now been specifically included in the
ineligible categories.
Declaration of intent even for exports under
Chapter-4 & 5
The ineligible categories of sectors have been expanded .

ORGANISATIONS
E-Commerce
Exports of notified goods using E commerce upto
Rs 25,000 eligible for MEIS.
Can be exported in manual mode from FPO at
Delhi, Mumbai and Chennai
Also through courier terminal at Delhi, Mumbai and
Chennai Airports
Required to submit express operator landing
certificate /online web tracking reports for
MEIS
Categories needs to be expanded with
inclusion of all garments.

ORGANISATIONS
SEIS
Threshold :
USD 15000 in last FY
For individuals and Proprietorship : USD 10000 in last FY
Only Mode 1 and Mode 2 services eligible.

Under SFIS, the benefit was to Indian Service
Providers. SEIS applies
to Service Providers
located in India instead of Indian Service
Providers.
Benefit @3% and 5% of NFE for Notified Services.
NFE defined .

ORGANISATIONS
SEIS (Contd)
IEC holder if manufacturer and service provider, forex

earning and total expenses to be considered for
Service Sector only ?
Service provider to have active IEC when rendering
services.
Export turnover of services unit under SEZ ineligible.
Scrip to be used for imports of goods (clarity on CG),
service tax payment , EO default, Composition fee
and fee .

ORGANISATIONS
SEIS (Contd)
The entitlement rates under SEIS (3% / 5%) are

substantially lower as compared to the entitlement of 10%
under SFIS scheme.
Sector using SFIS in optimum manner worse affected.
Others get actual benefit.
The list of notified services is largely the same as in case
of the SFIS scheme. However, the list of notified
services and the rates of rewards will be reviewed
after 30.9.2015.

ORGANISATIONS
Status Holder
Change in name : New name to be reflected at all places
Criteria in USD
One Star Export House :
Two Star Export House :
Three Star Export House
Four Star Export house
Five Star Export House
US$ 3 Million
US$ 25 Million
: US$ 100 Million
: US$ 500 Million
: US$2000 Million

ORGANISATIONS
Criterion
Threshold to be achieved as Aggregate exports
in
current + Previous 2 FYs

For granting status, export performance is necessary in
at least two out of three years.
For deemed exports, FOR value of exports in Indian
Rupees shall be converted into US$ at the exchange
rate notified by the CBEC, as applicable on 1st April of
each FY.

ORGANISATIONS
Double Weightage
Double weightage for (i)MSME. (ii) Manufacturing
units having ISO/BIS. (iii) Units located in North
Eastern States including Sikkim and Jammu &
Kashmir. (iv) Units located in AEZs. A shipment can
get double weightage only once in any one of the
above category.
Double Weightage shall be available for grant of
One Star Export House Status category only.
Double weightage withdrawn for Focus Areas,
Units having WHO GMP; HACCP, SEICMM Level
II above, Services Exports

ORGANISATIONS
New Facilities
Two star and above Export houses shall be
permitted to establish Export Warehouses.
Three Star and above Export House shall be entitled
to get benefit of Accredited Clients Programme
(ACP) as per the guidelines of CBEC
(website: http://cbec.gov.in). ACP covers all Status
Holders ?
The status holders would be entitled to preferential
treatment and priority in handling of their
consignments by the concerned agencies.

ORGANISATIONS
New Facilities (Contd)
Manufacturers status holders (Three Star/Four Star/Five Star)

to self-certify their manufactured goods as originating from
India
for preferential treatment under various trading
agreements (PTA). Gradually to be extended to all Status
Holders.
Manufacturer Status Holders to be eligible to self-certify their
goods as originating from India as per Para 2.108 (d) of Hand
Book of Procedures.
Status holders to be entitled to export freely exportable items
on free of cost basis for export promotion subject to an annual
limit of Rs 10 lakh or 2% of average annual export realization
during preceding three licencing years whichever is higher

ORGANISATIONS
Advance Authorisation Scheme

Imports under Advance Authorisation exempted from Transition
Product Specific Safeguard Duty also . Earlier, the exemption
was for Basic Custom Duty, Additional Customs Duty, Education
Cess, Anti-dumping Duty and Safeguard Duty.
Supplies against Para 7.02 (c ) (d) and (g) not exempted from Antidumping Duty and Safeguard Duty and Transition Product
Specific Safeguard Duty .
Advance Authorization for annual requirement only for notified in
SION
No Advance Authorization for annual requirement if any inputs fall
in App-4J

ORGANISATIONS
Advance Authorisation Scheme (Contd)
Eligibility for Authorisation on self declared norms

reduced from 500% to 300% for Status Holders.
Non Status Holder to be eligible for 300% or Rs 10 Cr
whichever more.
A detailed list of items (including vegetables/edible oils,
Cereals, Spices etc.) issued which are in-eligible for
importation on self declaration basis.
Representation against the decision of norms Committee
to be made within 90 days of hosting. Composition fee of
Rs 5000 for delayed representation.
EO extension request with a self-declaration that
unutilized inputs are available.

ORGANISATIONS
DFIA
DFIA only for products under SION.
No DFIA if SION prescribes any input with AU condition.
DFIA facility not available for G&J sector.
Separate DFIA for each SION and each port.
DFIA imports only exempted from BCD. ACD for non
excisable goods?
Online application to Regional Authority before starting
export under DFIA.

ORGANISATIONS
DFIA (Contd)
Exports to be completed within 12 months from the date

of online filing.
Applicant
to
indicate file number on the export
documents viz. Shipping Bill / Airway Bill/ Bill of Export /
ARE-1 / ARE-3, Central Excise certified Invoice.
Request for issuance of transferable Duty Free Import
Authorisation within a period of twelve months from the
date of export or six months (or additional time allowed
by RBI for realization) from the date of realisation
whichever later.
No transitional arrangement for DFIA ?

ORGANISATIONS
EPCG
For indigenous sourcing of Capital Goods, the specific
Export Obligation reduced by 25% of the EO stipulated.
Provision related to EPCG Authorization on Annual
Requirement and Technological Upgradation of existing
EPCG Machinery has been omitted
The limit on value of spares imported has now been relaxed
EO to be fulfilled through goods manufactured from EPCG
machine

ORGANISATIONS
EPCG (Contd)
Units registered with BIFR/ Rehabilitation Department

of State Government, to get extension of EO for 3
years from 12 years earlier, if not specifically
mentioned in the BIFR order.
Export of restricted goods under the authorisation
now allowed, subject to the approval from Exim
Facilitation Committee
Validity of the authorization is now limited to 18
month from the date of issue of such authorization
Time period for seeking extension of EO period
increased from 30 days to 75 days from the expiry of
original EO period

ORGANISATIONS
Conversion from EOU to EPCG

In case where standalone EOU/ SEZ unit converts:
Maintenance of average EO not required

EO would be 6 times of the proportionate duty saved amount of the
depreciated value of Capital Goods
In case one unit of the firm/ company opts to de-bond from EOU to
EPCG Scheme, while other units are DTA units:
Average EO would be fixed by excluding the exports made by the debonding unit from the total exports of the firm/ company
EO would be 6 times of the proportionate duty saved amount of the
depreciated value of Capital Goods of the de-bonding unit

ORGANISATIONS
EPCG (Contd)
CE certificate also accepted for installation certificate for

Excisable Unit also.
Clubbing of authorization restricted only in cases where
endorsed products on the authorization are same/ similar.
Authorisation holder given option of suo-motto payment of
duty and interest .
Period for maintenance of records after redemption of
authorizations has been reduced to 2 years.

ORGANISATIONS
EOU Scheme
FTP permits an EOU, to export a prohibited item on a
case to case basis, provided raw materials are
imported and there is no procurement of raw material
from DTA.
EOU units to achieve Positive NEE cumulatively in 5
years . In genuine cases of hardship, the period of 5
years can be extended for a period of upto 1 year by
BoA.
Time period for validity of LoP/LoI has been revised
for faster implementation with an initial validity of 2
years (as oppose to 3 years earlier)

ORGANISATIONS
EOU Scheme (Contd)
Applications for setting up of units under EOU, including all

units in services sector, shall be approved or rejected by the
Units Approval Committee within 15 days.
EOUs, EHTPs, STPs have been allowed to share
infrastructural facilities among themselves after getting
approval from Inter-Ministerial Standing Committee.
Earlier , units are permitted to transfer capital goods to other
EOUs, EHTPs, STPs, SEZ units. Now if transferred capital
goods rejected by the recipient, the same can be returned to
the supplying unit, without payment of duty

ORGANISATIONS
EOU Scheme (Contd)
Inter unit transfer of goods/services have been allowed

among EOUs, EHTPs, STPs, and BTPs to facilitate
group of those units to source inputs centrally in order to
obtain bulk discount.
A simplified procedure to be provided to fast track the
de-bonding / exit of the STP/ EHTP units which has not
availed any duty benefit on procurement of raw material,
capital goods etc.
EOUs have been allowed facility to set up Warehouses
near the port of export.

ORGANISATIONS
EOU Scheme (Contd)
Authorised
employees/persons
of
IT related
EOU/STP/EHTP/BTP have been allowed the facility to
work from a place outside the unit
STP / EHTP units, software EOUs have been allowed
the facility to use all duty free equipment/goods for
training purposes (including commercial training).
EOUs having physical export turnover of Rs. 10 Cr
(Rs. 15 Cr earlier) and above, have been allowed the
facility of fast track clearances of import and domestic
procurement of goods.

ORGANISATIONS
Deemed Exports
The categories of supplies
bifurcated between
manufacturer and main/sub-contractor.
Manufacturer:
Supply of goods against Advance Authorisation /
Advance Authorisation for annual requirement / DFIA;
Supply of goods to EOU / STP / EHTP / BTP;
Supply of capital goods against EPCG Authorisation;
Supply of marine freight containers by 100% EOU
(Domestic freight containers-manufacturers)
The rest of the supplies are entitled for deemed
export benefit by main/sub-contractors.

ORGANISATIONS
Deemed Exports( Contd)
Earlier , DE benefit for supply of goods to nuclear

power projects awarded through ICB was not
available. Such supplies are now entitled for the
benefit.
The benefit of deemed export earlier available to
projects funded by UN agencies has been extended
to supplies made to UN or International Organization
for their official use also .
Exemption/refund against supply to DFIA is not
available since CVD is not exempted.

ORGANISATIONS
Deemed Exports( Contd)
Removal of agency :
International Fund for Agricultural Development (IFAD)
Organisation of Petroleum Exporting Countries (OPEC) Fund;
Yen Credit channelised through Japan International Cooperation
Agency (JICA) (development component only)

Swedish International Development Agency (SIDA)
Cases on random basis to be selected and scrutinized by internal

audit team, headed by Joint DGFT.

ORGANISATIONS
QUALITY COMPLAINTS AND

TRADE DISPUTES
A New Chapter on Quality Complaints And Trade Disputes
Introduced.
For resolving such disputes at a faster pace, a Committee on
Quality Complaints and Trade Disputes (CQCTD) is being
constituted
in
22
offices
with
members
from
EPCs/FIEO/APEDA/EICs.
CQCTD proceedings will only reconciliatory in nature
.Aggrieved party is free to pursue any legal recourse.

ORGANISATIONS
THANK YOU

Foreign Trade Policy 2015-20

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FEDERATION OF INDIAN EXPORT