Foreign Trade Policy 2015 – 2020

ADMINISTRATION OF FOREIGN TRADE POLICY

The Director General of Foreign Trade (DGFT) advises Central Government in formulating policy and exercise specified powers under the Foreign Trade (Development and Regulation) Act, 1992. DGFT issues public notices, policy circulars, notifications or decisions from time to time.

DGFT is to work in close coordination with other agencies like CBEC, RBI.

FEATURES OF FOREIGN TRADE POLICY

1. Export-Import is free unless specifically regulated by the provisions of the FTP.

2. Export and Import goods are broadly categorized as

a. Free (i.e. general goods freely import or export        without any authorization).

b. Restricted (i.e. goods allowed to import or export only with authorization

c. Prohibited (i.e. goods are not allowed to import or export)

3. There are restrictions on exports and imports for various strategic, health, and other reasons.

4. Exports are promoted through various promotional schemes.

5. There should be no taxes on exports.

6. Capital goods can be imported at NIL duty for the purpose of exports under the scheme of Export Promotion Capital Goods (EPCG) Scheme.

7. EOU’S and SEZ units are exempted from payment of taxes.

8. Deemed exports concept introduced.

9. Duty credit scrip’s schemes are designed to promote exports of some specified goods to specified markets and to promote export of specified services.

 

GUIDING PRINCIPLES OF FTP 2015-2020

1. “Make in India” vision.

2. Ease of doing business and trade facilitation by simplifying procedures and extensive use of e-governance(i.e. paper less working).

3. Encourage e-commerce exports of specified products.

4. Encourage manufacture and export by SEZ, EOU, STP, EHTP and BTP.

5. Offering duty credit scripts to encourage goods and services.

6. Special efforts to resolve quality complaints and trade disputes.

 

 

SCOPE OF FTP

1. Policy for regulating import and export of goods and services.

2. Export Promotional Measures.

3. Duty Remission and Duty Exemption Scheme for promotion of exports.

4. Export Promotion Capital Goods (EPCG) Scheme.

5. Export Oriented Undertakings (EOU/EHTP/STP & BTP) Schemes.

6. Deemed Exports.

7. Quality complaints and Trade Disputes.

 

BOARD OF TRADE (BOT)

Board of Trade has been constituted to advise Government on Policy measures like:

• Improve exports,

• Review export performance,

• Review policy and procedures for import and exports and

• Examine issues relevant for promotion of India’s foreign trade.

Commerce and Industry Minister will be the Chairman of the BOT. Government shall also be nominated up to 25

persons. Board of Trade will meet at least once every quarter.

 

INDIAN TRADE CLASSIFICATION (HARMONIZED SYSTEM) [ITC (HS)]   

 

 

THIRD PARTY EXPORTS

Third-party exports means exports made by an exporter or manufacturer on behalf of another exporter(s).

In such cases, export documents such as shipping bills shall indicate name of both manufacturing exporter / manufacturer and third party exporter(s).

BRC, GR declaration, export order and invoice should be in the name of third party exporter.

Such third party exports shall be allowed under FTP.