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Coronavirus: India's Foreign Trade Policy extended by one year with some changes

Benefit under all export promotion schemes, except SEIS and other schemes, will continue to be available for another 12 months; decision on continuation of SEIS will be taken and notified subsequently

twitter-logoJoe C Mathew | April 1, 2020 | Updated 08:49 IST
Coronavirus: India's Foreign Trade Policy extended by one year with some changes
The existing sops will thus continue till March 31, 2021

India's Foreign Trade Policy (FTP) ending March 31 has been extended by another year. The existing sops will thus continue till March 31, 2021. The present policy, which came into force on April 1, 2015, had five-year validity up to March 31, 2020. The Ministry of Commerce in a release said the decision was taken in view of the unprecedented situation arising out of the COVID-19 pandemic. Salient points of changes made in the FTP are as follows:

  • To provide continuity in the policy regime, the current FTP, valid till March 31, 2020, has been extended till March 31, 2021. The similar extension has been made in the related procedures by extending the validity of Hand Book of Procedures.
  • The benefit under all the export promotion schemes, except SEIS and other schemes, will continue to be available for another 12 months. The decision on the continuation of SEIS will be taken and notified subsequently.
  • Similarly, the validity period of the status holder certificates has also been extended. This will enable the status holders to continue avail of the specified facilities/benefits.
  • Exemption from payment of IGST (Integrated Goods and Service Tax) and Compensation Cess on the imports made under advance/EPCG authorisations and by EOUs, etc, has been extended up to March 31, 2021.
  • The scheme for providing 'transport marketing assistance on the specified agricultural products' is further extended for one year.
  • The validity period for making imports under various duty-free import authorisations (AA/DFIA/EPCG) expiring between 1.02.2020 and 31.07.2020 has been allowed automatic extension for another six months from the date of expiry. There is no requirement of obtaining such endorsement on these authorisations.
  • Where ever the period to make export is expiring between 01.02.2020 and 31.07.2020, automatic extension in the export obligation period is allowed for another six months from the date of expiry, without payment of any composition fee.
  • Last dates for applying for various duty credit scrips (MEIS/SEIS/ROSCTL) and other authorisations have been extended.
  • Timelines for imposing late cuts on the applications filed after the prescribed dates have been relaxed.
  • The validity period of letter of permission/letter of intent granted to EOU units in STPs/EHTPs/BTPs is further extended up to December 31, 2020.
  • The last date of filing applications for refund of TED/Drawback, Transport and Marketing Assistance has been extended.
  • Extension in time has been allowed for filing various reports/returns, etc under various provisions of the FTP.

Also read: Coronavirus fallout: Govt likely to see contraction in tax revenue in FY20

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