THE FOREIGN TRADE POLICY- A NEW BEGINNING
The Foreign Trade Policy (FTP), alternatively called as EXIM Policy has been for quite a long time is an announcement of a policy prescription for a block of Five-year period. At times, there have been announcements of Annual Supplement to the FTP.
In an outstanding breadth of fresh air, the GoI has put in place an FTP without an end date effective from 01.04.2023. This can serve the major purpose of the FTP becoming a dynamic and vibrant shape shifting contours as the need arises. The very fact of introduction of RoDTEP as a measure of addressing the structural inefficiency measure was a bold statement set out two years back to support India Inc.
While the earlier policy of five year block had to be extended by periods of 6 months each mainly due to the Covid Pandemic which was raging and followed by the conflict at a different part of the world that impacted and impaired the global supply chain management, such a measure of having a dynamic FTP will and can enable the GoI to be fungible and flexible in ensuring that the Trade interests of the Country are well taken care.
It is also quite interesting to note that the brand-new FTP prescription is to be World Trade Organsiation (WTO) compliant. This is keeping in tradition with GoIs policy of adhering to the global norms in maintaining a transparent cross border trade.
GRANDFATHERING EFFECT
Any License/ Authorisation/ Certificate/ Scrip/ instrument bestowing financial or fiscal benefit issued before commencement of FTP 2023 shall continue to be valid for the purpose and duration for which it was issued, unless otherwise stipulated.
TRADE FACILITATION OBJECTIVE.
The FTP has set out a National Trade Facilitation Action plan. India has ratified the World Trade Organization’s Trade Facilitation Agreement (TFA) in April 2016. To facilitate coordination and implementation of the TFA provisions, an inter-ministerial body i.e., National Committee on Trade Facilitation (NCTF) has been constituted.
National Trade Facilitation Action Plan aims to achieve critical objectives namely. : –
Improvement in Ease of Doing Business through reduction in transaction cost and time.
Reduction in cargo release time
A paperless regulatory environment
A transparent and predictable legal regime
Improved investment climate through better infrastructure
The above is in total consonance with Make in India and Make for the World.
NIRYAT BANDHU SCHEME
DGFT is implementing the Niryat Bandhu Scheme for mentoring new and potential exporter on the intricacies of foreign trade through counselling, training and outreach programmes including the ‘Districts as Export Hubs’ initiative with ‘industry partners’, ‘knowledge partners’ and other stakeholders to create vibrant District-Product-Market relevant knowledge ecosystem. As part of Niryat Bandhu scheme, small exporters who wishes to export using the postal services will also be enabled.
AGRI BOOST
To reduce transaction and handling costs, a single window system to facilitate export of perishable agricultural produce is being facilitated through Agricultural and Processed Food Products Export Development Authority (APEDA)
DEVELOPING DISTRICTS AS EXPORT HUBS
One of the main highlights of the Foreign Trade Policy 2023 is the initiative of developing districts as Export Hubs with an aim to boost India’s foreign trade by decentralising export promotion.
Accordingly, the policy aims to galvanise districts to become export hubs by identifying products and services in the district with export potential and addressing the various roadblocks/bottlenecks for exporting. The policy intends to bring in certain level of awareness and build capacity to create new exports, encourage MSMEs, farmers and small-scale industries to benefit from the opportunities of the overseas markets. This will in turn lead to self-sufficiency and self-reliance of the districts.
In order to promote the local products and services and support them in the endeavour of AtmaNirbhar Bharat, Vocal for local and Make in India, District Export Promotion Committees (DEPCs) at the district level is to be created to provide support for export promotion and address the bottlenecks for export growth along with preparation and implementation of district specific Export Action Plans in the Districts.
District Export Action Plans: The plan is expected to include the top 2-3 products with the highest potential for export and a comprehensive plan for support and development of the products such that the same can be exported. The plan can also include specific quantifiable targets to be achieved in the short term and long term. The plan shall be evaluated by the DEPC and formally adopted and published in the public domain via dedicated portals. Upon adopting a plan, the authorities are expected to support the entire chain from beginning to end.
The policy also aims to provide complete support in the form of product/sector specific training and development through various awareness and outreach activities.
In order to further synergise the efforts of the Department of Commerce/DGFT and the State Government/Union Territories, each state/union territory shall constitute a State Export Promotion Committee (SEPC) headed by Chief Secretary of the State along with the DGFT Regional Authority. Further, the Nodal DGFT Authority shall be responsible for districts under their jurisdiction.
The DGFT would develop an online monitoring portal for the District Export Action Plans. This would enable the authorities to upload information related to products/services with export potential of every district. This will enable monitoring the progress of the district plan.
DUTY EXEMPTION / REMISSION SCHEMES
Duty Exemption / Remission Schemes under this FTP refers to schemes that enable duty free import of inputs for export production, including replenishment of inputs or duty remission.
The schemes for the same include Duty Exemption Schemes, Duty Remission Scheme, Scheme for Rebate on State and Central Taxes and Levies (RoSCTL), and Schemes for Remission of Duties and Taxes on Exported Products (RoDTEP). Under Scheme for Rebate on State and Central Taxes and Levies (RoSCTL), as notified by the Ministry of Textiles – earlier 2 entries are clubbed together, and the removal of the notification numbers seeks to increase convenience for further inclusions.
Advance Authorisation
Advance Authorisation is issued to allow duty free import of input, which is physically incorporated in export product (making normal allowance for wastage). The Basis for issuing Advance Authorisation for inputs in relation to resultant product remains largely on same lines are erstwhile FTP.
Special Advance Authorisation Scheme for export of Articles of Apparel and Clothing accessories now allowed on the basis of self-declaration and adhoc-norms shall be fixed within stipulated time period of 90 days. Earlier Authorisation was only issued based on Standard Input Output Norms (SION) or prior fixation of norms-by-Norms Committee.
Eligibility for application has been set out in Para 4.05, which includes conditions such as applicant being a manufacturer exporter or merchant exporter tied to supporting manufacturer, authorisation being for Advance Authorisation shall be issued for Physical export (including export to SEZ) etc. “Supply of ‘stores’ on board of foreign going vessel / aircraft, subject to condition that there is specific Standard Input Output Norms in respect of item supplied.” Has been added to case where Advance Authorisation is applicable.
Self-Ratification Scheme allows the applicant to determine the input-output ratio where there is no SION/valid Adhoc Norms for an export product or where SION has been notified but exporter intends to use additional inputs in the manufacturing process, eligible exporter can apply for an Advance Authorisation under this scheme on self-declaration and self-ratification basis. Explanation has been added to “additional inputs”. The persons who are eligible to apply for self-ratification is now being broad based to include manufacturer cum actual user who holds valid 2-star or above status subject to the fact that he has already submitted its application for grant of AEO on CBIC’s AEO portal along with other conditions.
Eligibility Conditions for ‘Advance Authorisation for Annual Requirement has undergone change. The additional conditions are as below:
“Advance Authorisation for Annual Requirement shall only be issued for items notified in Standard Input Output Norms (SION). And it shall not be available in case of adhoc norms under paragraph 4.03 (b) (ii) of FTP.
(ii) Advance Authorisation for Annual Requirement shall also not be available in respect of SION where any item of input appears in Appendix 4-J.”
The Methodology to be followed for determining Value Addition and other conditions / restrictions such as Minimum Value Addition, Import of Mandatory Spares, Ineligible categories of import on Self Declaration basis, Period of Obligation, Actual User conditions has been partly set out in the FTP with references given to the Appendix and relevant paras of Handbook of Procedures.
Imports under Advance Authorisation are exempted from payment of Basic Customs Duty, Additional Customs Duty, Education Cess, Anti- dumping Duty, Countervailing Duty, Safeguard Duty, Transition Product Specific Safeguard Duty, wherever applicable. Import against supplies covered under paragraph 7.02 (c) & (f) of FTP will not be exempted from payment of applicable Anti-dumping Duty, Countervailing Duty, Safeguard Duty, and Transition Product Specific Safeguard Duty, if any. However, imports under Advance Authorisation for physical as well as deemed exports are also exempt from whole of the Integrated Tax and Compensation Cess leviable under sub-section (7) and sub-section (9) respectively, of section 3 of the Customs Tariff Act, 1975 (51 of 1975).
Drawback as per rate determined and fixed by Customs authority in terms of DoR Rules shall be available for duty paid imported or indigenous inputs (not specified in the norms) used in the export product.
Specific provisions have been set out to allow Domestic sourcing of Inputs by Holder of an Advance Authorisation / Duty Free Import Authorisation.
Period for fulfillment of export obligation and its extension under Advance Authorisation shall be as prescribed in Handbook of Procedures.
Export proceeds shall be realized in freely convertible currency or in Indian Rupees as per para 2.53 of FTP, except otherwise specified.
DFIA
Duty Free Import Authorisation (DFIA) is issued to allow duty free import of inputs. In addition, import of oil and catalyst which is consumed/ utilised in the process of production of export product, may also be allowed.
Duty Free Import Authorisation shall be exempted only from payment of Basic Customs Duty (BCD), while Drawback as per rate determined and fixed by Customs authority shall be available for duty paid inputs subject to conditions.
Eligibility, Conditions, and restrictions pertaining to the scheme has been set out in Para 4.26 to 4.29 which also gives references to Appendix and Handbook of Procedures.
Schemes for exporters of Gems and Jewellery
Exporters of Gems and Jewellery can import / procure duty free (excluding Integrated Tax and Compensation Cess leviable under Section 3(7) and 3(9) of Customs Tariff Act) input for manufacture of export product.
Specific schemes have been put in place for this sector. They are:
Advance Procurement/ Replenishment of Precious Metals from Nominated Agencies.
Replenishment Authorisation for Gems.
Replenishment Authorisation for Consumables.
Advance Authorisation for Precious Metals.
DFIA scheme is not available for Gems and Jewellery sector.
RoDTEP
The scheme for remission of duties and taxes on exported products seeks to refund, currently unrefunded:
Duties/ taxes / levies, at the Central, State, and local level, borne on the exported product, including prior stage cumulative indirect taxes on goods and services used in the production of the exported product and
Such indirect Duties/ taxes / levies in respect of distribution of exported product.
The rebate under the Scheme shall not be available in respect of duties and taxes already exempted or remitted or credited.
Under the Scheme, a rebate would be granted to eligible exporters at a notified rate as a percentage of FOB value with a value cap per unit of the exported product,
The rebate allowed is subject to the receipt of sale proceeds within time allowed under the Foreign Exchange Management Act, 1999 failing which such rebate shall be deemed never to have been allowed.
The Rebates would be in the form of e-scrips which would be used only for payment of duty of Customs leviable under the First Schedule to the Customs Tariff Act, 1975 viz. Basic Customs Duty.
Supplies / items specifically excluded from the scheme is set out in Para 4.55
EXPORT ORIENTED UNITS (EOUS), ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPS), SOFTWARE TECHNOLOGY PARKS (STPS) AND BIO-TECHNOLOGY PARKS (BTPS)
Many schemes have been implemented for promoting exports. Chapter 6 of the FTP deals with those units undertaking to export their entire production of goods and services (except permissible sales in DTA), to be set up under the any of the following schemes:
Export Oriented Unit (EOU) Scheme,
Electronics Hardware Technology Park (EHTP) Scheme,
Software Technology Park(STP) Scheme or
Bio-Technology Park (BTP) Scheme
for manufacture of goods, including repair, re-making, reconditioning, re- engineering, rendering of services, development of software, agriculture including agro-processing, aquaculture, animal husbandry, biotechnology, floriculture, horticulture, pisciculture, viticulture, poultry, and sericulture.
Trading units are not covered under these schemes.
An EOU / EHTP / STP / BTP unit may export all kinds of goods and services except items that are prohibited in ITC (HS). Export of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) is subject to fulfillment of conditions contained in the Chapter 10 of the FTP (SCOMET).
An EOU / EHTP/ STP/ BTP unit may import and / or procure from DTA or bonded warehouses in DTA / international exhibition held in India, all types of goods, including capital goods, required for its activities, provided they are not prohibited items of import in the ITC (HS) subject to conditions. Goods imported by a unit shall be with actual user condition and needs to be utilized for export production.
Duty:
The imports and/ or procurement from bonded warehouse in DTA or from international exhibition held in India shall be without payment of duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 and additional duty, if any, leviable thereon under Section 3(1), 3(3) and 3(5) of the said Customs Tariff Act. Such imports and/ or procurements can be made without payment of integrated tax and compensation cess leviable thereon under section 3(7) and 3(9) of the Customs Tariff Act, 1975 as per notification issued by the Department of Revenue.
The procurement of goods covered under GST from DTA would be on payment of applicable GST and compensation cess. The refund of GST paid on such supply from DTA to EOU would be available to the supplier subject to such conditions and documentations as specified under GST rules and notifications issued there under. EOUs can also procure excisable goods falling under the Fourth Schedule of Central Excise Act, 1944 from DTA without payment of applicable duty of excise.
Net Foreign Exchange Earnings:
EOU/EHTP/STP/BTP unit shall be a positive net foreign exchange earner. In addition, sector specific provision of Appendix 6B of Appendices & ANFs, where a higher value addition and other conditions are given, shall be required to be followed. NFE Earnings shall be calculated cumulatively in blocks of five years, starting from commencement of production. Whenever a unit is unable to achieve NFE due to prohibition / restriction imposed on export of any product mentioned in LoP, the five-year block period for calculation of NFE earnings may be suitably extended by BoA. The method of calculation of NFE in detail is given in para 6.10 of current Handbook of Procedures. Other Supplies which are counted for fulfilment of NFE has been set out in para-6.08.
Applications & Approvals for setting up a unit is set out in para 6.05. Detailed information is set out in Handbook of procedures.
Entire production of EOU/EHTP/STP/BTP units subject to exceptions provided in para 6.07 needs to be exported.
Subject to conditions the unit may export goods manufactured/ software developed by it through another exporter or any other EOU/EHTP/STP/BTP/SEZ unit.
DTA supplies:
Supplies from DTA to EOU/EHTP/STP/ BTP units for use in their manufacture for exports will be eligible for “benefits under Chapter 7 of FTP”. DTA supplier shall be eligible for relevant entitlements under chapter 7 of FTP, besides discharge of export obligation, if any, on the supplier. The refund of GST paid on such supply from DTA to EOU would be available to the supplier subject to such conditions and documentations as specified under GST.
EOU/EHTP/STP/BTP units apart from duty savings are also entitled to various benefits such as exemption from industrial licensing for manufacture of items reserved for micro and small enterprises, 100% FDI investment permitted through automatic route similar to SEZ units, Units will be allowed to retain 100% of its export earnings in the EEFC account etc. as set out in para 6.11.
Units are allowed to undertake the following:
Inter Unit Transfer (from 1 Unit to another Unit under scheme),
Subcontracting to DTA
Sale of Unutilized Material and Capital Goods subject to conditions
Exit:
With approval of DC/Designated officer of EHTP/ STP/BTP, an EOU/EHTP/STP/BTP unit may opt out of scheme. Such exit shall be subject to payment of applicable Excise and Customs duties and on payment of applicable IGST/ CGST/ SGST/ UTGST and compensation cess, if any, and industrial policy in force. If unit has not achieved obligations, it shall also be liable to penalty at the time of exit.
Existing DTA units can apply for conversion into an EOU / EHTP / STP/ BTP unit. While Existing EHTP / STP units can apply for conversion / merger to EOU unit and vice-versa. In such cases, units will avail exemptions in duties and taxes as applicable.
EXPORT PROMOTION CAPITAL GOODS
EPCG Scheme allows import of capital goods for production at zero customs duty (including IGST and Compensation Cess). EPCG holder may also procure Capital Goods from indigenous sources on fulfilling certain conditions. The EPCG scheme also set out a negative list of items which shall not be entitled for the benefits.
Import under EPCG Scheme shall be subject to an Export Obligation (EO) equivalent to 6 times of duties, taxes and cess saved on capital goods, to be fulfilled in 6 years reckoned from date of issue of Authorisation.
EPCG Authorisation shall be valid for import for 24 months from the date with no Revalidation.
Restricted items import against EPCG authorisation as well as the export of restricted items shall be subject to approval from Exim Facilitation Committee (EFC) at DGFT Headquarters.
Manufacturer exporters with or without supporting manufacturer(s), merchant exporters tied to supporting manufacturer(s) and service providers and Common Service Providers (with certain exceptions) shall be eligible under the EPCG Scheme.
Actual user condition shall be applicable on the imported capital goods until receipt of Export Obligation Discharge Certificate (EODC).
Salient features of conditions for satisfaction of Export obligation
Export obligation to be fulfilled only by export of goods manufactured by the Authorisation holder or supporting manufacturer which are exported directly or through third parties.
EPCG holder shall maintain the Average Export Obligation (AEO)[based on exports of previous 3 years] and then fulfil the export obligation.
In case IGST and Compensation Cess are paid in cash and ITC not availed, they shall not form part of Export obligation.
In case of indigenous sourcing of Capital Goods, Average EO shall be applicable with a reduction of specific EO by 25%.
EPCG holder may only opt for either Indigenous sourcing benefit or Early EO fulfilment incentive (waiver of pending EO on fulfilling 75%+ of EO and complete AEO before half the export duration) or Green technology product incentive (25% reduction in EO for export of green tech products) or Reduced EO for Northeast Region and UTs of Jammu & Kashmir and Ladakh (75% reduction in EO)
Export obligation may be fulfilled by Exports under Advance Authorisation, DFIA, Duty Drawback, RoSCTL and RoDTEP Schemes and maybe physical exports or deemed exports.
Payment received for Royalty and R&D services in specified currency is included for discharge of export obligation.
Extension of EO period shall be permitted subject to prescribed conditions.
EPCG holders relating to the following shall be exempted from maintaining Average Export Obligation subject to the condition that the Goods (excepting tools) are not to be transferred for a period of 5 years from date of imports regardless of fulfilment of export obligation and with the exemption bot being applicable on import of fishing trawlers, boats, ships, and other similar items:
Handicrafts,
Handlooms,
Industries covered under Khadi and Village Industries Commission(KVIC),
Agriculture
Aquaculture (includingFisheries), Pisciculture,
Animal husbandry andDairying,
Floriculture & Horticulture,
Poultry,
Viticulture,
Sericulture,
Carpets,
Coir,
Jute
Export Obligation shall be calculated based on actual duty /Taxes/Cess saved amount in case of direct imports and based on notional Customs duty /Taxes/Cess saved on FOR value as indicated in ARO / Invalidation letter in case of domestic sourcing.
EPCG holder may be permitted to relief, concessions, and waivers in case they have a resolution plan approved by the adjudicating Authority under provisions of Insolvency and Bankruptcy Code 2016.
In case of Indigenous Sourcing of Capital Goods by EPCG Holder, the domestic manufacturer shall be eligible for deemed export benefits and in case of procurement from EOUs the said supplied shall be included in fulfilment of positive NFE.
For authorisations issued during prior periods the provisions of the respective FTPs shall be applicable unless otherwise specified.
DEEMED EXPORTS
“Deemed Exports” for the purpose of this FTP refer to those transactions in which goods supplied do not leave country, and payment for such supplies is received either in Indian rupees or in free foreign exchange. It is therefore pertinent to bear in mind that deemed exports needs to be distinguished from that of Physical exports where the goods are sent out of India physically. The benefits that are granted towards Deemed Exports would be Advance authorisation and or Duty Drawback and or Terminal Excise duty benefits as the case may be based on caveats.
The FTP caveats that “Deemed Exports” for the purpose of GST would include only the supplies notified under Section 147 of the CGST/SGST Act, on the recommendations of the GST Council. The benefits of GST and conditions applicable for such benefits would be as specified by the GST Council and as per relevant rules and notification.
The following are treated as Deemed exports by a manufacturer.
Supply of goods against Advance Authorisation / Advance Authorisation for annual requirement / DFIA.
(b) Supply of goods to EOU / STP / EHTP / BTP.
(c) Supply of capital goods against EPCG Authorisation
The following are to be treated as Deemed Exports by that of Main or a sub-contractor.
Supply of goods to projects financed by multilateral or bilateral Agencies / Funds as notified by Department of Economic Affairs (DEA), MoF
Supply and installation of goods and equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies/Funds as notified by Department of Economic Affairs (DEA), MoF
Good supplied under the International Competitive Bidding route.
Supply of goods required for setting up of any specified mega power project,
Supply of goods to United Nations or International organization for their official use or supplied to the projects financed by the said United Nations or an International organization approved by Government of India
Caveat for availment of Draw back
Refund of drawback on the inputs used in manufacture and supply under the said category can be claimed on ‘All Industry Rate’ of Duty Drawback Schedule notified by Department of Revenue from time to time provided no IGST credit has been availed by supplier of goods on excisable inputs or on ‘Brand Rate Basis’ upon submission of documents evidencing actual payment of basic custom duties.
QUALITY COMPLAINTS AND TRADE DISPUTES
In order to achieve the endeavour of AtmaNirbhar Bharat, Vocal for local and Make in India as well as be recognised as one export, maintaining quality and an enduring relationship with foreign buyers is of utmost importance. Complaints or trade disputes, which arise, need to be settled amicably as soon as possible. Hence, a mechanism is being laid down to address such complaints and disputes in an amicable way.
Complaints/Disputes between two or more Indian entities are not covered under this mechanism. Similarly, complaints/disputes between two or more foreign entities are also not covered.
The following type of complaints may be considered:
Complaints from foreign buyers w.r.t quality of goods or services or technology supplied by exporter in India;
Complaint of importer against foreign suppliers w.r.t quality of goods or services or technology supplied;
Complaints of unethical commercial dealings such as:
Non-supply/partial supply after confirmation of the order
Supplying goods or services or technology other than the ones as agreed upon.
Non-payment
Non-adherence to delivery schedules, etc.
Obligations on part of importer/exporter:
Rule 11 of the Foreign Trade (Regulation) Rules, 1993, requires that on the importation into, or exportation of any goods or services or technology, whether liable to duty or not shall in the Bill of Entry or the Shipping Bill or any other documents prescribed under the Customs Act, 1962 (52 of 1962), state the following:
The value of the goods or services or technology.
Quality and description of such goods or services or technology.
In case of exports, the exporter is required to certify that quality and specifications of goods or services or technology are in accordance with the export contract and subscribe to the declaration of truth in the Bill of Entry or the Shipping Bill or any other documents.
Failure to do so will render the exporter liable to penal actions.
Where Compulsory Quality Control and Pre-shipment inspection prior to export is notified, the inspection is to be complied with failing which penal action under Export (Quality Control & Inspection) Act, 1963 as amended in 1984 against the exporter will be initiated.
Provisions in FT (D&R) Act, 1992, as amended & FT (Regulation) Rules, 1993, as amended for necessary action against erring exporters/ importers:
to suspend or cancel the Importer Exporter Code Number
to refuse to grant or renew / suspend or cancel any License, certificate, scrip, or any instrument bestowing financial or fiscal benefit granted.
for imposition of fiscal penalty in cases where a person makes or abets or attempts to make any import or export in contravention of any provision of the Act, any Rules or Orders made there under.
Mechanism for handling of Complaints/Disputes:
A Committee on Quality complaints and Trade Disputes (CQCTD) will be constituted in the Regional Authorities (RAs) of DGFT. The names of the RAs and jurisdiction shall be given in Chapter 8 of the Handbook of Procedures (HoP).
The Committee shall be constituted under the Chairpersonship of the Head of Office and the same will be given in Chapter 8 of HoP.
The Committee shall be responsible for:
Enquiring and investigating into all Quality related complaints and other trade related complaints falling under the jurisdiction of the respective RAs.
Take prompt and effective steps to redress and resolve the grievances of the importers/ exporters and overseas buyers/ sellers preferably within three months of receipt of the complaint.
The Committee shall hold meetings at regular intervals.
The Committee proceedings are conciliatory in nature and the aggrieved party (Indian entity/Foreign entity is free to pursue any legal recourse against the erring party.
The procedure for making such complaints and the manner in which it should be dealt with shall be prescribed in the Handbook of Procedures.
Corrective Measures:
The Committee at RA level can authorize the Export Inspection Agency or any technical authority to assess whether there has been failure in meeting standards.
Initially, efforts will be made to resolve the matter amicably, failing which action under the Foreign Trade (Development & Regulation) Act, 1992, as amended, and the Foreign Trade (Regulation) Rules, 1993, as amended shall be taken.
Complaints against foreign entities would be taken up for settlement by the respective ‘Foreign Trade Division’ in the Department of Commerce and Indian Missions Abroad will take up the matter with the concerned authorities.
In case, the Indian Missions Abroad is satisfied about the malafide intentions of the foreign entity, information regarding the same shall be passed on to DGFT for circulation amongst EPCs/Commodity Boards, ECGC and other regulatory authorities.
The case officer shall be assigned by the designated Regional Authorities.
Director General of Foreign Trade would appoint an officer, not below the rank of Joint Director General, in the Headquarters, to function as the ‘Nodal Officer’ for monitoring the trade disputes and coordinating with Regional Authorities of DGFT, Foreign Trade Divisions of Department of Commerce, Indian Missions and other agencies.
PROMOTING CROSS BORDER TRADE IN A DIGITAL ECONOMY
In a global village that has genuinely seen the cross border traded erasing the trade borders, the FTP seeks to provide a framework for cross-border trade of goods and services from India in the digital economy and the promotion of e-Commerce and other emerging channels of exports from India.
Exports through a registered courier service/Foreign Post Office is permitted as per Notification(s) issued under Customs Act, 1962. However, exportability of such items shall be regulated in accordance with FTP/Export Policy in ITC(HS) as notified. The value limit for exports through courier service shall be Rs. 10,00,000 per consignment. From an availment of benefits perspective, the doubling of the value per consignment will be of beneficial use.
The new FTP sets out the objective to establish designated areas as E-Commerce Export Hubs (hereafter called “ECEH”), which would act as a centre for favourable business infrastructure and facilities for Cross Border E-Commerce activities.
ECEH will function to achieve agglomeration benefits for e-commerce exporters. The ECEH may provide for storage (including cold storage facilities), packaging, labelling, certification & testing and other common facilities for the purposes of export. ii. The ECEH shall also provide for dedicated logistics infrastructure for connecting to and leveraging the services of the nearest Logistics hub(s). All goods, including SCOMET and Restricted goods and except goods which are prohibited or otherwise disallowed, may be handled at ECEH.
ECEH may be provided financial assistance for e-Commerce export promotion projects for marketing, capacity building and technological services such as imaging, cataloguing, product video creation of e-Commerce Goods.
Dak Ghar Niryat Kendras shall be operationalised throughout the country to work in a hub-and-spoke model with Foreign Post Offices (FPOs) to facilitate cross-border e-Commerce and to enable artisans, weavers, craftsmen, MSMEs in the hinterland and land-locked regions to reach international markets. This would enable exports of goods from artisans as well as cottage industries and MSMEs which are in remote corners of the countries. This will also enable India to Make in India and make for the World and by enabling the post offices to act as a hub and spoke model, the export concept is taken to the very doorstep of the artisan to export his goods.
SCOMET – SPECIAL CHEMICALS, ORGANISMS, MATERIALS, EQUIPMENT AND TECHNOLOGIES
India is a signatory to international conventions on disarmament and non-proliferation, viz. the Chemical Weapons Convention (CWC) and Biological and Toxin Weapons Convention (BWC). There are goods that can typically have a dual use and SCOMET is an acronym for Special Chemicals, Organisms, Materials, Equipment and Technologies. The SCOMET list is the National Export Control List of dual use items munitions and nuclear related items, including software and technology and is aligned to the control lists of the all the multilateral export control regimes and conventions. The SCOMET List stands notified. There are different types of export authorisations for SCOMET goods. The same has been set out afresh in the FTP as well.
It is also pertinent to note that where responsible exporters, occasionally did not comply with the export control provisions of the FTDR Act, WMD Act, Customs Act, or any regulation, order, license, or other authorization on export controls issued by DGFT, they are encouraged to self-disclose failure to comply with the export control provisions.