Important Highlights Of Mid Term Review Of Foreign Trade Policy 2015 20

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Important - Highlights of Mid-Term Review of Foreign Trade Policy (2015-20)

CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)

Jhansi Castle, 4th Floor, 7 Cooperage Road, Mumbai - 400 001.India.

Tel : +91 22 22021288 / * Fax : +91 22 22026684

* E-mail : info@chemexcil.gov.in Web : https://chemexcil.in

EPC/LIC/DGFT/FTP_MID-TERM

5th Dec 2017

ALL MEMBERS OF THE COUNCIL

Important

Highlights of Mid-Term Review of Foreign Trade Policy (2015-20)

Dear Members,

We would like to inform you that the Mid-term review of the Foreign Trade Policy 2015-20 has been released on 5th December 2017 by Shri Suresh Prabhu, Hon’ble Minister of Commerce & Industry in the presence of MoS (Commerce & Industry), Finance Secretary, Commerce Secretary and DGFT.

The mid-term review of the Foreign Trade Policy (FTP) which is announced after GST roll-out, lays focus on policy measures to boost the exports of goods and services from labour intensive sectors, MSME’s and to increase employment generation and value-addition in the country.

For the sake of member-exporters the highlights of the Mid-term review of the Foreign Trade Policy 2015-20 are as follows:

HIGHLIGHTS OF THE REVISED FOREIGN TRADE POLICY 2015-2020

ENCOURAGING EXPORTS BY MSME’S AND LABOUR INTENSIVE INDUSTRIES
MEIS is a major export promotion scheme which seeks to promote export of notified goods manufactured/produced in India. MEIS incentives are available at 2, 3, 4 and 5% of the FOB value of exports. MEIS incentives for two sub-sectors of Textiles i.e. Ready Made Garments and Made Ups increased from 2% to 4% involving an additional annual incentives of Rs. 2743 Crore.
Across the board increase of 2% in existing MEIS incentive for exports by MSMEs / labour intensive industries involving additional annual incentive of Rs. 4567 Crore. Major sectors covered are leather, agriculture, carpets, hand-tools, marine products, rubber products, ceramics, sports goods, medical and scientific products and electronic and telecom components. The above increase shall be available for the period Nov. 1, 2017 to June 30, 2018.
The validity period of the Duty Credit Scrips has been increased from 18 months to 24 months to enhance their utility in the GST framework.
GST rate for transfer/sale of scrips has been reduced to zero from the earlier rate of 12%

NEW TRUST BASED SELF RATIFICATION SCHEME FOR DUTY FREE IMPORT OF RAW MATERIAL
New trust based Self Ratification Scheme introduced to allow duty free inputs for export production under duty exemption scheme with a self-declaration. Under this scheme, instead of getting a ratification of the Norms Committee for inputs to be used in the manufacture of export products, exporters will self-certify the requirement of duty free raw materials/ inputs and take an authorization from DGFT. The scheme would initially be available to the Authorized Economic Operators (AE0s).
The scheme will expedite export of new products by decreasing product turn-around time, particularly in sectors such as pharmaceuticals, chemicals, textiles, engineering and high technology which have dynamic raw material requirements.

NEW LOGISTICS DIVISION
New Logistics Division created in the Commerce Department to develop and coordinate implementation of an Action Plan for the integrated development of the logistics sector, by way of policy changes, improvement in existing procedures, identification of bottlenecks and gaps and introduction of technology in this sector.
STATE-OF-THE-ART TRADE ANALYTICS
State-of-the-Art trade analytics division set up in DGFT for data based policy actions

The initiative envisages processing trade information from DGCIS and other national and international data bases related to India's key export markets and identify specific actions to address export interests in various markets and products

EXPLORING NEW EXPORT MARKETS
Focus on increasing India's exports in under and un-tapped markets in high potential regions like Africa, to cover not just trade in goods and investment but also in capacity building, technical assistance and services such as healthcare and education. Sectors like agro-processing, manufacturing, mining, textiles, consumer goods, infrastructure development and construction would be focus areas.
Greater engagement with Latin America and the Caribbean region, including encouragement of project exports through easy access to credit facilities.
ECGC will be strengthened and substantially expanded to ensure insurance cover to exporters, particularly MSME exporters exporting to new and risky markets.
EXPLORING NEW EXPORT PRODUCTS
Focus on increasing exports of products which have become important in the world trade of late, in recognition of the fact that70% of India's exports involve products whose share in the total world exports is only 30%. Focus on promising product groups like medical devices/ equipment, technical textile, electronic component, project goods, defence and hi-tech products in addition to labor intensive and MSME products like agricultural, marine, carpets, leather, ayush and health, textiles and readymade garments, handloom, handicrafts, coir, jute products, diamond, gold and jewellery.
GREATER PARTICIPATION IN THE GLOBAL AND REGIONAL VALUE CHAINS
Focus on increasing participation in high value segments of RVCs and GVCs to increase India's exports, in recognition of the fact that products manufactured through GVCs account for two-thirds of world trade in manufactured Goods. This would be facilitated by a focus on automating port and customs operations, allowing green channel clearances and bench marking the turnaround time of ships with the best global practices.

MARKET ACCESS INITIATIVE (MAI) SCHEME

The scheme for trade promotion and facilitation administered by the DoC, namely the Market Access Initiative Scheme (MAI) shall continue till March 2020. The other non-Plan Scheme for export facilitation namely; Market Development Assistance Scheme (MDA) has been discontinued from 1st April 2017 but essential components of the MDA Scheme have been incorporated in the MAI Scheme itself to address the needs of the eligible exporters under the erstwhile scheme.

Members are requested to take note of the same. The revised Foreign Trade Policy document along-with hand-book of procedures are available on below links for your reference and perusal. Subsequent notifications/circulars shall be mailed as an when issued.

http://dgft.gov.in/exim/2000/FTP-2017/ftp17-051217.pdf

http://dgft.gov.in/exim/2000/FTP-2017/ftproc17-051217.pdf

Your feed-back in this regard may be sent to us on our e-mail id’s deepak.gupta@chemexcil.gov.in and balani.lic@chemexcil.gov.in .

Thanking You,

Yours faithfully,

(S.G. BHARADI)
Executive Director
CHEMEXCIL

FTP17-051217

FTProc17-051217