New Foreign Trade Policy: Summary

 
Union Government has unveiled new Foreign Trade Policy (FTP), in April, to make India an exporting powerhouse in the next five years.
Key Highlights: 
* Increase exports to USD 900 billion by 2019-20, from USD 466 billion in 2013-14
* Raise India’s share in world exports from 2 percent to 3.5 percent
* Merchandise Export from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) launched
* Higher level of rewards under MEIS for export items with High domestic content and value addition
* Chapter-3 incentives extended to units located in SEZs
* Export obligation under EPCG scheme reduced to 75% to Promote domestic capital goods manufacturing
* FTP to be aligned to Make in India, Digital India and Skills India initiatives.
* Duty credit scrips made freely transferable and usable For payment of custom duty, excise duty and service tax.
* Export promotion mission to take on board state Governments
* Unlike annual reviews, FTP will be reviewed after two-and-Half years
* Higher level of support for export of defence, farm Produce and eco-friendly products. 
foreign trade policy
 
Earlier there were 5 different schemes (Focus Product Scheme, Market Linked Focus Product Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, VKGUY) for rewarding merchandise exports with different kinds of duty scrips with varying conditions (sector specific or actual user only) attached to their use. Now all these schemes have been merged into a single scheme, namely Merchandise Export from India Scheme (MEIS). 
Served From India Scheme (SFIS) has been replaced with Service Exports from India Scheme (SEIS). SEIS shall apply to ‘Service Providers located in India’ instead of ‘Indian Service Providers’. Thus SEIS provides for rewards to all Service providers of notified services, who are providing services from India, regardless of the constitution or profile of the service provider.
Business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade are proposed to be recognized as Status Holders and given special treatment and privileges to facilitate their trade transactions, in order to reduce the transaction costs and time. The nomenclature of Export House, Star Export House, Trading House, Star Trading House, Premier Trading House certificate has been changed to One, Two, Three, Four, Five Star Export House.
Manufacturers who are also Status Holders will be enabled to self-certify their manufactured goods as originating from India with a view to qualify for preferential treatment under different Preferential Trading Agreements [PTAs], Free Trade Agreements [FTAs], Comprehensive Economic Cooperation Agreements [CECAs] and Comprehensive Economic Partnerships Agreements [CEPAs] which are in operation.
Specific Export Obligation under EPCG scheme, in case capital goods are procured from indigenous manufacturers, which is currently 90% of the normal export obligation (6 times at the duty saved amount) 
has been reduced to 75%, in order to promote domestic capital goods manufacturing industry.
Higher level of rewards under MEIS for export items with high domestic content and value addition.
Online filing of documents and inter ministerial online consultations. 
Simplification of procedures/processes, digitisation and e-governance.
Special emphasis on e-commerce exports and defence exports.
Vishakhapatnam and Bhimavaram added as Towns of Export Excellence
 

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