Foreign Trade Policy : Measures Taken to Boost Ease of Trade and Highlights

Foreign Trade Policy : Measures Taken to Boost Ease of Trade and Highlights

Question - Foreign Trade Policy/FTP 2015-2020 has far reaching effects for Make in India and Digital India programmes to ease trade. Elaborate on this. Also discuss the highlights of the FTP.

A. Measures to Boost Ease of Trade through FTP

Critical measures taken by the Government of India in Foreign Trade Policy 2015-2020 to ease trade are as follows:

• Specific Export Obligation under Export Promotion Capital Goods Scheme, in the event capital goods are taken from indigenous manufacturers: This has been reduced to 75% of normal export obligation to spur domestic manufacturing

• Export items with high domestic content cum value addition under MEIS/Merchandise Exports from India Scheme are specifically provided more rewards

• Hard copies of applications and specified documents need not be submitted any longer for reward and duty exemption schemes

• Digital uploading of landing documents of export consignment as proof for the notified market

• Once copies of permanent records/documents are uploaded in Exporter/Importer profile, they will not have to be repeatedly submitted

• Dedicated email addresses have been provided for committees such as the Norms Committees, Exim Facilitation Committee and so forth for rapid, paper free communication

B. Foreign Trade Policy: Highlights

• FTP introduced 2 new schemes:

- Merchandise Exports from India Scheme/MEIS : for providing incentives for export of specified goods to certain markets
- Services Exports from India Scheme /SEIS : for increase of exports of notified services from India

• Scrips can be used for payment of customs, excise duty and service tax

• All duty credit scrips under schemes and goods imported under scrips are fully transferable

• E-commerce exports have been supported under MEIS

• Terminology of existing status holder categories have been modified to 1,2,3,4 and 5 Star export house

• Export obligations have been reduced to 75% for domestic procurement under EPCG scheme for providing impetus to Make in India

Facts and Stats

• FTP aims to double India’s share in world trade by 2020

• MEIS subsumes 5 existing schemes namely:

- Focus Product Scheme,
- Market Linked Focus Product Scheme,
- Focus Market Scheme,
- Agri. Infrastructure Incentive Scrip,
- VKGUY

• SEIS is available for service providers in India as against Served From India Scheme earlier

• Benefits of MEIS and SEIS extend to units in SEZs