TaxTMI 
TaxTMI 
Foreign Trade Policy 2023 announced
X X X X Extracts X X X X
X X X X Extracts X X X X
....oreign Trade Policy 2023 announced <br>Customs, DGFT & SEZ<br>Dated:- 31-3-2023<br><BR>FTP 2023 is a dynamic and open ended Policy that will accommodate the emerging needs: Sh. Piyush Goyal PM Modi has given the vision to increase exports manifold: Sh Goyal FTP seeks to take India's exports to 2 trillion dollars by 2030: Sh Goyal 4 pillars of FTP 2023: Incentive to Remission, Export promotion through collaboration, Ease of doing business and Emerging Areas Key Highlights Foreign Trade Policy, 2023 Handbook of Procedures, 2023 FTP, 2023 - Policy Notification with PDF file FTP - Handbook of Procedures, 2023 - Public Notice with PDF file Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today launched the Foreign Trade Policy 2023 saying that it is dynamic and has been kept open ended to accommodate the emerging needs of the time. He stated that the policy had been under discussion for a long time and has been formulated after multiple stakeholder consultations. India's overall exports, including services and merchandise exports, has already crossed US$ 750 Billion and is expected to cross US$ 760 B....
X X X X Extracts X X X X
X X X X Extracts X X X X
....illion this year, he said. The Minister referred to the interaction that Prime Minister, Shri Narendra Modi with the exporters on 06th August, 2021 and encouraged them to increase exports and get more deeply involved in the global value chain. He lauded the vision and guidance of the Prime Minister who believed that given the size of the Indian economy and manufacturing & service sector base, the potential for the country to grow is manifold. He said that this vision is at the core of the policy. The Minister noted that the remarkable achievement in the overall export figure of crossing US$ 760 Billion in these challenging times across the world has been the result of enthusiasm and encouragement pumped in by the Prime Minister. He said that this achievement is in sync with the target set in the roadmap in 2021 after the interaction with the Prime Minister. He stressed that every opportunity for export must be captured and utilised effectively. He also mentioned that in the next 5 months during India's G20 presidency there should be a massive concentrated outreach with the world both sector-wise and country-wise. The release of the policy was also attended by Union Minister of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....State for Commerce & Industry, Smt. Anupriya Patel, Commerce Secretary, Shri Sunil Barthwal and Member Customs, Central Board of Indirect Taxes and Customs, Shri Rajiv Talwar. Director General of Foreign Trade, Shri Santosh Kumar Sarangi gave a detailed presentation on the policy. The Key Approach to the policy is based on these 4 pillars: (i) Incentive to Remission, (ii) Export promotion through collaboration - Exporters, States, Districts, Indian Missions, (iii) Ease of doing business, reduction in transaction cost and e-initiatives and (iv) Emerging Areas - E-Commerce Developing Districts as Export Hubs and streamlining SCOMET policy. Foreign Trade Policy (2023) is a policy document which is based on continuity of time-tested schemes facilitating exports as well as a document which is nimble and responsive to the requirements of trade. It is based on principles of 'trust' and 'partnership' with exporters. In the FTP 2015-20, changes were done subsequent to the initial release even without announcement of a new FTP responding dynamically to the emerging situations.Hereafter, the revisions of the FTP shall be done as and when required.Incorporating feedback from Trade and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Industry would also be continuous to streamline processes and update FTP, from time to time. The FTP 2023 aims at process re-engineering and automation to facilitate ease of doing business for exporters. It also focuses on emerging areas like dual use high end technology items under SCOMET, facilitating e-commerce export, collaborating with States and Districts for export promotion. The new FTP is introducing a one-time Amnesty Scheme for exporters to close the old pending authorizations and start afresh. The FTP 2023 encourages recognition of new towns through "Towns of Export Excellence Scheme" and exporters through "Status Holder Scheme". The FTP 2023 is facilitating exports by streamlining the popular Advance Authorization and EPCG schemes, and enabling merchanting trade from India. Process Re-Engineering and Automation Greater faith is being reposed on exporters through automated IT systems with risk management system for various approvals in the new FTP. The policy emphasizes export promotion and development, moving away from an incentive regime to a regime which is facilitating, based on technology interface and principles of collaboration.Considering the effectiv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eness of some of the ongoing schemes like Advance Authorisation, EPCG etc. under FTP 2015-20, they will be continued along with substantial process re-engineering and technology enablement for facilitating the exporters. FTP 2023 codifies implementation mechanisms in a paperless, online environment, building on earlier 'ease of doing business' initiatives. Reduction in fee structures and IT-based schemes will make it easier for MSMEs and others to access export benefits. Duty exemption schemes for export production will now be implemented through Regional Offices in a rule-based IT system environment, eliminating the need for manual interface. During the FY23-24, all processes under the Advance and EPCG Schemes, including issue, re-validation, and EO extension, will be covered in a phased manner. Cases identified under risk management framework will be scrutinized manually, while majority of the applicants are expected to be covered under the 'automatic' route initially. Towns of Export Excellence Four new towns, namely Faridabad, Mirzapur, Moradabad, and Varanasi, have been designated as Towns of Export Excellence (TEE) in addition to the existing 39 towns....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... The TEEs will have priority access to export promotion funds under the MAI scheme and will be able to avail Common Service Provider (CSP) benefits for export fulfillment under the EPCG Scheme. This addition is expected to boost the exports of handlooms, handicrafts, and carpets. Recognition of Exporters Exporter firms recognized with 'status' based on export performance will now be partners in capacity-building initiatives on a best-endeavor basis. Similar to the 'each one teach one' initiative, 2-star and above status holders would be encouraged to provide trade-related training based on a model curriculum to interested individuals. This will help India build a skilled manpower pool capable of servicing a $5 Trillion economy before 2030. Status recognition norms have been re-calibrated to enable more exporting firms to achieve 4 and 5-star ratings, leading to better branding opportunities in export markets. Promoting export from the districts The FTP aims at building partnerships with State governments and taking forward the Districts as Export Hubs (DEH) initiative to promote exports at the district level and accelerate the development of grassroots tr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ade ecosystem. Efforts to identify export worthy products & services and resolve concerns at the district level will be madethrough an institutional mechanism - State Export Promotion Committee and District Export Promotion Committee at the State and District level, respectively.District specific export action plans to be prepared for each district outlining the district specific strategy to promote export of identified products and services. Streamlining SCOMET Policy India is placing more emphasis on the "export control" regime as its integration with export control regime countries strengthens. There is a wider outreach and understanding of SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) among stakeholders, and the policy regime is being made more robust to implement international treaties and agreements entered into by India.A robust export control system in India would provide access of dual-use High end goods and technologies to Indian exporters while facilitating exports of controlled items/technologies under SCOMET from India. Facilitating E-Commerce Exports E-commerce exports are a promising category that requires distinct policy interventi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ons from traditional offline trade. Various estimates suggest e-commerce export potential in the range of $200 to $300 billion by 2030. FTP 2023 outlines the intent and roadmap for establishing e-commerce hubs and related elements such as payment reconciliation, book-keeping, returns policy, and export entitlements. As a starting point, the consignment wise cap on E-Commerce exports through courier has been raised from Rs.5Lakh to Rs.10 Lakh in the FTP 2023. Depending on the feedback of exporters, this cap will be further revised or eventually removed.Integration of Courier and Postal exports with ICEGATE will enable exporters to claim benefits under FTP. The comprehensive e-commerce policy addressing the export/import ecosystem would be elaborated soon, based on the recommendations of the working committee on e-commerce exports and inter-ministerial deliberations.Extensive outreach and training activities will be taken up to build capacity of artisans, weavers, garment manufacturers, gems and jewellery designers to onboard them on E-Commerce platforms and facilitate higher exports. Facilitation under Export Promotion of Capital Goods (EPCG) Scheme The EPCG Scheme, which allows i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mport of capital goods at zero Customs duty for export production, is being further rationalized. Some key changes being added are: Prime Minister Mega Integrated Textile Region and Apparel Parks (PM MITRA) scheme has been added as an additional scheme eligible to claim benefits under CSP(Common Service Provider) Scheme of Export Promotion capital Goods Scheme(EPCG). Dairy sector to be exempted from maintaining Average Export Obligation - to support dairy sector to upgrade the technology. Battery Electric Vehicles (BEV) of all types, Vertical Farming equipment, Wastewater Treatment and Recycling, Rainwater harvesting system and Rainwater Filters, and Green Hydrogen are added to Green Technology products - will now be eligible for reduced Export Obligation requirement under EPCG Scheme Facilitation under Advance authorization Scheme Advance authorisation Scheme accessed by DTA units provides duty-free import of raw materials for manufacturing export items and is placed at a similar footing to EOU and SEZ Scheme. However, the DTA unit has the flexibility to work both for domestic as well as export production. Based on interactions with industry and Export Promotion councils, cer....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tain facilitation provisions have been added in the present FTP such as Special Advance Authorisation Scheme extended to export of Apparel and Clothing sector under para 4.07 of HBP on self-declaration basis to facilitate prompt execution of export orders - Norms would be fixed within fixed timeframe. Benefits of Self-Ratification Scheme for fixation of Input-Output Norms extended to 2 star and above status holders in addition to Authorised Economic Operators at present. Merchanting trade To develop India into a merchanting trade hub, the FTP 2023 has introduced provisions for merchanting trade. Merchanting trade of restricted and prohibited items under export policy would now be possible. Merchanting trade involves shipment of goods from one foreign country to another foreign country without touching Indian ports, involving an Indian intermediary. This will be subject to compliance with RBI guidelines, andwon't be applicable for goods/items classified in the CITES and SCOMET list. In course of time, this will allow Indian entrepreneurs to convert certain places like GIFT city etc. into major merchanting hubs as seen in places like Dubai, Singapore and Hong Kong. Amnesty Schem....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Finally, the government is strongly committed to reducing litigation and fostering trust-based relationships to help alleviate the issues faced by exporters. In line with "Vivaad se Vishwaas" initiative, which sought to settle tax disputes amicably, the governmentis introducing a special one-time Amnesty Scheme under the FTP 2023to address default on Export Obligations. This scheme is intended to provide relief to exporters who have been unable to meet their obligations under EPCG and Advance Authorizations, and who are burdened by high duty and interest costs associated with pending cases.All pending cases of the default in meeting Export Obligation (EO) of authorizations mentioned can be regularized on payment of all customs duties that were exempted in proportion to unfulfilled Export Obligation.The interest payable is capped at 100% of these exempted duties under this scheme. However, no interest is payable on the portion of Additional Customs Duty and Special Additional Customs Duty and this is likely to provide relief to exporters as interest burden will come down substantially.It is hoped that this amnesty will give these exporters a fresh start and an opportunity t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o come into compliance. *** AD/VN ============= Document 1 सतà¥à¤¯à¤®à¥‡à¤µ जयते DIRECTORATE GENERAL OF FOREIGN TRADE Department of Commerce Government of India KEY HIGHLIGHTS FOREIGN TRADE POLICY 2023 G20 à¤à¤¾à¤°à¤¤ 2023 INDIA Foreign Trade Policy 2015-20 FTP 2015-20 which was to end on 31.03.2020 was extended due to COVID pandemic and volatile geo- political scenario till 31.03.2023. India has reach record high Export Performance in Merchandise and Services Exports during this period. India's Merchandise and Services exports is expected to cross record USD 760 Billion in FY2022-23. FTP 2015-20 contributed to this illustrious export performance. India's Exports US$ 760 Bn** 55.4% US$ 435 Bn FY 2016 74.7% US$ 676 Bn FY 2022 FY 2023 ** Projected New Foreign Trade Policy 2023 • Policy changes were being EXPORT undertaken since 2015 even without announcement of a new FTP responding dynamically to the emerging situations. • The Foreign Trade Policy 2023 is being announced to provide the policy continuity and a responsive framework. • Subsequent revision(s) in....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the FTP shall be done as and when required and shall not linked to any date. • Continous feedback from Trade and Industry to streamline processes and update Policy & procedures. New FTP Approach • From Incentives to Tax Remission • • Greater Trade facilitation through technology, automation, and continuous process re-engineering Export promotion through collaboration: Exporters, States, Districts • Focus on Emerging Areas E- Commerce Districts - Exports, Developing as Export Hubs, Streamlining SCOMET policy et al. 1 Key FTP Highlights Ease of Doing Business, Reduction in Transaction Cost and e-Initiatives 1.1 Online approvals without Physical Interface • Automatic approval of various permissions under Foreign Trade Policy based on process simplification and technology implementation. • Reduction in processing time and immediate approval of applications under automatic route for exporters- Automatic route Permission type Current processing time processing time Advance authorization issuance 3 to 7 days 1 day EPCG issuance Revalidation of authorizations 3 to 7 days 1 day 3 days to 1 month 1 day Ex....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tension of Export Obligation period 3 days to 1 month 1 day 1.2 Reduction in user charges for MSMEs under AA and EPCG Application fee being reduced for Advance Authorization and EPCG Schemes • • Will benefit 55-60% of exporters who are MSMEs. • Fee structure as shown below- (In Rupees) Licence Value in Rupees User charges for non- MSMES Reduced User charges for MSMES Up to 1 crore 1 per 1,000 100 1 crore to 10 crores 1 per 1,000 5,000 Above 10 crores Cap at 1,00,000 5,000 1.3 E-Certificate of Origin • Revamp of the e-Certificate of Origin platform proposed- to provide for self- certification of CoOs as well as automatic approval of CoOs, where feasible. • Initiatives for electronic exchange of CoO data with partner countries envisaged. 1.4 Paperless filing of Export Obligation Discharge Applications All authorisation redemption applications to be paperless - This is in addition to application process for issuance being already paperless. With this, the entire lifecycle of the authorization shall become paperless. * } 2 Export Promotion Initiatives 2.1 Status Holder Export Thresholds Rationalised Export performance ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....threshold for Recognition of Exporters as Status Holders rationalized. Enabling more exporters to achieve higher status and reduced transaction cost for exports. (In USD Million) Status House Category Existing Export Performance Threshold Revised Export performance Threshold One Star 3 3 Two Star 25 15 Three Star 100 50 Four Star 500 200 Five Star 2,000 800 2.2 Merchanting Trade Reform To boost merchanting activities from India Merchanting trade involving shipment of goods from one foreign country to another foreign country without touching Indian ports, involving an Indian intermediary is allowed subject to compliance with RBI guidelines, except for goods/items in the CITES and SCOMET list. 2.3 Rupee Payment to be accepted under FTP Schemes • Effective step towards internationalisation of Rupee • FTP benefits extended for rupee realisations through special Vostro accounts setup as per RBI circular issued on 11 July 2022 2.4 Towns of Export Excellence • Four new towns of export excellence declared. Town of Export Excellence Faridabad Moradabad Mirzapur Varanasi Product Category Apparel Handicrafts Handmade Carpet and D....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ari Handloom & Handicraft • These 4 new towns of export excellence (TEE) are in addition to the already existing 39 towns of export excellence. • This scheme gives thrust to cluster based economic development. • TEES are industrial clusters that are recognized based on their export performance • Recognition to these industrial clusters is granted with a view to maximize their potential and enable them to move up the value chain and to tap new markets. • Benefits under TEE Scheme are: Recognition - • Helps in getting recognition/credibility attached to industrial units of the region/town while exploring/expanding into newer markets. • Puts such industrial units/town on the global stage. MAI Scheme - • • Recognized associations of units are provided financial assistance under Market Access Initiative Scheme on priority basis, for export promotion projects for marketing, capacity building and technological services. Through this scheme such units can get financial assistance to visit various trade exhibitions/fairs for exploring more marketing avenues. Common Service Provider facility - • Common Serv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ice Providers in TEE are entitled for Authorisation under EPCG Scheme which can help in increasing the competitiveness of the cluster and provide enabling environment. • This arrangement gives facility to exporters to not own all the infrastructure for conversion from inputs to final export products. A ✓ 3 Districts as Export Hubs Initiative 3.1 States and Districts as Partners in Export Promotion • ⚫ Districts as Export Hubs aims to boost India's foreign trade by decentralizing export promotion. Bring a greater level of awareness and commitment regarding exports at the district level. • Identification of products/services in all the districts. • Create institutional mechanisms at the State and District level to strategize exports (State Export Promotion Committee & District Export Promotion Committee). Preparation of District Export Action Plans (DEAPs) outlining the action plan to promote identified products and services. • Make States and Districts meaningful stakeholders and active participants. 3.2 Capacity Building at District level • • • • Capacity building to create new exporters ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and identification of new markets. Training, handholding, and outreach programs by DGFT field offices in coordination with District Industries Centers. Regional Authorities of DGFT working with the States/UTs to prepare District specific Export Plans. Export promotion outreach programs in districts to focus on branding, packaging, design and marketing of identified product & services. 3.3 Infrastructure and Logistics Development Intervention • To address Infrastructure and Logistics bottlenecks impeding exports. • ⚫ Districts to focus on development of logistics, testing facilities, connectivity for exports and other export-oriented ecosystem. • Convergence of ongoing schemes to support these initiatives 4 E-Commerce Exports 4.1 Facilitation for E-Commerce Exports • All FTP benefits to be extended to e-Commerce exports. • Necessary enablement of IT systems in Department of Commerce, Post, CBIC to be undertaken in the six months. • To streamline e-Commerce export facilitation - Guidelines being formulated • • in consultation with other ministries to facilitate further exports under e-Commerce. Special out....
X X X X Extracts X X X X
X X X X Extracts X X X X
....reach and training activities for small e-commerce exporters Handholding through industry and knowledge partners • Value limit for exports through courier is increased to Rs.10,00,000 per consignment. 4.2 Dak Niryat Facilitation 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. 4.3 E-Commerce Export Hubs • • Designated hubs with warehousing facility to be notified, to help e-commerce aggregators for easy stocking, customs clearance and returns processing. Processing facility to be allowed for last mile activities such as labelling, testing, repackaging etc. $ HA• 5 Steps to Boost Manufacturing ⚫• Prime Minister Mega Integrated Textile Region and Apparel Parks (PM MITRA) scheme has been added as an additional scheme eligible to claim benefits under CSP(Common Service Provider) Scheme of Export Promotion capital Goods Scheme(EPCG). • • • • Dairy sector t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o be exempted from maintaining Average Export Obligation - to support dairy sector to upgrade the technology. Battery Electric Vehicles (BEV) of all types, Vertical Farming equipment, Wastewater Treatment and Recycling, Rainwater harvesting system and Rainwater Filters, and Green Hydrogen are added to Green Technology products will now be eligible for reduced Export Obligation requirement under EPCG Scheme - Special Advance Authorisation Scheme extended to export of Apparel and Clothing sector under para 4.07 of HBP on self-declaration basis to facilitate prompt execution of export orders Norms would be fixed within fixed time-frame. - Benefits of Self-Ratification Scheme for fixation of Input-Output Norms extended to 2 star and above status holders in addition to Authorised Economic Operators at present. • Fruits and Vegetables exporters are being included for double weightage for counting export performance under eligibility criteria for Status House certification. This is in addition to existing MSME sector who also get double weightage. 6 Special One-time Amnesty Scheme for Default in Export Obligations • Government is strongly committed to re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ducing litigation and fostering trust- based relationships to help alleviate issues faced by exporters. • In line with the "Vivaad se Vishwaas" initiative, which sought to settle tax disputes amicably, Government is introducing a special one-time Amnesty Scheme to address non-compliance in Export Obligations by Advance Authorization and EPCG authorization holders. • All pending cases of default in Export Obligation (EO) of authorizations mentioned can be regularized by the authorization holder on payment of all customs duties exempted in proportion to unfulfilled Export Obligation and maximum interest is capped at 100% of such duties exempted. No interest is payable on the portion of Additional Customs Duty and Special Additional Customs Duty. • Amnesty scheme shall be available for a limited period, up to 30.09.2023. • Cases under investigation for fraud and diversion are not eligible for this scheme. 7 Emphasis on Streamlining SCOMET Licensing Procedure • Focus of FTP 2023 on Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) Policy for export of dual use items under SCOMET consolidated at one place for....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ease of understanding and compliance by industry. • SCOMET policy emphasizes India's export control in line with its International commitments under various export control regimes (Wassenaar arrangement, Australia group and Missile Technology Control Regime) to control trade in sensitive and dual use items including software and technology • Recent policy changes introduced such as general authorizations for export of certain SCOMET items to streamline licensing of these items to make export of SCOMET items globally competitive. • Focus on simplifying policies to facilitate export of dual-use high-end goods/technology such as UAV/Drones, Cryogenic Tanks, Certain chemicals etc. Way Forward • • Foreign Trade Policy to be dynamic and responsive to the emerging trade scenario. Wider engagement with States and Districts to promote exports from the grassroots. • Focus on e-Commerce exports to streamline processes and make it easier for exports to grow in e-commerce space. • Sector specific targets to achieve the goal of one trillion-dollar merchandise exports and one trillion-dollar services exports by 2030. • Cons....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ultative mechanism to resolve issues of trade and Industry. • Work towards making Indian Rupees a global currency and facilitating International Trade settlement in INR. • Restructuring of Department of Commerce to make it future ready. ויו ப Website: https://www.dgft.gov.in Address: Directorate General of Foreign Trade, Vanijya Bhawan, Akbar Road, New Delhi 110001<BR> News - Press release - PIB....