Release of Mid-Tem Review of Foreign Trade Policy 2015-2020

Circular No. ES/ 247/2017-18 December 6, 2017

To: Members of the Council

Sub: Release of Mid-Tem Review of Foreign Trade Policy 2015-2020

Dear Sir,

We are glad to inform you that the Minister of Commerce and Industry, Shri Suresh Prabhu has released the Mid-term Review of the Foreign Trade Policy (FTP) 2015-20 on 5^th December, 2017.

The highlights (Relevant portion) of the Mid Term Review of FTP is as follows –

1. GST related reforms

Under Advance Authorization, Export Promotion of Capital Goods and 100% EOU Scheme, exporters have benefit of sourcing inputs / capital goods from abroad as well as domestic suppliers for export without upfront payment of GST to address issue of working capital blockage of the exporters on account of upfront payment.
E-wallet will be launched from 1^st April 2018.
Merchant exporters have been allowed to pay nominal GST of 0.1% for procuring goods from domestic suppliers for exports.

2. Encouraging exports by MSMEs and Labour Incentive industries

Merchandise Exports from India Scheme (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 all industries, increase of 2% in existing MEIS incentive for exports involving additional annual incentive of Rs. 4567 crore;
SEIS incentives increased by 2% involving additional incentive of Rs1140 crore to boost export of services;
Validity for Duty Credit Scrips increased from 18 months to 24 months;
GST rate for transfer / sale of scripts reduced to zero from 12%.

New trust based Self Ratification scheme introduced to allow duty free inputs for export production under duty exemption scheme with a self-declaration.
Contact@DGFT service has been launched on the DGFT website as a single window contact point for exporters and importers for resolving foreign trade related issues and give suggestions.
Professional team envisaged to handhold, assist and support exporters in their export related problems, accessing export market and meeting regulatory requirements.
Set up of National Trade Facilitation Committee to facilitate ease of trade across borders.

A State-of-the-Art Trade Analytics division has been set up in DGFT for data based policy actions.
New Logistics Division created in the Commerce Department to develop and coordinate implementation of an Action Plan for Logistics sector.
Exploring new export markets and products.
Greater participation in the global and regional value chains.
Enhancement of existing and launch of various new Export Promotion Schemes.
PAN is now being used as IEC (Import Export Code) to simplify procedures and processes.
A new scheme of Self-Assessment based duty free procurement of inputs required for exports has been introduced. There will be no need of Standard Input Output Norms in such cases and this will eliminate delays. It is based on trust.

In addition to the above, the DGFT has amended Table 2 of Appendix 3B of the Merchandise Exports from India Scheme (MEIS) vide Public Notice No. 44/2015-20 dated 5^th December, 2017. Please find attached the Relevant extract of the Public Notice where the rates are enhanced for some of the MMF Textile items.

You may be aware that the Council had been rigorously following up with the DGFT for inclusion of MMF items under the MEIS. Members please note that the Revised Rates are applicable for exports made w.e.f. 1^st November, 2017 to 30^th June, 2018.

With regard to the above please find the following -