Circular No.ES/7/2020-21 2nd April, 2020
To: Members of the Council
Sub.: Amendments in Foreign Trade Policy 2015-20
As you are aware, DGFT has extended the validity of present 2015-20 FTP and HBP 2015-20 for 1 Year (i.e upto 31st March, 2021) just of the last day of the Financial Year 2019-20 and on the verge of the termination of the current FTP.
In view of the current situation, the Director General of Foreign Trade (DGFT) has issued Notifications, Public Notice and Trade Notice to address the issues of the Exporters and Importers.
The Chapter-Wise Highlights/changes are here for your kind information and ready reference:
1) FTP Para 1.01 – The Validity of the FTP will be in force upto 31st March 2021 unless otherwise specified.
2) HBP Para 1.01 – The Validity of the Procedures under the Handbook of Procedures will now be in force upto 31st March 2021.
3) HBP Para 2.54 (d) (v) (ii) – Related to import of un-shredded Metallic Waste and Scrap – Dates have been modified from 31st March 2020 to 30th September 2020 and 1st April 2020 to 1st October 2020.
4) HBP Para 2.55 (d) – Recognition as Pre-shipment Inspection Agency (PSIA) and issuance of Pre-shipment Certificate (PSIC) – The Public Notice extends the validity upto 31st March 2020 or 29th June 2020 to be deemed valid upto 30th June 2020.
5) HBP Para 3.15 (a) (i) – MEIS Last Date of Filling – For Shipping Bills where LEO date falls during the period 01.02.2019 to 31.05.2019 the application will be allowed to be filed in a period of 15 Months instead of 12 Months.
6) HBP Para 3.15 (b) – SIES Last Date of Filling – The last date for filing of SEIS Applications for FY 18-19 shall be 31.12.2020
7) FTP Para 3.08 (a) – Eligibility of SEIS – it has been added "However, the service categories eligible under the scheme and the rates of reward on such services as rendered w.e.f 1st April 2019 to 31st March 2020 shall be notified separately in Appendix 3X. For Services rendered w.e.f 1st April 2020, decision on continuation of the scheme will be taken subsequently and notified accordingly."
8) HBP Para 3.20(a) – Validity of Status Holder Certificate – the words “….. or 31.03.2021, whichever is later” are added in the end of the para, making the certificate valid until 31st March 2021 atleast.
9) FTP Para 4.14 – Advance Authorization – Details of Duties Exempted. – The IGST and Compensation Cess Exemption are extended upto 31.03.2021. This is as per GST Council Decision, incorporated in FTP as well. The Customs has also issued the corresponding notification.
10) HBP Para 4.12(vi) – Norms ratified by any Norms Committee (NC) – The Validity of the Ad-hoc Norms which was upto 31.03.2020 or a period of 3 Years, The date 31.03.2020 is substituted with 31.03.2021.
11) HBP Para 4.41 – Validity period for import and Revalidation of Authorisation – A sub para (e) has been added after 4.41 (d) which automatically extends the validity for Import for all Authorizations expiring between 01.02.2020 and 31.07.2020 by SIX MONTHS from the date of expiry. No separate amendment/endorsement is required by the authorization. Also, the option to avail further validity extension under this para would remain available as per the eligibility.
12) HBP Para 4.42 – Export Obligation (EO) Period and its Extension – A Sub Para (h) has been added after 4.42 (g) – which automatically extends the Export Obligation period of all the Authorisation expiring between 01.02.2020 and 31.07.2020 by SIX MONTHS from the date of expiry. No separate Application with composition Fee, amendment or endorsement is required. Also, the option to avail further validity extension under this para would remain available as per the eligibility.
13) HBP Para 4.85 A – Addition of Para after 4.85 - Exports against Advance Authorisation – the para provides the extension for 6 Months for Export/Import/replenishment/drawal of precious metal as calculated under sub para 4.82, 4.83, 4.84 and 4.85. However, the relaxation in the period for repatriation /forex realization would be equal to the period as allowed plus six months, or as per RBI guidelines whichever is less.
14) FTP Para 4.29 (viii) – Validity of DFIA - Where validity of Import expiring between 01.02.2020 to 31.07.2020 the same is extended automatically for SIX MONTHS.
15) HBP Para 4.95 (k) (a) – Last date for filing of Online Claims of Rebate of State and Central Levies and Taxes (RoSCTL) – For shipping bills with LEO date from 07.03.2019 to 31.12.2019 which was 31.06.2020 will now be 31.12.2020.
16) FTP Para 5.01 (a) – EPCG Scheme – The Exemption of IGST and Compensation Cess is extended upto 31.03.2021. This is as per GST Council Decision, incorporated in FTP as well. The Customs has also issued the corresponding notification.
17) FTP Para 5.01 (c) – EPCG – Import Validity – Where validity of Import expiring between 01.02.2020 to 31.07.2020 the same is extended automatically for Six Months.
18) HBP Para 5.04 (a) – Certificate of Installation of Capital Goods – where the six months period expires during 01.02.2020 to 31.07.2020, the period for submission of Installation Certificate is extended by further 6 Months from the Original Due Date.
19) HBP Para 5.14 – Block-wise Fulfillment of EO – There is addition after 5.14 (d) as sub para 5.14 (e) which automatically extends Block-wise EO Period by SIX MONTHS for period expiring during 01.02.2020 to 31.07.2020 under Para 5.14 (a),(b),(c).
20) HBP Para 5.17 – Extension in Export Obligation Period– There is addition after 5.17 (d) as sub para 5.17 (e) which automatically extends Export Obligation Period by SIX MONTHS for period expiring during 01.02.2020 to 31.07.2020 under Para 5.17 (a),(b),(c).
21) Para 6.01 d (ii) – Supply to EOU by DTA – Exemption of IGST & Compensation Cess is extended upto 31.03.2021. This is as per GST Council Decision, incorporated in FTP as well. The Customs has also issued the corresponding notification
22) HBP Para 7.05 (a) – Frequency of application and time period for claiming TED / Drawback – In case the where the date falls on or after 1st March 2020, the date of filing of applications may be deemed to be extended upto 30.09.2020
23) HBP Para 7A.01 (d) – Last date for Transport and Marketing Assistance (TMA) for Specified Agriculture Products – The Last date for refund of Claims for quarter ending 31st March 2019 and 30th June 2019 will be 30th September 2020.
24) HBP Para 9.02 – The Public Notice amends the para that for the purpose of Late Cut, the Last Date of Submission will be taken as per the extended period in the said Public Notice 67/2015-20 Dt. 31.03.2020
a) Apart from the above, the Public Notice has added and modified the dates in various Appendices and ANF corresponding to the overall change of extension of deadlines.
b) The DGFT has issued a Trade Notice in view of the current situation, they have instructed all Regional Authorities (RAs) not to insist for Valid RCMC (if the same is expired on or before 31.03.2020) from applicants till 30.09.2020. They have also Instructed EPCs to collect applicable fees for the year 2020-21 on restoration of normalcy. (Please refer Trade Notice No. 60/2019-20 Dt. 31.03.2020)
c) The Validity of Automatic Registration Number under SIMS for Import under Chapter 72, 73, and 86 which are generated till 31.03.2020 will be valid for 135 Days instead of 75 days. (Please refer Notification No. 58 Dt. 31.03.2020)
The above Circular is prepared for your ease and reference.