Plastic Machinery Manufacturers Association Of India
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Foreign Trade Policy 2015- 2020 Highlights

Announced on 1st April 2015

Simplification & Merger of Schemes

  • 5 schemes merged into single scheme, namely Merchandise Export from India Scheme (MEIS)
  • Reward under MEIS shall be payable as a percentage of realised FOB value in FFE
  • Duty scrip will be fully transferable
  • Duty scrip can be utilized for payment of customs duties, excise duty and service tax
  • Reward under MEIS shall be extended to exports from SEZ

All Plastics Processing Machineries have been rewarded under Merchandise Export from India Scheme (MIES) at 2% incentive

Country Code List : Codes & Contries

ITC Code Code A Code B Code C
84771000 2% 2% 0%
84772000 2% 2% 0%
84773000 2% 2% 0%
84774000 2% 2% 0%
84775900 2% 2% 0%

  • Served from India Scheme in previous FTP has been replaced with Service Exports from India Scheme (SEIS)
  • The rate of reward under SEIS would be based on net foreign exchange earned
  • Reward under SEIS shall be fully transferable
  • Reward can be utilized for payment of goods and service tax
  • Reward under MEIS shall be extended to exports from SEZ

Status Holders

  • Business leaders who have excelled on international trade and have successfully contributed to country’s foreign trade are proposed to be recognized as Status Holders
  • Status Holders shall be given treatment and privileges to facilitate their trade transactions, in order to reduce cost and time
  • Manufacturers who are Status Holders shall be allowed to self certify their manufactured goods as originating from India for preferential treatment under trade agreements (PTAs, FTAs, CECAs, CEPAs, etc)

Status Holders Categories

Status Category Export Performance*
One Star Export House 3
Two Star Export House 25
Three Star Export House 100
Four Star Export House 500
Five Star Export House 2000
*FOB/ FOR (as converted) value (in USD million) during current and previous two years

Steps to Boost “Make in India”

  • Reduced export obligation under EPCG scheme from 90% to 75%, if capital goods procured domestically
  • Import under EPCG not be eligible from payment of ADD, SGD and transitional product specific safeguard duty
  • High reward under MEIS for labour incentive sectors and products with high domestic content

Steps to Boost “Make in India”

  • Online filing of document, paperless trade, customs clearance- 24X7
  • Online inter ministerial consultations
  • Simplification of procedures; increase in digitization
  • EPCG authorization holders to maintain only 2 years records now; Govt.’s endeavour is to phase out record keeping
  • Mobile number, Email ID, etc have been added as mandatory fields in IEC database, for better communication

SCOMET List

  • The validity of SCOMET export authorization has been extended to 24 months
  • Authorisations for repeat orders will be considered on automatic basis
  • The verification of End User Certificate (EUC) will be simplified for SCOMET items exported under Defence Export Offset Policy
  • Outreach programmes will be conducted at different locations to raise awareness among various stakeholders

Advance Authorization & Export Obligation

  • Export Obligation (EO) period of 18 months may be extended by 6 months (upon request to RA) subject to payment of 0.5% composition fee. Further extension may be considered by RA only if authorisation holder has fulfilled minimum 50% export obligation
  • Imports under Advance Authorisation shall be eligible for exemption from transitional product specific safeguard duty
  • EO period falling in the category of defence, military store, aerospace and nuclear energy shall be 24 months (from the date as per FTP provisions)

E- Governance Initiatives DGFT working on

  • Message exchange for transmission of export reward from DGFT to Customs
  • Message exchange for transmission of BoE from Customs to DGFT
  • Online issuance of EO Discharge certificate
  • Message exchange with CBDT for PAN
  • Facility to pay application fee using debit/ credit card
  • Open API for submission of IEC application

More New Initiatives

  • EOUs, EHTPs, STPs have been allowed to share infrastructural facilities
  • Inter unit transfer of goods and services have been allowed among EOUs, EHTPs, STPs and BTPs
  • EOUs have been allowed facility to set up warehouses near by port of export
  • STP units, EHTP units, software EOUs have been allowed the facility to use all duty free equipments/ goods for training purposes
  • 100% EOU units have been allowed facility of supply of spares/ components up to 2% of the value of the manufactured articles to a buyer in domestic market for the purpose of after sales services
  • 5 years for positive NFE can be extended by 1 year under adverse market condition, for EOU units to achieve NFE targets
  • Time period for validity of Letter of Permission (LOP) for EOUs/ EHTP/ STPI/ BTP units have been revised for faster implementation and monitoring of projects based on certain conditions
  • Rejected transferred goods from EOUs/ EHTP/ STPI units to other EOUs, EHTPs, STPs and SEZ units can be returned to supplying unit without payment of duty
  • Simplified procedure to fast track de- bonding/ exit of the STP/ ETP units
  • EOUs having physical export turnover of Rs. 10 crore and above, have been allowed the facility of fast track clearances of import and domestic procurement

More Announcements

  • Calicut Airport, Kerala and Arakonam ICD, Tamil Nadu have been notified as registered ports for import and export
  • Duty free preference extended to 33 LDCs across the globe
  • Vishakhapatnam and Bhimavaram in Andhra Pradesh have been announced as towns of export excellence in addition to 33 towns which were already recognized under the category
  • A new chapter, namely Chapter on Quality Complaints and Trade Disputes has been incorporated in the Foreign Trade Policy
  • A committee on Quality Complaints and Trade Disputes (CQCTD) is being constituted in 22 offices and would have members from EPCs/ FIEOs/ APEDA/ EICs
  • 5 years for positive NFE can be extended by 1 year under adverse market condition, for EOU units to achieve NFE targets
  • Time period for validity of Letter of Permission (LOP) for EOUs/ EHTP/ STPI/ BTP units have been revised for faster implementation and monitoring of projects based on certain conditions
  • Rejected transferred goods from EOUs/ EHTP/ STPI units to other EOUs, EHTPs, STPs and SEZ units can be returned to supplying unit without payment of duty
  • Simplified procedure to fast track de- bonding/ exit of the STP/ ETP units
  • EOUs having physical export turnover of Rs. 10 crore and above, have been allowed the facility of fast track clearances of import and domestic procurement


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