ANNOUNCEMENT 01 Apr 2015
On 1 April 2015, the Indian Ministry of Commerce & Industry through Notification No. 01/2015-2020 notified the new Foreign Trade Policy (FTP) 2015-2020 replacing the earlier FTP of 2014-19. The main objectives of the FTP are to increase exports of goods and services, increase value addition in the country and generate employment. Below are listed the major amendments in the new FTP as compared to the old policy. Several schemes have been continued from the old policy to the new and can referred to in the linked policy document.
NUMBER OF INTERVENTIONS
Foreign Trade Policy (Notification No. 01/2015-2020)
Highlights of the Policy
MEIS Public Notice No. 2/2015-20
SEIS - Public Notice No. 3/2015-20
SEIS extension - Public Notice No. 42/2015-20
SEIS extension - Public Notice No. 3/2015-2020
The authorization certificate for exporting of Special Chemicals, Organisms, Materials, Equipment and Technologies has been extended from 12 months to 24 months
Two additional towns have been recognized as Towns of Export Excellence Export Oriented Units(EOUs), Electronic Hardware Technology Park (EHTP) and Software Technology Parks (STP) are allowed to share infrastructural faciltiies and transfer of goods and services between them EOUs are allowed set up warehouses near the port of export STPs, EHTP and software EOUs are allowed use of duty free equipment for training of employees EOUs are required to get positive net foreign exchange earnings in 5 years; this time limit can now be extended by a year The validity of permit for construction and setting up of plants for above defined units and parks has been extended
The new Foreign Trade Policy includes an overhaul of the Indian export incentive system. Effective 1 April 2015, the various export incentive instruments are unified under a single new instrument, the Merchandise Export Incentive Scheme (MEIS). The MEIS simplifies the export incentive system and removes the conditions applied in previous variants.The common feature of the prior incentive schemes was that they came in the form of a "duty scrip". Under these instruments, exporters would earn duty scrip proportional to the FOB value of their exports. Exporters could use said scrip to offset tax expenditures in other areas. The destination countries and products for which such scrip was available depended on the exact program. Under the MEIS, no such conditions apply.
In its original form, notified via Public Notice 2, the MEIS includes more than 4'900 products. The incentive available for each product depends on the export destination. To this end, the world is split into three country groups (A, B and C). Group A includes the European Union members plus the United States. For those destinations, MEIS includes incentives for a total of 3973 products. The HS codes included in this intervention refer to products eligible for export incentives to these countries. Please see the further interventions under this state act for details on the incentives to the other country groups.
In its original form, notified via Public Notice 2, the MEIS includes more than 4'900 products. The incentive available for each product depends on the export destination. The destination group B includes 139 countries. For countries in this group, MEIS includes export incentives for a total of 4352 products. The HS codes included in this intervention refer to products eligible for export incentives to these countries. Please see the further interventions under this state act for details on the incentives to the other country groups.
Group B consists of Algeria, Angola, Antigua, Argentina, Armenia, Azerbaijan, Bahamas, Bahrain , Barbados, Belarus, Belize, Benin, Bermuda, Bolivia, Botswana, British Virgin Islands, Brazil, Brunei, Burkina Faso, Burundi, Central African Republic, Cambodia, Cameroon, Canary Island, Cape Verde Island, Cayman Island, Chad, Chile, China PRP, Colombia, Comoros, Congo Democratic Republic, Congo Republic, Costa Rica, Cote D' Ivoire, Cuba, Djibouti, Dominic Rep, Dominica, Ecuador, Egypt , El Salvador, Equatorial Guinea, Ethiopia, Falkland Island, French Guiana, Gabon, Gambia, Georgia, Ghana, Grenada, Guadeloupe, Guatemala, Guinea, Guinea Bissau, Guyana, Haiti, Honduras, Indonesia, Iran, Iraq, Israel, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Korea Republic South Korea , Kuwait, Kyrgyzstan, Lao PDR, Lebanon, Lesotho, Liberia, Libya, Madagascar, Malawi, Malaysia, Mali, Martinique, Mauritania, Mauritius, Mexico, Moldova, Montserrat, Morocco, Mozambique, Myanmar, Namibia, Netherland Antilles, Nicaragua, Niger, Nigeria, Oman, Panama Republic, Paraguay, Peru, Philippines, Qatar, Reunion, Russia, Rwanda, Sao Tome, Saudi Arab, Senegal, Seychelles, Sierra Leone, Singapore, Somalia, South Africa, St Helena, St Kitt N A, St Lucia, St Vincent, Sudan, Suriname, Swaziland, Syria, Taiwan, Tajikistan, Tanzania Republic, Thailand, Togo, Trinidad, Tunisia, Turkey, Turkmenistan, Turks and Caicos Islands, United Arab Emirates, Uganda, Ukraine, Uruguay, Uzbekistan, Venezuela, Vietnam Socialist Republic, Virgin Island US, Yemen Republic, Zambia, and Zimbabwe.