ANNOUNCEMENT 01 May 2015
In May 2015, the government of India announced a change in the tax legislation for exporters.
NUMBER OF INTERVENTIONS
Public Notice No. 8 / 2015-20
On 1 May 2015, the Indian Directorate General of Foreign Trade reduced the Export Obligation period under the Advance Authorisation Scheme for products that have "raw sugar" as an input from 18 months to 6 months (from date of import clearance). Under the Advance Authorization Scheme of the Foreign Trade Policy 2015-2020, duty free import of inputs that are physically incorporated in the export goods (here sugar) is provided. These concessions are subject to meeting the export obligations within the specified period.
This measure will have a direct impact on the duty free imports under the said scheme, as the importers will have a reduced time to meet their export obligations from the imported stock. The effect of this measure is to diminish the export incentive afforded by the Advance Authorisation Scheme.
Note that this measure is distinct from a change in the rules on the import of raw sugar under the Duty Free Import Authorisation scheme announced on the same day.
On 31 March 2020, the Ministry of Commerce and Industry announced that the existing Foreign Trade Policy 2015-2020, which was to expire on 31 March 2020, will be extended till 31 March 2021. On 31 March 2021, the Policy was extended until 30 September 2021.
On 28 September 2021, the Ministry through Notification No. 33/2015-2020 extended the Foreign Trade Policy until 31 March 2022.
On 31 March 2022, through Notification No. 64/2015-2020 the policy was extended until 30 September 2022.