The Foreign Trade Policy (FTP) for the period 2015 – 2020 announced by the Government of India, Ministry of Commerce and Industry on 1st April 2015. Foreign trade policy needs amendments every five years and aims at developing export capability, improving export performance and structure, encouraging foreign trade, and creating a suitable balance of payments position.
The FTP which came into force on 1st April, 2015 was eventually valid upto 31 March, 2020. However, in view of the unprecedented current situation arising out of the pandemic Novel COVID-19, the Government has decided to continue relief under various export promotion schemes by granting extension of the existing FTP by another one year i.e., up to 31 March, 2021. In this regard, the necessary notifications have been issued by the Ministry of Commerce and Industry (Department of Commerce) (Directorate General of Foreign Trade).
The important reliefs inter alia include-
(i) Validity of existing FTP and the Handbook of Procedure 2015-2020 has been extended from 31st March, 2020 to 31st March, 2021
(ii) Benefit under all the Export Promotion Schemes [(except SEIS) decision will be taken and notified later on] and other schemes, available as on date, will continue to be available for another 12 months
(iii) Exemption from payment of IGST and Compensation Cess on the imports made under Advance / EPCG Authorisations and by EOUs etc. has been extended upto 31st March, 2021
(iv) Validity period of the Status Holder Certificates is also extended
(v) Validity period for making imports under various duty free import authorizations (Advance Authorisation /Duty Free Import Authorisation / EPCG) expiring between 01.02.2020 and 31.07.2020, has been allowed automatic extension for another six months from the date of expiry, without requirement of obtaining such endorsement on these authorisations
(vi) There is automatic extension in the export obligation period for another six months from the date of expiry, without payment of any composition fee where the period to make export is expiring between 01.02.2020 and 31.07.2020
(vii) Validity period of Letter of Permission/ Letter of Intent as granted to EOUs, units in STPs/EHTPs/BTPs is further extended up to 31st December, 2020
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