The five-year Foreign Trade Policy (2015-2020) valid till 31.003.2020 was extended as the Government announced that the new policy would be deferred by one whole year because of the upheavals caused by “unprecedented” Covid-19 pandemic. Since 2021 the policy has been deferred every six months Again, Upon requests received from Export Promotion Councils and leading exporters to continue with the current Foreign Trade Policy (2015-20), the Government extended the current FTP (2015-20) for another 6 months i.e. till March 2023.
________________________________________________________________________________________________________________
The announcement of much eagerly awaited new Foreign Trade Policy expected on 31st March 2022 again got delayed and the Directorate General of Foreign Trade (DGFT), office vide Notification 64/2015-2020 dt. 31/03/2022 has again extended the existing FTP by another six months i.e. till 30 September 2022, although the new Foreign Trade Policy was expected to unveil some major changes in the current policies which will be more compliant with World Trade Organization rules. Another reason behind this extension might be to ensure policy continuity in foreign trade amid disruptions in global trade due to the month-long Russia-Ukraine crisis.
Further, in continuation of the same, the DGFT has issued another Notification No. 66/2015-20 dated 1st April, 2022 that the scheme for exemption of Integrated Good and Service Tax (IGST) and Compensation cess under Advance Authorisation, EPCG and EOU (as per Para 4.14, Para 5.01(a) and Para 6.01(d)(ii) of the Foreign Trade Policy 2015-20) is extended only up to 30.06.2022.
________________________________________________________________________________________________________________
Extension of Foreign Trade Policy 2015-20 for ONE more year
After keeping the exporters and importers in uncertainty for the past week, DGFT has announced the extension of Foreign Trade Policy for 1 more year, just before the close of the licensing year. Most of the validity of licenses and filing dates have been extended by 3 months to a year.
The extension is particularly significant because the popular scheme of MEIS and EPCG, which were under the axe, following WTO decision is also extended. This gives a huge relief to bewildered Exporters who were facing a double whammy. Whether this alone helps exporters to overcome the massive upcoming recession in the markets abroad, needs to be monitored.
Notification 57 dated 31st March 2020 and Public Notice 67 dated 31st March, 2020 can be referred in this regard.
Following are the major effects of the move:
Hope the above information is useful. For any difficulty/clarification, please write to us at info@andees.com.
________
© Andees Consulting
© 2019 Andees Consultant. All Rights Reserved.