Revised Foreign Trade Policy :-Highlights

1. Central Government revised FTP vide Notification No. 41/2015-2020 dated 05.12.2017. FTP 2015 – 20 has been amended in such a way that it is in line with the provisions of GST. 

• SEIS Rate has been increased from 5% to 7% for export of Professional Services, R&D Services, Rental & Leasing services, Business services, Tourism related services, Recreational, Cultural, and Sporting services, Transport services, Construction and related Engineering services, Educational services, and Health related and Social services. Notified SEIS Rate would be valid till 31.03.2018. 
• MEIS Rate has been increased from 5% to 7% for export of specified Agricultural products, Textile, leather, agriculture, carpets, marine-products, etc. 
• Few ineligible categories of exports/sectors provided under the Para 3.06 and 3.09 of FTP 2015–20 has been shifted to the Appendix 3B & 3D of HBP 2015 - 20. This may be with a view to empower the DGFT to amend such ineligible categories/sectors, from time to time.

 2. Advance Authorization Scheme 

• Trust Based Self Ratification Scheme: Where SION is not notified by the DGFT, an Authorized Economic Operator (AEO)can obtain the Advance Authorization based on the wastage norms declared by them to be certified by the Independent Chartered Engineer. Such cases will not be referred to the Norms Committee for fixation of Adhoc norms. This facility may be extended to other categories of exporter also. 

3. EPCG Scheme 

• Installation certificate has to be obtained from the jurisdictional Customs Authorities instead of Central Excise Authorities, or from the Independent Chartered Engineer, at the option of the EPCG Holder.
• Capital goods installed at one unit are permitted to be shifted to another unit, provided the other unit is appearing in the IEC and RCMC of the EPCG Holder. 
• New Appendix 5F, listing out the negative list of items not permitted to be imported under the EPCG scheme has been notified. 

4. EOU Scheme 

• Administrative control has been shifted from the Central Excise Authorities to the Customs Authorities. No Due Certificate has to be obtained from the Customs Authorities for exiting from the EOU Scheme. 
• No value limit on DTA sale of goods by an EOU. Limit on DTA sale up to 50% of FOB value of exports has been removed. However, said value restriction continues for DTA sale of services. Advance DTA sale retained up to 50% of estimated exports for first year. 

5. Deemed Exports 

• Scope of 'Deemed exports' for the purpose of the FTP and the GST is explained. 
• Erstwhile list of categories of Deemed Exports for the purpose of FTP continues except supply of Marine Freight Containers by 100% EOU which is now excluded. 
• TED refund benefit is restricted for supply of Excisable products under Schedule 4 of Central Excise Act 1944, to the AA holder and to the EOU.