FTP 2015-20 unveils 2 new schemes

Published on April 04, 2015 14:35:22 PM
Business

Integrating with the 'Make in India' and 'Digital India' vision of Prime Minister, union minister of commerce & industry Nirmala Sitharaman has unveiled the new five year Foreign Trade Policy, 2015-20.

With the focus on encouraging both services and manufacturing sectors and improving ease of doing business, under the new FTP 2015-20, Sitharaman has launched 2 new schemes, such as:

· Merchandise Exports from India Scheme (MEIS)
· Services Exports from India Scheme (SEIS)

MEIS is introduced to enhance export of specified goods to specified markets, whereas SEIS is introduced to increase export of notified services.

For grant of rewards under MEIS, the countries have been categorized into 3 Groups, whereas the rates of rewards under MEIS range from 2% to 5%. Under SEIS, the selected Services would be rewarded at the rates of 3% and 5%.

Few developments in the new FTP include:

· All scrips issued under MEIS and SEIS and the goods imported against these scrips would be fully transferable.

· To boost "Make In India" initiative, FTP has reduced Export Obligation (EO) for domestic procurement under EPCG scheme.

· The major intention of new FTP is to move towards paperless working 24x7. In order to move further towards paperless processing of reward schemes, it has been decided to develop an online procedure to upload digitally signed documents by Chartered Accountant / Company Secretary / Cost Accountant.

· Under the new FTP, additional ports such as Calicut Airport, Kerala and Arakonam ICD, Tamil Nadu have been notified as registered ports for import and export.

· Government has decided to add Vishakhapatnam and Bhimavaram in Andhra Pradesh as towns of export excellence (Product Category– Seafood).

· Manufacturers, who are also status holders, will now be enabled to self certify their manufactured goods in phases. This "Approved Exporter System” will help these manufacturers considerably in getting fast access to international markets.

· A number of steps have been taken for encouraging manufacturing and exports under 100% EOU/EHTP/STPI/BTP schemes.