This slide deck intends to summarize the key changes in the revised Foreign Trade Policy 2015-20 which was announced on 05.12.2017

1. Mid Term Review Of
Foreign Trade Policy
2015-20
08.12.2017
Compiled from FTP Book

2. 2
AGENDA
Introduction
Mid Term Review – Key Provisions
Way Ahead
2

3. 3
INTRODUCTION
o The Mid Term Review of the FTP factors in all notifications till
date and would also include new changes being announced
today
o Incentives to boost employment generating export activities
both in goods and services by revising MEIS/ SEIS rates
o Introduction of New Self Certification Scheme under Advance
Authorization
o Powers for relaxation of provisions have been delegated to
Regional Offices
o New Initiatives for better policy analysis and evidence driven
policy making

4. 4
MID TERM REVIEW: KEY PROVISIONS
Chapter 2 – General Provisions Regarding Exports and Imports
o Second hand capital goods have been allowed import for repair
purposes without payment of duty
o New provision for export of “restricted” goods which are
however freely importable is being introduced, in order to
develop the transshipment infrastructure
o The provision for Personal hearing by DGFT has been simplified ,
making it a one step procedure instead of the earlier two step

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MID TERM REVIEW: KEY PROVISIONS
Chapter 3 – Exports From India Schemes
o MEIS Rates have been enhanced by 2% for key employment
intensive sectors
o Additional annual incentive of Rs 749 Cr for Leather & Footwear,
Rs 1354 Cr for Agriculture products, Rs 759 Cr for Marine
products, Rs 369 Cr for Telecom & Electronics Components, Rs
921 Cr for carpets, handlooms, Jute products and Rs 193 Cr for
Medical & Surgical Equipment
o SEIS rates have been enhanced by 2% for all categories

6. 6
MID TERM REVIEW : KEY PROVISIONS
Chapter 4 – Advance Authorization and other Duty Exemption
Schemes
o A new Self Declaration and self Ratification Scheme is
proposed to allow duty free inputs for export production under
duty exemption scheme with a self declaration.
o The proposed scheme allows exporters to claim inputs on self
declaration basis without the need to get the norms ratified by
any inter-ministerial committee.
o More than 2000 exporters under the Two Star Export House
and above status would be eligible to opt for this scheme

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MID TERM REVIEW : KEY PROVISIONS
Chapter 5– Export Promotion Capital Goods Scheme
o Shifting of capital goods has been allowed from one unit of the
IEC holder to the other.
o Clubbing of EPCG authorisations have been allowed in respect of
those authorisations also where EO period has expired as in case
of Advance Authorisation Scheme has been allowed for
authorisations even when EO period is over.
o A negative list under EPCG scheme has been introduced for the
sake of clarity and uniformity of application in the RAs.
o The fees for EO extension has been increased for stricter
adherence to time schedule for EO fulfilment

8. 8
MID TERM REVIEW: KEY PROVISIONS
Chapter 6 - Schemes Related to EOU/EHTP/STP/BTP
o Provisions related to EOU/EHTP/STP/BTP has been aligned with
the provisions of Goods and Services Tax Act
o The imports and/ or procurement from bonded warehouse in
DTA or from international exhibition held in India are proposed
to be without payment of customs duty as provided under the
Customs Tariff Act, 1975 and without payment of Integrated Tax
and GST Compensation Cess
o To ease procurement by EOU from DTA Units : The EOUs can
procure excisable goods, falling in Fourth Schedule of Central
Excise Act, from DTA without payment of applicable excise duty.
The refund of GST taxes for supply from DTA to EOU would be
available to supplier as provided under GST rules
o The restriction of 50% of DTA sale has been dispensed with

9. 9
WAY AHEAD
New Initiatives for Evidence Driven Policy Analysis
o State of the Art Analytics Unit to be set up- Would help in data /
evidence driven policy making
o A Services Division in the DGFT – Services Exports need a more
nuanced approach for penetration into new markets
o Working with the Logistics Division in Department of Commerce
for a coherent approach

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THANKS