Covid-19 Economic Impact: Government extends foreign trade policy for one year

Extending the relief measures in view of the unprecedented current situation due to COVID-19, the Union Commerce and Industry Ministry has announced some more changes.

The government has decided to continue relief under various export promotion schemes by granting extension of the existing Foreign Trade Policy (FTP) by another one year i.e. up to 31^st March, 2021.

The present Policy which came into force on 1^st April, 2015, is for 5 years and has validity upto 31^st March, 2020. In addition to this, to support trade and industry similar extensions are made in the related procedures, by extending validity of Hand Book of Procedures which are as follows:

• Benefit under all the Export Promotion Schemes (except SEIS) and other schemes, available as on date, will continue to be available for another 12 months. Decision on continuation of SEIS will be taken and notified subsequently.
• Similarly, validity period of the Status Holder Certificates is also extended. This will enable the Status Holders to continue to avail the specified facilities/benefits.
• Exemption from payment of IGST and Compensation Cess on the imports made under Advance/EPCG Authorisations and by EOUs etc. has been extended up to 31.03.2021.
• The scheme for providing “Transport Marketing Assistance on the specified Agricultural Products” is further extended for one year.
• Validity period for making imports under various duty free import authorizations (AA/DFIA/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 authorizations.
• Whereever the period to make export is expiring between 01.02.2020 and 31.07.2020 under various authorizations, automatic extension in the export obligation period is allowed for another six months from the date of expiry, without payment of any composition fee.
• Last dates for applying for various duty credit Scrips (MEIS/SEIS/ROSCTL) and other Authorisations have been extended.
• Time lines for imposing late cuts, on the applications which are filed after the prescribed dates, have been relaxed.
• 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.
• Last date of filing applications for refund of TED/Drawback, Transport and Marketing Assistance has been extended.
• Extension in time has been allowed for filing various Reports/Returns etc. under various provisions of the FTP.

Source : PIB