Foreign Trade Policy 2015 – 2020

Union Minister of Commerce & Industry unveiled Foreign Trade Policy (FTP) 2015-2020. It aims to support both manufacturing & services sectors, with a special emphasis ease of doing business.

Key Highlights of the FTP 2015-20

Replaced all existing focus product and focus market schemes for goods with a single Merchandise Export from India Scheme. Under the scheme, incentives will be given for export of specific goods to specific markets.
For services, all schemes have been replaced by a Services Export from India Scheme, with a greater thrust on notified services.
Duty credit scrips issued under MEIS and SEIS and the goods imported against these scrips are fully transferable and usable for payment of custom duty, excise duty and service tax.
Extended benefits of both incentive schemes for export of goods & services to units in SEZ
Export obligation under EPCG scheme reduced to 75% to Promote domestic capital goods mfg.

Targets of FTP 2015-20

Increase exports to USD 900 billion by 2019-20, from USD 466 billion in 2013-14
Raise India’s share in world exports from 2 % to 3.5 %
FTP to be aligned to Make in India, Digital India and Skills India initiatives, with paperless working in 24×7 Environment.
Unlike annual reviews, FTP will be reviewed after two-and-Half years, except for exigencies.

Export Promotion Capital Goods (EPCG) Scheme

As per the Foreign Trade Policy 2009-14 amended later time to time in annual supplements, EPCG Authorization holder is permitted to import capital goods at 0% or 3% Customs duty.
Under the 0% duty, EPCG Authorization holder is required to undertake export obligation equivalent to 6 times of the duty saved amount on the capital goods imported within a period of 6 years.
Under the 3% duty EPCG scheme, the Authorization holder has to fulfill export obligation equivalent to 8 times of the duty saved amount on the capital goods imported in 8 years.
Goods imported cannot be transferred or sold at DTA till the fulfillment of export obligation.