Highlights of the FTP 2015-20
In the new policy FTP2015-20, two new schemes Merchandise Exports From India Scheme (MEIS) and Services Exports From India Scheme (SEIS) were introduced.
MEIS is for export of specified goods to specified markets and SEIS is for increasing exports of notified services. Duty credit scrips issued
under MEIS and SEIS and the goods imported against these scrips are fully transferable. 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%.
Measures have been adopted to nudge procurement of capital goods from indigenous manufacturers under the EPCG scheme by reducing specific
export obligation to 75% of the normal export obligation. This will promote the domestic capital goods manufacturing industry.
Such flexibilities will help exporters to develop their productive
capacities for both local and global consumption. Measures have been taken to give a boost to exports of defense and hi-tech items.
At the same time e-Commerce exports of handloom products, books/periodicals, leather footwear, toys and customized fashion
garments through courier or foreign post office would also be able to get benefit of MEIS.
These measures would not only capitalize on India's strength in these areas and increase exports but also provide employment.
In order to give a boost to exports from Special Economic Zones (SEZs), Government has now decided to extend benefits of both the reward
schemes (MEIS and SEIS) to units located in SEZs. It is hoped that this measure will give a new impetus to development and growth of SEZs in the country.
Trade facilitation and enhancing the ease of doing business are the other major focus areas in this new FTP.
One of the major objectives of new FTP is to move towards paperless working in 24x7 Environment.
Recently, the government has reduced the number of mandatory documents required for exports and imports to three, which is comparable with
international benchmarks. Now, a facility has been created to upload documents in exporter/importer profile and the exporters will not be required to submit documents repeatedly.
Government has also simplified various Aayat Niryat Forms, bringing in clarity in different provisions, removing ambiguities and enhancing electronic governance.
Manufacturers will now be enabled to self certify their manufactured goods in phases, as originating from India with a view to qualifying for
preferential treatment under various forms of bilateral and regional trade agreements.
This Approved Exporter System will help these manufacturer exporters considerably in getting fast access to international markets.
A number of steps have been introduced for encouraging manufacturing and exports. The steps include a fast track clearance facility for these
units, permitting them to share infrastructure facilities, permitting inter unit transfer of goods and services, permitting them to set up
warehouses near the port of export and to use duty free equipment for training purposes.