Foreign Trade Policy 2009-14

FOREIGN TRADE POLICY

2009-2014

FTP 2009-2014

FTP- GUIDELINES, PROVISIONS AND PROCEDURES FOR ENHANCING EXPORT OF GOODS AND SERVICES & FACILITATING IMPORT OF GOODS AND SERVICES

FTP 27 AUGUST 2009-31 MARCH 2014

OBJECTIVES:FTP 2009-14

FTP 2009-2014

SHORT TERM OBJECTIVES:

TO ARREST AND REVERSE THE DECLINING TREND OF EXPORTS

TO PROVIDE ADDITIONAL SUPPORT TO THE SECTORS HIT BADLY BY RECESSION IN THE DEVELOPED WORLD

TO ACHIEVE ANNUAL EXPORT GROWTH OF 15% BY MARCH 2011

TO ACHIEVE 25% P.A BY 2014

FTP 2009-2014

LONG TERM OBJECTIVES:

TO DOUBLE INDIA’S SHARE IN GLOBAL TRADE BY 2020

STRATEGIES: MIX OF POLICY MEASURES

IMPROVEMENT IN INFRASTRUCTURE RELATED TO EXPORTS (ASIDE-TOWNS OF EXCELLENCE)

TRY TO REBATE ALL INDIRECT TAXES AND LEVIES ON EXPORTS

DEPARTMENTSFTP 2009-14

FTP 2009-2014

DRAFTING AND IMPLEMENTATION

DRAFTED BY DGFT

IMPLEMENTED BY VARIOUS DEPARTMENTS MAINLY CUSTOMS, EXCISE AND RBI

ACTS: CUSTOMS ACT 1962, CUSTOMS TARIFF ACT 1975, FEMA 1999, CENTRAL EXCISE ACT 1944, EXCISE TARIFF ACT 1985, INDUSTRIAL POLICY RESOLUTION 1956, INDUSTRIES DEVELOPMENT AND REGULATION ACT 1951, LAWS OF WEIGHTS AND MEASURES

FTP 2009-2014

CUSTOMS: VALIDITY OF IMPORTS AND EXPORTS ASSESSMENT AND VALUATION DETERMINATION OF IMPORT OR EXPORT

DUTY APPLICABLE COLLECTION OF DUTY INSPECTION AND SUPERVISION OF CARGO GOVERNING ACTS: CUSTOMS ACTS 1962, CUSTOMS TARIFF ACT

1975 TOOLS: CUSTOMS LAW MANUAL, NOTIFICATIONS,

PUBLIC NOTICES, CUSTOM CIRCULAR

FTP 2009-2014

EXCISE: EXPORT: CLEARANCE OF EXCISABLE GOODS,

REBATE OF EXCISE DUTY POST EXPORTS, MONITORING FACTORY STUFFED CONTAINERS IN CERTAIN CASES

IMPORT: MONITORING CENVAT GOVERNING ACTS: CENTRAL EXCISE ACT1944, CENTRAL EXCISE

TARIFF ACT 1985 TOOLS: CENTRAL EXCISE LAW MANUAL,

NOTIFICATIONS, CENTRAL EXCISE CIRCUARS

FTP 2009-2014

RBI:

MONITORING FOREIGN EXCHANGE

GOVERNING ACTS: FEMA 1999

TOOLS: FOREIGN EXCHANGE MANUAL, MASTER

CIRCULARS, FEMA NOTIFICATIONS, A.P. (DIR. SERIES) CIRCULARS

POLICY PROVISIONSFTP 2009-14

FTP 2009-2014

IMPORT EXPORT CODE

REGISTERATION CUM MEMBERSHIP CERTIFICATE WITH RELEVANT EPC (REGISTERED EXPORTER)

REGISTERATION WITH EXCISE OR SIMILAR AUTHORITY AS MANUFACTURER

STATUS CERTIFICATE

FTP 2009-2014

IMPORT EXPORT CODE

ISSUED BY DGFT NO IMPORT OR EXPORT ALLOWED BY

CUSTOMS LIST OF EXEMPTED CATEGORIES FOR

IMPORTING AND EXPORTING LIST OF PERMANENT IECs TO BE USED BY

NON COMMERCIAL PSUs AND CATEGORIES OF IMPORTERS/EXPORTERS MENTIONED AGAINST THEM FOR SPECIFIC PURPOSES

FTP 2009-2014

REGISTERATION CUM MEMBERSHIP CERTIFICATE

ISSUED BY EPCs AND COMMODITY BOARDS LISTED

APPLIED FOR BY:• AN AUTHORIZATION TO IMPORT/EXPORT

(EXCEPT ITEMS LISTED AS RESTRICTED)• ANY OTHER BENEFIT OR CONCESSION UNDER

FTP IS REQUIRED TO FURNISH RCMC GRANTED BY COMPETENT AUTHORITY

VALIDITY: 5 YEARS

FTP 2009-2014

REGISTERATION WITH EXCISE

MANUFACTURER: CENTRAL EXCISE

DEPENDING ON SIZE LARGE SCALE, SMALL SCALE, TINY GET REGISTERED WITH MINISTRY OF COMMERCE AND INDUSTRY, MSME, KHADI AND VILLAGE INDUSTRIES COMMISSION

SERVICE PROVIDER: SERVICE TAX AUTHORITIES

FTP 2009-2014

STATUS CERTIFICATE

STATUS HOLDER EXPORT AND TRADING HOUSE

EXPORT PERFORMANCE TAKEN CUMULATIVELY FOR PRECEDING 3 YEARS AND CURRENT YEAR FOR QUALIFICATION

STATUS CATEGORY: EXPORT HOUSE, STAR EXPORT HOUSE, TRADING HOUSE, STAR TRADING HOUSE, PREMIER TRADING HOUSE

SCHEMESFTP 2009-14

FTP 2009-2014

NEW SCHEMES FTP 2009-14

STATUS HOLDER INCENTIVE SCHEME

ZERO DUTY EPCG SCHEME

FTP 2009-2014

EPCG (EXPORT PROMOTION CAPITAL GOODS SCHEME) AT 3%

ALLOWS IMPORT OF CAPITAL GOODS AT 3% CUSTOMS DUTY SUBJECT TO EXPORT OBLIGATION

AVAILABLE FOR PRE PRODUCTION, PRODUCTION AND POST PRODUCTION ACTIVITIES

COVERAGE: CAPITAL GOODS (NEW AND SECOND HAND), SPARES

EXPORT OBLIGATION: 8 TIMES DUTY SAVED AMOUNT TO BE COMPLETED IN 8 YEARS

FTP 2009-2014

EPCG (EXPORT PROMOTION CAPITAL GOODS SCHEME) AT ZERO%

INTRODUCED IN FTP 2009-14 ALLOWS IMPORT OF CAPITAL GOODS AT ZERO

PERCENT CUSTOMS DUTY AVAILABLE FOR SPECIFIC PRODUCTS:• ENGINEERING & ELECTRONIC PRODUCTS• BASIC CHEMICALS & PHARMACEUTICALS• APPARELS & TEXTILES• PLASTICS• HANDICRAFTS• CHEMICAL & ALLIED PRODUCTS• LEATHER & LEATHER PRODUCTS

FTP 2009-2014

EPCG (EXPORT PROMOTION CAPITAL GOODS SCHEME) AT ZERO%

EXCLUSION:

• BENEFICIARIES UNDER TECHNOLOGICAL UPGRADATION FUND SCHEME

• STATUS HOLDER INCENTIVE SCHEME @ 1%

• EXPORT OF PRODUCTS COVERED BY CHAPTER NO.s AND HS CODES IN PARA 5.1A OF HBPv1

FTP 2009-2014

EPCG (EXPORT PROMOTION CAPITAL GOODS SCHEME) AT ZERO%

EXPORT OBLIGATION: 6 TIMES OF THE DUTY SAVED AMOUNT IN 6 YEARS

IMPORTANT CONCEPTSFTP 2009-14

FTP 2009-2014

SECTORAL INITIATIVES

SECTORAL STRATEGIES: MARKET DIVERSIFICATION: (26 NEW FOCUS

MARKETS-LATIN AMERICA, AFRICA, PARTS OF ASIA ETC)

TECHNOLOGICAL UPGRADATION (ZERO DUTY EPCG SCHEME)

SUPPORT TO STATUS HOLDERS GREEN PRODUCTS AND TECHNOLOGIES INCENTIVES OF EXPORTS FROM THE NORTH

EASTERN REGION

FTP 2009-2014

SERVICE PROVIDER: SUPPLY OF SERVICE

FROM INDIA TO ANY OTHER COUNTRY

FROM INDIA TO SERVICE CONSUMER OF ANY OTHER COUNTRY IN INDIA

FROM INDIA THROUGH COMMERCIAL OR PHYSICAL PRESENCE IN TERRITORY OF ANY OTHER COUNTRY

IN INDIA RELATING TO EXPORTS PAID IN FREE FOREIGN EXCHANGE

FTP 2009-2014

SERVICE PROVIDER: SUPPLY OF SERVICE

BENEFITS:

• SERVED FROM INDIA SCHEME

• EPCG

FTP 2009-2014

DEEMED EXPORT:

FACILITY PROVIDED FOR SUPPLIES OF INDIGENOUS PRODUCTS WHICH CAN BE CONSUMED ULTIMATELY IN THE PRODUCTION OF GOODS TO BE EXPORTED

CONDITION: SUPPLIED GOODS DO NOT LEAVE THE COUNTRY BUT GET CONSUMED IN THE MANUFACTURING PROCESS

FTP 2009-2014

HIGH SEAS SALES:

EFFECTED WHEN GOODS ARE ON HIGH SEAS

HIGH SEA SALES AGREEMENT: TRANSFERS OWNERSHIP OF DOCUMENTS BY ENDORSING ORIGINAL DOCUMENTS IN FAVOUR OF HIGH SEA SALES BUYER

HIGH SEA SALES BUYER FILES THE BILL OF ENTRY AND CLEARS THE GOODS FROM CUSTOMS. HIGH SEAS BUYER PAYS MONEY IN INR TO ORIGINAL IMPORTER

EXPECTATIONFTP 2009-14

FTP 2014-2019

DOUBLING INDIA’S SHARE IN WORLD TRADE BY 2020 (PRESENT SHARE:3%)

ENHANCE TRADE COMPETITIVENESS

DUE TO INCREASING CAD- INCREASING EXPORTS AND MEASURES FOR IMPORT SUBSTITUTION