FOREIGN TRADE

POLICY 2015-2020 1
 HIGHLIGHTS OF FTP
1. Digital India -e-IEC, e-BRC
2. Custom - 24X7, Self Assessment
3. Status Holders
4. MEIS
5. SEIS

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 HIGHLIGHTS OF FTP
6. Ease of Doing Business in India
7. Make in India
8. Mandatory Documents –Reduced to 3 for Exports
9. Mandatory Documents –Reduced to 3 for
Imports
10. Non-Realisation of Export Proceeds
11. Interpretation of Policy
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 FTP 2015-20
• The Foreign Trade Policy Statement explains the
vision, goals and objectives underpinning the
Foreign Trade Policy for the period 2015-2020.
• It describes the market and product strategy
envisaged and the measures required not just for
export promotion but also for the enhancement of the
entire trade ecosystem.
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 VISION
• The vision is to make India a significant participant in
world trade by the year 2020 and to enable the country
to assume a position of leadership in the international
trade discourse.
• Government aims to increase India‟s exports of
merchandise and services from USD 465.9 billion in
2013-14 to approximately USD 900 billion by 2019-20
and to raise India‟s share in world exports from 2
percent to 3.5 percent. 5
 Objective
• Objective of FTP (2015-20) by laying down
simple, transparent and EDI compatible
procedures which are user friendly and are easy
to comply with and administer for efficient
management of foreign trade.

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 E-IEC
• For issuance of e-IEC an application can
• be made online on DGFT website
(http//:dgft.gov.in).
• Applicants can upload the documents and pay
the required fee through Net banking.
• Application for issue of e-IEC can also be
• eBiz platform (https://www.ebiz.gov.in).
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 Details of the entity seeking the IEC:

(1) PAN of the business entity in whose name

Import/Export would be done (Applicant individual in case of
Proprietorship firms).
(2) Address Proof of the applicant entity.
(3) LLPIN /CIN/ Registration Certification Number (whichever is
applicable).
(4) Bank account details of the entity. Cancelled Cheque bearing
entity’s preprinted name or Bank certificate in prescribed format
ANF2A(I).

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 Details of the entity seeking the IEC:
• Details of the signatory applicant:
• (1) Identity proof
• (2) PAN
• (3) Digital photograph
• Detailed guidelines for applying for e-IEC are
• available at <http://dgft.gov.in/exim/2000/iec_anf /
iecanf.htm
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BANKING

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 E-BRC
• It has enabled DGFT to capture details of realisation
of export proceeds directly from the Banks through
secured electronic mode. This has facilitated the
implementation of various export promotion
schemes without any physical interface with the stake
holders. So far more than one crore e-BRCs have
been captured by this system.

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 Submission of Export Documents to
Bank:
• Within 21 days from the date of export, exporter
should lodge the copy of EDF/ SDF together with
relative shipping documents and an extra copy of
the invoice with the banks. In cases where exporters
present documents pertaining to exports after the
prescribed period of 21 days from date of
export, banks may handle them without prior
approval of the Reserve Bank, provided they are
satisfied with the reasons for the delay. 12
 Realisation and Repatriation of Export
Proceeds:

• It is obligatory on the part of the exporter to

realise and repatriate the full value of goods /
software / services to India within a stipulated
period from the date of export,

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 Non-Realisation of Export
Proceeds
• If an exporter fails to realize export proceeds
within time specified by RBI, he shall, without
prejudice to any liability or penalty under any law
in force, be liable to return all benefits / incentives
availed against such exports and action in
accordance with provisions of FT (D&R) Act,
Rules and Orders made there under and FTP.
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 Advance Payment against
Exports:
• Where an exporter receives advance payment
(with or without interest), from a buyer outside
India, the exporter shall be under an obligation
to ensure that the shipment of goods is made
within one year from the date of receipt of
advance payment;

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 Advance Payment against
Exports:
• the rate of interest, if any, payable on the
advance payment does not exceed London
Inter-Bank Offered Rate (LIBOR) + 100 basis
points; and the documents covering the
shipment are routed through the bank through
whom the advance payment is received.

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 Direct Dispatch of documents by
the exporter:
• Banks should normally dispatch shipping
documents to their overseas
branches/correspondents expeditiously. However,
they may dispatch shipping documents direct to
the consignees or their agents resident in the
country of final destination of goods in cases of
Advance Payment or Irrevocable Letter of Credit or
in certain cases as detailed in the Master Circular.
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 Exchange Earners’ Foreign
Currency (EEFC) Account:
• A person resident in India may open with, an AD
Category – I bank in India, an account in foreign
currency called the Exchange Earners’ Foreign
Currency (EEFC) Account, in terms of Regulation 4 of
the Foreign Exchange Management (Foreign
Currency Account by a Person Resident in India)
Regulations, 2000 notified under Notification No.
FEMA 10/2000-RB dated May 3, 2000 as amended
from time to time.
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Other Issues

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 Reduction in mandatory documents required for
Export and Import

• The number of mandatory documents required

for exports and imports of goods from/into India
have been reduced to three each.

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 Mandatory documents for export/import of goods
from/into India

Mandatory documents required for export ofgoods

from India:

1. Bill of Lading/Airway Bill

2. Commercial Invoice cum Packing List*
3. Shipping Bill/Bill of Export
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 Mandatory documents for export/import of goods
from/into India

Mandatory documents required for import of

goods into India

1. Bill of Lading/Airway Bill

2. Commercial Invoice cum Packing List*
3. Bill of Entry

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 STATUS HOLDERS
• Business leaders who have excelled in
international trade and have successfully
contributed to country’s foreign trade are
proposed to be recognized as Status Holders
and given special treatment and privileges to
facilitate their trade transactions, in order to
reduce their transaction costs and time.
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 Status Holders
s.No Status Exp Per-FOB
$ Mill
1 One Star 3
2 Two Star 25
3 Three Star 100
4 Four Star 500
5 Five Star 2000
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TRADE FACILITATION & EASE OF DOING BUSINESS

• Online filing of documents/ applications and

Paperless trade in 24x7 environment: (a) DGFT
already provides facility of Online filing of
various applications under FTP by the
exporters/importers. However, certain
documents like Certificates issued by Chartered
Accountants/ Company Secretary / Cost
Accountant etc. have to be filed in physical
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forms only.
• In order to move further towards paperless processing
of reward schemes, it has been decided to develop an
online procedure to upload digitally signed documents
by Chartered Accountant / Company Secretary / Cost
Accountant. In the new system, it will be possible to
upload online documents like annexure attached to
ANF 3B, ANF 3C and ANF 3D, which are at present
signed by these signatories and submitted physically.
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 MEIS
• Merchandise Exports from India Scheme has
replaced 5 different schemes of earlier FTP
(Focus Product Scheme, Market Linked Focus
Product Scheme, Focus Market Scheme, Agri.
Infrastructure Incentive Scrip, VKGUY) for
rewarding merchandise exports which had
varying conditions (sector specific or actual user
only) attached to their use.
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 Country Groups:

• Category A: Traditional Markets (30) -

European Union (28), USA, Canada.
• Category B: Emerging & Focus Markets (139),
Africa (55), Latin America and Mexico (45), CIS
countries (12), Turkey and West Asian countries
(13), ASEAN countries (10), Japan, South
Korea, China, Taiwan,
• Category C: Other Markets (70). 28
 Products supported under MEIS
Level of Support:
• Higher rewards have been granted for the following
category of products: 
• Agricultural and Village industry products, presently
covered under VKGUY.
•  Value added and packaged products.
•  Eco-friendly and green products that create wealth
out of waste from agricultural and other waste products
that generate additional income for the farmers, while
improving the environment. 29
•  Labour intensive Products with large
employment potential and Products with large
number of producers and /or exporters.
•  Industrial Products from potential winning
sectors.
•  Hi-tech products with high export earning
potential.
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• The Duty Credit Scrips and goods imported /
domestically procured against them shall be freely
transferable. The Duty Credit Scrips can be used
for :
• (i) Payment of Customs Duties for import of inputs
or goods, except items listed in Appendix 3A.
• (ii) Payment of excise duties on domestic
procurement of inputs or goods, including capital
goods as per DoR notification.
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• (iii) Payment of service tax on procurement of
services as per DoR notification.
• (iv) Payment of Customs Duty

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 SEIS
• SEIS - SEIS provides for rewards to all Service
providers of notified services, who are providing
services from India, regardless of the
constitution or profile of the service provider.

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• Such service provider should have minimum net
free foreign exchange earnings of US$15,000 in
preceding financial year to be eligible for Duty
Credit Scrip. For Individual Service Providers
and sole proprietorship, such minimum net free
foreign exchange earnings criteria would be
US$10,000 in preceding financial year.
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• The rate of reward under SEIS would be based
on net foreign exchange earned. The reward
issued as duty credit scrip, would no longer be
with actual user condition and will no longer be
restricted to usage for specified types of goods
but be freely transferable and usable for all types
of goods and service tax debits on procurement
of services/goods. Debits would be eligible for
CENVAT credit or drawback. The present rates35
Online Complaint Registration and Monitoring
System
• For assistance an email may be sent at
• dgftedi@nic.in or Toll Free number 1800111550
can be used. Help Desk facility is also
operational at the 4 DGFT Zonal Offices (details
at http://dgft.gov.in).

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 Interpretation of Policy

• The decision of DGFT shall be final and binding

on all matters relating to interpretation of Policy,
or provision in Handbook of Procedures,
Appendices and Aayat Niryat Forms or
classification of any item for import / export in
the ITC (HS).

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 • THANKS
• Q&A
• Dr Navneet Gera

drgera1@yahoo.com

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