Directorate General of Foreign Trade in its Notification dated 31st March, 2020 has decided to continue relief under various export promotion schemes by granting extension of the existing Foreign Trade Policy by another one year i.e. up to 31st March, 2021 due to unprecedented current situation arising out of the pandemic Novel COVID-19.
The following key changes have been brought under the policy.
- The duration of Foreign Trade Policy (FTP), 2015-2020, incorporating provisions relating to export and import of goods and services has been extended till 31.03.2021 instead of the current validity till 31.03.2020.
- The 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. The decision on continuation of SEIS will be taken and notified subsequently.
- Exemption from payment of IGST and Compensation Cess on the imports made under Advance/EPCG Authorisations and by from bonded warehouse in DTA or from international exhibition held in India etc. has been extended up to 31.03.2021.
- As per para 4.29 All Duty-Free Import Authorization (DFIA) including all transferable DFIAs where the validity of Import is expiring between 1st February 2020 and 31st July 2020, the validity stands automatically extended by six months from date of expiry.
- As per Para 5.01(a) the Export promotion capital good scheme has been substituted to provide that Capital goods imported under EPCG Authorization for physical exports are exempt from IGST and Compensation Cess up to 31.03.2021. However in case if the validity period of import expires during the 1st February 2020 to 31st July 2020 the validity stands automatically extended by further 6 months from the date of such expiry.
- The 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.
Click here to read the Notification.
