Minister Sitharaman Releases FTP 2015-2020, Claims New Foreign Trade Policy will Double Export to $900 bn in 2020

Trade says New Policy is “Old Wine in New Bottle” or “Less Wine in New Bottle”, Its Mere Repackaging

Ø New FTP Slashes Incentive Rates by 2-3% to Control Revenue Losses

Ø Rs. 16,200 crs ($3.2bn) Negative Impact on Customs Revenue on Account of Reward Scrips, Costed 5% of All Customs Revenue Last year

Ø Substitute Scheme Merchandise Exports from India Scheme (MEIS) released by notification

Ø MEIS Subsumes All Reward Schemes for Goods

Ø 1% Incentive under Export Houses SHIS Goes

Ø 3% FMS scheme Shifted to MEIS at only 2%

Ø Three Groups Created consisting of Developed Countries (Group A), Developing Countries (Group B) and Least Developed Countries (Group C) in MEIS

Ø VKGUY 5% Incentive Shifted to MEIS with 3% Incentive Rate

Ø SFIS Subsumed under new SEIS with Reduction in Incentive Rate from 10% to Just 5%

Ø Actual User Condition of SFIS in SEIS Removed. Full Trading of Scrip Allowed

Ø New Scheme to Promote E-Commerce Export with Incentives Notified but Value Limit is Rs. 25,000 per Consignment only through Delhi, Chennai and Mumbai

Ø Two Star Export House Recognition Criteria Raised from Rs. 100 crs to Rs. 150 crs, Recognition Redefined on Dollar Basis

Ø Export House Self-Certification of Origin Certificate of PTA Entry in Destination Country (Is This Allowed under the PTA Agreement? – Ed)

Ø SEZs to be given SEIS and MEIS Benefits (FTWZ Denied the Benefit, SEZs Sale into DTA of Zero Duty Goods may be Denied the Benefit)

Ø No Change in Advance Licensing Scheme, Input Output Norms and Value Addition Norms Hurdles Remains

(Trade Distressed Over Lack of Concrete Procedure and Simplification, Mere EDI will not Help, Procedures are Complicated and No Accountability for Delayed/Wrong Decisions.– Ed)

Ø Complicated Pre-Shipment Inspection Procedures for Recycling Industry Introduced, Authorised Agency will have to Submit Video Clips of Each Inspection with Photograph of Inspector, Exporter and Importer.

(Is it Possible to do all this for tens of thousands of consignments? Can DGFT handle administrative burden? This work is done on sample basis with risk management profiling by customs on the spot at the port. As it is, there is no sanction of new entrants to PSI list for last one year. Even China is not represented in the list. – Ed)