Recent developments relating to Foreign Trade Policy

by | Nov 18, 2020 | Insight | 0 comments

The Government has recently made following important announcements relating to Foreign Trade Policy (‘FTP’):

  1. Inviting suggestions for new Foreign Trade Policy
  • DGFT vide its Trade Notice No. 34/2020-21 dated November 12, 2020 has invited suggestions from various Export Promotion Councils, Commodity Boards, Industry Bodies, Associations and other stakeholders regarding new FTP by November 27, 2020. Notably, current FTP (2015-20) was extended till March 31, 2021.

NITYA Comments: The exporters through Industry Bodies & Associations, should timely approach DGFT and represent for incentives needed to provide stimulus to exports including substantive and practical challenges faced by exporters’ community.

  1. Government approves allocation of funds for MEIS:
  • The Government has approved following allocation for Merchandise Exports from India Scheme (‘MEIS’):

S. No.

Period

Amount (in Rs. crores)

1.

Financial Year (‘FY’) 2019-20

39,097

2.

April 2020 to August 2020

10,555

3.

September 2020 to December 2020

5,000

  • Further, Government has directed DGFT to periodically review MEIS outgo to ensure that MEIS allocations for FY 2019-20 and for FY 2020-21 (April to December 2020) are not breached.

NITYA Comments: On September 1, 2020, DGFT amended FTP and placed dual restrictions on MEIS for the period September to December 2020. Though, no restriction was placed for FY 2019-20 and April to August 2020, Memorandum suggests that Government may limit MEIS issued for such periods. If Government puts such restriction, this will be prone to legal challenge.

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