SIMPLIFICATION
& MERGER OF REWARD SCHEMES
Export
from India Schemes:
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1.
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Merchandise Exports from India Scheme (MEIS)
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·
Now all the earlier 5 export schemes have been
merged into a single scheme called Merchandise Export from India Scheme (MEIS).
·
Notified goods exported to notified markets
would be rewarded as a percentage of realised FOB value of exports.
·
The debits towards basic customs duty in the
transferable reward duty credit scrips would also be allowed adjustment as
duty drawback
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2.
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Service Exports from India Scheme (SEIS)
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·
SFIS has been replaced with SEIS .
·
It provides rewards to all service providers
of notified services, who are providing services from India.
·
The rate of reward under SEIS would be based
on net foreign exchange earned.
·
The present rates of reward are 3% and 5%
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3.
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Chapter -3 Incentives
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·
Chapter 3 incentives (MEIS & SEIS) to be
available to units located in SEZs also.
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4.
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Duty Credit Scrips
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·
Scrips issued under MEIS and SEIS and goods
imported against these scrips would be fully transferable.
·
Scrips can be used for the following :-
ü
Payment of Custom Duties for import of inputs/
goods including capital goods (Except items listed in Appendix 3A)
ü
Payment of excise duty on domestic
procurement of
inputs or goods,
including capital
goods as per DoR
notification.
ü
Payment of service tax on
procurement of services as per DoR
notification.
·
BCD
paid in cash or through debits of duty credit scrips can be taken back as
duty drawback as per DOP Rules, if inputs so imported are used for exports.
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5.
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Status
Holders
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·
Status
holders means the business leaders who have excelled in international trade
and have successfully contributed to country's foreign trade. They will be
given special treatment and privileges.
·
The
criteria for export performance for
recognition of status holder have been changed from Rupees to US dollar earnings
·
Manufacturers
who are status holders will be permitted to self certify their goods originating
from India with a view to qualify for preferential treatment under different
agreements which are in operation as per their IEM/ IL/ LOI.
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Boost
to “Make in India”
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6.
|
Reduce
export obligation for domestic procurement under EPCG Scheme
|
·
Export obligation under EPCG Scheme in case of
capital goods has been reduced to 75% (6 times the duty saved
amount).
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7.
|
Higher level
of rewards under MEIS
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·
It is proposed to give higher level of reward
to products with high level domestic content and value addition.
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Trade
facilitation and ease of doing business
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8.
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Online filing of documents/ applications
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·
It
will now be possible to upload documents like annexures attached to ANF 3B,
ANF 3C and ANF 3D online. However
further documents earlier signed and filed in physical form by CA/ CS /CWA ,etc
can be uploaded online under their digital signature.
·
Application
and documents under Chapter 3 & 4 of FTP are not required to be submitted
to RA.
·
Any
exporter may upload a copy of Bill of Entry under his digital signature.
·
Status
holder falling under Three, Four , Five Star Export House may upload the
scanned copy of documents.
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9.
|
Online Inter
- ministerial consultations
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·
There would be no need to submit hard copies
of documents by the exporter for the following purposes:-
ü Export
of SCOMET items
ü Norms
fixation
ü Import
authorisation
ü Export
authorization
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10.
|
Simplification
of procedures/processes,
digitisation
and e-governance
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·
Under EPCG scheme, obtaining and submitting a
certificate from an independent Chartered Engineer, confirming the use of
spares, tools, refractory and catalysts imported for final
redemption of EPCG authorizations has been dispensed with.
·
The EPCG Authorization Holders shall be
required to maintain records for a period of two years only.
·
Facility has been created to online upload the
permanent records /documents in exporter / importer profile.
·
Mobile number, e-mail address etc. has been
added as mandatory fields, in IEC data base
·
It has been decided to have online
message exchange with CBDT for PAN
data and with MCA for CIN and DIN
data.
·
Dedicated e-mail addresses have been provided
to each Norms Committee, Import Committee and Pre-Shipment Inspection Agency
for faster communication with Committees of DGFT.
·
Online filing of application for refund of TED
is being introduced for which a new ANF has been created.
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11.
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Forthcoming
E- Governance initiatives
|
·
Message exchange for transmission of export
reward scrips from DGFT to Customs.
·
Message exchange for transmission of Bills of
Entry (import details) from Customs to DGFT.
·
Online
issuance of Export Obligation Discharge Certificate .
·
Message exchange with MCA for CIN & DIN.
·
Message
exchange with CBDT for PAN.
·
Facility to pay application fee using debit
card / credit card.
·
Open
API for submission of IEC application.
·
Mobile
applications for FTP
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Other
new initiatives
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12.
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New
initiatives for EOUs, EHTPs and STPs
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·
EOUs,
EHTPs, STPs have been allowed to
share
infrastructural facilities among themselves.
·
Inter
unit transfer of goods and services have been allowed among EOUs, EHTPs,
STPs, and
BTPs.
·
EOUs
have been allowed facility to set up
warehouses near the port of export
·
STP
units, EHTP units, software EOUs have
been allowed the facility to use all
duty free
equipment/goods for training purposes.
·
100%
EOU units have been allowed facility of
supply of spares/ components up to 2% of
the value of the manufactured articles
to a
buyer in domestic market for the purpose
of
after sale services.
·
One
year can be extended for EOU units to achieve positive Net Foreign Exchange
Earning (NEE).
·
LOP
will have an initial validity of 2
years to enable the unit to construct
the
plant and install the machinery. Further
extension can be granted by the
Development
Commissioner up to one year. Extension
beyond 3 years of the validity of LOP,
can be
granted, in case unit has completed
2/3rd of
activities,
including the construction activities.
·
If
transferred capital goods by EOU/EHTP/STPI units to other EOUs, EHTPs, STPs,
SEZ units are rejected, then the same can be returned to supplying unit ,
without the payment of duty.
·
A
simplified procedure will be provided to
fast track the de-bonding / exit of the
STP/
EHTP units.
·
EOUs
having physical export turnover of
Rs.10 crore and above, have been allowed
the facility of fast track clearances of
import
and domestic procurement
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13.
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Facilitating & Encouraging Export of dual use items (SCOMET).
|
·
Validity of SCOMET export authorisation has
been extended to 24 months
·
Authorisation for repeat orders will be considered
on automatic basis subject to certain conditions.
·
Verification of End User Certificate (EUC) is
being simplified if SCOMET item is being exported under Defence Export Offset
Policy.
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14.
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Facilitating & Encouraging Export of Defence Exports
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·
Export obligation period for Export obligation
period for export items falling in the category of defence, military store,
aerospace and nuclear energy shall be 24 months from the date of issue
of authorization or co-terminus with contracted duration of the export order,
whichever is later.
·
A list of military stores requiring NOC of
department of defence has been notified by DGFT.
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15.
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e-Commerce
Exports
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·
Goods falling in the category of handloom
products, books / periodicals, leather footwear, toys and customized fashion
garments, having FOB value up to Rs. 25000 per consignment shall be eligible for benefits under FTP.
Such goods can be exported in manual mode through Foreign Post Offices at New
Delhi, Mumbai and Chennai.
·
Export of such goods under Courier Regulations
shall be allowed manually on pilot basis through Airports at Delhi, Mumbai
and Chennai.
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16.
|
Duty
Exemption
|
·
Imports against Advance Authorization shall also
be eligible for exemption from Transitional Product Specific Safeguard Duty
·
Import of capital goods under EPCG
Authorisation Scheme shall not be eligible for exemption from payment of
anti-dumping duty, safeguard duty and transitional product specific safeguard
duty
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17.
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Additional Ports allowed for Export and import
|
·
Calicut Airport, Kerala and Arakonam ICD,
Tamil Nadu have been notified as registered ports for import and export
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18.
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Duty Free Tariff Preference (DFTP) Scheme
|
·
India has already extended duty free tariff
preference to 33 Least Developed countries(LDCs)
across the globe. This is being notified under FTP.
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19.
|
Quality
complaints and Trade Disputes
|
·
New Chapter on Quantity complaints and trade
disputes has been incorporated.
·
Committee on quantity complaints and trade
disputes (CQCTD) is being constituted in 22 offices and would have members
from EPCs/FIEOs/APEDA/EICs.
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20.
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Towns of
Export Excellence
|
·
Vishakhapatnam
and Bhimavaram in Andhra Pradesh has been added as towns of export excellence.
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Contributed by:
Ms. Karishma Sharma
CA Finalist/Article Assistant
Sandeep Ahuja & Co.
