Documentos de Académico
Documentos de Profesional
Documentos de Cultura
EY Tax Alert
Foreign Trade Policy 2015 - 2020
Executive summary
This Tax Alert gives an update on the Foreign Trade Policy (FTP) 2015-2020,
Tax Alerts cover which has been released by the Ministry of Commerce and Industry on 1 April
significant tax news, 2015.
developments and
changes in legislation The FTP 2015 - 2020, which comes into effect from 1 April 2015, has been
that affect Indian
notified by the Central Government1 in exercise of the powers conferred under
the Foreign Trade (Development and Regulations) Act, 1992.
businesses. They act
as technical summaries
It introduces two schemes namely “Merchandise Exports from India Scheme”
to keep you on top of
(MEIS) for export of specified goods to specified markets and “Services Exports
the latest tax issues.
from India Scheme” (SEIS) for exports of notified services, in place of the
For more information,
schemes issued earlier. The benefits of these reward schemes will also be
please contact your EY
extended to SEZ units.
advisor.
Further, measures have been taken to encourage manufacturing and exports
under 100% EOU/EHTP/STPI/BTP schemes such as fast track clearance facility,
sharing of infrastructural facilities etc.
The major focus areas of this FTP are trade facilitation and ease of doing
business. Accordingly, a number of steps have been taken such as reduction in
number of mandatory documents for export and import, creation of facility for
uploading documents in exporter / importer profile etc.
_________________
1
vide Notification no. 1/2015-2020 dated 1 April 2015
Background additional duty of customs / excise
duty / service tax is allowed
► The Foreign Trade Policy 2009-2014, adjustment as CENVAT credit or
which was to remain in force until 31 drawback, as per Department of
March 2014, was extended beyond that Revenue rules.
date as notified by the Director General
of Foreign Trade (DGFT) vide Notification ► Higher levels of reward under MEIS
no. 69/(RE-2013)/2009-2014 dated 19 proposed for export items with high
February 2014. domestic content and value addition
as compared to products with high
► The Foreign Trade Policy 2015-2020 has import content and less value
been released on 1 April 2015, and shall addition.
remain in force upto 31 March 2020,
unless otherwise specified. ► Export shipments filed under all
categories of Shipping Bills will
► The new FTP provides a framework for require a mandatory declaration for
increasing exports of goods and services the intent to claim rewards under
as well as generation of employment and MEIS. In case of shipping bills (other
increasing value addition in the country, than free shipping bills), such
integrating the “Make in India”, “Digital declaration of intent shall be
India” and “Skills India” initiatives of the mandatory w.e.f. 1 June 2015.
Government.
► E-Commerce:
Key Highlights Exports of goods falling in the
category of handloom products,
books / periodicals, leather footwear,
Exports from India Scheme
toys and customized fashion
garments, through courier or foreign
► MEIS
post office using e-commerce, of Free
► Five earlier schemes for rewarding
on Board (FOB) value upto INR 25000
merchandise exports [namely, Focus
per consignment shall be entitled for
Product Scheme, Market Linked
rewards under MEIS. In case the value
Focus Product Scheme, Focus Market
exceeds INR 25000, MEIS reward
Scheme, Agriculture Infrastructure
would be limited to FOB value of INR
Incentive Scrip, Vishesh Krishi and
25000 only.
Gram Udyog Yojana (VKGUY)] have
been merged into a single scheme i.e. ► SEIS
MEIS. ► SEIS, which has replaced the earlier
Served From India Scheme (SFIS),
► No conditionality to be attached to
shall now apply to “service providers
scrips issued under the scheme.
located in India” instead of “Indian
► Rewards under the MEIS shall be service providers”, regardless of the
payable for the export of notified constitution or profile of the service
goods to notified markets2, based on provider.
a percentage of realized Free on
► The present rates of reward are 3%
Board (FOB) value of exports.
and 5% and would be based on net
► The debits towards Basic Customs foreign exchange earned. The list of
duty in the duty credit scrips would services and the rates of rewards
also be allowed adjustment as duty would be reviewed after 30 Sept
drawback. At present, only the 2015.
► Online application for refund of Terminal ► Time period for validity of Letter of
Excise Duty (TED) introduced for which a Permission (LOP) for EOUs/EHTP/
new form is created. STPI/BTP Units has been revised. It will
now have an initial validity of 2 years
► Forthcoming E-Governance initiatives: and can be further extended by 1 year.
- Online inter-ministerial consultations Extension beyond 3 years can be
- Message exchange for transmission granted on the completion of 2/3rd of
of export reward scrips from DGFT to the activity by the units.
Customs
- Message exchange for transmission ► In case capital goods, which are
of Bills of Entry (import details) from transferred by EOUs/EHTPs/STPI units
Customs to DGFT to other units, are rejected by the
- Online issuance of Export Obligation recipient, then it can be returned to the
Discharge Certificate (EODC) supplying unit without payment of duty.