Alignment of Appendix 4R with the Finance Act, 2022 with effect from 01.05.2022

## Report on Amendment to Foreign Trade Policy 2015-2020: Alignment of Appendix 4R with the Finance Act, 2022 **1. Executive Summary:** This report analyzes an amendment to the Foreign Trade Policy (FTP) 2015-2020, specifically addressing the alignment of Appendix 4R with the Finance Act, 2022. The core purpose of this amendment, as inferred from the text, is to update the schedule of eligible export items, rates, and per-unit value caps under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, reflecting changes in the Customs Tariff Schedule resulting from the Finance Act, 2022. A key finding is that Appendix 4R has been revised and is effective from May 1, 2022. **2. Introduction:** The purpose of this report is to provide information on an amendment to the Foreign Trade Policy 2015-2020, specifically concerning the alignment of Appendix 4R with the Finance Act, 2022. This analysis is based solely on the provided government policy text. **3. Policy Overview:** * **Original Policy:** Foreign Trade Policy 2015-2020. * **Core Objective(s):** The amendment aligns Appendix 4R with the Finance Act, 2022. The main objective is to update and implement the RoDTEP scheme schedule (Appendix 4R) to reflect changes in the Customs Tariff Schedule due to the Finance Act, 2022. **4. Background and Rationale:** This amendment is likely necessitated by the enactment of the Finance Act, 2022, which brought about changes in the Customs Tariff Schedule. To ensure consistency and accuracy in the RoDTEP scheme, the government has aligned Appendix 4R with the updated tariff schedule. The amendment aims to ensure that exporters receive the correct RoDTEP benefits based on the revised customs duties and taxes. **5. Key Provisions / Changes:** This document details an amendment. The specific changes introduced are: * **Specific Part of Original Policy Changed:** Appendix 4R of the Foreign Trade Policy 2015-2020 is being revised and replaced. * **New Rule/Provision:** A new Appendix 4R, aligned with the Finance Act, 2022, is being notified for implementation. This new appendix contains "eligible RoDTEP export items, rates and per unit value caps, wherever applicable." * **Difference/Effect of Change:** The amendment ensures that the RoDTEP scheme reflects the updated Customs Tariff Schedule resulting from the Finance Act, 2022. This ensures that exporters receive the correct RoDTEP benefits based on current tariff regulations. The changes in the Customs Tariff Schedule resulting from the Finance Act, 2022, take effect from 01.05.2022. **6. Target Audience and Stakeholders:** The target audience and stakeholders for this amendment are primarily: * Exporters availing benefits under the RoDTEP scheme. * Customs officials involved in the implementation of the RoDTEP scheme. * The Directorate General of Foreign Trade (DGFT). **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Directorate General of Foreign Trade (DGFT) is responsible for notifying and implementing the revised Appendix 4R. The Customs Department is also involved due to changes in the Customs Tariff Schedule. * **Timelines and Procedures:** The amendment is effective from May 1, 2022. The new Appendix 4R is accessible on the DGFT portal (www.dgft.gov.in). * **Implementation Aspects Specifically related to Changes:** Exporters need to refer to the updated Appendix 4R on the DGFT portal to determine eligible RoDTEP export items, rates, and per unit value caps applicable to their exports. Customs officials need to implement the changes in the Customs Tariff Schedule effective from May 1, 2022. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is to: * Ensure accurate RoDTEP benefits for exporters based on the updated Customs Tariff Schedule. * Maintain consistency between the Foreign Trade Policy and the Finance Act, 2022. * Provide clarity to exporters regarding eligible items, rates, and value caps under the RoDTEP scheme. * The specific impacts of the change are reflected in the updated Appendix 4R, which contains eligible RoDTEP export items, rates, and per unit value caps. **9. Conclusion:** The amendment to the Foreign Trade Policy 2015-2020, aligning Appendix 4R with the Finance Act, 2022, is a significant update that impacts exporters availing benefits under the RoDTEP scheme. The revised appendix, effective from May 1, 2022, ensures that the scheme reflects the current Customs Tariff Schedule. Exporters should consult the DGFT portal for detailed information on the updated schedule. This amendment is essential for maintaining the effectiveness and relevance of the RoDTEP scheme in the context of changing financial regulations.

Key Entities Referenced