**Summary:**
This notification, issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India, on February 29, 2024, amends Para 2.39 of the Foreign Trade Policy (FTP), 2023. The amendment pertains to merchanting trade, which involves an Indian intermediary facilitating the shipment of goods from one foreign country to another.
The key change introduced by this notification is the explicit permission for merchanting trade carried out *within one specific foreign country*, subject to compliance with Reserve Bank of India (RBI) guidelines. This was previously not explicitly addressed in Para 2.39.
The amended policy maintains the existing restrictions, prohibiting merchanting trade for goods/items listed in the Convention on International Trade in Endangered Species (CITES) Appendices or those falling under the Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) list.
The notification is issued in exercise of powers conferred by Section 5 of the Foreign Trade Development and Regulation Act, 1992, read with paragraph 1.02 of the FTP, 2023.
For further information, contact the Director General of Foreign Trade at dgft@nic.in, referencing File No. 01/93/180/40/AM20/PCII B/E-23463.
Key Entities Referenced
Foreign Trade Policy, 2023: A trade policy document which is being amended in this notification.
Foreign Trade Development Regulation Act, 1992: The act that confers powers to amend the Foreign Trade Policy.
Central Government: The governing authority responsible for amending the Foreign Trade Policy.
Reserve Bank of India (RBI): The central bank of India, whose guidelines must be followed for merchanting trade.
CITES: Convention on International Trade in Endangered Species of Wild Fauna and Flora; goods listed under CITES are exceptions to the allowance of merchanting trade.
SCOMET: Special Chemicals, Organisms, Materials, Equipment and Technologies; goods listed under SCOMET are exceptions to the allowance of merchanting trade.
Merchanting Trade: The trade involving shipment of goods from one foreign country to another foreign country without touching Indian ports.
New Delhi: The city in India where the Directorate General of Foreign Trade is located and from where the notification is issued.
To be published in the Gazette of India Extraordinary Part-II, Section-3, Sub-Section (ii)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Notification No. 62 /2023
New Delhi, Dated: 29" February, 2024
Subject: Amendment in Para 2.39 of the Foreign Trade Policy, 2023 - reg.
S.O. (E): In exercise of powers conferred by Section 5 of Foreign Trade (Development
&Regulation) Act, 1992, read with paragraph 1.02 of the Foreign Trade Policy, 2023, as
amended from time to time, the Central Government hereby amends Para 2.39 of
Foreign Trade Policy, 2023 as under:
Existing Para Revised Para
Merchanting trade involving shipment offMerchanting trade involving shipment of
goods from one foreign country to anotherlgoods from one foreign country to another
foreign country without touching Indianjforeign country without touching Indian ports,
ports, involving an Indian intermediary islor shipment of goods within one specific
allowed subject to compliance with RBlfforeign country, involving an Indian
guidelines, except for goods/items in thelintermediary is allowed subject to compliance
CITES and SCOMET list. with RBI guidelines, except for goods in the
CITES, or under SCOMET.
Effect of the Notification: Merchanting Trade carried out within one specific foreign
country is permitted subject to compliance with RBI guidelines, except for goods listed
in the CITES Appendices, or under SCOMET.
This is issued with the approval of Minister of Commerce & Industry.
(Santosh Kumar Sarangi)
Director General of Foreign Trade &
Ex-officio Addl. Secretary to Government of India
Email: dgft@nic.in
(Issued from File No. 01/93/180/40/AM-20/PC-II [BJ/E-23463)