Executive Summary:
This notification, issued by the Ministry of Commerce and Industry on February 27, 2014, amends the Foreign Trade Policy (FTP) 2009-2014 with immediate effect. The amendment introduces incentives for specific export products/sectors and adds a new table in Appendix 37D for additional benefits. It aims to incentivize exports of products with high export intensity and employment potential to specific markets.
Key Points / Main Content:
Amendments to Foreign Trade Policy 2009-2014:
* Para 3.15.3 is amended to incentivize exports of products/sectors with high export intensity/employment potential not covered under the present FPS list.
* Incentive is 2% of FOB value of exports in free foreign exchange under FPS when exported to linked market countries, which are not covered in the present FMS list.
* Eligible products will be listed in Table 2 or Table 3 of Appendix 37D of HBPv1 for exports made from August 27, 2009, onwards, unless otherwise specified.
* Para 3.15.4 is inserted, stating that incentives for products listed in Table 3 will be in addition to any benefits under Table 1 or Table 2 of Appendix 37D.
Effect of Notification:
* A new Table 3 has been added to Appendix 37D, providing additional benefits.
Impact Analysis:
Exporters:
* Impact: Opportunity to receive incentives for exports of specific products/sectors to linked markets.
* Action Required: Review Appendix 37D (including the new Table 3) to identify eligible products and markets.
Government Agencies (e.g., Directorate General of Foreign Trade):
* Impact: Implementation and monitoring of the amended policy.
* Action Required: Update relevant procedures and guidelines to reflect the changes in the FTP 2009-2014.
Key Entities Referenced
Foreign Trade Policy 2009-2014: A policy document related to foreign trade.
Foreign Trade Development and Regulation Act, 1992: An act related to the development and regulation of foreign trade.
Ministry of Commerce and Industry: The Indian government ministry responsible for foreign trade and commerce.
Market Linked Focus Products Scrip: An export incentive scheme (MLFPS).
New Delhi: The location of publication and government office. New Delhi, Delhi
Appendix 37D: An appendix to the Handbook of Procedures, related to export incentives and product listings.
Director General of Foreign Trade: A position in the Ministry of Commerce and Industry.
ANUP K. PUJARI: Director General of Foreign Trade