Home India Ministry of Commerce and Industry Amendments in paragraph (7) of Appendix 6B of Appendices and...
Date: 2015-08-26 Category: Extra Ordinary State: Union Government Country: India

Amendments in paragraph (7) of Appendix 6B of Appendices and Aayat Niryat Forms of FTP 2015 2020.

Issued by Ministry of Commerce and Industry · Department of Commerce

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Executive Summary & Key Takeaways

Executive Summary: This public notice, issued by the Directorate General of Foreign Trade on August 26, 2015, announces amendments to paragraph 7 of Appendix 6B of the Foreign Trade Policy (FTP) 2015-2020. The changes concern the reprocessing of textiles under Export Oriented Unit (EOU) schemes. It enables the Board of Approval to consider Letter of Permission extensions for existing EOUs. Key Points / Main Content: * **Amendments to Paragraph 7, Appendix 6B, FTP 2015-2020:** * EOU schemes will not allow activities pertaining to reprocessing of garments, used clothing, secondary textile materials, clipping rags, industrial wipers, shoddy wool yarn, blankets, shawls, and other recyclable textile materials. * The amended paragraph modifies the existing paragraph related to textiles processing activities under EOU schemes. * Extension of Letter of Permission for an existing unit shall be decided by the Board. * **Effect of the Public Notice:** * An enabling provision is incorporated in paragraph 7 of Appendix 6B. * The Board of Approval is enabled to consider and decide on cases for the extension of the Letter of Permission of existing EOUs. Impact Analysis: * **Existing Export Oriented Units (EOUs):** * Impact: EOUs involved in the reprocessing of textiles will be affected by the revised regulations regarding permissible activities under the EOU scheme. They will be subject to the decision of the Board of Approval regarding the extension of their Letter of Permission. * Action Required: Existing units need to apply to the Board of Approval for extensions to their Letter of Permission, where the board will make a determination. * **Board of Approval:** * Impact: The Board of Approval is now tasked with the responsibility of considering and deciding on cases for the extension of the Letter of Permission for existing EOUs involved in textile reprocessing. * Action Required: The Board must establish a process for reviewing applications and making decisions regarding the extension of Letters of Permission for existing EOUs. * **Directorate General of Foreign Trade (DGFT):** * Impact: DGFT is responsible for implementing and enforcing the amended policy. * Action Required: Ensure effective communication and implementation of the changes.

Key Entities Referenced

Foreign Trade Policy 2015-2020: A trade policy implemented by the Directorate General of Foreign Trade. Directorate General of Foreign Trade: The issuing authority for the public notice, responsible for foreign trade policy. Ministry of Commerce and Industry: The government ministry overseeing the Department of Commerce and the Directorate General of Foreign Trade. Appendix 6B: A section of the Appendices and Aayat Niryat Forms of the Foreign Trade Policy 2015-2020 being amended. Export Oriented Unit (EOU): A unit undertaking to export its entire production Pravir Kumar: Director General of Foreign Trade New Delhi: Location of Directorate General of Foreign Trade - Delhi Board of Approval: A board established to consider cases for extension of Letter of Permission of existing Export Oriented Units (EOUs).
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