Home India Ministry of Commerce and Industry In exercise of powers conferred by Section 5 of FTD and R Ac...
Date: 2020-06-25 Category: Extra Ordinary State: Union Government Country: India

In exercise of powers conferred by Section 5 of FTD and R Act, 1992, read with Paragraph 1 02 of the Foreign Trade Policy, 2015 20, as amended from time to time, the Central Government hereby makes following amendments in Foreign Trade Policy

Issued by Ministry of Commerce and Industry · Department of Commerce

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Executive Summary & Key Takeaways

Executive Summary: This notification amends the Foreign Trade Policy 2015-2020, specifically paragraph 4.44, concerning the export of cut and polished diamonds with zero-duty re-import facility. The amendment extends the re-import period from three to six months for cases expiring between February 1, 2020, and July 31, 2020, due to COVID-19 disruptions. This change is enacted under Section 5 of the Foreign Trade Development and Regulation (FTDR) Act, 1992. Key Points / Main Content: Amendment Overview: * Foreign Trade Policy 2015-2020 is amended. * Amendment pertains to Para 4.44 regarding the export of cut and polished diamonds with zero duty re-import. Eligibility for Export: * Exporters with an annual export turnover of Rs 5 crores in each of the last three years can export. * Authorized offices/agencies in India of laboratories mentioned under paragraph 4.74 of the Handbook of Procedures can export. * Cut and polished diamonds must be 0.25 carat or above. Re-import Facility: * Re-import facility at zero duty is available within 3 months from the date of export. * Subject to guidelines issued by the Central Board of Customs and Excise, Department of Revenue. Extension of Re-import Period: * For cases where the re-import period expires between February 1, 2020, and July 31, 2020, the re-import period is automatically extended by 3 months. * The time limit for re-import facility with zero duty is enhanced from three months to six months for cases where reimport period is expiring between Feb. 1, 2020 to July 31, 2020 in light of COVID19. Impact Analysis: Exporters of Cut and Polished Diamonds: * Impact: Benefit from the extended re-import period, providing more flexibility due to COVID-19 related disruptions. * Action Required: Take note of the extended re-import period and ensure compliance with the revised timelines, specifically if their re-import period falls between February 1, 2020, and July 31, 2020. Customs and Excise Department: * Impact: Need to implement and administer the extended re-import period, in line with existing guidelines. * Action Required: Ensure systems and processes are updated to reflect the extended re-import period for eligible cases. Laboratories/Agencies (Para 4.74 of Handbook): * Impact: No direct impact but must be aware of the extended re-import period for their clients. * Action Required: Inform clients about the extended re-import period and any related procedures.

Key Entities Referenced

Foreign Trade Policy 2015-2020: A policy document regarding foreign trade, which is being amended in this notification. FTDR Act, 1992: Foreign Trade (Development and Regulation) Act, 1992. The legal basis for the powers exercised in this notification. Central Government: The government body issuing the amendment to the Foreign Trade Policy. Para 4.44: Specific paragraph of the Foreign Trade Policy 2015-2020 being amended related to export of cut and polished diamonds. Handbook of Procedures: A document referenced within the Foreign Trade Policy regarding authorized agencies/laboratories. Central Board of Customs Excise, Department of Revenue: The government body responsible for issuing guidelines related to re-import at zero duty. COVID19: The Coronavirus Disease 2019 pandemic, cited as a reason for extending the re-import period. Amit Yadav: Director General of Foreign Trade, Ex-officio Additional Secretary, the signing authority for the notification.
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S.O. 2047(E).—In exercise of powers conferred by Section 5 of FT(D&R) Act, 1992, read with Paragraph 1.02 of the Foreign Trade Policy, 2015-20, as amended from time to time, the Central Government hereby makes following amendments in Foreign Trade Policy 2015-20. Existing Para 4.44 of Foreign Trade Policy 2015-20 4.44 Export of Cut & Polished Diamonds with Re-import Facility at Zero Duty An exporter (with annual export turnover of Rs 5 crores for each of the last three years) or the authorized offices/agencies in India of laboratories mentioned under paragraph 4.74 of Hand Book of Procedures may export cut & polished diamonds (each of 0.25 carat or above) to any of the agencies/laboratories mentioned under paragraph 4.74 of Handbook of Procedures with re-import facility at zero duty within 3 months from the date of export. Such facility of re-import at zero duty will be subject to guidelines issued by Central Board of Customs & Excise, Department of Revenue. Amended Para 4.44 of Foreign Trade Policy 2015-20 4.44 Export of Cut & Polished Diamonds with Re-import Facility at Zero Duty An exporter (with annual export turnover of Rs 5 crores for each of the last three years) or the authorized offices/agencies in India of laboratories mentioned under paragraph 4.74 of Hand Book of Procedures may export cut & polished diamonds (each of 0.25 carat or above) to any of the agencies/laboratories[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3 mentioned under paragraph 4.74 of Handbook of Procedures with re-import facility at zero duty within 3 months from the date of export. Such facility of re-import at zero duty will be subject to guidelines issued by Central Board of Customs & Excise, Department of Revenue. However, for cases where re-import period is expiring between Feb 1, 2020 to July 31, 2020, the period of re-import shall be considered automatically extended by 3 more months. Effect of the Notification: Para 4.44, of FTP is amended enhancing the time limit for re-import facility with zero duty from three months to six months for cases where re-import period is expiring between Feb. 1, 2020 to July 31, 2020 in light of COVID19. [F. No. 01/94/180/152/AM20/PC-4] AMIT YADAV, Director General of Foreign Trade & Ex-officio Addl. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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