## Policy Analysis Report: Amendment to Foreign Trade Policy 2015-2020
**1. Executive Summary:**
This report analyzes a Public Notice issued by the Directorate General of Foreign Trade (DGFT) on June 9, 2022. This Public Notice serves as an amendment to the Foreign Trade Policy (FTP) 2015-2020. The core purpose of this amendment is to update Appendix 2G of the FTP, which pertains to Pre-Shipment Inspection Agencies (PSIAs). This amendment includes the addition of two new agencies as recognized PSIAs and modifies the areas of operation for an existing agency, along with validity information and procedural guidelines. The key finding is that this amendment aims to facilitate trade by expanding the network of authorized inspection agencies and specifying their operational scope.
**2. Introduction:**
This report aims to provide an informative overview and analysis of the Public Notice No. 12 dated June 9, 2022, issued by the DGFT, focusing on its impact as an amendment to the Foreign Trade Policy 2015-2020. The analysis is based solely on the content of the provided policy text.
**3. Policy Overview:**
This Public Notice amends the existing Foreign Trade Policy 2015-2020, specifically referencing paragraph 2.04 of the policy and paragraph 2.55d of the Handbook of Procedures (HBP) 2015-2020. The core objective of this amendment, as inferred from the text, is to:
* Update and expand the list of recognized Pre-Shipment Inspection Agencies (PSIAs) authorized under the FTP 2015-2020.
* Define the operational scope, including geographical areas and validity periods, for these PSIAs.
**4. Background and Rationale:**
The amendment likely addresses the need to ensure efficient and reliable pre-shipment inspection services for goods being traded internationally. The inclusion of additional PSIAs and the modification of operational areas suggests an attempt to:
* Increase the capacity for pre-shipment inspections, potentially to address increased trade volumes or specific regional demands.
* Update the list of approved agencies and their areas of operation to reflect current market dynamics and global trade patterns.
* Provide clarity on the validity and operational parameters for PSIAs to ensure compliance and streamline trade processes.
**5. Key Provisions / Changes:**
This Public Notice introduces the following specific changes to the Foreign Trade Policy 2015-2020:
* **Addition of New PSIAs:** Two new agencies, "DD International Global" and "Baltic Testing India Private Limited" are added to Appendix 2G of the FTP as recognized PSIAs. The notice specifies their addresses, areas of operation across various countries, and contact information.
* **Modification of Operational Areas for an Existing PSIA:** The operational areas for "Ms Cayley Aerospace" are modified, with Japan and South Korea added, effective until December 27, 2023.
* **Validity of PSIA Approvals:** The validity period for the approved PSIAs is set at three years from the date of the Public Notice's issuance or until otherwise notified by the DGFT, whichever is earlier.
* **Reporting Requirements for Inspections in Other Countries:** PSIAs are required to inform the DGFT via email (psiatraveldgftgov.in) and provide details of inspection visits when conducting inspections in countries where they do not have a full-time equipped branch office, but that fall within the agency's approved area of operation.
* **Equipment Approvals:** The annexure to the notice lists approved spectrometers and survey meters which agencies are approved to use.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders affected by this amendment are:
* **Exporters and Importers:** Who are required to utilize the services of PSIAs for pre-shipment inspections.
* **Pre-Shipment Inspection Agencies (PSIAs):** Specifically, the newly added agencies, "DD International Global", "Baltic Testing India Private Limited", and the existing agency, "Ms Cayley Aerospace".
* **Directorate General of Foreign Trade (DGFT):** The responsible body for implementing and monitoring the FTP and its amendments.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Directorate General of Foreign Trade (DGFT) is the responsible agency for implementing this amendment.
* **Timelines:** The amendment comes into effect immediately as of June 9, 2022. The validity of the PSIA approvals is set for three years, or until notified otherwise by DGFT. The additional areas of operation for Cayley Aerospace expire on 27.12.2023.
* **Procedures:** PSIAs operating in countries without a full-time equipped branch office must inform the DGFT before conducting inspections. They must also update their membership certificate, office address and contact details as required.
**8. Expected Outcomes / Impact of Changes:**
The intended outcomes of these changes are likely to include:
* **Increased Efficiency in Trade:** By increasing the number of recognized PSIAs, the amendment aims to reduce bottlenecks and improve the speed of pre-shipment inspections.
* **Enhanced Geographical Coverage:** The addition of operational areas ensures inspections can be performed where they are most needed.
* **Improved Compliance:** Clearer guidelines on validity and reporting requirements will likely lead to improved compliance with FTP regulations.
* **Greater Transparency:** The need for notifying DGFT when inspections occur outside the PSIAs' main areas will likely increase the transparency of the pre-shipment process.
**9. Conclusion:**
The Public Notice issued on June 9, 2022, represents a targeted amendment to the Foreign Trade Policy 2015-2020. By adding and modifying the list of recognized PSIAs, defining their operational areas and validity, and detailing reporting requirements, this amendment seeks to streamline the pre-shipment inspection process, enhance trade efficiency, and ensure better compliance with the FTP regulations. The changes should benefit exporters, importers, and the PSIAs themselves, while also enabling more effective oversight by the DGFT. This amendment is a significant step towards facilitating smoother and more transparent international trade operations.
Key Entities Referenced
Foreign Trade Policy, 2015-2020: A trade policy referenced in the public notice.
Director General of Foreign Trade: An authority issuing the public notice and exercising powers under the Foreign Trade Policy.
HBP 2015-20: Handbook of Procedures 2015-2020, referenced in the notice.
Appendix 2G of Appendices and Aayat Niryat Forms: A section of the Foreign Trade Policy, 2015-20.
DD International Global: An agency being included in Appendix 2G of Appendices and Aayat Niryat Forms of Foreign Trade Policy, 2015-20.
New Delhi: Location of DD International Global's South Delhi office.
UAE: Country where DD International Global has operations.
Oman: Country where DD International Global has operations.
Tanzania: Country where DD International Global has operations.
Saudi Arabia: Country where DD International Global has operations.
Qatar: Country where DD International Global has operations.
South Africa: Country where DD International Global has operations.
West Africa: Region where DD International Global has operations.
South America: Region where DD International Global has operations.
Jordan: Country where DD International Global has operations.
Kuwait: Country where DD International Global has operations.
Bahrain: Country where DD International Global has operations.
Yemen: Country where DD International Global has operations.
COMESA: Common Market for Eastern and Southern Africa, where DD International Global has operations.
Angola: Country within COMESA where DD International Global has operations.
Comoros: Country within COMESA where DD International Global has operations.
Madagascar: Country within COMESA where DD International Global has operations.
Namibia: Country within COMESA where DD International Global has operations.
Seychelles: Country within COMESA where DD International Global has operations.
Singapore: Country where DD International Global has operations.
Philippines: Country where DD International Global has operations.
Israel: Country where DD International Global has operations.
Thailand: Country where DD International Global has operations.
Indonesia: Country where DD International Global has operations.
Malaysia: Country where DD International Global has operations.
East Africa: Region where DD International Global has operations.
Turkey: Country where DD International Global has operations.
Reunion: Country where DD International Global has operations.
Mauritius: Country where DD International Global has operations.
New Zealand: Country where DD International Global has operations.
Mozambique: Country where DD International Global has operations.
East Asia: Region where DD International Global has operations.
China: Country where DD International Global has operations.
Japan: Country where DD International Global has operations.
North Korea: Country where DD International Global has operations.
South Korea: Country where DD International Global has operations.
Taiwan: Country where DD International Global has operations.
Australia: Country where DD International Global has operations.
North America: Region where DD International Global has operations.
Europe: Region where DD International Global has operations.
MOHAMMAD SOHAIL RUWAI MUSCAT: Location of DD International Global in Oman.
Dar Es Salaam,Tanzania: Location of DD International Global in Tanzania.
Jeddah, KIngdom of Saud Arabia: Location of DD International Global in Saudi Arabia.
Doha, Qatar: Location of DD International Global in Qatar.
Cape town: Location of DD International Global in South Africa.
Nouakchott: Location of DD International Global in Mauritania.
Santo Domingo Este, Republica Dominicana: Location of DD International Global in South America.
Marka al hizam, Jordan: Location of DD International Global in Jordan.
SAFAT, Kuwait: Location of DD International Global in Kuwait.
al shargl, Bahrain: Location of DD International Global in Bahrain.
Kinshasa, DRC: Location of DD International Global in Democratic Republic of the Congo.
Singapore: Location of DD International Global in Singapore.
Cebu city Philippines: Location of DD International Global in Phillipines.
Nablus: Location of DD International Global in West Bank, Israel.
Kosamphinakhon Kamphaegn Phet 62000 Thailand: Location of DD International Global in Thailand.
Taiwan R.O.C: Location of DD International Global in Taiwan.
Truganina VIC 3029: Location of DD International Global in Australia.
Artesia, California: Location of DD International Global in North America.
Baltic Testing India Private Limited: An agency being included in Appendix 2G of Appendices and Aayat Niryat Forms of Foreign Trade Policy, 2015-20.
Mumbai, Maharashtra: Location of Baltic Testing India Private Limited's India office.
United Kingdom: Country where Baltic Testing India Private Limited has operations.
Ireland: Country where Baltic Testing India Private Limited has operations.
Denmark: Country where Baltic Testing India Private Limited has operations.
Finland: Country where Baltic Testing India Private Limited has operations.
Germany: Country where Baltic Testing India Private Limited has operations.
Belgium: Country where Baltic Testing India Private Limited has operations.
Bulgaria: Country where Baltic Testing India Private Limited has operations.
Hungary: Country where Baltic Testing India Private Limited has operations.
Italy: Country where Baltic Testing India Private Limited has operations.
Luxembourg: Country where Baltic Testing India Private Limited has operations.
Romania: Country where Baltic Testing India Private Limited has operations.
Spain: Country where Baltic Testing India Private Limited has operations.
The Netherlands: Country where Baltic Testing India Private Limited has operations.
Poland: Country where Baltic Testing India Private Limited has operations.
Sweden: Country where Baltic Testing India Private Limited has operations.
Czech Republic: Country where Baltic Testing India Private Limited has operations.
Latvia: Country where Baltic Testing India Private Limited has operations.
Cyprus: Country where Baltic Testing India Private Limited has operations.
Malta: Country where Baltic Testing India Private Limited has operations.
Estonia: Country where Baltic Testing India Private Limited has operations.
Croatia: Country where Baltic Testing India Private Limited has operations.
Slovenia: Country where Baltic Testing India Private Limited has operations.
France: Country where Baltic Testing India Private Limited has operations.
Portugal: Country where Baltic Testing India Private Limited has operations.
Greece: Country where Baltic Testing India Private Limited has operations.
Slovakia: Country where Baltic Testing India Private Limited has operations.
Austria: Country where Baltic Testing India Private Limited has operations.
Lithuania: Country where Baltic Testing India Private Limited has operations.
United States of America: Country where Baltic Testing India Private Limited has operations.
London: Location of Baltic Testing India Private Limited's UK office.
Risskov Denmark: Location of Baltic Testing India Private Limited's Denmark office.
Brake, Germany: Location of Baltic Testing India Private Limited's Germany office.
Sofia: Location of Baltic Testing India Private Limited's Bulgaria office.
Carugate, Italy: Location of Baltic Testing India Private Limited's Italy office.
Constantza, Romania: Location of Baltic Testing India Private Limited's Romania office.
Oudenbosch The Netherlands: Location of Baltic Testing India Private Limited's Netherlands office.
Norrkoping, Sweden: Location of Baltic Testing India Private Limited's Sweden office.
Dublin, Ireland: Location of Baltic Testing India Private Limited's Ireland office.
Masala, Finland: Location of Baltic Testing India Private Limited's Finland office.
Budapest: Location of Baltic Testing India Private Limited's Hungary office.
Madrid Spain: Location of Baltic Testing India Private Limited's Spain office.
Gdynia Poland: Location of Baltic Testing India Private Limited's Poland office.
Budejovice Czech Republic: Location of Baltic Testing India Private Limited's Czech Republic office.
Ventspils, Latvia: Location of Baltic Testing India Private Limited's Latvia office.
TaXbiex Malta: Location of Baltic Testing India Private Limited's Malta office.
PSIA: Pre-Shipment Inspection Agency
Cayley Aerospace: An agency with additional areas of operation notified in the document.
Lynnwood, WA: Location of Cayley Aerospace's office.
United Kingdom: Country where Cayley Aerospace has additional areas of operation.
Japan: Country where Cayley Aerospace has additional areas of operation.
South Korea: Country where Cayley Aerospace has additional areas of operation.
Coventry: Location of Cayley Aerospace office in United Kindom.
Suzhou Industrial Park, Jiangsu: Location of Cayley Aerospace office in PR China
Santosh Kumar Sarangi: Director General of Foreign Trade ExOfficio Addl. Secy.