In wake of COVID-19 pandemic, the Government has notified various amendments in the Foreign Trade Policy 2015-2020 (“FTP”) and in the Handbook of Procedure, providing one more year’s extension to exporters (i.e. till March 31, 2021) to undertake various compliances and to meet conditions under various export schemes.
Some key changes are summarized below:
- Service categories eligible for benefits granted under the Service Exports from India Scheme (“SEIS”) and the rates of rewards on such services rendered during the period April 01, 2019 to March 31, 2020 will be notified separately. For services rendered with effect from April 01, 2020, decision on continuation of SEIS is pending and will be notified separately.
The last date of filing an application for obtaining Scrips under SEIS for financial year 2018-19 is extended till December 31, 2020.
- The last date of filing of an application for obtaining Duty Credit Scrips (“Scrips”) under Merchandise Exports from India Scheme (“MEIS”) was 12 months from the Let Export Order (“LEO”) date. For shipping bills, where LEO date falls between the period February 1, 2019 to May 31, 2019, the applications may be filed within a period of 15 months (instead of 12 months) from the LEO date.
- For shipping bills with LEO date falling during the period March 7, 2019 to December 31, 2019, the last date of filing online claim for obtaining Scrips under the Scheme for Rebate of State and Central Levies and Taxes (“RoSCTL”) and Additional Ad hoc incentive under RoSCTL was June 30, 2020. The last date for filing online claim for the same has been extended to December 31, 2020.
- Accordingly, for the purposes of calculating late-cut while filing application for obtaining Scrips under the MEIS, SEIS and RoSCTL, the last date of submission of application would be taken as extended in the paragraphs above.
- Exemption from payment of Integrated Tax and Compensation Cess on imports made against Advance Authorization or Export Promotion Capital Goods (“EPCG”) Authorization and imports / procurements made by an Export Oriented Unit (“EOU”) / Electronic Hardware Technology Park (“EHTP”) / Software Technology Park (“STP”) / Bio-Technology Park (“BTP”) unit from bonded warehouses in Domestic Tariff Area (“DTA”) or international exhibitions held in India was granted till March 31, 2020. The exemption granted under these schemes is now further extended by one more year until March 31, 2021.
- Validity period for all Advance Authorizations, where the validity for import was expiring between February 01, 2020 and July 31, 2020, is extended automatically by 6 months from the date of expiry. In such cases, no separate amendment / endorsement is required on the authorizations for obtaining extension.
- Extension of prescribed period by another 6 months for specific circumstances, inter-alia including the below: For all Advance Authorizations, where the export obligation period is expiring between February 01, 2020 and July 31, 2020, the period of export obligation is automatically extended by 6 months from the date of expiry. In such cases, no separate application with composition fee, amendment or endorsement is required on the authorizations;
For EPCG Authorizations, where the period of 6 months to submit Installation Certificate of capital goods before the Regional Authority, expires during the period February 01, 2020 and July 31, 2020, the period of submission of such Installation Certificate is extended further by 6 months from the original due date; and,
If the period for fulfilling block of export obligation under EPCG Authorization expires during February 01, 2020 and July 31, 2020, such period is deemed to be automatically extended by further 6 months from the date of such expiry
- All Letters of Permission (“LoP”) / Letters of Intent (“LoI”) issued to EOU / EHTP / STP / BTP units have an initial validity period of 2 years (or as extended by the authorities) to enable the unit to construct and install plant & machinery and commence production. In this respect, for all LoPs / LoIs, whose original or extended validity expires on or after March 1, 2020, the same may deemed to be valid up to December 31, 2020.
- In addition to the above, certain sector-specific amendments have been made for sectors such as gems and jewellery, tea, etc. Please refer the Notification No. 57/2015-2020 dated March 31, 2020 and Public Notice No. 67/2015-2020 dated March 31, 2020 for details of the same.