Epcg

Key FTP changes that didn't find mention in the highlights

Generally speaking, the new FTP continues with the same old provisions under the major export promotion schemes

Chatroom: Replacement part can be imported under EPCG scheme for spares

There is no stipulation that a free replacement must come only after re-export of the wrong shipment

New foreign trade policy seeks to spur rupee trade, e-com exports

New policy is in line with government's priority towards moving from an 'incentive-based regime' to a 'remission and entitlement-based regime', thereby making the policy compliant with WTO rules

Govt's new foreign trade policy set to boost domestic manufacturing

Apart from that, under the policy, e-commerce as export hubs (ECEH) will be set up through private initiative or in public-private partnership (PPP) mode, in partnership with the states or the Centre

Commerce Ministry relaxes EPCG norms to promote ease of doing biz

The latest relaxation will be available for hotel, healthcare, and educational sectors, the commerce ministry said

Centre allows trade settlement for export promotion schemes in Indian rupee

With the amendment to the Foreign Trade Policy, invoicing, payment, and settlement of trade can now take place in Indian rupee

'MOOWR is a duty deferment scheme'

There is no customs duty exemption for inputs used in the manufacture of capital goods in a bonded warehouse, even if they are supplied to an EPCG authorisation holder

SME Chatroom: Purpose of shipping mark to enable package to be identified

If an LC specifies the details of a shipping mark, the documents mentioning the marks should show these details; additional information is acceptable provided it is not in conflict with the LC terms

Procedures of EPCG scheme now simplified

Under the EPCG scheme, exporters can import capital goods at zero duty against export obligation (EO) of six times the duty saved to be fulfilled in six years

Govt eases certain norms under EPCG scheme to promote ease of doing biz

Under the scheme, imports of capital goods are allowed duty free, subject to an export obligation

Realisation of export proceeds not mandatory for drawback on re-exports

A licence or duty credit scrip obtained through misrepresentation is voidable but not void till it is cancelled

Capital goods imported under EPCG scheme can be shifted to another unit

The RA may allow one time extension of the said period for producing the certificate by a maximum period of 12 months with a composition fee of Rs 5,000

Don't dump EPCG scheme for now

At present, the basic duty rates on most capital goods is 7.5 per cent