What is Foreign Trade Policy?

The government implemented the Foreign Trade Policy (FTP) to increase Indian exports of goods and services, hence creating jobs and improving value addition in the country. The government hopes to promote the manufacturing and service industries by implementing the policy. This page provides an overview of the policy’s different features.

Primary Concentration Areas
The policy largely focuses on the government’s dual approach of encouraging conventional and new export sectors, particularly services. It also wants to make the process of doing business easier.

The Policy’s Duration
The Foreign Trade Policy (FTP) was launched in the 2015-16 fiscal year and will continue in effect until March 31, 2020. During this time, the policy will govern all of the country’s exports and imports. By 2020, the government wants India to be a significant global trading partner.

Foreign Trade Policies Designed to Make Doing Business Easier
Here’s a rundown of some of the main Foreign Trade Policy initiatives:
1. Scheme Niryat Bandhu
2. The Niryat Bandhu Scheme was created by the DGFT to teach aspiring exporters on the subtleties of overseas trade through counselling, training, and outreach programmes.
3. MSME clusters have been chosen for concentrated interventions to enhance exports, given the expansion of small and medium size firms and their role in employment.

Outreach activities will be arranged in a structured manner with the help of Export Promotion Councils and other willing knowledge partners in academia and the research community to achieve the scheme’s goal. Furthermore, all stakeholders, including Customs, ECGC, Banks, and pertinent Ministries, will be attempted to be involved in order to maximise resource usage.

Exports and imports from/to another country require an electronic IEC Import Exporter Code, or in layman’s terms, an export authorization. The DGFT has made it easier to file an IEC application online.

The Electronic Bank Certificate (e-BRC) programme allows the DGFT to obtain critical facts about the realisation of export proceeds directly from banks via a secure electronic manner. This paves the possibility for numerous export promotion schemes to be implemented without the need for physical interaction with stakeholders.

A Memorandum of Understanding (MOU) was inked with 14 state governments to share e-BRC data and provide GST refunds to exporters. In addition, memorandums of understanding have been inked with the Enforcement Directorate, the Agricultural Directorate, the Agricultural Processed Food Products Export Development Authority, and the Goods and Services Tax Network (GSTN).

Profiles of Exporters and Importers
The exporter importer profile was built to allow users to upload a variety of documents while also reducing transaction costs and time. One of the system’s main benefits is that once the documents are uploaded, they don’t have to be submitted to the Regional Authority again with each application.

Applications can be submitted online
Application submission has never been easier than it is now, thanks to digitisation. The DGFT has made it easier to submit applications for IEC and other authorizations/scrip via the internet. The organisation has created a web portal for filing applications online. The application can be paid for online, and the payments can be submitted using the available financial options. The applications are digitally signed and submitted electronically to the DGFT’s concerned Regional Authority, after which the Regional Authority electronically processes them and issues authorizations/scrips.

Inter-Ministerial Consultation via the Internet
Exporters now have the ability to submit copies of all required documents, such as technical specifications, literature, and the like, in PDF, JPG, JPEG, or GIF format to the online filing system in respect of: 1. Fixation of standards under Advance Authorization by Norms Committees.

  1. Restricted items are exported.
  2. Importation of things that are prohibited.
  3. Items from the SCOMET.
    Other than agricultural drawings, machine drawings, and other drawings that are difficult to scan and upload, exporters are no longer needed to submit a paper copy of their application. The applications will be processed entirely on the internet.

CA/CS/Cost Accountant Facility
Chartered Accountants, Company Secretaries, and Cost Accountants can now use an electronic approach to upload their digitally signed documents. The exporter will use this feature to link a digitally posted annexure to his or her online application.

The Electronic Data Interchange (EDI) system was created by the DGFT with the goal of facilitating exports and improving good governance. The official body has built up a secure EDI message exchange system for documentation-related activities, such as Customs, banks, and EPCs, resulting in a reduced physical contact between exporters and importers and government departments. Furthermore, it results in the elimination of transaction expenses.

Consignment for Export
Export shipments shall be processed without delay or withdrawal, regardless of the reason. Instead, the appropriate authorities can request an undertaking from the exporter and then release the consignment.

Withdrawal of Seizure of Export Related Stock Agencies should refrain from making any seizures because it obstructs manufacturing and delays delivery schedules. Certain agencies retain the right to perform seizures based on prima facie evidence of major irregularity, but the seizures must be removed within seven days unless the defaults are proven.

Round-the-Clock Clearance of Customs
Customs clearance is accessible 24 hours a day, 7 days a week at 19 sea ports and 17 air cargo complexes. The 24-hour clock At 19 maritime ports and 17 Air Cargo Complexes, customs clearance has been extended to all Bills of Entry. Furthermore, Merchant Overtime Charges (MOT) are not required to be collected for services given by Customs officers at Customs Ports and Airports 24 hours a day, 7 days a week.

Interface with a single window
The Single Window Interface for Facilitating Trade (SWIFT) was created to make business more accessible. Importers can use the system to electronically file an Integrated Declaration with Customs at a single location. Without physically approaching other regulatory agencies, the essential licences are secured.

AEO Program (Authorized Economic Operator)
Indian Customs has designed an Authorized Economic Operator (AEO) programme to benefit enterprises engaged in international commerce, in compliance with the WCO’s Safe Framework of Standards (FOS). The following advantages are provided:

From point of export to point of import, a secure supply chain is essential.
When contracting to serve overseas importers or exporters, the potential to meet security standards exists.

Enhanced border clearance privileges in nations that have signed a Mutual Recognition Agreement (MRA).

After a disruption caused by a security breach, cargo flow is little disrupted.

Reduced dwell time and associated expenditures.
Customs advise or aid with unforeseen trade concerns with Customs of nations with which India has collaborated through MRA.

Filing of Shipping Bills is a service that is available to you.
Prior to the actual shipment, shipping bills can now be filed online. Bills of lading for air shipments must be lodged within seven days, whereas bills of lading for sea shipments must be filed within 14 days.

Exporting Perishable Export Products Made Easier
A single window system has been implemented to expedite the export of perishable agricultural produce and reduce transportation and handling costs. The Agricultural and Processed Food Products Export Development Authority in Delhi would approve multifunctional nodal agencies under this structure (APEDA).

Study of Time Release
The WCO’s Time Release Study is a one-of-a-kind instrument for determining Customs’ actual performance. Furthermore, the application aids in the identification of bottlenecks in the international supply chain as well as restrictions impacting Customs release. On a six-month trial basis, Indian Customs will apply it at major Customs facilities.

Excellence in Export Towns
TEE status may be granted to specific towns with a goods turnover of Rs 750 crore or higher, based on their export potential. The threshold limit for the handloom, handicraft, agriculture, and fisheries sectors will be Rs 150 crore. The following advantages will be granted to tees:

On a first-come, first-served basis, recognised associations of units will be given financial assistance under the MAI plan for export promotion initiatives in marketing, capacity building, and technological services.

In these locations, common service providers will be evaluated for Authorization under the EPCG system.

National Trade Facilitation Committee (NCTF)

Following India’s acceptance of the World Trade Organization’s Trade Facilitation Agreement, the National Committee on Trade Facilitation (NCTE) was formed (TFA). It was created to make domestic coordination and implementation of the TFA obligations easier.

E-mail Notification Service is a service that sends out emails to users.
The Central Board of Excise and Customs (CBEC) has launched an e-mail notification service to provide importers with information on all critical stages of the import clearance process.

Deferred Payment Facility
The CBEC has developed a mechanism for postponed payment of customs duty as another effort to facilitate trade. Importers who have been certified under the AEO programme are regarded eligible to use the facility.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

Do follow me on FacebookTwitter  Youtube and Instagram.

The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

If you would also like to contribute to my website, then do share your articles or poems at adv.aishwaryasandeep@gmail.com

We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs.

We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.