India extends foreign trade policy by a year

02 Apr '20

2 min read

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India yesterday extended the existing foreign trade policy for a year till March 2021 amid the ongoing COVID-19 pandemic and the resulting lockdown to contain the outbreak. “The existing foreign trade policy 2015-20 which is valid up to March 31 this year is extended up to March 31, 2021,” the Directorate General of Foreign Trade (DGFT) said in a notification.

The validity of various import-linked export schemes like duty free import authorisation (DFIA) and export promotion of capital goods (EPCG) have also been extended by a year, the notification said.

Under EPCG, exporters can import certain amount of capital goods at zero duty for upgrading technology related to exports while DFIA allows them to import certain goods like sugar at zero duty.

The government also extended the exemptions to imports against advance authorisations for physical exports from integrated tax and compensation cess up to March 31, 2021. Advance authorisation is issued to allow duty-free import of inputs, which is physically incorporated in export product. The same exemption has been given to imports from bonded warehouse in domestic tariff area or from international exhibition held in India.

However, the government will take a call later on continuing the service exports from India scheme for services rendered after April 1.

Fibre2Fashion News Desk (DS)

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