Mid Term Review of Foreign Trade Policy 2015-2020 dated 5th December, 2017 from perspective of Handmade Carpets & other Floor Coverings

 

CEPC/GST/2017/                                                          Dated : 8thDec, 2017

 

ALL MEMBERS OF CEPC

 

Sub.: Mid Term Review of Foreign Trade Policy 2015-2020 dated 5th December, 2017 from perspective of Handmade Carpets & other Floor Coverings

 

Dear  Members,

 

The Ministry of Commerce & Industry, Government of India has released the Mid Term Review of Foreign Trade Policy 2015-2020 dated 5th December, 2017 with the following salient features from perspective of Handmade Carpets & other Floor Coverings:

 

-   Annual Incentives increased by 2% amounting to over Rs 8,000 Cr for Lab our Intensive/MSME Sectors     including handmade carpets. Thereby, MEIS has been extended from 5% to 7% for     handmade carpets and floor coverings for the period of 1st Nov, 2017 to 30th June, 2018.

 

-   Validity period of Duty Credit Scrips has been increased from 18 to 24 months.

 

-   GST rates on transfer/sale of scrips has been reduced to zero. The Supplies to Special Economic Zones     will be treated as Zero rated under GST.

 

-   Issue of working capital blockage of exporters due to upfront payment of GST on inputs     has been addressed. Now, Advanced Authorization, Export Promotion Capital Goods and 100%     Export Oriented Units, exporters have been extended the benefit of sourcing inputs/capital goods from     abroad as well as domestic suppliers for export without upfront payment of GST. An E- wallet will be     launched from 1st April, 2018 to make these schemes operational from 1st April, 2018.

 

-   A new scheme of Self-Assessment based duty free procurement of inputs required for exports has been     introduced. This new trust based self-ratification scheme for duty free import of raw material will be     initially applicable to Authorised economic operators (AEO) only.

 

Contact@DGFT service has been launched on the DGFT website (www.dgft.gov.in) as a single window contact point for exporters and importers for resolving all foreign trade related issues and also to give suggestions. The members may avail this facility,

 

-   A State-of-the-Art Trade Analytics and Logistics Division has been set up in DGFT for data based policy     actions and facilitating trade.

 

-   Focus is on exploring new markets like Latin America and Caribbean region. The ECGC will be     strengthened further to ensure insurance cover particular MSME exporting to these new and risky     market.

 

-   Duty drawback Schemecontinued with revised rates for drawback of basic custom duties and     remnant central excise duties.

 

-   Focus will be given to Ease of Trading across borders. A professional team to handhold assist and     support exporters in their export related problems, accessing export markets, meeting regulatory     requirements.

 

Highlights of the Mid Term Review Policy 2015 - 2020 along with Press Release is attached for your ready reference.

 

Thanking You.

 

                                                            Yours faithfully,

                                                     Mahavir Pratap Sharma

                                                             Chairman, CEPC