SFIS, Any amendments in new Foreign Trade Policy 2014-19?

The new Foreign Trade Policy 2014-19 is likely to be declared by end October, 2014.

Served From India Scheme SFIS is one of the reward schemes under Foreign Trade Policy. SFIS is provided to exporters on the basis of export of certain goods or services to certain specified countries. Served From India Scheme under Foreign Trade Policy is operationalized in September, 2009.

 

Under SFIS scheme, all Indian Service Providers who earns foreign exchange of Indian Rupees ten lakhs in current or preceding financial year is eligible. If the exporter is an individual, the limit of minimum foreign exchange earnings is Rupees five lakhs turn over of foreign exchange, either preceding year or current year. As per Foreign Trade Policy 2014-19, exporters are eager to know whether any changes in SFIS scheme as FTP 2014-19 is likely to declare by end of May,2014.

As per SFIS scheme under Foreign Trade Policy 2014-19, 10% foreign exchange earnings are given as duty credit scrip to exporters on their achievement of foreign exchange. Does Foreign Trade Policy 2014-19 declares any amendments in present structure under SFIS scheme?

 

The duty credit scrip obtained by exporters under SFIS scheme can be used for import of any capital goods,spares, professional equipment, office equipment, office furniture and consumables. The duty credit scrip can also be used to import consumables including food items and alcoholic beverages, in case of hotels, clubs having residential facility of minimum 30 rooms, golf resorts and stand-alone restaurants having catering facilities. Are any changes in Foreign Trade Policy 2014-19 on these structures under SFIS scheme?

 

At present under SFIS scheme, the entitlement/goods (imported/procured) are subject to Actual User condition i.e. non-transferable (except within group company and managed hotels).

 

Under Served From India Scheme, presently, the duty credit scrip is permitted to be utilized for procurement from domestic sources. Can any amendment be expected in new Foreign Trade Policy 2014-2019?

 

Would you like to share your experience about SFIS scheme under Foreign Trade Policy? Do you expect any amendment in Foreign Trade Policy 2014-19 on SFIS scheme.