Friday, 22 May 2020

FAQ on Foreign Trade Policies for Lockdown reliefs.




1. Whether the Central Government has introduced new Foreign Trade Policy ('FTP'), as the FTP 2015-20 has expired on 31st March 2020?

Answer: No, the Central Government has not introduced the new FTP. The Directorate General of Foreign Trade (‘DGFT’), vide Notification No. 57/2015-20 dated 31.03.2020, has extended the validity of FTP 2015-20 upto 31st March 2021.

 

2. Whether the validity of Hand Book Procedure ('HBP') 2015-20 has also been extended to 31st March 2021?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the validity of HBP 2015-20 upto 31st March 2021.

 

3. Whether the Central Government has extended the SEIS for Financial Year 2019- 2020?

Answer: Yes, the Central Government, vide Notification No. 57/2015-20 dated 31.03.2020, has extended the applicability of SEIS for the Financial Year 2019-20.

 

4. What are the categories of services eligible for benefit under SEIS and rates of rewards available for the Financial Year 2019-20?

Answer: The categories of services eligible for benefit under SEIS and rates of rewards available for the Financial Year 2019-20 are not yet notified.

 

5. What is the last date for filing of application under SEIS for the Financial Year 2018- 19?

Answer: The DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the last date of filing application under SEIS for the Financial Year 2018-19 from 31st March 2020 to 31st December 2020.

 

6. Whether the due date for filing of application under MEIS, falling between 1st February 2020 to 31st May 2020, has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the due date for filing of application under MEIS, falling between 1st February 2020 to 31st May 2020, by 3 months from the actual due date.

 

7. Whether the MEIS will be in existence after 31st March 2020?

Answer: The DGFT, vide Trade Notice No. 03/2020-21 dated 15.04.2020, clarified that the benefits under MEIS for any item/ tariff line/ HS code listed in MEIS Schedule will be available up to 31.12.2020.

Further, it was clarified that as and when an item/ tariff line/HS code is notified to be covered under Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme Scheme, it would at the same time be removed from coverage under MEIS.

 

8. Whether the validity of AA Licence, expiring between 1st February 2020 to 31st July 2020, has been extended?

Answer: Yes, the the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the validity of AA Licence, expiring between 1st February 2020 to 31st July 2020, by 6 months from the actual date of expiry.

For example: The validity of an AA Licence was due to expire on 20th April 2020. Now, due to the above extension, the validity of the above AA Licence automatically stands extended by 6 months i.e., upto 20th October 2020.

 

9. Whether the export obligation period, expiring between 1st February 2020 to 31st July 2020, against import made under AA Licence has been extended?

Answer: Yes, the the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the export obligation period, expiring between 1st February 2020 to 31st July 2020, against import made under AA Licence, by 6 months from the actual date of expiry.

For example: The time limit to fulfil export obligation against import made under AA is due to expire on 24th May 2020. Now, due to the above extension, the time limit to fulfil export obligation automatically stands extended by 6 months i.e., upto 24th November 2020

 

10. Whether the validity of EPCG Authorization, expiring between 1st February 2020 to 31st July 2020, has been extended?

Answer: Yes, the the DGFT, vide Notification No. 57/2015-20 dated 31.03.2020, has extended the validity of EPCG Authorization, expiring between 1st February 2020 to 31st July 2020, by 6 months from the actual date of expiry.

 

For example: The validity of an EPCG Authorization is due to expire on 10th April 2020. Now, due to the above extension, the validity of the above EPCG Authorization automatically stands extended by 6 months i.e., upto 10th October 2020.

 

11. Whether the time limit, expiring between 1st February 2020 to 31st July 2020, for submission of installation certificate under EPCG Scheme has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the time limit, expiring between 1st February 2020 to 31st July 2020, for submission of installation certificate under EPCG Scheme, by 6 months from the actual

date of expiry.

 

12. Whether the validity of export obligation period/ blockwise export obligation period, expiring between 1st February 2020 to 31st July 2020, against import made under EPCG Authorization has been extended?

Answer: Yes, the the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the validity of export obligation period/ blockwise export obligation period, expiring between 1st February 2020 to 31st July 2020, against import made under EPCG Authorization, by 6 months from the actual date of expiry.

For example: The time limit to fulfil export obligation against import made under EPCG Authorization is due to expire on 26th April 2020. Now, due to the above extension, the time limit to fulfil export obligation automatically stands extended by 6 months i.e., upto 26th October 2020.

 

13. Whether the application for one-time condonation under EPCG Scheme can be made after 31.03.2020?

Answer: Yes, the DGFT, vide Public Notice No. 01/2015-20 dated 07.04.2020, has extended the time period to receive requests by Regional Authorities for condonation of delay, in filing application for extension in time period to fulfil blockwise export obligation, time period to fulfil export obligation and time period to submit installation certificate, till 31st March 2021.

 

14. Whether the validity of Letter of Permission/ Letter of Intent, which is due to expire on or after 1st March 2020, issued to an EOU/ EHTP/ STP/ BTP Unit has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the validity of Letter of Permission/ Letter of Intent, which is due to expire on or after 1st March 2020, upto 31st December 2020.

 

15. Whether the export obligation period, due to expire between 1st March 2020 to 30th June 2020, against the import of coconut oil and items covered under Chapter 9 of ITC(HS) by EOU units has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the export obligation period, due to expire between 1st March 2020 to 30th  June 2020, against the import of coconut oil and items covered under Chapter 9 of ITC(HS) by EOU units, upto 30th September 2020.

 

 

16. Whether the due date for filing of Quarterly Progress Report, for the quarter ending 31st March 2020 and 30th June 2020, has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the due date for filing of Quarterly Progress Report, for the quarter ending 31st March 2020 and 30th June 2020, to 30th September 2020.

 

17. Whether the due date for filing of Annual Progress Report for the Financial Year 2019-20 has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the due date for filing of Annual Progress Report, for the Financial Year 2019- 20, to 30th September 2020.

 

18. Whether the due date for filing of Monthly Progress Report, for February 2020 to June 2020, by the STP unit has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the due date for filing of Monthly Progress Report, for February 2020 to June 2020, by the STP unit, to 30th September 2020.

 

19. Whether the due date for claiming reimbursement of Central Sales Tax, for the quarter ending 30th September 2019 and 31st December 2019, has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the due date for claiming reimbursement of Central Sales Tax, for the quarter ending 30th September 2019 and 31st December 2019, to 30th September 2020.

 

20. Whether the validity of DFIA, expiring between 1st February 2020 to 31st July 2020, has been extended?

Answer: Yes, the DGFT, vide Notification No. 57/2015-20 dated 31.03.2020, has extended the validity of DFIA, expiring between 1st February 2020 to 31st July 2020, by 6 months from the actual date of expiry.

For example: The validity of the DFIA is due to expire on 10th May 2020. Now, due to the above extension, the validity of the above DFIA automatically stands extended by 6 months i.e., upto 10th November 2020.

 

21. Whether the validity of Status Holder Certificate has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the validity of Status Holder Certificate upto 31st March 2021 or five years from the date on which application for recognition as Status Holder, whichever is later.

Previously, the Status Holder Certificate was valid for a period of five year. Now, the  validity of Status Holder Certificate, due to expire between 31st March 2020 to 30th  March 2021, has been extended upto 31st March 2021.

 

22. Whether the validity of norms ratified by the Norms Committee has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the validity of norms ratified by the Norm Committee upto 31st March 2021 or three years from the date of ratification, whichever is later.

Previously, the norms ratified by the Norm Committee was valid upto 31st March 2020 or three years from the date of ratification, whichever is later. Now, the validity of norms ratified by the Norm Committee, due to expire between 31st March 2020 to 30th March 2021, has been extended upto 31st March 2021.

 

23. Whether the last date, falling between 1st February 2020 to 31st July 2020, to re-export the diamonds, imported for the purpose of certification/ grading, has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the last date, falling between 1st February 2020 to 31st July 2020, to re-export the diamonds, imported for the purpose of certification/ grading, by 6 months from the actual due date.

The normal time period to re-export of the imported diamonds is 3 months from the date of import.

 

24. Whether the validity of export obligation period, expiring between 1st February 2020 to 31st July 2020, against supplies from Foreign Buyer has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the validity of export obligation period, expiring between 1st February 2020 to 31st July 2020, against supplies from Foreign Buyer, by 6 months from the actual due date.

The normal time period to fulfil export obligation is 90 days from the date of import.

 

25. Whether the last date, falling between 1st February 2020 to 31st July 2020, of filing application for Replenishment Authorisation has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the last date, falling between 1st February 2020 to 31st July 2020, of filing application for Replenishment Authorisation, by 6 months from the actual due date.

 

26. Whether the last date to re-import, to take replenishment and to book with nominated agency, falling between 1st February 2020 to 31st July 2020, in case of Export through Exhibitions/ Export Promotion Tours/ Export of Branded Jewellery, has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the last date to re-import, to take replenishment and to book with nominated agency, falling between 1st February 2020 to 31st July 2020, in case of Export through

Exhibitions/ Export Promotion Tours/ Export of Branded Jewellery, by 6 months from the actual due date.

 

27. Whether the last date to export, import, take replenishment and drawl of precious metal, falling between 1st February 2020 to 31st July 2020, in case where exporter has obtained gold/ silver/ platinum on replenishment basis/ outright purchase basis/ loan

basis, has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the last date to export, import, take replenishment and drawl of precious metal, falling between 1st February 2020 to 31st July 2020, in case where exporter has

obtained gold/ silver/ platinum on replenishment basis/ outright purchase basis/ loan basis, by 6 months from the actual due date.

 

28. Whether the last date of filing of application for Duty Credit scrips under Scheme for Rebate of State and Central Levies and Taxes (RoSCTL), for shipping bills with Let Export Order ('LEO') from 7th March 2019 to 31st December 2019, has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the last date of filing of application for Duty Credit scrips under RoSCTL, for shipping bills with LEO from 7th March 2019 to 31st December 2019, upto 31st December 2020.

 

29. Whether the last date, falling on or after 1st March 2020, for filing of application for refund of Terminal Excise Duty has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the last date, falling on or after 1st March 2020, for filing of application for refund of Terminal Excise Duty upto 30th September 2020.

 

30. Whether the last date to file the application for Transport and Marketing Assistance, for the quarter ending 31st March 2019 and 30th June 2019, has been extended?

Answer: Yes, the DGFT, vide Public Notice No. 67/2015-20 dated 31.03.2020, has extended the last date to file the application for Transport and Marketing Assistance, for the quarter ending 31st March 2019 and 30th June 2019, upto 30th September

2020.

 

31. Whether the person who has submitted the online application for Transport and Marketing Assistance between 1st February 2020 to 30th September 2020, is required to submit physical copy of application in ANF-7A(A) within 30 days of submitting online application?

Answer: No, the DGFT, vide Public Notice No. 02/2015-20 dated 13.04.2020, clarified that the person who has submitted the online application for Transport and Marketing Assistance between 1st February 2020 to 30th September 2020, can submit the

physical copy of application in ANF-7A(A) till 30th October 2020.

 

32. Whether any arrangements are made by the Central Government for issuance by Certificate of Origin required under India’s free trade agreements (FTAs), comprehensive economic cooperation agreements (CECA), comprehensive economic partnership agreement (CEPA) and preferential trade agreements (PTAs)?

Answer: Yes, the DGFT, vide Trade Notice No. 01/2020-21 dated 07.04.2020, informed that the online platform (https://coo.dgft.gov.in/) has been expanded and all application for issuance of Preferential Certificate of Origin shall be made on the above online platform. Further, the concerned agencies are also directed to issue preferential Certificate of Origin through the said platform.

 

33. Whether India has requested the customs authorities and other competent authorities, of the Countries with whom India has a trade agreement, to allow the eligible imports under preferences on a retrospective basis?

Answer: Exporters are required to submit the Certificate of Origin at the landing port of the importing country to claim duty concessions under FTAs'

The DGFT, vide Trade Notice No. 59/2019-20 dated 28.03.2020, informed that the domestic authorities are currently not issuing the Certificate of Origin on account of the ongoing lockdown and therefore, requested the customs authorities and other competent authorities, of the Countries with whom India has a trade agreement, to

allow the eligible imports under preferences on a retrospective basis subject to the subsequent production of the certificates of origin by the Indian exporters.

 

34. Whether the exporters are required to re-validate the RCMCs, which has expired on or before 31st March 2020, issued by the Export Promotion Council to claim any incentive or authorization from Regional Authorities?

Answer: No, the DGFT, vide Trade Notice No. 60/2019-20 dated 31.03.2020, decided that the Regional Authorities will not insist on valid RCMC, which has expired on or before 31st March 2020, till 30th September 2020.

 

35. Whether the import made under AA Licence after 31st March 2020 is exempt from IGST and Compensation Cess?

Answer: Yes, the CBIC, vide Notification No. 18/2020-Cus dated 30.03.2020, exempted levy of IGST and Compensation Cess on imports made under AA Licence upto 31st  March 2021. Similarly, the DGFT also, vide Notification No. 57/2015-20 dated 31.03.2020, exempted levy of IGST and Compensation Cess on imports made under AA Licence upto 31st March 2021.

 

36. Whether the import made under EPCG Authorization after 31st March 2020 is exempt from IGST and Compensation Cess?

Answer: Yes, the CBIC, vide Notification No. 18/2020-Cus dated 30.03.2020, exempted levy of IGST and Compensation Cess on imports made under EPCG Authorization upto 31st March 2021. Similarly, the DGFT also, vide Notification No. 57/2015-20 dated

31.03.2020, exempted levy of IGST and Compensation Cess on imports made under EPCG Authorization upto 31st March 2021.

 

37. Whether the imports and/ or procurement from bonded warehouse in DTA or from international exhibition held in India, made by an EOU/EHTP/STP/BTP unit after 31st  March 2020, is exempt from IGST and Compensation Cess?

Answer: Yes, the CBIC, vide Notification No. 16/2020-Cus dated 24.03.2020, exempted levy of IGST and Compensation Cess on imports and/ or procurement from bonded warehouse in DTA or from international exhibition held in India, by an EOU/EHTP/STP/BTP unit, till 31st March 2021.

Similarly, the DGFT also, vide Notification No. 57/2015-20 dated 31.03.2020, exempted levy of IGST and Compensation Cess on imports and/ or procurement from bonded warehouse in DTA or from international exhibition held in India, by an EOU/EHTP/STP/BTP unit, till 31st March 2021.

 

38. Whether the exporters or importers are required to furnish bond during the period of lockdown?

Answer: No, the CBIC, vide Circular No. 17/2020-Cus dated 03.04.2020 (as amended), has relaxed the requirement of furnishing bond and allowed certain categories of exporter or importers to furnish undertaking in lieu of bond under Customs Act, 1961, till 30th May 2020, subject to conditions mentioned therein.

 

39. What are the categories of exporter and importers benefited by the above relaxation?

Answer: The CBIC, vide Circular No. 17/2020-Cus dated 03.04.2020, relaxed the requirement of furnish bond for the following categories of exporter and importers:

 

·         Government/ Public Sector Undertakings

·         Manufacturer/ Actual User importer;

·         Authorised Economic Operators;

·         Status Holder;

·         All importers availing warehouse facility

 

40. What are the conditions to be fulfilled to avail the above benefit?

Answer: In term of Circular No. 17/2020-Cus dated 03.04.2020 (as amended), the exporter or importer availing the benefit of not furnishing bond has to fulfil the following conditions:

 

·         The content of the undertaking should, to the extent possible, be same as the content of the prescribed bond;

 

·         The undertaking should be duly signed by the IEC holder concerned on their business letter head and submitted by the registered email ID of the IEC holder or their authorised Customs Broker;

 

·         The undertaking should include a commitment from the IEC holder to submit the proper bond in prescribed format on notarized stamp paper etc. on or before 15.06.2020;

 

·         The undertaking will not be treated as a substitute for security, wherever mandated;

 

·         The security, where required, shall be furnished in the nature and manner as deemed fit by the proper officer;

 

·         In case of warehoused goods, any subsequent movement of goods to another warehouse under section 67 of the Customs Act, 1962, shall be allowed only to manufacturer/ actual user importer or AEO or Status holders. For requests related to change of ownership after warehousing, the facility shall be considered only in cases where the prospective buyer is either manufacturer/actual user importer or AEO or Status holder.

 

41. Whether the exporter or importer availing the above benefit can be subjected to more conditions and safe guards than mentioned in Circular No. 17/2020-Cus dated 03.04.2020?

Answer: Yes, the Circular No. 17/2020-Cus dated 03.04.2020 provides that the Jurisdictional Commissioner, on case to case basis, can subject the exporter or importer to such additional safe guard as it may deem fit, in order to safeguard the revenue and compliance of statutory provisions.

 

42. Whether the exporter or importer furnishing undertaking in lieu of Bond is required to furnish the Bond at a later stage?

Answer: Yes, the Circular No. 17/2020-Cus dated 03.04.2020 (as amended) provides that such person shall replace the undertaking with a proper bond by 15th June 2020.

 

43. How can an exporter or importer avail the benefit of furnishing undertaking in lieu of Bond?

Answer: The exporter or importer can submit the undertaking in lieu of bond through the registered email id of the IEC holder or their authorized Custom Broker or can approach the Customs field formation.

 

44. Whether any relief has been granted to the importers for late filing Bill of Entry amidst Covid-19 crisis?

Answer: Yes, the Commissioner of Customs (NS-I), Mumbai Zone - II, vide Public Notice No. 33/2020 dated 24.03.2020, those Bills of Entry which pertain to IGMs filed on or after 20th March 2020, if filed late for clearance of import consignments, will not attract any late fee charges for the time being and till further orders. Similar order are issued by all the Customs Commissionerates.

 

45. Whether the CBIC has designated officers who can be contacted for facilitating customs clearances amidst Covid-19 crisis?

Answer: Yes, the CBIC, on 1st April 2020, has provided a list of Nodal Officer for facilitating customs clearance amidst Covid-19 crisis. Click here to view the list of Nodal Officers.

 

46. Whether the Central Government has extended the validity of Letter of Undertaking, furnished under Section 16 of the IGST Act, 2017, which was due to expire on 31st March 2020?

Answer: The CBIC, vide Notification No. 35/2020-CT dated 03.04.2020, has extended the due date of various compliance under CGST Act, IGST Act and UTGST Act, falling between 20th March 2020 to 29th June 2020, to 30th June 2020. The CBIC has also notified certain exception to the above extension, however, Section 16 of the IGST Act, 2017 is not included in such exceptions.

 

Accordingly, the validity of Letter of Undertaking, furnished under Section 16 of the IGST Act, 2017, which was due to expire on 31st March 2020, has been extended upto 30th June 2020.

 

47. Whether the Central Government has provided any relief with respect to pending refund or drawback claims under GST and Customs?

Answer: Yes, the Ministry of Finance, vide Press Release dated 08.04.2020, has intimated that the with a view to provide immediate relief to the business, the Central Government has decided to disburse all pending Customs and GST refund and drawback claims at the earliest.

In line to the above decision, the CBIC, vide Instruction No. 03/2020-Cus dated  09.04.2020, has instructed all its officers to expeditiously process and disburse all Customs refund and drawback claims pending as on 7th April 2020, till 30th April 2020.

 

48. Whether the time limit, prescribed under Foreign Exchange Management Act, 1999 and regulations made thereunder, for realisation of export proceeds against the export of goods or software has been extended?

Answer: Yes, the RBI, vide Notification No. FEMA 23(R)/(3)/2020-RB dated 31.03.2020, extended the time limit for realisation of export proceeds against the export of goods or software, from 9 months to 15 months.

 

49. Whether the time limit extended for realisation of export proceeds shall be applicable for the exports made prior to 31st March 2020?

Answer: The Notification is silent on retrospective effect of the extended time limit. However, a representation can be made before the appropriate authorities for extending the above benefits to the exports made prior to 31st March 2020.

 

50. Whether the due date for claiming of reimbursement of Central Sales Tax, for the quarter ending 30th September 2019 and 31st December 2019, has been extended?

Answer: Yes, Ministry of Home Affairs, vide DO No. 40-3/2020-DM-I(A) dated 24.03.2020 (as amended), allowed the transportation of all types of goods. It covers all the essential commodities or non-essential commodities, imported or to be exported.

 

51. Whether the validity of e-Way Bills, where period of validity between 20th March 2020 to 15th April 2020, has been extended?

Answer: Yes, the CBIC, vide Notification No. 35/2020-CT dated 03.04.2020 (as amended), has extended the validity of e-Way Bills, where period of validity between 20th March 2020 to 15th April 2020, upto 30th May 2020.

 

52. Whether the Central Government has provided any relief measures pertaining to container detention charges on import and export shipments during the period of lockdown?

Answer: Yes, the Directorate General of Shipping, Mumbai, Government of India, vide Advisory dated 29.03.2020 and 22.04.2020, has advised the shipping lines not to impose any container detention charges for the period from 22.03.2020 to 03.05.2020

over and above free time arrangement as part of negotiated contractual terms. This is a one-time measure only to tackle the pandemic scenario.

This step has been taken to maintain proper supply lines at the Indian seaports in view of the Order dated 25.03.2020 issued by the Ministry of Home Affairs whereby a nationwide lockdown was announced to contain the spread of COVID-19 disease.

 

53. Whether the Central Government has provided any relief measures pertaining to ground rent and demurrage charges during the period of lockdown??

Answer: Yes, the Directorate General of Shipping, Mumbai, Government of India, vide Advisory dated 31.03.2020 and 22.04.2020, has advised the authorities not to impose any demurrage, ground rent beyond the allowed free period storage charge in the port,

additional anchorage charge, berth hire charge or vessel demurrage charge or any performance related charges on cargo owners/consignees of non-containerized cargo (whether LCL or not), for the period from 22.03.2020 to 03.05.2020 (both days inclusive).

This has been done to provide relief against the hardships faced by the ship owners/ consignees due to delay in evacuation of cargo in view of the Order dated 25.03.2020 issued by the Ministry of Home Affairs whereby a nationwide lockdown was announced to contain the spread of COVID-19 disease.

 

 


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