Legal Frame Work & Trade Facilitation

A. Legal Frame Work

Legal Basis of Foreign Trade Policy (FTP):

The FTP, 2015-20, is notified by Central Government, in an exercise of powers conferred under Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1922) {FT (D&R) Act}, as amended.

Duration of FTP:

The FTP, 2015-2020, incorporating provision relating to export and import of goods and services, shall come into force with effect from the date of notification and shall remain in force up to 31st March 2020, unless otherwise specified.

All exports and imports made up to the date of notifications shall be governed by the relevant FTP.

Amendment to FTP:

Central Government reserves the right to amend the FTP and can amend the FTP from time to time by means o the notification in public interest.

Hand Book Procedures (HBP) & Aayat Niryat Forms (AANF)

  • HBP  is issued by Director General of Foreign Trade (DGFT) by means of public notice. It is use to notify a procedure to be followed by an exporter or importer. It is also use for issuing any amendment in the policy.
  • HBP describe all the 9 chapters of FTP 2015-2020 in details.
  • AANF needs to be filled for Import or Export

Note: DGFT  is responsible for formulating and implementing the Foreign Trade Policy with the main objective of promoting India’s exports.

Specific provision to prevail over the general:

If a specific provision is given in the HBP or FTP, the same shall prevail over the general provision.

Transitional Arrangement:

An export order received before the present FTP, than the exporter has to follow the guidelines as per the previous FTP.

e.g. If an export order received in Dec 2014 and while processing it a new FTP (2015-2020) has been introduced then the exporter is supposed to follow the guidelines given in the FTP 2010-2014.

B. Trade Facilitation & Ease of Doing Business:

Objective: Trade facilitation is a priority of the Government for cutting down the transaction cost and time, thereby rendering Indian exports more competitive. The various provisions of FTP and measures taken by the Government in the direction of trade facilitation for the benefits of Importer & Exporter.

DGFT as a facilitator of exports/imports:

In order to facilitate international trade, DGFT consults various Export Promotion Councils (EPC) as well as Trade & Industry bodies from time to time.

Niryat Bandhu – Hand Holding Scheme for new export / import entrepreneurs

  • DGFT is implementing the Niryat Bandhu Scheme for mentoring new and potential exporter on the intricacies of foreign trade throug counselling, training and outreach programmes.
  • Considering the strategic significance of small and medium scale enterprises in the manufacturing sector and in employment generation, ‘MSME clusters’ have been identified, based on the export potential of the product and the density of industries in the cluster, for focussed interventions to boost exports.

Online Complaint Registration And Monitoring System:

  • An EDI (Electronic Data Interchange) help desk is made available to assist the exporters in filling online appications on the DGFT portal and resolving other EDI related issues.
  • For assistance an email may be sent at dgftedi@nic.in or Toll Free number 1800111550 can be used.
  • An online complaint registration and monitoring system allows users to register complaint and receive status/reply online.

Issued of e-IEC (Electronic – Importer Exporter Code)

  • IEC is mandatory for export/import. Now, DGFT has recently introduce the facility of issuing Importer Exporter code in electronic form.

e-BRC (Electronic Bank Realisation Certificate)

  • It is implemented by DGFT.
  • It has enabled DGFT to capture details of realisation of export proceeds directly from the banks through secured electronic mode.
  • It has facilitated the implementation of various export promotion schemes without any physical interface with the exporter or importer.
  • So far more than one crore e-BRCs have been captured by this system.

MoU with State Governments for sharing of e-BRC data

It is signed for sharing of e-BRC data to facilitate refund of VAT by the state governments to exporters.

Expoter Importer Profile

  • An electronic procedure has been created to upload various documents in exporter importer profile.
  • Once uploaded, there will be no need to submit these documents / copies of these documents to Regional Authority.
  • It intends to reduce the transaction cost and time and is a step towards paperless processing of different applications in DGFT.

Electronic Data Interchange (EDI)

  • DGFT has put in place a robust EDI system for the purpose of export facilitation and good governance.
  • DGFT has set up a secured EDI message exchange system to various documentation related activites including import and export authorizations establised with other admisitrative deprtments, namely, Customs, Banks & EPCs.
  • This has reduced the physical interface of exprter and importers with the Government Departments and is a significant measure in the direction of reduction of transaction cost.

Message Exchange with Community Partners

Customs, Banks, Export Promotion Councils (EPCs) are major community partners of DGFT for message exchange.

Free passage of Export consignment

  • Consignments of items meant for exports shall not be withheld / delayed for any reason by any agency of Central  / State government.
  • In case of any doubt, authorities concerned may ask for an undertaking from exporter and release such consignment.

No seizure of export related stock

  • No seizure shall be made by any agency so as to disrupt manufacturing activity and delivery schedule of exports.
  • In exceptional cases, concerened agency may seize the stock on the basis of prima facie evidence of serious irregularity.
  • However, such seizure should be lifed within 7 days unless the irregularities are substantiated.

24*7 Customs Clearance

  • The facility of 24*7 customs clearance for specified import and export is made available at the 18 sea ports and 17 air cargo complexs.

Single Window in Customs

  • To facilitate trade, the importer and exporter would lodge their clearance documents at a single point only.
  • It helps to reduce the cost of doing business, enhances transaparency, integration of regulatory requirments at one common platform reduces duplicity and cost of compliance, optimal utilization of manpower.

Self-Assessment of Customs Duty:

  • Self-Assessment of Customs Duty by importer or exporters was introduced vide Finance Act, 2011.
  • The system is trust based.
  • The objective is to expedite release of imported / export goods.
  • The system operates on an electronic Risk Management System (RMS)
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