The existing foreign trade policy (FTP) from 2015 to 2020 that is applicable up to 30 September will now be up to 31 March 2022, the DGFT (directorate general of foreign trade) said in the notice. After the coronavirus outbreak, the policy was 1st delayed by a year to the end of 2020 march and then to 30th September. The article demonstrates that DGFT exempted the foreign trade policy that is discussed in detail.
What is Foreign Trade Policy and why DGFT exempted the Foreign Trade Policy?
The Foreign Trade Policy offers guidelines for raising exports to push economic development and generate jobs or inducements under diverse plans like DFIA (Duty-free import authorization) or EPCG (Export promotion capital goods).
The Directorate General of foreign trade has prolonged the duration of Foreign Trade Policy on 28 September 2021 via notification as under:
- Postponed the duration of foreign trade policy (FTP) is from 30 September 2021 till 31st march 2022.
- Imports in opposition to advance authorizations will remain excused from IGST (Integrated goods and services tax) or compensation cess till 31st march 2022.
- Moreover, capital merchandise imported under export promotion capital goods authorization for physical exportation will remain free from IGST (Integrated goods and services tax) or compensation cess till 31st march 2022.
- Procurement or import from bonded warehouses in DTA and international exhibitions held in India, electronics hardware technology park, by export-oriented unit, biotechnology, and software technology park would remain expanded till 31st march 2022.
What is the IEC Code?
IEC code (Importer-exporter code) is a crucial industry identification number that is significant for import to India and export from India. DGFT (directorate general of foreign trade) has also mandated all Importer-exporter code owners to update their IEC yearly. It is necessary for any individual to export or import services or goods to and from India.
Moreover, If you need any other guidance concerning the IEC Code, please feel free to contact our business advisors at 8881-069-069.
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