Amid COVID-19 pandemic, Foreign Trade Policy extended by six months

Amid the coronavirus pandemic, the government on Wednesday extended the existing Foreign Trade Policy 2015-20, including fiscal incentives for goods' exports by another six months up to 30th September 2021.

The present Policy which came into force on April 1, 2015, was for 5 years and was extended thereafter upto March 31, 2021.

The commerce ministry said that in view of the "unprecedented current situation" arising out of the COVID-19 pandemic, it has decided to continue relief under various export promotion schemes by granting an extension of the existing policy by another year.

According to a press release issued by the Union Commerce and Industry Ministry, "In view of the unprecedented situation arising out of the pandemic Novel COVID-19, which is persisting, the Government has decided to continue benefits under various export promotion schemes by extending the existing Foreign Trade Policy by another six months i.e. up to 30th September 2021 which will provide continuity in the policy regime. A similar extension is made in the related procedures, by extending the validity of the Handbook of Procedures."

"Exemption from payment of IGST and Compensation Cess on the imports made under Advance/EPCG Authorisations and by EOUs etc. has also been extended up to September 31, 2021. Similarly, the validity period of the Status Holder Certificates is also extended. This will enable the Status Holders to continue to avail the specified facilities/benefits," it said.

According to the policy, import under the EPCG scheme is subject to an export obligation equivalent to 6 times of duties, taxes and cess saved on capital goods, to be fulfilled in 6 years reckoned from the date of issue of authorisation.

Further, it extended duty-free buying or procurement of goods from bonded warehouse in domestic tariff area (or domestic market) or from an international exhibition held in India by export-oriented units, electronics hardware technology parks, software technology parks and biotechnology parks, by one year till March 31, 2021.

( With inputs from ANI )