The authorities on Wednesday prolonged the prevailing overseas commerce coverage (FTP) for six extra months as much as September 30 this yr as a result of Covid-19 pandemic, in accordance with a notification.
FTP gives pointers for enhancing exports to push financial progress and create jobs.
On March 31, 2020, the federal government had prolonged the Foreign Trade Policy 2015-20 for one yr until March 31, 2021, amid the coronavirus outbreak and the lockdown.
“The existing FTP 2015-20, which is valid up to March 31, 2021, is extended up to September 30, 2021,” the Directorate General of Foreign Trade mentioned in a notification.
The commerce ministry mentioned that in view of the unprecedented state of affairs arising out of the pandemic, which is persisting, the federal government has determined to proceed advantages below numerous export promotion schemes by extending the prevailing coverage.
Similar extension can also be made within the associated procedures, by extending validity of the HandBook of Procedures, it mentioned.
“Exemption from payment of IGST (integrated goods and services tax) and compensation cess on the imports made under Advance/EPCG (export promotion for capital goods) Authorisations and by EOUs (export oriented units) etc. has also been extended up to September 30, 2021,” it mentioned.
Further validity interval of the standing holder certificates can also be prolonged and this may allow them to proceed to avail the required advantages.
Exports throughout April-February this fiscal dipped by 12.23 per cent to $256 billion. Imports in the course of the interval too declined by 23.11 per cent to $340.8 billion, leaving a commerce deficit of $84.62 billion.
