The collaboration between central, state, and local governments for export promotion is underscored, focusing on the initiative “One District One Product” and district-specific export action plans. The strategy involves identifying key products in each district and formulating targeted action plans for their promotion, facilitated by DGFT representatives.
Unlike previous policies that only supported products with exceptional potential, the current approach aims to elevate all districts into viable export hubs by harnessing their unique strengths and enhancing their export readiness. This initiative not only aims to broaden the export base but also to foster economic growth and job creation at the grassroots level, aligning with national goals of promoting AtmaNirbhar Bharat and fostering local manufacturing under the Make in India initiative.
This comprehensive strategy aims to bolster awareness and commitment to exports at the district level, foster the emergence of new exporters, and explore untapped international markets. By empowering MSMEs, farmers, and small-scale industries, the initiative seeks to shift towards district-led export growth, promoting self-sufficiency and enhancing global competitiveness.
Central to this effort are District Export Promotion Committees (DEPCs), chaired by district officials and co-chaired by DGFT Regional Authorities, tasked with formulating and implementing District-specific Export Action Plans (DEAPs). These plans prioritize key products and services, outline necessary interventions, and establish clear targets for short and long-term export expansion. Additionally, State/UT Export Promotion Committees will ensure coordinated efforts between the Department of Commerce/DGFT and state governments.
Each DGFT Regional Authority will oversee and coordinate activities within their designated districts, leveraging an online monitoring portal to track progress transparently. Activities such as specialized training, buyer-seller meets, and participation in trade fairs will be organized to enhance local industry capabilities and connect them with global markets effectively. Implementation of DEAPs will focus on infrastructure development, capacity building, and regulatory reforms, aligning with central and state government schemes to maximize support for sustainable export growth.
There is an increased focus towards remission schemes to facilitate the duty-free importation of inputs for export production, encompassing both replenishment of inputs and duty remission.
Remission/ Exemption Schemes
Duty Exemption Schemes:
● Advance Authorisation (AA): This covers Advance Authorisation for Annual Requirement, permitting duty-free importation of inputs required for manufacturing export goods.
● Duty Free Import Authorisation (DFIA): This scheme allows for duty-free importation of inputs used in the production of export goods.
Duty Remission Scheme
● Duty Drawback (DBK) Scheme: Administered by the Department of Revenue, this scheme facilitates the refund of duties paid on imported materials utilized in the manufacture of exported products.
Scheme for Rebate on State and Central Taxes and Levies (RoSCTL)
● Notified by the Ministry of Textiles, this scheme provides rebates on taxes and levies imposed by state and central governments on exported products.
Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP)
● Introduced by the Department of Commerce and administered by the Department of Revenue, RoDTEP aims to remit duties and taxes on exported products to enhance their competitiveness globally.
Achievable exporters may apply for Advance Authorization on a self-declaration and self-ratification basis under the FTP 2023’s Self-Ratification Scheme in two situations:
(i) The event that an export product lacks valid Adhoc Norms or Standard Input Output Norms (SION)
(ii) The event that the exporter plans to use inputs other than those listed in the default.
This scheme enables the issuance of Advance Authorisations without requiring approval from Norms Committees, contingent upon the submission of a compliance Certificate from a Chartered Engineer by the exporter. Eligibility extends to exporters holding an Authorized Economic Operator (AEO) Certificate or status holders rated 2-stars or higher under FTP, subject to specific criteria. However, certain export products and inputs are ineligible under this scheme. Rigorous audit procedures conducted by Norms Committees ensure adherence to prescribed norms. Failure to comply may result in penalties under applicable trade regulations.
The Export Promotion Capital Goods (EPCG) Scheme aims to facilitate the import of capital goods for enhancing India’s manufacturing competitiveness. Under this scheme, eligible capital goods can be imported at zero customs duty, with exemptions also applicable for IGST and Compensation Cess. The scheme covers manufacturer exporters, merchant exporters tied to manufacturers, and service providers, subject to specific conditions. Additionally, it allows for sourcing capital goods domestically and offers incentives for early fulfillment of export obligations. The scheme also includes provisions for companies under the Insolvency and Bankruptcy Code and offers various concessions based on specific criteria laid out in the policy.
Key Features:
The FTP 2023 supports the Made in India initiative and promotes fair competition for local businesses. Deemed exports refer to transactions where goods are paid for in foreign currency or Indian rupees but stay within the country. Eligible categories for deemed exports include supplies to special economic zones, against advance authorizations, and for specific projects funded by international organizations. Benefits include advance authorizations, duty drawbacks, and refunds for terminal excise duties, subject to specific conditions. The policy outlines clear eligibility criteria, refund processes, and implements risk management and internal audits to ensure compliance and prevent misuse.
Quality complainets and trade disputes
There is an emphasis on the importance of maintaining a positive international reputation for Indian exporters and resolving trade issues promptly. It establishes a mechanism for handling quality complaints and trade disputes through a Committee on Quality Complaints and Trade Disputes (CQCTD) at regional DGFT offices. This committee investigates complaints from foreign buyers regarding goods or services supplied by Indian exporters, as well as issues raised by importers against foreign suppliers. The CQCTD aims to resolve disputes within three months with the help of Export Promotion Councils and other relevant bodies. If disputes cannot be settled amicably, legal actions under the Foreign Trade (Development & Regulation) Act, 1992 may be pursued. The policy also mandates compliance with quality standards and pre-shipment inspections for certain export goods to uphold credibility in international trade.
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