Foreign Trade Policy and Procedure

Foreign Trade Policy and Procedure

  • Export Promotion Scheme

The exporters are entitled for various export promotion schemes under Foreign Trade Policy like Merchandise Export Incentive Scrip (MEIS), Service Exports from India Scheme (SEIS).

The schemes are devised by the Ministry of Commerce keeping focus to develop certain sectors / products or to reimburse the high cost of freight for exports to specified market.

We help our clients to identify these benefits and also assist them in complying requirements for availing these schemes. The benefits of these schemes are granted subject to certain conditions and submission of the prescribed documents. We assist clients to understand the conditions and helps in preparing the correct set of documents which will entitle them for the benefit. We also help clients to prepare the applications, submissions, liaison with the authorities so as to get these benefits liquidated.

  • Export Promotion Capital Goods (EPCG)

he exporters are entitled for import of new capital goods under this scheme without payment of custom duties. The exporter can also purchase domestic capital goods under this scheme by obtaining Invalidation letter. The exporter is required to achieve pre-defined level of export which is generally specified in “number of time of duty saved by the exporter”.

We have in-house expert team to assist our clients in.

  • Quantifying the benefits under the EPCG Authorisation and listing down requirements pertaining to it.
  • Obtaining EPCG Authorization from Director General of Foreign Trade (DGFT).
  • Guiding w.r.t. documentation and procedural requirement related to EPCG.
  • Assistance in compliances with DGFT post EPCG.
  • Getting Export Obligation Discharge certificate and release of Bond after fulfilling export obligation.

Duty Exemption Scheme like Advance Authorisation and Duty Free Import Authorisation enables exporter to import duty free inputs required for goods to be exported. The exporter can also purchase domestic inputs under this scheme by obtaining Invalidation letter. These schemes enable exporter to avail exemption at the input stage thereby reducing blockage of funds in duties.

We have in-house expert team to assist our clients in,

  • Obtaining Advance Authorisation and Duty Free Import Authorisation from Director General of Foreign Trade (DGFT),
  • Guiding w.r.t. documentation and procedural requirement related to Advance Authorisation and Duty Free Import Authorisation,
  • Assistance in compliances with DGFT post Advance Authorisation and Duty Free Import Authorisation and
  • Getting Export Obligation Discharge certificate and release of Bond after fulfilling export obligation.

uty Remission schemes like Duty Drawback enables exporter to get remission of the duties on inputs used in exported goods. Under the duty drawback there are two ways by which the duty remission can be obtained.

  • All Industry Rate of Duty Drawback: Under this scheme fixed percentage of FOB Value of exports is remitted to the Exporter.
  • Brand Rate of Duty Drawback: Under this scheme exporter is required to submit actual consumption, actual duty suffered and basic documents in support of the claim.

The duty exemption or duty remission schemes used in combination and the exporter has to choose the scheme which is more beneficial to them.

We have in-house expert team to assist our clients in.

  • Identifying more beneficial scheme to exporter.
  • Guiding w.r.t. documentation and procedural requirement related to scheme.
  • Assistance in compliances with DGFT / GST /Customs Department
  • Liquidating the benefits under the scheme.

We also come with unique blend of service in which we undertake the compliances and documentation by deputing expert team at clients and deploying our software tool which assist the clients in availing more beneficial scheme and combination of manpower and system also helps clients to handle voluminous information at ease.

“Deemed Export” are such transaction in which the goods do not leave country and the payment of such supplies is received in Indian rupee or in foreign exchange. Supplies to Export Oriented Units (EOU), Software Technology Park Units (STPI), Electronic Hardware Technology Park Units (EHTP), supply of goods against Advance Authorisation or EPCG, supplies to various specified projects like Mega Power Projects, Projects under International Competitive Bidding, Project funded by World Bank, IMF etc.

Deemed Exports for the purpose of GST would include only the supplies notified under CGST/SGST Act on the recommendations of GST Councils.

The deemed exports are entitled to benefits like Deemed Export Drawback for BCD, Advance Authorisation, Duty Drawback, Refund of Terminal Excise Duty for excisable goods (TED) etc.

We are hand on experienced team to assist clients in.

  • Identifying benefit which is entitled to the exporter in deemed export under consideration.
  • Guiding w.r.t. documentation and procedural requirement related to scheme.
  • Assistance in compliances with DGFT / GST /Customs Department
  • Liquidating the benefits.
 

EXPORT ORIENTED UNITS (EOUs)/ SOFTWARE TECHNOLOGY PARKS (STPs)/ ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs)

Export Oriented Unit Scheme is unique scheme under which provision of Customs Act, Central Excise Act, and Foreign Trade Policy are blended and scheme is crafted to provide maximum benefit to the exporter. An EOU can import or procure capital goods (new or second hand) as well as input goods domestically without payment of duties. The only obligation on the unit is earning positive Net Foreign Exchange.

EOUs are required to fulfill compliances and procedure under Customs Act, Central Excise Act, Foreign Trade Policy and rules / regulation made there under. We assist client strategizing, forming, operating and exist from EOU Scheme. We ensure that the Unit avails maximum eligible benefits like exemption, refunds, duty drawback etc. which are entitled to EOUs.

We have helped more than 200+ EOU at different stages like formation, operation or exit from scheme. Once the unit is operationalized our export KPO team deputed at unit ensures day to day compliances in order to ensure that the targeted benefits are liquidated by following all steps with in the legal framework. A dash-board report at pre-defined intervals helps the clients to have quick desktop review of the compliance status. Our audit checks by professional team ensure procedures and compliances are followed scrupulously, the entitled benefits are availed in time. The above functions are well supported by the consultancy and regular updates on changing indirect tax environment by leadership group of directors and our senior professionals.

India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia’s first EPZ set up in Kandla in 1965.

To instill confidence in investors and signal the Government’s commitment to a stable SEZ policy regime and with a view to impart stability to the SEZ regime thereby generating greater economic activity and employment through the establishment of SEZs, a comprehensive SEZ Act was enacted in the year 2005.

SEZ Developer and SEZ Units has plethora benefits like Tax holiday under Income Tax Act, duty exemption from imports, duty exemption from procurement of goods from domestic market, exemption / refund for service tax. In order to avail benefits, the Units needs to adhere guidelines and issues pertaining to reconstruction / spilt-up.

We have helped more than 100 SEZ developer or Units at different stages like formation, operation or exit from scheme.  Once the unit is operationalized our export KPO team deputed at unit ensures day to day compliances in order to ensure that the targeted benefits are liquidated by following all steps with in the legal framework. A pre-defined dash-board report at pre-defined intervals helps the clients to have quick desktop review of the compliance status. Our pre-defined audit checks by professional team ensure procedures and compliances are followed scrupulously, the entitled benefits are availed in time. The above functions are well supported by the consultancy and regular updates on changing tax environment by leadership group of directors and our senior professionals.

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