Mihir Ajit Shah
DGFT adds new IT based system for Ad-hoc Norms
In its continuous efforts to simply, automate and ease of doing business, DGFT has now added a new sub para under para 4.14 HBP 2023.
The new Sub Para (iii) of 4.14 states:
Ad-hoc Input Output Norms may also be decided in a rule-based IT environment without reference to Norms Committee. However, a certain percentage of cases as flagged by the RMS may be referred to NORMS Committee for validation/review.
This will ease the process of Ad-hoc Norms and also reduce the timeline for the same.
The Public Notice also further added new sub para 4.06(vii) which allowed Norms Committee to recommend cases which come for Ad-hoc Norms to be notified as SION on case-to-case basis.
Both the above provisions will really help exporters and smoothen the process of Ad-hoc Norms related activities under Advance Authorisation.
The Public Notice No. 51/2023 Dated 14.03.2024 can be downloaded from link below:
https://content.dgft.gov.in/Website/dgftprod/482e2b8e-a091-4266-b347-1646c08071f2/Public%20Notice%20English.pdf
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India and European Free Trade Association signs the Trade and Economic Partnership Agreement (TEPA)
India had been working on a Trade and Economic Partnership Agreement (TEPA) with EFTA countries comprising Switzerland, Iceland, Norway & Liechtenstein.
On 10th March 2024, the India-European Free Trade Association signed the Trade and Economic Partnership Agreement (TEPA) in a signing ceremony in New Delhi.
Image Source: @Twitter Handle of Shri. Piyush Goyalji
TEPA is a modern and ambitious Trade Agreement. For the first time, India is signing FTA with four developed nations – an important economic bloc in Europe. For the first time in history of FTAs, binding commitment of $100 bn investment and 1 million direct jobs in the next 15 years has been given. The agreement will give a boost to Make in India and provide opportunities to young & talented workforce. The FTA will provide a window to Indian exporters to access large European and global markets.
The agreement has 14 chapters and focus is on market access to goods, rules of origin, trade facilitation, trade remedies, technical barrier to trade etc…
EFTA is an important regional group, with several growing opportunities for enhancing international trade in goods and services. Among EFTA countries, Switzerland is the largest trading partner of India followed by Norway.
The key highlights of the agreement are:
1. For the first ever time in the history of FTAs, a legal commitment is being made about promoting target-oriented investment and creation of jobs.
2. EFTA is offering 92.2% of its tariff lines which covers 99.6% of India’s exports. The EFTA’s
market access offer covers 100% of non-agri products and tariff concession on Processed
Agricultural Products (PAP)
3. India is offering 82.7% of its tariff lines which covers 95.3% of EFTA exports of which more than 80% import is Gold. The effective duty on Gold remains untouched.
4. India has offered 105 sub-sectors to the EFTA and secured commitments in 128 sub-sectors from Switzerland, 114 from Norway, 107 from Liechtenstein, and 110 from Iceland.
5. TEPA has provisions for Mutual Recognition Agreements in Professional Services like nursing, chartered accountants, architects etc.
The Prime Minister has also shared his delight on the agreement and he tweeted:
“Delighted by the signing of the India-EFTA Trade & Economic Partnership Agreement. This landmark pact underlines our commitment to boosting economic progress and create opportunities for our youth. The times ahead will bring more prosperity and mutual growth as we strengthen our bonds with EFTA nations.”
Image Source: Official Twitter handle of PM – Shri. Narendra Modiji
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RoDTEP benefits extended to export made by AA holders, EOUs and SEZ Units
Finally, the long pending demand from the exporters and in recommendation of RoDTEP committee Report, the DGFT amends the Ineligible Supplies / items/Categories under RoDTEP Scheme there by allowing RoDTEP benefit to exports made by Advance Authorisation holders, EOUs and SEZ Units.
The DGFT Notification No. 70/2023 Dated 08th March 2024 issued in these respected amended certain provisions of the RoDTEP Scheme.
1. Sr. No. viii, x, xi and xii of Para 4.55 of FTP has been deleted w.e.f 11.03.2024
2. Sr. No. vii of Para 4.54 has been amended to added the rates of RoDTEP notified under Appendix 4RE (for exports of goods manufactured by AA holders, EOUs and SEZ Units)
3. A New Para 4.59A has been added which allows RoDTEP on eligible items at the rates and per unit value cap as applicable under Appendix 4RE as available on DGFT Portal (www.dgft.gov.in). Click here to download Appendix 4RE.
4. The benefit of RoDTEP for exports done by Advance Authorsation Holders(except deemed exports) and EOUs will be from 11.03.2024 till 30.09.2024 only.
5. The benefit of RoDTEP for exports done by SEZ units will be once IT Integration of SEZ units is done with ICEGATE System. This same is expected from 01.04.2024. The benefit will be available from date of implementation till 30.09.2024 only.
6. RoDTEP Rates for 25 HS Codes are revised to manage the budgetary outlay for RoDTEP benefits for export of goods manufactured by Advance Authorsation Holders, EOUs and SEZ Units. Click here to download the List: 25 Items Revised Appendix 4R
7. The RoDTEP Scheme is now extended to exports till 30.09.2024
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DGFT enables provision for Import of Inputs without QCOs under AA and EOU
In a move to assist and enable exporters importing inputs without mandatory compliance under various Quality Control Orders (QCO) under AA or by EOU Units, the DGFT issued notification and added a new para 4.18A and amended para 6.07 (k).
The Notification No. 69/2023 Dated 07.03.2024 can be downloaded from the DGFT Website or link here: https://content.dgft.gov.in/Website/dgftprod/4c0e420c-70dd-488f-8b88-5b9a7347bad2/Noti69%20eng.pdf
The Conditions to be fulfilled for the exemption under AA are:
1. Import without compliance to mandatory QCOs will be subject to Pre-Import Condition
2. Exemption from Mandatory QCOs will be specifically endorsed on AA upon request of the AA holder.
3. Inputs imported with mandatory QCOs will not be transferred to DTA event after regularization of export default.
4. If unutilized, required procedure of destruction and duty payment with interest needs to be followed.
5. Exemption from QCO will be available only for Physical Exports and not for Deemed Exports.
6. Facility of Clubbing is not available for these authorisations.
Also, the Notification amends the para 4.24 of FTP not allowing Import of Inputs without mandatory QCOs under DFIA.
For EOUs, amendment is done to para 6.07 to allow import of inputs without mandatory QCOs subject to conditions and undertakings.
DGFT has also issued Public Notice No. 47/2023 dated 07.03.24 which notified Appendix 2Y which provides list of Ministries/Departments who’s notification on Mandatory QCOs are exempted by the above notification.
Currently 2 Ministry / Departments are notified
1. Ministry of Steel (Mos)
2. Department of Promotion and Industry and Internal Trade (DPITT)
Public Notice can be downloaded from the link here:
https://content.dgft.gov.in/Website/dgftprod/e345325b-70a9-4796-ba24-183fc0bcb8be/PN47%20eng.pdf
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DGFT Notified Indian Trade Classification (ITC) HS of Exports for Chapter 01-39
DGFT has recently notified the updated Schedule 2 of the ITC(HS) 2023 for
Chapter 01 – 39 along with its current export policy on the said items.
The new Export Policy along with the Schedule is effective immediately i.e 13.02.2024
The Notification and the new Schedule is available on the DGFT website and on the link below:
https://content.dgft.gov.in/Website/Final%20-%20DGFT%20Notification%20No.%2060-2023-English.pdf
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