The new Foreign Trade Policy is likely to focus on encouraging exports by e-commerce as additionally figuring out districts as export hubs whereas re-looking at products which can be restricted or banned for export and import.
The commerce and trade ministry is drawing up the FTP 2021-26, which is likely to be launched on April 1 and is anticipated to have separate chapters coping with measures for e-commerce, districts as export hubs, and commerce in objects equivalent to poisonous chemical compounds, micro-organisms, and nuclear materials.
“More HSN (Harmonised System of Nomenclature) codes could be added for products that fall in the ‘others’ category,” stated an official.
Products categorized in the ‘others’ class would not have HS codes, however, are tagged together with components and equipment of categorized items. Adding extra codes will assist cut back India‘s commerce deficit since lack of correct categorization makes these merchandise immune to restrictions. Besides main customs obligation evasion, this misclassification additionally leads to the import of low-quality merchandise.
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme will likely be a vital function of the coverage because it has been carried out from January 1 however the incentive charges are but to be introduced. The RoDTEP will reimburse the enter taxes and duties paid by exporters, together with embedded taxes, equivalent to native levies, coal cess, mandi tax, electrical energy duties, and the gasoline used for transportation, which isn’t exempted or refunded below every other present scheme.