Government announces welcome changes for exporters

Government announces welcome changes for exporters

Export Sector

Makarand Lele

Makarand Lele

7 Apr 2020, 11:27 — 4 min read

The reach of the COVID -19 impact have been far-reaching and with most businesses have been wrestling with the new challenges the pandemic has thrown their way. There have been some welcome move by the government for the exporters. Let’s look at a few of these changes:

1. Extension of realisation period of exports

  • RBI has allowed the extension of time period for realization and repatriation of export by 15 months as compared to 9 months earlier.

  • The exporters will get extended time period to realise their receipts, especially from COVID-19 affected countries.

  • This measure will provide greater flexibility to the exporters to negotiate with COVID 19 affected countries.

2. Extension of foreign trade policy

  • To ensure the continuity of existing schemes, the Foreign Trade Policy (FTD) 2015-20 has been extended up to March 2021

  • All existing incentive schemes, including the popular Merchandise Exports from India Scheme (MEIS) and the Export Promotion Capital Goods (EPCG) scheme, will get an extension of one year and not lapse.

  • Various other changes are also made — extending the date of exemption by one year and extending validity of DFIA and EPCG authorisations for import purposes.

3. Tax and Duty concessions

  • Cabinet has approved scheme for “Remission of Duties and Taxes on Exported Products (RoDTEP)”. This is to boost the Exports Scheme for enhancing Exports to International Markets.

  • RoDTEP scheme is WTO compliant and will reimburse taxes/duties/levies at the central, state and local level. These were not being refunded before the change was announced.

  • Items will be shifted in a phased manner from existing scheme MEIS to RoDTEP with proper monitoring &audit mechanism. This is expected to boost employment generation

Also read: How to start an export business

Source:


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Makarand Lele

Expert Advisor and Consultant for SMEs on the platform, specially to address queries on the impact of COVID-19 on business owners in India<br /> <br /> Core...

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