The DGFT recently issued a statement wherein it said that it was implementing a new system to help applicants check the status of their import-export code application. Some import export code application modifications performed via the DGFT website were not being transmitted to the ICEGATE portal. As a result, many IEC holders were facing difficulties in clearing customs. The DGFT, therefore, began a facility to help IEC holders check the status of their Import Export Code application and also the transmission of status to the ICEGATE. Hence, these are the two significant statuses of the IEC that applicants can check via the DGFT web-portal. The two options available are;

• PAN-Based IEC checks to ensure it has been registered at the DGFT headquarters.
• Check to ensure the IEC has reached the ICEGATE location: To enable this check, uses will have to provide their IEC and fill in the CAPTCHA shown on the screen. Applicants can check their import-export code application status through the DGFT website. From the homepage, users should click on the IEC tab, and then the Know your IEC Status option to check the status of their import-export code. Users have to provide their PAN number and the first three letters of their company name to check the status of their import-export code. The various statuses they might encounter, and the actions to be taken in each case are as mentioned below

In case they encounter any other status, they will have to contact the officials at DGFT to avail further assistance. The IEC may be used to import or export goods only after it has attained status four as per the table above, that is, after it is registered by the DGFT and accepted by the ICEGATE.

1. Go to the ICEGATE portal and from the homepage, navigate to the Services tab and click on the appropriate user type.
2. Choose the Check IE Code/BIN Status from the list of available services.
3. To check whether your code has reached the DGFT HQ, click on the IE Code@DGFT option from the first section of the form.
4. Clicking on this option will redirect you to the DGFT’s website from where you can raise a query for your IEC code verification status.
5. In case you cannot find your IEC details, contact either the ICEGATE or DGFT Helpdesk, Team.

1. Go to the ICEGATE portal, navigate to the Services tab and choose the appropriate user type from the options provided.
2. From the left side of the page, select the appropriate Drawback Enquiry from the list of available services.
3. Next, users should enter their PAN number, location, date range and IEC code in the application form.
4. Submit the details and click on View Drawback Status to check the status of your IEC. Choose between Drawback Pending and Drawback Sanctioned to proceed further.
5. In case you have a drawback against any shipping bill, you can view it under the Pending status, and if your drawback amount has been accepted, you will find it under the Sanction status.

1. To check your import export code application status against ROSL, go to Services and then select the appropriate user type.
2. From the left side of the page, choose for the ROSL Sanctioned Status option. Applicants must then provide their IEC Code, Location, PAN Number and date range.
3. Click on the ROSL Sanctioned Status button to see a list of all your shipping bills and their corresponding ROSL status and amounts.

1. Go to the ICEGATE portal and from the homepage, navigate to the Services tab and choose the appropriate user type.
2. Choose the Check IE Code/BIN Status from the list of available services to proceed
3. To check whether your code has reached the DGFT HQ, click on the IE Code@ICEGATE option from the second section of the form
4. This will open an IEC Enquiry Form displaying the details and status of the IE codes and their branches.
5. The various statuses and their significance are as follows;

1. Go to the ICEGATE portal, navigate to the Services tab and choose the appropriate user type.
2. From the list of available services provided, click on the DGFT Services option.
3. Click on the IEC Based option to check the status of a license against an IEC.
4. Next, applicants must enter their IEC number, date range and choose an appropriate location from the drop-down menu provided
5. Click on the Search button to proceed and view all the licenses, along with their date of integration and status.

1. Visit the ICEGATE portal, and click on the E-Payment option from the homepage.
2. Next, users should enter details, including their IEC, document type and location
3. This will open up the ICEGATE Custom E-Payment Gateway page from where you can view a list of all unpaid challans against your IEC number.
4. If you click on the Incomplete Transactions button, you will be able to view all the pending transactions and their location.
5. Additionally, users may use the Transaction Summary option to view all their current transactions

The Director-General of Foreign Trade (DGFT) notified the amendment of Importer-Exporter Code (IEC) related provisions under Chapter-1 and Chapter 2 of Foreign Trade Policy, 2015-2020. As per the existing policy IEC is a mandatory for export/import from/ to India. DGFT issues Importer Exporter Code in electronic form (e-IEC). For issuance of e-IEC an application can be made on DGFT website. Applicants can upload the documents and pay the requisite fee through Net banking. Applicants shall, however, submit the application duly signed digitally. As per the amended text IEC is mandatory for export/ import from/to India as detailed in paragraph 2.05 of this Policy. DGFT issues Importer Exporter Code in electronic form (e-IEC). Application for issuance of e-IEC can be made directly on the DGFT web portal. As per the existing policy Application process for IEC is completely online and IEC can be generated by the applicant as per the procedure detailed in the Handbook of Procedure.

As per the amended text application process for IEC and updation in IEC is completely online and IEC can be generated by the applicant as per the procedure detailed in the Handbook of Procedure. The DGFT notified that an IEC holder has to ensure that details in its IEC are updated electronically every year, during April-June period. In cases where there are no changes in IEC details the same also needs to be confirmed online.

All importers who wish to import or export goods / services from India need to have a valid IEC Code / License. Import Export Code must be mentioned in all relevant customs documents. Bankers would require you to have valid IEC registration for making payments abroad.The DGFT has issued the trade notice for linking or registration of Importer Exporter Codes (IECs) in the new revamped DGFT Online environment. The authority said that the online processes relating to the entire lifecycle of Advance Authorization, EPCG and DFIA including their paperless Exports Obligation Discharge (EODC) shall be rolled out soon.

The Importer-Exporter Code (IEC) is a key business identification number and it is mandatory for Exports or Imports. IEC Number is issued by the DGFT (Director General of Foreign Trade). Without a valid IEC number, no transaction of import or export can happen.The intent to deactivate the IEC registration is to delete inactive IECs and incorrect IEC details. The process of updating is quite simple as there is no additional compliance. The whole process is online and this process can be completed within 30 minutes if all details are correct.There are no charges for IEC updating.IECs not updated before July would be de-activated post-July. In order to re-activate IECs (post -deactivation), then the IECs should be updated.

Renewal of the IEC code is mandatory as per Notification No. 58 dated 12th Feb 2021. Renewal/ Update are needed to be done every year, from April to June. Non-renewal will have an impact of de-activating the IEC. Each and every IEC license holder will be required to renew the license till the time they are in to Import Export business even when there are no changes during a year, the same needs to be confirmed online every year. .On the basis of IEC, companies can obtain various benefits on their exports/ imports from DGFT, Customs, and Export Promotion Council etc.

It is mandatory to update the IEC license every year during April to June.

• If the IEC license is not updated within the prescribed time, the same shall be deactivated.
• An IEC so de-activated, may be activated again on successful updation.
• However, this would be done without any prejudice to any other action taken for violation of any other provision of the FTP.

• 14 Digit IEC license number
• PAN card details of all the directors/partners/proprietor
• Residential Address details of all directors/partners/proprietor
• Entity Pan Card (if any)

Important Note: All of the above details must be the same as the registered IEC License.

1. Importer Exporter Code (IEC) is obligatory for export/ import from/to India as specified in the Policy
2. DGFT issues Importer Exporter Code in electronic form (e-IEC) where Application for issuance of e-IEC can be made instantly on the DGFT official Notification.
3. Amendment in the name of Import Export Code Online (IEC) as now it is Importer-Exporter Code (IEC)/(e-IEC)
4. Also, the application process for IEC and up-gradation in IEC is entirely online and IEC can be generated by the applicant as per the procedure detailed in the Handbook of Procedure.

Importers and Exporters having IEC Code or license needs to ensure timely renewal, as an expired Importer Exporter Code is treated the same as not having any IEC code. If you continue to run an import export business without timely renewal, your IEC code will be deactivated by DGFT. It may result in unnecessary hustle as the IEC code is required during customs, shipping and international trade. So, it is best advised to renew and update the IEC code in due time to avoid cancellation or deactivation of your code.Once we file for the renewal, your IEC license will be renewed for one year.DGFT has issued a notification for applying, updating IEC (Now e-IEC). It is mandatory Every year from April to June even if, all details of IEC remain same all existing holders have to confirmed compulsory. Otherwise, IEC may be de-activated if not upgraded.

In exercise of powers discussed by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as revised from time to time, the Central Government has amends the IEC related provisions under Chapter-1 and Chapter-2 of Foreign Trade Policy, 2015-2020. Further, DGFT applying a new amendment for updating IEC (Now considered e-IEC). Now, every year from April to June even if all details of IEC remain same all existing holders have to be confirmed compulsorily. IEC may be de-activated if not confirmed.

The following sub-paragraphs are entered under para 2.05 of Chapter-2 of Foreign Trade Policy, 2015-2020 as under:

1. IEC shall be updated electronically every year

An IEC holder has to assure that specifications in its IEC are updated electronically every year, during the April-June period. In cases where there are no changes in IEC details same also requires to be confirmed online.

2. IEC shall be de-activated, if it is not updated

An IEC shall be de-activated, if it is not updated within the specific time. An IEC therefore de activated may be initiated, on its successful up-gradation. This would be without detriment to any other action carried for violation of any other provisions of the FTP.

3. IEC may be Flagged under Scrutiny

An IEC may be also be flagged for scrutiny. IEC holders are obligated to assure that any risks flagged by the system are timely declaimed; otherwise the IEC shall be deactivated.

An IEC shall be de-activated, if it is not updated within the prescribed time. IEC so de-activated may be activated, on its successful updation. This would however be without prejudice to any other action taken for violation of any other provisions of the FTP.Application process for IEC and updation in IEC is completely online and IEC can be generated by the applicant as per the procedure detailed in the Handbook of Procedure.Often, it may happen that your phone number or email ID linked with the existing account changes. You may also decide to edit your firm name, and change it to a name different from what displays on your IEC certificate. The name of a firm may also be changed altogether from what is initially registered with the Registrar of Companies. In all such cases, you would have to apply for a modification to your existing IEC certificate.

Following paragraphs of Foreign Trade Policy, 2015-2020 are amended as below:

The following sub-paragraphs are inserted under para 2.05 of Chapter-2 of Foreign Trade Policy, 2015-2020 as under:

4. The sub paras 1.11(b), 1.11(c) and 1.11(d) of Foreign Trade Policy, 2015-2020 are deleted. The Importer -Exporter Code (IEC) is a key business identification number which is mandatory for Exports or Imports. No person shall make any import or export except under an IEC Number granted by the DGFT. In case of import or export of services or technology, the IEC shall be required only when the service or technology provider is taking benefits under the Foreign Trade Policy or is dealing with specified services or technologies The nature of the firm obtaining an IEC may be any of the follows- “Proprietorship, Partnership, LLP, Limited Company, Trust, HUF and Society.” Consequent upon introduction of GST, IEC number is the same as the PAN of the firm. The IEC would be separately issued by DGFT.

The Directorate General of Foreign Trade (DGFT) is a body under Ministry of Commerce and Industry of the Government of India. It is headed by the Director General of Foreign Trade. Till 1991 this office was known as Chief Controller of Imports & Exports (CCI&E). Post liberalization in 1991, DGFT was formed to replace CCI&E and the role of this office changed from Prohibiter and Controller of Exports and Imports to Facilitator, Promoter and Regulator of Exports and Imports. Keeping in mind the country’s objective of increasing exports, it implements necessary laws, issues export licenses, introduces trade incentives and develops trade relations with other nations.

Implement EXIM Policy/Foreign Trade Policy- Exim Policy or Foreign Trade Policy is a set of guidelines and instructions related to import and export of goods developed by the Directorate General of Foreign Trade. The Government of India announces the EXIM Policy which is applicable for a period of 5 years under Section 5 of the Foreign Trade Act 1992. The objective of the policy is to encourage exporters in the country, thereby increasing exports and maintaining favorable balance of payments position. Currently Foreign Trade Policy 2015-2020 is in effect and will remain applicable till 31st March 2020.

IImplement Foreign Trade Procedures- DGFT formulates and announces Foreign Trade Procedures which are to be followed by an exporter or importer for the purpose of implementing provisions of Foreign Trade Act and Foreign Trade Policy. The objective is to lay down simple EDI compatible procedures which are easy to understand and user friendly for efficient execution of foreign trade in the country. Parallel to the current Foreign Trade Policy, the Handbook of Foreign Trade Procedure 2015-2020 is in effect at present

Issue IEC Code to Exporters and Importers- IEC Code is a must for all import and export businesses in India. It is a unique 10 digit registration code issued by DGFT. This code helps in tracking and managing shipments of an exporter or importer. The IEC Code is now integrated with PAN, and only one IEC can be issued against one PAN. An exporter or importer can apply for IEC Code or e-IEC online on DGFT’s website.

Document and Maintain Classifications of ITC-HS Codes- ITC HS Codes are based on International Harmonized System of Coding and were adopted in India for facilitating foreign trade. The Indian customs uses 8 digits ITC HS Code in trading activities. The ITC HS Codes are divided into two schedules wherein, Schedule 1 is for Import Activities and Schedule 2 is for export activities. Any changes, or addition such as changes in description of commodities, removing defunct codes, adding new codes etc. are carried out by DGFT.

Platform for updating eBRC- eBRC or Bank Realization Certificate is issued by Banks to exporters so that they may claim benefits under various export promotion schemes under the Foreign Trade Policy. To promote paperless trade DGFT introduced eBRC module for Banks to electronically transmit Foreign exchange realization directly to the exporter's account. An exporter can follow the following steps for viewing his eBRC:-

• Go to DGFT's website and select "View and Print your eBRC"
• To access the eBRC details you have to enter your IEC Code and IFSC Code of the bank whose eBRC you want to view or where your drawback amount or forex has been realized. Once you have filled these details click on "Show Details".
• A list of all eBRCs uploaded by that bank will be shown
• You can download each eBRC by clicking on print.
• It is advisable to print 4 copies of each eBRCs as they might not be available later on due to constant server updations.

Inform about Goods which can or cannot be exported freely under Export Policy Schedule 2- In accordance with Schedule 2 – Export Policy formulated by DGFT all goods other than those listed in export licensing schedule along with its appendices are freely exportable. Exports are free except when they are regulated by way of any “Prohibition”, “Restriction” and “STE”.

Grant Export Licenses for Restricted Items- All items which are defined as restricted in the Export Policy are permitted for exports subject to license granted by DGFT. The license for these items can be applied online on the website.

Promote Trade- DGFT has played a crucial role in launching several export promotion schemes such as MEIS, SEIS, Advance Authorization Scheme, Duty Free Import Authorization Scheme, Export Promotion of Capital Goods Scheme (EPCG), Export Oriented Units (EOU) Scheme, Deemed Exports etc. These schemes have been implemented under Foreign Trade Policy and the procedure to apply for them has been outlined under Foreign Trade Procedure. Apart from this, this body also undertakes implementing “Ease of Doing Business” for exporters and importers by simplifying and digitizing export-import procedures to promote foreign trade.

Facilitate Application for MEIS- As a part of “ease of doing business” measure; DGFT facilitates claiming rewards under MEIS to exporters with the help of an online application system. The MEIS application is to be filed online using Digital Signature with the concerned RA in Form ANF 3A. The relevant shipping bills and e- BRC are to be linked in the application. If the exports are made from EDI ports then hard copies of these documents are not required to be submitted to the respective RA.

Control DEPB Rates- Duty Entitlement Passbook Scheme (DEPB) is an export incentive scheme which is regulated by DGFT. Under this scheme the exporter is incentivized on the customs duty paid on import of goods such as raw materials which will be further exported. The exporter is entitled to apply for credit which is a fixed percentage of FOB value of the goods exported. The DEPB rates are decided and notified by the DGFT.

Address Quality Complaints and Trade Issues- In order to instill confidence in the quality of trade services provided by India, under Chapter 8 of Foreign Trade Policy a mechanism has been defined to resolve complaints or trade disputes relating to Foreign Trade by DGFT. It takes care of complaints received from foreign buyers for Indian exporters as well as complaints of Indian importers against foreign suppliers through this platform. Any quality complaints or trade disputes relating to foreign trade can be filed online on its website.

Regulate Transit of Goods- DGFT regulates transit of goods from or to India in accordance with the bilateral treaties in effect between India and other countries.

Directorate General of Foreign Trade is headed by the Director General who is appointed by the Central Government. To be eligible for this position, the candidate should be a member of Indian Administrative Service (IAS) with a public service of 30 or more years. The Director General advises the Central Government in formulation of Foreign Trade Policy or EXIM Policy and its execution. Some of the primary responsibilities of the DG at present are:-

• Formulation of foreign trade policy
• Formulation of hand book of procedures for Foreign Trade policy
• ITC (HS) classifications of Import and Export items

DGFT has two types of offices known as Regional Authority (RA) and Zonal Offices. The zonal offices of DGFT are at Kolkata, Delhi, Chennai and Mumbai. The zonal offices are headed by The Additional Director General of Foreign Trade, whereas the Regional Offices are headed by Joint Director General, Deputy Director General and Assistant Director-General. The Director General sits at Udyog Bhawan in New Delhi.

1. Import of Watermark bank Note Paper may be made, without an Import License, by the note printing Presses of the Government of India, namely Currency note press, Nasik; bank note Press, Dewas both units of Security Printing and Minting Corporation of India Limited (SPMCIL); Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) units in Mysore, Salboni and Bangalore subject to submission of a certificate of import from the head of units and with actual user condition.
2. The filing of quarterly returns of the quantity and value of the Imports by the importer with the Ministry of Finance as on 30th June, 30th September, 31st December and 31st March have been deleted thereby reducing compliance burden.
3. All applicant exporters seeking export authorization of SCOMET items are advised to apply online in www.dgft.gov.in “Services→ Exporter Management Systems→ SCOMET”. The following processes will be made available online as a part of this new SCOMET Module.
1. Authorization for site visit by the foreign entity(ies) wants to the premises of the Indian manufacturer/ exporter ;
2. Type of IEC to check production processes for SCOMET Export items; and

3) Post reporting of Export of SCOMET Items, software/technology in following cases

1. Export of chemicals permitted to specified countries without authorization
2. Repair and return of imported SCOMET items after repair abroad
3. Return of SCOMET items (imported/ indigenous) after demo/ display/ exhibition/RPF/RFQ/ tender etc., abroad
4. Stock and sale
5. Global authorization for intra-company transfer (GAICT)
6. others, if mandated in export authorizations

India aspires to be a $5-trillion economy by 2025. To achieve this dream, it needs to:

• Register a GDP growth rate of 8% or more in the next few years
• Triple its exports to $1 trillion by 2025

In its 2019 report on what India must do for exports to reach $1 trillion by 2025, the high-level advisory group suggested:

• Urgent reform of labor laws
• Easing of regulatory controls
• Lowering the cost of capital
• Selection of right trading partners (given India’s unhappy experience with FTAs)
• Sector-specific strategies to drive exports, especially in pharmaceuticals, biotechnology, textiles and electronics
• The formation of a special committee to take quick decisions on foreign direct investment (FDI), including identifying and attracting potential investors

The government, on its part, seems committed to seriously working towards its $5-trillion dream. Briefing MPs about FTP 2021-2026 on January 12, the Ministry of Commerce announced some of its plans for the new policy. These include:

District Export Hubs: The government will identify potential products and services in each district, identify agricultural and toy clusters, map GI products, set up district export promotion panels and district export action plans as part of this initiative targeted at small businesses and farmers.

Correcting imbalances: A persistent demand of exporters/importers is correcting the imbalances in India’s international trade processes. At the meeting, the ministry committed to reducing “domestic and overseas constraints related to the policy, regulatory and operational framework for lowering transaction costs and enhancing ease of doing business”. It also spoke of creating “efficient, cost effective and adequate logistical and utilities infrastructure”.

Covid-19 was catastrophic for international trade. Indian exports fell by a record 60% and imports by 59%in April 2020. Though the situation has improved, the road to recovery is long and hard. That is why the new trade policy must deliver the goods. Based on inputs from traders, trade associations, members of Parliament and a government-appointed high-level advisory group, some key expectations are:

WTO-compliant tax incentives: With incentives under MEIS and SEIS under a cloud, the need of the hour is WTO-compliant tax benefits. To this end, the government has announced theRemission of Duties or Taxes on Export Products (RoDTEP) scheme, effective January 1, 2021. It replaces MEIS. Rates and conditions for the new scheme are yet to be announced

Easy credit access: A long-standing demand of exporters, especially MSMEs, is credit access. Formal financial institutions such as banks are reluctant to lend to MSMEs due to their lack of adequate collateral. The policy can help open up alternate credit avenues, such as finance technology start-ups. The advisory group suggests raising borrowing limits at the Export Import Bank of India.

Infrastructure upgrade: One reason why China is a manufacturing and export powerhouse is its network of ports, highways and high-speed trains, which are among the best in the world. India needs to learn from its neighbor and improve its flagging infrastructure by upgrading existing ports, warehouses, quality testing and certification centres and building new ones. The Trade Infrastructure for Export Sector, a scheme for developing infrastructure to promote exports, was launched in 2017 for a period of three years. Many in the industry hope it will be extended

Less subsidy, more support: In 2020, Commerce Minister Piyush Goyal said quality, technology and scale of production were the answers to India’s global ambitions, not subsidies. Many in the industry agree, saying government support in the form of skill development programmes and technological upgradation rather than subsidies would help them become more competitive. Pharmaceuticals, biotechnology and medical devices are some sectors that could do with upskilling. Similarly, the trade policy could include incentives with a focus on research and development, something the government has spoken of in the past. On the technology front, theAmended Technology Upgradation Fund Scheme – which facilitates improvements in investment, productivity, quality and exports in the textile industry through technology upgrades – can be replicated for other sectors.

Tax breaks: If India were to do away with subsidies, exporters would still need some form of government support. Easier and lower taxes are a way of filling this gap. The reduction of corporate tax rates and simplification of duty structures are long-standing demands. The Confederation of Indian Industry suggests simplifying the import duty structure by following “the general principle of higher duties on finished goods and lower/minimal duties on intermediates and raw material”. There are also demands for an overhaul/improvement of existing schemes such as the EPCG and Duty Drawback Scheme.

Digitization and e-commerce: With Covid-19 disrupting traditional supply chains, India needs modern trade practices. Digitization and e-commerce are two ways to go about this. Digitization can start with making common import-export processes paperless. Trade body Nasscom, for example, recommends an online mechanism for Importer Exporter Code (IEC) holders to change their particulars (mobile numbers, e-mail IDs, etc). It also makes a case for encouraging e-commerce exports by

1. including e-commerce export platforms under Niryat Bandhu (a scheme for mentoring entrepreneurs in international trade),
2. establishing e-commerce export promotion cells within export promotion councils, and
3. Establishing e-Commerce Export Zones to promote MSMEs

Export awareness: At times, Indian exporters are defeated not by a lack of trade opportunities but by lack of awareness of the same. The trade policy can make a provision for government workshops and awareness programmes that educate and inform traders about international laws and standards, global markets, intellectual property rights, patents and geographical indication (GI).

Import wish list: While most of the expectations might be geared towards exports, India’s import community has its wish list too, which includes permission to import capital goods on self certification basis and to import prohibited items with the approval of the Central government approved Board of Approval or Inter-Ministerial Standing Committee.

(a) Earlier there were 5 different schemes (Focus Product Scheme, Market Linked Focus Product Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, VKGUY) for rewarding merchandise exports with different kinds of duty scrips with varying conditions (sector specific or actual user only) attached to their use. Now all these schemes have been merged into a single scheme, namely Merchandise Export from India Scheme (MEIS) and there would be no conditionality attached to the scrips issued under the scheme. The main features of MEIS, including details of various groups of products supported under MEIS and the country groupings are at Annexure-1.
(b) Rewards for export of notified goods to notified markets under ‘Merchandise Exports from India Scheme (MEIS) shall be payable as percentage of realized FOB value (in free foreign exchange). The debits towards basic customs duty in the transferable reward duty credit scrips would also be allowed adjustment as duty drawback. At present, only the additional duty of customs / excise duty / service tax is allowed adjustment as CENVAT credit or drawback, as per Department of Revenue rules.

1. Served From India Scheme (SFIS) has been replaced with Service Exports from India Scheme (SEIS). SEIS shall apply to ‘Service Providers located in India’ instead of ‘Indian Service Providers’. Thus SEIS provides for rewards to all Service providers of notified services, who are providing services from India, regardless of the constitution or profile of the service provider. The list of services and the rates of rewards under SEIS are at Annexure-2.

b- The rate of reward under SEIS would be based on net foreign exchange earned. The reward issued as duty credit scrip, would no longer be with actual user condition and will no longer be restricted to usage for specified types of goods but be freely transferable and usable for all types of goods and service tax debits on procurement of services / goods. Debits would be eligible for CENVAT credit or drawback.

It is now proposed to extend Chapter -3 Incentives (MEIS & SEIS) to units located in SEZs also.

1. All scrips issued under MEIS and SEIS and the goods imported against these scrips would be fully transferable.
2. Scrips issued under Exports from India Schemes can be used for the following:-
• Payment of customs duty for import of inputs / goods including capital goods, except items listed in Appendix 3A.
• Payment of excise duty on domestic procurement of inputs or goods, including capital goods as per DoR notification.

• Payment of service tax on procurement of services as per DoR notification.

c) Basic Customs Duty paid in cash or through debit under Duty Credit Scrip can be taken back as Duty Drawback as per DoR Rules, if inputs so imported are used for exports.

1. Business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade are proposed to be recognized as Status Holders and given special treatment and privileges to facilitate their trade transactions, in order to reduce their transaction costs and time.
2. The nomenclature of Export House, Star Export House, Trading House, Star Trading House, Premier Trading House certificate has been changed to One, Two, Three, Four, Five Star Export House.
3. The criteria for export performance for recognition of status holder have been changed from Rupees to US dollar earnings. The new criteria are as under:-

Manufacturers who are also Status Holders will be enabled to self-certify their manufactured goods as originating from India with a view to qualify for preferential treatment under different Preferential Trading Agreements [PTAs], Free Trade Agreements [FTAs], Comprehensive Economic Cooperation Agreements [CECAs] and Comprehensive Economic Partnerships Agreements [CEPAs] which are in operation. They shall be permitted to self-certify the goods as manufactured as per their Industrial Entrepreneur Memorandum (IEM) / Industrial License (IL)/ Letter of Intent (LOI).

6. Reduced Export Obligation (EO) for domestic procurement under EPCG scheme: Specific Export Obligation under EPCG scheme, in case capital goods are procured from indigenous manufacturers, which is currently 90% of the normal export obligation (6 times at the duty saved amount) has been reduced to 75%, in order to promote domestic capital goods manufacturing industry.

7. Higher level of rewards under MEIS for export items with high domestic content and value addition. It is proposed to give higher level of rewards to products with high domestic content and value addition, as compared to products with high import content and less value addition.

1. DGFT already provides facility of Online filing of various applications under FTP by the exporters/importers. However, certain documents like Certificates issued by Chartered Accountants/ Company Secretary / Cost Accountant etc. have to be filed in physical forms only. In order to move further towards paperless processing of reward schemes, it has been decided to develop an online procedure to upload digitally signed documents by Chartered Accountant / Company Secretary / Cost Accountant. In the new system, it will be possible to upload online documents like annexure attached to ANF 3B, ANF 3C and ANF 3D, which are at present signed by these signatories and submitted physically.
2. Henceforth, hardcopies of applications and specified documents would not be required to be submitted to RA, saving paper as well as cost and time for the exporters. To start with, applications under Chapter 3 & 4 of FTP are being covered (which account for nearly 70% of total applications in DGFT). Applications under Chapter-5 would be taken up in the next phase.
3. As a measure of ease of doing business, landing documents of export consignment as proofs for notified market can be digitally uploaded in the following manner:-

1. Any exporter may upload the scanned copy of Bill of Entry under his digital signature.
2. Status holders falling in the category of Three Star, Four Star or Five Star Export House may upload scanned copies of documents.

It is proposed to have online inter-ministerial consultations for approval of export of SCOMET items, Norm’s fixation, Import Authorizations, Export Authorization, in a phased manner, with the objective to reduce time for approval. As a result, there would not be any need to submit hard copies of documents for these purposes by the exporters.

1. Under EPCG scheme, obtaining and submitting a certificate from an independent Chartered Engineer, confirming the use of spares, tools, refractory and catalysts imported for final redemption of EPCG authorizations has been dispensed with.
2. At present, the EPCG Authorization holders are required to maintain records for 3 years after redemption of Authorizations. Now the EPCG Authorization Holders shall be required to maintain records for a period of two years only. Government’s endeavor is to gradually phase out this requirement as the relevant records such as Shipping Bills, e-BRC are likely to be available in electronic mode which can be archived and retrieved whenever required.

• (c) Exporter Importer Profile: Facility has been created to upload documents in Exporter/Importer Profile. There will be no need to submit copies of permanent records/ documents (e.g. IEC, Manufacturing license, RCMC, PAN etc.) repeatedly with each application, once uploaded.
• (d) Communication with Exporters/Importers: Certain information, like mobile number, e-mail address etc. has been added as mandatory fields, in IEC data base. This information once provided by exporters, would help in better communication with exporters. SMS/ email would be sent to exporters to inform them about issuance of authorizations or status of their applications.
• (e) Online message exchange with CBDT and MCA: It has been decided to have on line message exchange with CBDT for PAN data and with Ministry of Corporate Affairs for CIN and DIN data. This integration would obviate the need for seeking information from IEC holders for subsequent amendments/ updation of data in IEC data base.
• (f) Communication with Committees of DGFT: For faster and paperless communication with various committees of DGFT, dedicated e-mail addresses have been provided to each Norms Committee, Import Committee and Pre Shipment Inspection Agency for faster communication.
• (g) Online applications for refunds: Online filing of application for refund of TED is being introduced for which a new ANF has been created.

(a) DGFT is currently working on the following EDI initiatives:

• Message exchange for transmission of export reward scrips from DGFT to Customs.
• Message exchange for transmission of Bills of Entry (import details) from Customs to DGFT.

• Online issuance of Export Obligation Discharge Certificate (EODC).
• Message exchange with Ministry of Corporate Affairs for CIN & DIN.
• Message exchange with CBDT for PAN.
• Facility to pay application fee using debit card / credit card.
• Open API for submission of IEC application.
• Mobile applications for FTP

1. EOUs, EHTPs, STPs have been allowed to share infrastructural facilities among themselves. This will enable units to utilize their infrastructural facilities in an optimum way and avoid duplication of efforts and cost to create separate infrastructural facilities in different units.
2. Inter unit transfer of goods and services have been allowed among EOUs, EHTPs, STPs, and BTPs. This will facilitate group of those units which source inputs centrally in order to obtain bulk discount. This will reduce cost of transportation, other logistic costs and result in maintaining effective supply chain.
3. EOUs have been allowed facility to set up Warehouses near the port of export. This will help in reducing lead time for delivery of goods and will also address the issue of un-predictability of supply orders.
4. STP units, EHTP units, software EOUs have been allowed the facility to use all duty free equipment/goods for training purposes. This will help these units in developing skills of their employees.

• (e) 100% EOU units have been allowed facility of supply of spares/ components up to 2% of the value of the manufactured articles to a buyer in domestic market for the purpose of after sale services.
• (f) At present, in a period of 5 years EOU units have to achieve Positive Net Foreign Exchange Earning (NEE) cumulatively. Because of adverse market condition or any ground of genuine hardship, then such period of 5 years for NFE completion can be extended by one year.
• (g) Time period for validity of Letter of Permission (LOP) for EOUs/EHTP/ STPI/BTP Units has been revised for faster implementation and monitoring of projects. Now, LOP will have an initial validity of 2 years to enable the unit to construct the plant and install the machinery. Further extension can be granted by the Development Commissioner up to one year. Extensions beyond 3 years of the validity of LOP; can be granted, in case unit has completed 2/3rd of activities, including the construction activities.
• (h) At present, EOUs/EHTP/STPI units are permitted to transfer capital goods to other EOUs, EHTPs, STPs, SEZ units. Now a facility has been provided that if such transferred capital goods are rejected by the recipient, then the same can be returned to the supplying unit, without payment of duty.
• (i) A simplified procedure will be provided to fast track the de-bonding / exit of the STP/ EHTP units. This will save time for these units and help in reduction of transaction cost.

• (j) EOUs having physical export turnover of ₹10 crore and above, have been allowed the facility of fast track clearances of import and domestic procurement. They will be allowed fast tract clearances of goods, for export production, on the basis of pre-authenticated procurement certificate, issued by customs / central excise authorities. They will not have to seek procurement permission for every import consignment.

1. Validity of SCOMET export authorization has been extended from the present 12 months to 24 months. It will help industry to plan their activity in an orderly manner and obviate the need to seek revalidation or relaxation from DGFT.
2. Authorization for repeat orders will be considered on automatic basis subject to certain conditions.
3. Verification of End User Certificate (EUC) is being simplified if SCOMET item is being exported under Defense Export Offset Policy
4. Outreach programmes will be conducted at different locations to raise awareness among various stakeholders.

1. Normal export obligation period under advance authorization is 18 months. Export obligation period for export items falling in the category of defense, military store, aerospace and nuclear energy shall be 24 months from the date of issue of authorization or co-terminus with contracted duration of the export order, whichever is later. This provision will help export of defense items and other high technology items.
2. A list of military stores requiring NOC of Department of Defense Production has been notified by DGFT recently. A committee has been formed to create ITC (HS) codes for defense and security items for which industrial licenses are issued by DIPP.

• Eco-friendly and green products that create wealth out of waste from agricultural and other waste products that generate additional income for the farmers, while improving the environment.
• Labor intensive Products with large employment potential and Products with large number of producers and /or exporters.
• Industrial Products from potential winning sectors
• Hi-tech products with high export earning potential.

1. Most Agricultural products supported across the Globe.
2. Industrial and other products supported in Traditional and/or Emerging markets only.

Support to 852 Tariff lines that fit in the product criteria but not provided support in the earlier FTP. Includes lines from Fruits, Vegetables, Dairy products, Oils meals, Ayush & Herbal Products, Paper, Paper Board Products.

• Fruits, Flowers, vegetables
• Tea Coffee, Spices
• Cereals preparation, shellac, Essential oils
• Processed foods,
• Eco Friendly products that add value to waste

• Marine Products
• Handloom, Coir, Jute, products and Technical Textiles, Carpets Handmade. Other Textile and Readymade garments have been supported for European Union, USA, Canada and Japan.
• Handicraft, Sports Goods
• Furniture, wood articles

• Pharmaceuticals, Herbals, Surgicals
• Industrial Machinery, IC Engine, Machine tools, Parts, Auto Components/Parts
• Hand Tools, Pumps of All Types
• Automobiles, Two wheelers, Bicycles, Ships, Planes
• Chemicals, Plastics
• Rubber, Ceramic and Glass
• Leather garments, saddlery items, footwear
• Steel furniture, Prefabs, Lighters
• Wood , Paper, Stationary
• iron, steel, and base metals, products

• 352 Defense related Product with export of US$ 17.7B consisting of Core Products (20), Dual Use products (60), General Purpose products (272).
• 283 Pharmaceutical products of Bulk Drugs & Drug Intermediates, Drug Formulations Biologicals, Herbal, Surgicals, and Vaccines.
• 96 lines of Environment related Goods, Machinery, Equipment’s.
• 49 lines where mandatory BIS standards are prescribed.
• 7 lines of Technical Textiles.

• 1725 lines of Intermediate Goods - These goods become inputs in the manufacturing of other countries and will strengthen backward manufacturing linkages which are vital for India’s participation in Global Value Chains.
• 1109 lines of Capital Goods sector- will also strengthen Manufacturing Base in India
• 1730 lines of Consumer Goods sector- We hope a quantum jump in export from this sector with strengthening of Make in India Brand in near future.

• 572 lines-Low skill Technology-intensive manufacturing.
• 1010 lines-Medium skill Technology-intensive manufacturing.
• 1309 lines-High Skill Technology-intensive manufacturing.

1. Women workers constitute 52% of plantation workers-203 lines of Tea Coffee, Spices, Cashew.
2. 69% of the aggregate female employment is concentrated in the following sectors
1. Manufacture of other food products -Jelly Confectionery, tomato ketchup, cooked stuffed pasta, pawa, mudi and the like, gingerbread , papad, pastries and cakes.
2. Manufacture of wearing apparel-396 lines of Readymade Garments
3. Sectors that have a significant proportion of female employment (more than 25%):
1. Agricultural and animal husbandry service activities, except veterinary activities– 263 lines of basic Agriculture products.
2. Manufacture of footwear – 28 Footwear and Leather products.
3. . Consumer Electronics and Electronic Components, watches and clocks -483 lines.

1. Served from India Scheme (SFIS) has been replaced with Service Exports from India Scheme (SEIS). SEIS shall apply to `Service Providers’ located in India’ instead of `Indian Service Providers’. Thus SEIS provides for rewards to all Service providers of notified services, who are providing services from India, regardless of the constitution or profile of the service provider.
2. The rate of reward under SEIS would be based on net foreign exchange earned. The reward issued as duty credit scrip, would no longer be with actual user condition and will no longer be restricted to usage for specified types of goods but be freely transferable and usable for all types of goods and service tax debits on procurement of services/goods. Debits would be eligible for CENVAT credit or drawback.
3. The present rates of reward are 3% and 5%. The list of services and the rates of rewards would be reviewed after 30.9.2015.

The current trade policy – which focused on improving India’s performance in existing markets/products and exploring new markets/products – has been praised as “progressive” for the following reasons:

• It consolidated a range of export incentives with different eligibility criteria into two schemes –the Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS).
• It offered export incentives under these two schemes in the form of duty credit scrips, which can be used by exporters to pay import duties. The scrips are fully transferable, which means that if an exporter has no need for them, they can pass it on to another.
• It reduced export obligation from 90% to 75% for capital goods sourced from local manufacturers under the Export Promotion Capital Goods Scheme (EPCG)
• It allowed manufacturers who are “status holders” (entrepreneurs certified by the DGFT as having helped India become a major export player) to self-certify their manufactured goods as originating from India. This helps them qualify for preferential treatment under various bilateral and regional trade agreements
• It identified 108 micro, small and medium enterprise (MSME) clusters for focused interventions with a view to boost exports.
• It promoted paperless processing of various DGFT licenses and applications.

However, the policy has also had its fair share of criticism. Some of its provisions have been challenged at the World Trade Organization (WTO) by the United States. Some sticking points:

• In 2019, a WTO dispute settlement panel, acting on Washington’s complaint, said India’s export subsidy provisions violate WTO rules and must be withdrawn. These included tax incentives under the popular MEIS and SEIS. As India’s per capita gross national product is over $1,000 per annum, it can no longer offer subsidies based on export performance, the panel ruled. This controversy reinforces the growing view in India that the country needs to move away from subsidies and think of other ways to help its exporters.
• There is a strong belief in India (bolstered by its trade policy) that free trade agreements (FTAs) haven’t worked for it. One indication of this came in November 2020 when India decided to not be a part of the Regional Comprehensive Economic Partnership (RCEP), the world’s largest FTA. Experts and economists believe this cost India a golden chance to be a major player in exports.

Import Export Code is a primary document for the individuals who deal or are willing to start in the business of Import and export. Section 7 of the Foreign Trade (Development and Regulation) Act, 1992 speaks about IEC. IEC is the document which is the proof of your business expansion internationally. With the growth and development of new industries, this is certainly a hot topic in this millennium. IEC has numerous benefits for your business growth.

Import and Export Code is one of the basic requirements to run a business at the international level, where an applicant is required to obtain IEC before entering into any transaction. IEC has various advantages as it is the best option for the businessperson who wants to unlock the International Market opportunities. It not only helps in unlocking the International market but also increases the growth of the business

Import Export Code registration helps in the upliftment of the business. IEC is issued by the authority once and used by the business owner throughout the existence of the entity if renewed/ updated on time

The Government has come up with an idea of the Import-Export Code for all the companies dealing in the business of Import and Export of products and services. The objective behind providing the IEC code is to keep a check and record of all the activities of the Company dealing in international business by using the IEC code (10-digit Number).

Authentic and accurate information is required to obtain an IEC Registration. IEC registration cannot be issued by the department without providing full authentic information which, as a result, restricts the illegal dealing of goods.
By promoting the global reach, IEC registration helps in maintaining the business relations and in enhancing the quality of business.