The Directorate General of Foreign Trade (DGFT) formulates and implements the Foreign Trade Policy (FTP) of India. The FTP provides a framework and guidelines for promoting exports, facilitating imports, and regulating foreign trade. It offers various schemes and incentives to encourage exporters and boost the country’s international trade.

Some key components of the FTP include the Merchandise Exports from India Scheme (MEIS), which provided rewards ranging from 2-20% to merchandise exporters until December 31, 2020. MEIS has since been replaced by the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, which compensates exporters for various taxes, duties, and levies not refunded under any other mechanism. RoDTEP rewards are issued as duty credit scrips that can be used to pay customs duties on imports.

The Services Exports from India Scheme (SEIS) aims to promote service exports by offering incentives of 3-7% for eligible services like legal, accounting, architecture, engineering, education, healthcare, and hospitality. The Advance Authorization Scheme enables duty-free import of inputs for export production, subject to meeting value addition norms. The Duty Free Import Authorization (DFIA) scheme allows post-export duty-free import of inputs for products with Standard Input Output Norms.

To boost manufacturing competitiveness, the Export Promotion Capital Goods (EPCG) Scheme permits zero-duty import of capital goods for pre-production, production, and post-production stages, subject to fulfilling export obligations within six years. Special Economic Zones (SEZs) and Export Oriented Units (EOUs) schemes attract investment and promote exports by offering duty-free imports, tax incentives, and simplified procedures.

The FTP also introduces import monitoring systems for sensitive sectors. The Steel Import Monitoring System (SIMS) mandates advance registration for importing iron and steel items under Chapters 72, 73, and 86 of the ITC (HS) Code. Similarly, the Paper Import Monitoring System (PIMS) requires compulsory registration for importing paper products under Chapter 48.

Overall, the Foreign Trade Policy provides a comprehensive set of tools and incentives to support India’s foreign trade goals, encourage domestic manufacturing, and enhance the country’s global competitiveness. By leveraging these schemes and complying with the associated regulations, businesses can optimize their import-export activities and contribute to India’s economic growth.