Coronavirus: Government extends existing foreign trade policy (2015-20) for one year till March 2021

Amid coronavirus outbreak, COVID-19, outbreak and the lockdown to contain the virus spread, the Government has extended the existing foreign trade policy (2015-20) for one year till March 2021.

The Directorate General of Foreign Trade (DGFT) in a notification issued on Tuesday said, "The existing foreign trade policy 2015-20, which is valid up to March 31, 2020, is extended up to March 31, 2021." It added, "Various other changes are also made extending the date of exemptions by one year and extending the validity of Duty-Free Import Authorisation (DFIA) and Export Promotion Capital Goods (EPCG) authorisations for import purposes.

Exports during April-February this fiscal year 2019-20 (FY20) dipped by 1.5 per cent to 292.91 billion dollars, while the imports during the period declined by 7.30 per cent to 436 billion dollars, leaving a trade deficit of 143.12 billion dollars.

Export Promotion Capital Goods (EPCG) is an export promotion scheme under which an exporter can import a certain amount of capital goods at zero duty for upgrading technology related to exports.

On the other hand, advance authorisation is issued to allow duty-free import of inputs, which is physically incorporated in the export product. Under the Duty-Free Import Authorisation (DFIA) scheme, exporters are allowed to import certain goods like sugar at zero duty.

However, the government will take a call later on continuing the Service Exports from India Scheme for services rendered after April 1.