NEW DELHI: The new Foreign Trade Policy is most likely to focus on encouraging exports through ecommerce as likewise recognizing districts as export centers while re-looking at products that are limited or prohibited for export and import.
The commerce and market ministry is drawing up the FTP 2021-26, which is most likely to be launched on April 1 and is expected to have separate chapters dealing with measures for ecommerce, districts as export centers, and sell items such as poisonous chemicals, micro-organisms and nuclear product.
“More HSN (Harmonised System of Nomenclature) codes (tariff codes assigned to a traded great) might be included for products that fall in the ‘others’ category,” stated an official.Products categorised in ‘others’ category do not have HS codes however are accompanied with parts and devices of categorised goods. Including more codes will help in reducing India’s trade deficit considering that absence of proper categorisation make these items immune to constraints. Besides leading to custom-mades duty evasion, this misclassification also leads to import of low-grade products.The problems were talked about at a meeting that Hardeep Singh Puri, minister of state for commerce and industry, had with market chambers and export promo councils on Thursday.The Remission of Duties and Taxes on Exported Products (RoDTEP) plan will be a significant feature of the policy as it has been executed from January 1 however the reward rates are yet to be revealed. The RoDTEP will compensate the input taxes and responsibilities paid by exporters, consisting of embedded taxes, such as regional levies, coal cess, mandi tax, electricity responsibilities and fuel used for transport, which are not exempted or reimbursed under any other existing scheme.The policy comes at a time when India is anticipated to clock $285-290 billion exports in FY21, lower than $314.3 billion in FY20.As per the authorities, review treatment for the problem of import and export licenses and cleaning of pending license redemption cases too might be part of the policy.Industry body Trade Promo Council of India has actually sought trade data mapping with tariff program in order to keep an eye on and gain access to trade information under various trade arrangements and reward schemes.