Extend 2015-2020 Foreign Trade Policy
The Federation of Indian Export Organizations (FIEO) has raised points with the Commerce and Industry Minister Piyush Goyal on 27 Mar 2020 through videoconference.
These were:
Home Ministry:
1. All manufacturing companies in exports should be allowed to operate, with 50% of the manpower, with full sanitation and safety with social distancing norms as loss in exports will result in market loss which will be extremely difficult to recover. Our loss will be China’s gain which is using all means to gain greater market access with increased export rebate VAT. Adequate safeguards may be prescribed and monitored by Ministry of Labour.
DGFT:
2. Extend the Foreign Trade Policy 2015-2020 by one year including extension of Status Holder Certificates till 31 Mar 2021.
3. Extend or re-introduce Interest Equalisation Scheme for 2020-2025 with effect from 1 Apr 2020.
4. Announce amnesty Scheme for old Advance, EPCG and EOUs for regularization of default by payment of only Customs duty without interest and penalty to lessen the burden on industry.
5. Extend import validity of all existing authorization valid on or after 1 March 2020 till 31 March 2021 or till their existing validity, whichever is later.
6. Extend Export Obligation (EO) of all advance/EPCG authorizations with valid EO on or after 1 March 2020 till 31 March 2021 or till their existing validity of EO, whichever is later.
Ministry of Commerce
7. All agencies involved in Exports Imports including customs, CHAs, Freight forwarders, Transporters, Shipping lines, Courier Companies, Plant quarantine, EIC, Certificate of Origin issuing agencies, AD Banks etc should function with minimal staff, since if one of them is not functioning, the export/import chain is broken. Alternatively, the scanned copy of documents sent from official email, may be accepted by all countries in such grave situation. The countries may be asked to release documents in absence of certification on provisional basis with subsequent submission of document.
8. ECGC: Waiver of ECGC premium on pre–shipment credit levied by banks for next 3 months at-least which may be extended, if warranted.
Banking/RBI:
9. Extension in pre and post shipment credit by a minimum of 180-270 days, exemption from interest and penalty on crystallization of bills on due date, loss in forward cover to be converted in interest free loan to be paid after 90-180 days and auto enhancement of credit limit by 10%, already introduced by many banks, without additional documents may be permitted. Repatriation period be enhanced from 9 to 15 months and exemption from caution listing under EDPMS till 31 Mar 2021.
Ministry of Finance:
10. Clearance of all exports benefits to exporters immediately including IGST/GST, Duty Drawback, ROSL, RoSCTL etc including to risky exporters (against a Bond) and relaxation in physical examination norms due to lesser availability of manpower.
Ministry of Labour:
11. PF/ESI charges may be waived for all industry from March to June 2020 as industry will be bearing the wage cost during the period of lockdown with no or less business affecting their liquidity.
Electricity:
12. The fixed charges levied may be waived and industry may be charged only on the actual consumption of electricity. fiinews.com
