DGFT & FTP 2015-20 (1-4-2016)

Presentation by Shri D.K. Singh, Addl. DGFT

DGFT Organisation

DGFT: Background DGFT is an attached office of Department of Commerce Responsible for implementation of provisions under the Foreign Trade (Development and Regulation) [FT(D&R)] Act 1992 (as amended in 2010). Change of name and functions Earlier known as Chief Controller of Imports and Exports (CCI&E) under Imports and Exports (Control and Regulations) Act, 1947. Renamed as Directorate General of Foreign Trade (DGFT) under FT(D&R) Act , 1992. Organization ISO 9001:2008 certified, digital friendly Headquarter in New Delhi 37 Regional offices Nearly 2000 employees. (2387-Sanctioned strength) Headed by Director General of Foreign Trade

DGFT Organization 37 Regional Offices Minister, Commerce Commerce Secretary DGFT Zonal office, Mumbai RAs at Ahmedabad, Surat, Vadodara etc. Zonal office, Kolkata RAs at Shillong, Cuttack etc. Zonal office, Delhi RAs at Jammu, Jaipur, Kanpur etc. Zonal office, Chennai RAs at Bengaluru, Cochin, Coimbatore etc. 4 Additional DGFT at HQ 37 Regional Offices

DGFT: Major Functions Implementation of various provisions of FT(D&R) Act Issuance of authorisations for items under Import / Export controls (less than 5% of tariff lines) Formulation of Foreign Trade Policy (FTP ) Implementation of various promotional schemes of FTP Grievance Redressal Enforcement function Capacity Building Niryat Bandhu Scheme- capacity building of new entrepreneurs /MSMEs for exports Indian Trade Service (ITS) cadre management

Import/Export control Functions Import/Export Controls are imposed predominantly on account of security, public health, public morals and environment grounds. Less than 4% of India’s Tariff Lines (at 8 digit level) are under some restriction. IMPORT EXPORT Prohibited items - 53 Lines- Include beef, beef tallow, products of wild animals and ivory Restricted items - 485 Lines- include live animals, birds, vegetable planting material, psychotropic substances STEs - 33 Lines. - include foodgrains, certain petroleum products and fertilizers. Prohibited items - 59 Lines- Include Wild animals, beef, pulses and ivory Restricted items - 155 Lines- include horses, birds, rice bran, psychotropic substances, Dual Use Items [Special Chemicals, Organism, Materials, Equipment & Technology (SCOMET)] STEs - 15 Lines. - include Certain grades of Iron ore

Categories of schemes implemented by DGFT A- Schemes for Duty/ Tax neutralisation 1- Schemes that enable Duty free Import of Raw Material 2- Schemes that enable Duty free Import of Capital Goods 3- Schemes for Deemed exports (including Refund of Terminal Excise Duty) 4- Schemes for Gems & Jewellery sector B- Promotional Schemes Schemes for Merchandise exports Merchandise Exports from India Scheme (MEIS ) Schemes for Services exports Service Exports from India Scheme (SEIS) Other Schemes 1- Interest Subvention Scheme 2- Niryaat Bandhu

A- Schemes for Duty/ Tax neutralization Category Scheme Schemes for sourcing raw material Advance Authorisation Scheme Duty Free Import Authorisation (DFIA) Scheme. Schemes for sourcing Capital Goods Export promotion Capital Goods Scheme(EPCG) Schemes for Deemed exports Refund/ Exemption of Terminal Excise Duty  Duty Drawback/ Duty free import under Advance Authorisation Schemes for Gems & Jewellery sector Replenishment of Gold/silver/Platinum Duty free import under Advance Authorisation

B- Promotional Schemes Merchandise Exports from India Scheme (MEIS) MEIS replaced 6 schemes: Focus Product Scheme (FPS), Focus Market Scheme (FMS), Market Linked Focus Product Scrip (MLFPS), Vishesh Krishi and Gram Udyog Yojana (VKGUY), Agri. Infrastructure Incentive Scrip, Incremental Export incentive Scheme. 2/3/5% incentive to 4914 Tariff lines (out of total 11,542 lines) 3 Country Groups: A- Developed markets (30), B- Emerging markets and FTA countries (139) and C- Remaining countries (70) Most Agricultural products supported across the Globe Industrial and other products supported in Developed and/or Emerging markets only. Higher incentives for following category of products: Agricultural and Village industry products Value added and packaged products Eco-friendly and green products Labour intensive Products with large employment potential Industrial Products from potential winning sectors Hi-tech products with high export earning potential

B- Promotional Schemes-II Service Exports from India Scheme (SEIS) Served From India Scheme (SFIS) has been replaced with Service Exports from India Scheme (SEIS). Only Mode 1 (Cross Border Supply) and Mode 2 (Consumption Abroad) services eligible. SEIS shall apply to ‘Service Providers located in India’ instead of ‘Indian Service Providers’. The reward issued as duty credit scrip @3 or 5% to notified services Services supported @ 5%-Professional services-Legal services, Accounting, Architectural services, Engineering services, Research and development services, Audio-visual services, Educational Services, Hospital services Services supported @ 3%-Hotels and Restaurants ,Travel agencies and tour operators services, Other business services- Advertising services, Market research and public opinion polling services, Management consulting service The rate of reward under SEIS would be based on net foreign exchange earned. SEIS-Threshold : For individuals and Proprietorship : Service exports of USD 10000 in last FY For others: Service exports of USD 15000 in last FY

B- Promotional Schemes-III Other Schemes 1- Interest Subvention Scheme 3% interest subvention for exports made by MSMEs. For other categories of exporters it would be 2 %. Merchant exporters would not be eligible Budget available during current year (2014-15): Rs 1625 crore 2- Niryat Bandhu More than 20000 entrepreneurs have been trained by DGFT Regional Offices under Niryat Bandhu Scheme. 108 MSME clusters were identified and 150 outreach programmes were conducted all over the country in MSME clusters, Towns of Excellence and Universities/ Management Schools.

Ease of Doing Business and e-governance initiatives in DGFT New FTP has brought about reduction in the number of documents required for export and import from 7 & 10 respectively to 3 each now. All the Regional Authorities (RA) of DGFT have been networked with high speed internet. The applications are received and processed electronically. DGFT has provided the facility of on line filing of applications for issuance of Importer Exporter Code and various authorizations /scrips. Applicants can sign applications with a digital signature and submit electronically to the concerned Regional Authority of DGFT. Online filing has minimized the physical interface. DGFT is one of the first digital signature enabled organisation of the Government of India (GOI), which has introduced a higher level of Encrypted 2048 bit digital signature. Application fee can be paid online from linked banks. Efforts are being made to allow payment by debit/credit cards as well.

Ease of Doing Business and e-governance initiatives in DGFT-2 A simplified system for issuance of Importer Exporter Code (IEC) online has been made operational w.e.f. Feb 2015. In order to save paper as well as cost and time of the exporters, the requirement of filing hard copies of application forms and supporting documents for Advance authorization scheme has been fully dispensed with and beta versions of software to make applications for MEIS and EPCG schemes paperless have been put on the DGFT website. RTI online system introduced in DGFT on Feb 2015 A Complaint Resolution System for Resolution of EDI related issues has been set up. It is being actively used by exporters.

Ease of Doing Business and e-governance initiatives in DGFT-3 An online system put in place to resolve complaints received through public grievances portal of Department of Administrative Reforms & Public Grievances. Online system for expediting issuance of authorisations for dual use items (Special Chemicals, Organisms, Materials, Equipments and Technologies [SCOMET]) has been developed. It will be made operational soon. System for conducting of online concurrent audit of DGFT schemes (Chapter-3) implemented in Feb 2015. Use of Social Media I-Launch of Mobile Application for Android users for DGFT related services II-Creation of DGFT handle of Twitter-DGFT tweets all notification and Public Notice details. DGFT has so far published 113 tweets and has 3110 followers. 

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