DGFT amends Para 3.24 of Foreign Trade Policy 2015-2020.

Aug 28, 2018 | by Avantis RegTech Legal Research Team


Directorate General of Foreign Trade (DGFT) vide notification dated August,27,2018 has amended Para 3.24 of  Foreign Trade Policy 2015-2020 with immediate effect

·         Existing Para 3.24(j) of the FTP 2015-20 Status holders shall be entitled to export freely exportable items (excluding Gems and Jewellery, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit of Rupees One Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower. for export of pharma products by pharmaceutical companies, the annual limit would be 2% of the average annual export realisation during preceding three licensing years. In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes, the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years. Such free of cost supplies shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme

 

·         Amended Para 3.24(j) of the FTP 2015-2020

Status holders shall be entitled to export freely exportable items (excluding Gems and Jewellery, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit as below:

 a. Annual limit of 2% of average annual export realization during preceding three licensing years for all exporters (excluding the exporters of following sectors-

1) Gems and Jewellery Sector,

(2) Articles of Gold and precious metals sector) .

 b. Annual limit of Rupees One Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower. (for exporters of the following sectors-

(1) Gems and Jewellery Sector,

(2) Articles of Gold and precious metals sector).

 c. In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes, the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years.

The free of cost supplies made under provisions of Para 3.240) shall not be entitled to Duty Drawback or' any other export incentive under any export promotion scheme.

Effect of this notification: The limit of Rs One Crore per year for exports on free of cost exports basis for export promotion for Status Holders is removed and is made 2% of average annual export realization during preceding three licensing years with immediate effect.

[Notification No.28 /2015-2020]

URL- https://dgft.gov.in/sites/default/files/Notification%20No.%2028%20English.pdf


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