ACMA lauds new foreign policy 2015-20

ACMA, the apex Indian automotive component industry body, has welcomed the thrust given to promote exports in the new Foreign Trade Policy 2015-20. It has lauded the focus on consolidation of various exports schemes and further simplification of procedures to help integrate India in the global value chain, improving ease of doing business index through online and e-governance interventions and reducing the transaction cost in international trade.

Congratulating the minister of State, Ministry of Commerce & Industry, Nirmala Sitharaman, ACMA president Ramesh Suri said, “We are glad that the new Foreign Trade Policy2015-20 is pragmatic and progressive – it gives a clear direction to the nation’s export agenda. It also provides the much-needed framework to enhance export of goods and services as well as generate employment which is in line with ‘Make in India’ vision of prime minister Narendra Modi.”

 “172 tariff-lines of auto components are benefitted under the new policy compared to the earlier 166.It is also heartening that the incentives provided encourage local sourcing and manufacturing as they are based on the amount of value-addition. Further, the auto-component industry continues to be incentivised for exports to the traditional markets as well as the emerging markets,” added Suri.

Some of the other key provisions of the new policy include:

- Stable policy for five years with mid-term review.

- Export incentives consolidated into two schemes: Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS). Duty credit scrips issued under MEIS and SEIS and the goods imported against these scrips are fully transferable which can be used to pay customs duty, excise duty and service tax.

- Under the export promotion capital goods scheme (EPCG), export obligation reduced from 90 percent to 75 percent in case of capital goods sourced locally, this will promote domestic capital goods manufacturing industry.

- Indian manufacturers who are status holders will be allowed to self-certify to qualify for preferential treatment under the various Preferential Trade Agreement (PTA), Free Trade Agreement (FTA), Comprehensive Economic Cooperation Agreement (CECAs), Comprehensive Economic Partnership Agreement (CEPAs). This ‘Approved Exporter System’ will help exporters in getting fast access to international markets.

- Basic customs duty paid in cash or through debit under duty credit scrips can be taken back as duty drawback.