DGFT and Foreign Trade Policy

1. DGFT and Foreign Trade Policy Presentation by D K Singh, Additional DGFT 28.6.2016

2. Outline DGFT Background / Organizational Structure Major Functions Major DGFT Schemes Financial Support Under Various Schemes Digitization and Trade Facilitation Initiatives The Way Forward

3. DGFT: Background • Attached office of Department of Commerce • Implements Foreign Trade (Development & Regulation) Act 1992 • Previously Chief Controller of Imports and Exports under Imports and Exports (Control and Regulations) Act, 1947. Reformed to be DGFT under FT(D&R) Act, 1992. • Organization details: • ISO 9001:2008 certified, digital friendly • 37 Regional offices • Approx 2400 employees. (2387-Sanctioned strength)

4. DGFT Organization 4 Additional DGFT at HQ 37 Regional Offices

5. DGFT: Major Functions • Implementation of FT(D&R) Act: Authorizations for items under Import / Export control (< 4 % tariff lines) • Formulation of Foreign Trade Policy (FTP ) • Implementation of promotional schemes of FTP • Grievance Redressal • Enforcement function • Capacity Building: NiryatBandhu • Indian Trade Service (ITS) cadre management

6. IEC Information • More than 800,000 IECs issued so far. Less than 125,000 exported last year. • Every year over 60,000 new IECs issued. • New mandatory online application system introduced w.e.f. April 1, 2016 • Digital signature , PAN and bank details required

7. Active Exporter & Importer Count

8. Import /Export Control Functions

9. Major DGFT Schemes

10. A - Schemes for Merchandise exports

11. B - Schemes for Service Exports / other Schemes

12. Status Holder Certificates • Minimum export performance in current and previous three financial Years • ( except for Gems and Jewellery sector)

13. Merchandise Exports from India Scheme (MEIS) • Incentives for 5012 tariff lines @ 2% / 3% / 5% of FOB value globally • Includes permissible exports by post / courier under e-commerce window • Resource ceiling of Rs. 22,000 Crore per annum • No landing certificate required • Implemented with support of DOR; further ease of implementation being explored with DoR

14. Services Exports from India Scheme (SEIS) • Incentive scheme for eligible service exports offering reward @ 3 and 5% of net foreign exchange earned • Only Mode 1 and Mode 2 services eligible. • Covers ‘Service Providers located in India’ instead of ‘Indian Service Providers’. • Service covered include at two rates @3% and @5% • Simplification in implementation proposed with support of RBI

15. Interest Equalisation scheme • Cabinet Committee on Economic Affairs (CCEA) approved the Interest Equalisation Scheme on 18.11.2015 for 5 years w.e.f. 01.04.2015. Operational guidelines of the scheme were issued by RBI vide Circular No.62 dated 04.12.2015. The main features of the scheme are as follows: • The rate of interest equalisation @ 3% per annum will be available on Pre Shipment Rupee Export Credit and Post Shipment Rupee Export Credit. • The scheme would be applicable w.e.f 01.04.2015 for 5 years. Government, however, reserves the right to modify/amend the Scheme at any time. • The scheme will be available to all exports under 416 specified tariff lines [at ITC (HS) code of 4 digit] and to all exports made by Micro, Small & Medium Enterprises (MSMEs) across all ITC (HS) codes. • Scheme would not be available to merchant exporters. • Banks are required to completely pass on the benefit of interest equalisation, as applicable, to the eligible exporters upfront and submit the claims to RBI for reimbursement, duly certified by the external auditor. • All eligible exports under the scheme would have to meet the criteria of minimum processing for the goods to be called as Originating from India and would be governed by provision of Paragraph 2.108 (a) (Rules of Origin [Non preferential]) of Handbook of Procedures of Foreign Trade Policy 2015-2020.

16. Financial Support Under Various Schemes

17. Benefits Under Major DGFT Schemes: 2015-16

18. Benefits Under Old schemes: 2015-16

19. Digitalization & Trade Facilitation Initiatives

20. DGFT: Facilities for users • DGFT data exchange with Customs, Banks and EPCs through EDI message exchange system, reducing physical interface of clients and fraud possibilities • Exporter can now: • File online applications for IEC, Advance License, Drawbacks, MEIS • Pay application fee online and • Check status of their applications • (EODC, TED refund refund need to be addressed) • DGFT launched mobile application called “DGFT” in June 2015

21. DGFT: Facilities for users - The e-BRC system • Electronic Bank Realization Certificate (eBRC) for electronic transmission of export related foreign exchange realization from Banks to DGFT server operationalized on June 5, 2012. • So far over 1.7 Crore e-BRCs captured through this system. • Includes integrated platform for receipt, processing and subsequent use of all bank realisation related information. • DGFT MoUs with 13 State Governments for sharing e-BRC data for VAT refunds to exporters. MoU also with Enforcement Directorate. • RBI also uses eBRC data to fill data gaps in its system

22. DGFT: Facilities for usersComplaint Resolution System, Twitter • Complaint Resolution System for resolution of EDI related issues. 5000+ complaints resolved • Public grievances portal of Department of Administrative Reforms & Public Grievances. • Twitter-#DGFTINDIA • Responds to tweets sent to CIM’s account and mc.twitterseva.com/

23. Thank you