Page 119 - SMUGGLING IN INDIA REPORT FOR 2020-2021

Overview
India’s Foreign Trade has a long history spread across millennia, from the era of Indus Valley Civilization and Roman Empire to the present era. The State has a distinct role in promoting Foreign Trade and the current thrust of the Government of India in promoting India’s exports on the strength of the ‘Make in India’ initiative is in the same direction. The Foreign Trade Policy is essentially a set of guidelines for the import and export of goods and services. These are formulated by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry. The Foreign Trade Policy is suitably modified from time to time to support the flagship programs of the Government of India, such as ‘Make in India’ and ‘Atmanirbhar Bharat’.
The Foreign Trade Policy is notified for a period of five years. The Government has notified further extension of the Foreign Trade Policy 2015-2020 by another six months till March 31, 2022, due to ongoing COVID-19 pandemic.
Foreign Trade Policy contains certain export promotion schemes which are primarily aimed at:
(i)providing customs duty exemption on import of capital goods for promotion of exports;
(ii)providing customs duty exemption on raw materials, components and consumables for manufacturing goods for exports; and
(iii) providing compensation for neutralizing the disadvantages suffered on the goods and services exported.
To achieve these objectives, various schemes like Advance Authorization, Duty-Free Import Authorization (DFIA), EPCG, MEIS, SEIS, FTA and EOU/EHTP/ STP/SEZ/FTWZ Schemes are implemented through the Foreign Trade Policy.
CHAPTER 6: FOREIGN TRADE POLICY: MISUSE OF SCHEMES 73