With second wave hitting all Indian Citizens, the pandemic has affected EXIM and trade sector as well. With ever changing situation trade policies are continuously amended with events and policies are created that have never happened before.
This time let's dive into some of the significant amendments that are being made in the light of the situation.
A brief about what is happening in Foreign Trade
The pandemic has brought disruptions in every other sector. With India, suffering from the wrath of deadly Virus’ second wave, it was imperative and implied that the EXIM trade is destined to undergo significant changes as well. The trade policies are being amended as well and we are witnessing events and changes that have never happened before. With new trade agreement coming into effect, global trade shifting it's focus towards different countries for sourcing various materials, it has become very important for us to keep updated with latest notifications.
Today, we are taking you through the instructions and amendments that are being made in the light of the situation.
Lets keep it simple and brief, as situation develops and some of these policies gets it's permanent shape we will keep you updated, without further due lets get started:
24x7 Customs Clearance
With reference to Instruction 02/2020-Customs, CBIC decided to introduce 24x7 customs clearance at all customs formations so that the industries that require raw materials do not suffer.
Helpdesk for EXIM trade
A dedicated single window COVID-19 helpdesk for EXIM trade has been created on CBIC website to facilitate quick resolution of issue(s) faced by importer/exporter.
Automated Clearance on an all-India basis
To minimize human interface and maximize social distancing, the OOC (Out of Charge) work, so far performed by an officer, has been assigned to the EDI system. The machine-based automated release of import consignments has been launched throughout India on 05.03.2020.
Exemption of customs duty on Certain Items
Exemption of customs duty on ventilators, personal protection equipment, covid-19 testing kits and inputs for these goods: Prioritized clearance of critical goods used for fighting COVId-19, such as medical equipment, drugs and pharmaceuticals, testing kits, PPEs, is ensured. Exemption from basic customs duty and health cess has been granted to such goods- ventilators, masks, personal protection equipment, testing kits and inputs used in manufacturing these items.
Clearance of goods
Clearance of goods under India’s Trade Agreements without original Certificate of Origin: Provisional clearance of goods while extending preferential treatment, without the submission of original signed certificates of origin.
Paperless Customs
Enabling electronic communication of out of charge, bill of entry and gate-pass to importers/customs brokers.
IGST refunds
IGST refunds on exports-extension: Extension of the facility of SB005 error correction in the Customs EDI system for Shipping Bills with date up-to 31.12.2019.
Waiver of Demurrage Charges
Zonal Customs Chief Commissioners have asked local custodians (Inland Container Depots and Container Freight Stations) to exempt demurrage charges during the lockdown period.
Pharmaceutical Ingredients
The Active Pharmaceutical Ingredients ("API") and formulations made from API, including paracetamol, tinidazole, chloramphenicol and 23 other drugs and their formulations as listed in the DGFT notification No. 50/2015-2020, were restricted with immediate effect from 03.03.2020. The export of restricted products is permitted only under a licence granted by the DGFT. However, this export policy was subsequently modified and all APIs and formulations made from listed APIs, other than paracetamol APIs (which continues to remain restricted for export), have been made free for export.
Process Improvements
The Centre on 29th April, 2021 expedited the clearance process for import of nebulisers, oxygen concentrators, and 15 other life-saving medical devices. This has been done to cater to the steep demand for such items amid the second wave of Covid in the country. For the next three months, starting April 29, importers will have to make necessary declarations required under the legal metrology rules after customs clearance but before hitting the market. The order will be applicable to other items, including oxygen cylinders, cryogenic cylinders, oxygen canisters and ventilators, among others.
Landmark Event
The landmark event was extension of FTP 2015-2021 to even further. The last date which was 31st March 2021 got extended to 30th September 2021. The HBP 2015-2020 got extended till 30th September 2021 as well.
ems, including oxygen cylinders, cryogenic cylinders, oxygen canisters and ventilators, among others.
Other related articles that will help you with new FTP 2021-2026:
- All you need to know about GST refunds – A Definitive Guide!
- RoDTEP Claim Process
- DFIA – Duty Free Import Authorisation : A duty exemption scheme
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