Government Extends Tenure Of Foreign Trade Policy: EY Analysis

EY Update

This tax alert summarises a recent notification and public notice issued by the Directorate General of Foreign Trade extending Foreign Trade Policy 2015-2020 by further six months.

The validity of FTP and handbook of procedures (HBP) was earlier extended from time to time till March 31, 2022.

Vide recent notification and public notice, the validity of FTP and HBP is further extended by six months i.e., from March 31, 2022 to September 30, 2022. The validity of status certificate expiring on March 31, 2022 is also extended till June 30, 2022.

Further, Central Board of Indirect taxes and Customs has also extended the exemption from payment of integrated tax and compensation cess on imports made under Advance Authorisation and Export Promotion Capital Goods scheme from March 31, 2022 to June 30, 2022.

A similar extension is also given for imports made by export oriented units, electronic hardware technology parks, software technology parks and bio-technology parks.

The government has also made the provisions of section 51A of Customs Act, 1962 effective from June 01, 2022. The said provision was inserted vide Finance Act, 2018 and deals with electronic cash ledger which can be used for payment of duty, interest penalty, fee and any other amount payable under Customs.

Further, Customs (electronic cash ledger) Regulations, 2022 has also been prescribed in this regard.

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