Foreign Traders Seek Government to Clear Clutter in-laws and Regulations
The foreign trade policy launch was deferred once again as the government thought it needed to have a more comprehensive consultation with the traders in the industry. The current FTP is a policy document that spells out the objectives and strategies to boost exports and FDI.
It is also a document that interprets rules, regulations, and procedures in international trade transactions, which are critical in facilitating export-import operations and making the export sector more competitive.
Broader trade policy challenges often get more attention than operational challenges faced by the trade community. Some of the most significant operational issues that deserve attention to relieve the traders are as follows.
Exemption of duties and taxes on Export products
Remission of Duties and Taxes on Export Products scheme aims at neutralizing the taxes at the state and local levels. These duties and taxes are not otherwise refunded under any other mechanism. But the challenge here is that this does not include “cess and levies,” which have recently emerged as a potent instrument to collect funds for designated purposes. Suppose that’s not all for the looming spells of confusion. The RoDTEP benefits are confined to certain limited sectors. Pharmaceuticals, chemicals, and steel are out of its purview.
It would be hard to devise an all-around understanding of the fact that RoDTEP is a refund of duties and taxes, which are embedded in manufactured products meant for exports. These taxes and duties also apply to exclude sectors and, therefore, must be refunded to all the sectors.
Due to pre-import conditions, a long list of pending cases of redemption with respect to the Advance Authorization scheme. According to the needs being portrayed by the traders, these need to be sorted out immediately by withdrawing the pre-import conditions.
Ambiguities for capital goods
There are significant ambiguities on the scope of operations, depreciation, and provisions relating to capital goods. These need to be addressed for greater transparency.
Actual Regulations are not available at a single point.
Imports are subjected to compliance with domestic laws as outlined in Para 2.03 of the FTP. This provides general guidelines, while the actual regulations are vast and multiple and are not available at a single point for the benefits and ease of the traders. Hence, a need for greater clarity and an explanation for laws, rules, orders, regulations, and technical specifications is stipulated in para 2.03 of the FTP.
Operational Issues of EXIM
DGFT must ensure that the new FTP focuses more on addressing operational issues of EXIM operations as they focus more on addressing operational issues of the EXIM, as they improve upon the cost of doing business and also improves the level of export competitiveness.
The sudden hesitance that the government has showcased in finalizing the FTA in the current scenario harks upon the thoughtfulness that the government might be ready to impart toward these issues. If these issues are met profoundly, the ease of doing business for traders will increase significantly. With traders seeking ease of trade, the FDI in the nation is bound to increase over the next few years to a more profound surmise. If you have been seeking investment opportunities, Then India could be your prime investment haven. Invest in the pace of our country’s growth with the help of FDI India; with our financial services, such as the revival of NPA accounts, financial supervision, and other services, such as soft loan facilitation, we can help you invest and reap the benefits.