S.O.(E) - In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Para 1.02 of the Foreign Trade Policy, 2015-2020, the Central Government hereby makes the following amendments in the Foreign Trade Policy 2015-2020 with immediate effect:

Existing Para 3.24 (j) of Chapter-3 of FTP 2015-2020:

"Status holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of ₹ 10 lakh or 2% of average annual export realisation during preceding three licensing years, whichever is lower".

Amended Para 3.24 (j) of Chapter-3 of FTP 2015-2020:

"Status holders shall be entitled to export freely exportable items (excluding Gems and Jewellery, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit of Rupees One Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower. For export of pharma products by pharmaceutical companies, the annual limit would be 2% of the average annual export realisation during preceding three licensing years. In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes. the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years. Such free of cost supplies shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme."

Effect of this Notification: Entitlement to export freely exportable items on free of cost basis by Status Holders has been revised.
 

(Alok Vardhan Chaturvedi)
Director General of Foreign Trade

[Issued from File No. 01/61/180/59/AM16/PC3]