Foreign Trade policy to be extended
Part of: GS Prelims and GS-III – Economy
- The Directorate General of Foreign Trade (DGFT) extended the existing foreign trade policy (2015-20) for one year till March 2021 amid coronavirus outbreak.
- Changes related to extending the date of exemptions and extending validity of DFIA and EPCG authorisations for import purposes are also being made.
Important value additions:
Export Promotion Capital Goods (EPCG):
- It is an export promotion scheme under which an exporter can import a certain amount of capital goods at zero duty for upgrading technology related with exports.
Duty Free Import Authorisation (DFIA):
- It is issued to allow duty free import of inputs, fuel, oil, energy sources, and catalysts which are required for production of export products.
The Directorate General of Foreign Trade (DGFT)
- It is the agency of the Ministry of Commerce and Industry of the Government of India responsible for administering laws regarding foreign trade and foreign investment in India.