Foreign Trade Policy (2015-2020)

P r e s e n t a t i o n by :
Ujjawal Shukla
01 Status Holders
• How an exporter gets his rank in trading?
• How the bigger and smaller export houses are differentiated?
• How government is capable of motivating exporters for more
and more exports?
And so on…

02 Towns Of Export
Excellence
• All about the most important component of government of India’s
foreign trade policy.
Towns of Export
Excellence
 Introduction
• Towns capable of producing predefined limit of exports in a given
period of time is liable of the tag of town of export excellence.

• Limit is ₹1000cr / year.

• For handlooms, handicrafts, fisheries and agriculture sectors this limit

is valued nearly ₹150 crores.
 Introduction
• In new foreign trade policy 2015-20 there are two new TEE’s
added they are: Vishakhapatnam and Bhimavaram.

• 35 TEE’s in total

• These TEE’s gets benefited by lot of promotional programs

launched by government.
 MAI scheme
• One such type of scheme benefiting the TEE’s is MAI (Market Access Initiative) scheme for
recognized export associations.

• Under MAI the financial assistance is given for export promotion activities on

 Focused countries
 Focused product
 Industries
 Trade associations, etc
• The activities are like:

 Market studies
 Setting up showrooms/warehouses
 Participation in IT fairs
 Publicity campaigns
 Brand promotions
 Testing charges for engineering products outside the country
 Surat
Agartala
Malihada
Tirupur Kanpur
Ahemdabad
Ludhiyana Ambur
Saharanpur
Panipat Jaipur
Kolhapur
Kanoor Srinagar
Morbi
Karoor Anantnag
Gurugram
Barmer
Madurai Bhiwandi
Jodhpur Agra
Kekhra Firozabad
Thoothukudi
Dewas
Alleppey Vishakhapatnam
Kollam Bhubneshwar
Indore bhimavaram
Bhilwada
Status Holders
The provision for status holders was introduced in the new Foreign
Trade Policy of India (2015-2020).

01 02 03
Star
Star Star
Export house Export house Export house

04 05
Star Star

Export house Export house

 Introduction
• Provisions for status holder is granted in chapter 3 of new FTP policy.
• Exporters are ranked as per their contribution to foreign trade on the basis of their acheivements
in exports.
• This provisions are made to categorize exporters in specified group and providing them
certificates as per their performance.

• It’s objective are:

 To help entrepreneurs in export business

 To improve export performance
 To create competitiveness
 To boost production
 Requirements to justify an exporter as status holder…

• Each and every exporter dealing in goods and services and technology
having valid IEC number is eligible for being a status holder.

• For particular rank particular margin of export is set in the provisions of

status holder.

• An applicant will be categorized by seeing his export performance of

current and last three year.

• There must be record of 2 years necessary out of 4.

Status category as per para 3.2…
 Privileges of Status Holder
Para 3.23 of chapter 3. {total 10 granted}

• Authorisation and Custom clearance of both imports and exports on the self
declaration basis.
• 2 stars and above exporters gets the permission to establish their own warehouses as
per the department of revenue guidelines.
• Status holders are entitled to get preferential and priority while handling the
consignment by concerned agency.
• Exemption from furnishing bank guarantee for schemes under FTP.
• Exporters involved in the mfg would be eligible to self-certify their goods/product as originating from India.

{ only those having 3,4,5 star entitlement }

• Status holders shall be entitled to export freely exportable items (excluding gems and jewellery, articles of

gold etc.) on free of cost basis for export promotion subject on annual limit of 2% of annual avg exports

realization or ₹1crore.
 Concept of Double weightage
Para 3.22 of FTP has provided certain criteria to consider double
weightage for calculation of export performance.

• M S M E as defined as (MSMED) Act,2006.

• Mfg units having ISO/BIS.

• Units located in north eastern state including Sikkim and J&k .

• Units located in Agri-exports zones.

• Double weightage shall only be granted for one star export house status category only.

• A shipment can get double weightage only once in any above categories.
For all the doors they slammed
on you, it’s your turn to buy the
building…