On 20 January 2021, NASSCOM submitted a additional inputs to the Directorate General of Foreign Trade (DGFT) for review of Chapter 6 of the Foreign Trade Policy (FTP). Our submission aims at improving the Export Oriented Units (EOU), Electronics Hardware Technology Parks (EHTP) and Software Technology Parks (STP) schemes as given under Chapter 6 of the FTP.
Our recommendations include removal of restriction of export of spare/components to the same consignee, reduction in depreciation period for certain items from 10 years to 5 years, review of current list of IT assets for a ‘work-from home’ situation and introduction of a buyback scheme for import of duty-free capital goods.
The DGFT is reviewing FTP (2015-2020), with the objective of formulating a new FTP which will come into effect once the current FTP expires in March 2021. NASSCOM has been engaging proactively with the DGFT for submission of suggestions for the said review. Earlier, in November 2020, NASSCOM had submitted its comments to DGFT on the ongoing FTP review (read more here).