The Directorate General of Foreign Trade ( DGFT ), through its Notification No. 62/2023 dated February 29, 2024, has introduced a significant amendment to the Foreign Trade Policy, 2023 facilitating merchanting trade within a single foreign country, subject to compliance with Reserve Bank of India ( RBI ) guidelines.
The amendments excluded the goods/items listed under the Convention on International Trade in Endangered Species of Wild Fauna and Flora ( CITES ) and the Special Chemicals, Organisms, Materials, Equipment, and Technologies ( SCOMET ) categories.
Exercising powers conferred by Section 5 of the Foreign Trade ( Development & Regulation ) Act, 1992, read with paragraph 1.02 of the Foreign Trade Policy, 2023, the Central Government has amended Para 2.39 of the Foreign Trade Policy, 2023 as follows;
Existing Para
Merchanting trade involving shipment of goods from one foreign country to another foreign country without touching Indian ports, involving an Indian intermediary is allowed subject to compliance with RBI guidelines, except for goods/items in the CITES and SCOMET list.
Revised Para
Merchanting trade involving the shipment of goods from one foreign country to another foreign country without touching Indian ports, or shipment of goods within one specific foreign country, involving an Indian intermediary is allowed subject to compliance with RBI guidelines, except for goods in the CITES, or under SCOMET.
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