Government Exempts Synthetic Knitted Fabrics from MIP for Advance Authorisation Holders and SEZs

The government announced that the minimum import price (MIP) rule for certain synthetic knitted fabrics does not apply to advance authorisation holders, export-oriented units, and special economic zone (SEZ) units. These entities are exempt from the MIP of USD 3.5 per kg on these fabrics, as stated by the Directorate General of Foreign Trade (DGFT) in a notification.

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New Field in eBRC for Services Export

In another update, the DGFT introduced a new field called "Mode of Export of Services" in the Electronic Bank Realisation Certificates (eBRC) format. This change applies to documents generated from May 1 onwards. The aim is to enhance the detail and precision of services export data.

The e-BRC serves as a digital certificate issued by banks to exporters, verifying that payment for an export transaction has been received in foreign currency. This adjustment aligns India's data collection policy with international standards under the World Trade Organisation's General Agreement on Trade in Services (GATS).

Four Modes of Services Trade Explained

The newly added field corresponds to four modes of services trade: cross-border supply, such as IT services and telemedicine; consumption abroad, like tourism and medical treatment in India; commercial presence, including Indian bank branches overseas; and presence of natural persons, such as engineers and doctors on assignment.

These updates reflect ongoing efforts to streamline trade processes and ensure compliance with global norms. By refining data capture methods, India aims to improve its trade reporting accuracy and maintain alignment with international practices.