DGFT allows Merchanting Trade Within Single Foreign Country, Excludes CITES and SCOMET Goods.
The DGFT vide Notification No. 62/2023 dated February 29, 2024, amended the Foreign Trade Policy, 2023 to permit merchanting trade within a single foreign country, subject to RBI guidelines and excluding CITES and SCOMET listed goods/items.
In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, read with paragraph 1.02 of the Foreign Trade Policy, 2023, as amended from time to time, the Central Government hereby amends Para 2.39 of Foreign Trade Policy, 2023 as under:
| Existing Para | Revised 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. | 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. |
Effect of the Notification: Merchanting Trade carried out within one specific foreign country is permitted subject to compliance with RBI guidelines, except for goods listed in the CITES Appendices, or under SCOMET.
The Notification can be accessed at: https://www.a2ztaxcorp.com/wp-content/uploads/2024/02/Noti-62.pdf