[Analysis] Key Initiatives/Schemes Introduced in Foreign Trade Policy 2023

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  • Last Updated on 18 April, 2023

Foreign Trade Policy 2023

Jitendra Kumar Panda & Upendra Kumar – [2023] 149 taxmann.com 236 (Article)

In promotion of the economic essentials of the Country, the Minister of Commerce and Industry has recently announced the new Foreign Trade Policy (“FTP“), 2023. The earlier FTP which was to end in March, 2020 has been extended due to the COVID pandemic situation up to March, 2023. As India is on the way of a developed nation, the policy lays down a framework in order to rationalize India with the global markets. The Government has taken various initiatives and introduced various different schemes in the policy in order to make the country one of the top exporting nation in the future. The main aim of the new FTP-2023 is that to ensure that the exports of both services and merchandise/goods to reach $2 trillion by 2030 and another important feature is that unlike earlier FTP, there is no sunset provisions for the current FTP-2023. The sunset refers here that there is no end date of this policy. The advantage of the sunset provision is that the schemes and the policies will be continued and the exporters will not have any confusion about the continuity of various schemes mentioned in the policy. However, subsequent revisions/amendments will be done as and when required. This Article describes and provides some highlights on some important schemes, measures, benefits and initiatives specified in the current FTP, 2023.

Some Key Features/Initiatives of the FTP, 2023

(A) Ease Of Doing Business, Reduction In Transaction Cost And E-initiatives

(1) Online approvals without physical interface

    • There will be automatic approval of various permissions under FTP, 2023 based on process simplification and technology implementation.
    • There will be reduction in processing time and immediate approval of applications under automatic route for exporters.

(2) Reduction in user charges for MSMEs under AA and EPCG

    • Application fee being reduced for Advance Authorization (“AA”) and Export of Promotion of Capital Goods (“EPCG”) Schemes.
    • Will benefit most of the exporters who are MSMEs.

(3) E-Certificate of Origin (“CoO”)

    • Revamp of the e-Certificate of Origin platform proposed
    • To provide for self-certification of CoOs as well as automatic approval of CoOs, where feasible.
    • Initiatives for electronic exchange of CoO data with partner countries envisaged.

(4) Paperless filing of export obligation discharge applications
All authorisation redemption applications are to be paperless. This is in addition to application process for issuance being already paperless. With this, the entire lifecycle of the authorization shall become paperless

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