CARGOCONNECT-MAY23 - Flipbook - Page 10
CATAPULT
FOREIGN
TRADE
POLICY
2023
AND THE
GREATER GOOD
T
he recently introduced Foreign Trade
Policy (FTP) 2023
aims to increase the
country’s exports to
US$2 trillion by 2030. Commerce and Industry Minister
Piyush Goyal when presenting
the FTP 2023 said it will be
implemented starting from
April 01 and emphasised on
the shift from incentive-based
approaches to remission and
entitlement-based measures.
Interestingly, the new policy
is different from the previous
five-year FTP announcements
as it has no specific end date
and will be revised as needed, as
expressed by the Director General of Foreign Trade (DGFT),
Santosh Sarangi.
No interest is payable on the
portion of Additional Customs
Duty and Special Additional
Customs Duty. This is likely to
provide relief to exporters as
the interest burden will come
down substantially.
Under the new Foreign Trade
Policy, the application fee is being
reduced for Advance Authorisation and EPCG schemes. The
move will benefit 55-60 per cent
of exporters who are MSMEs.
There is a wider outreach
and understanding of Special
Chemicals, Organisms, Materials, Equipment and Technologies
(SCOMET) among stakeholders,
and the policy regime is being
made more robust to implement
international treaties and agreements entered into by India.
Brief overview
n Special
one-time
amnesty scheme for
exporters to fulfil their
export obligations
defaults
As part of the Foreign Trade
Policy (FTP) 2023, the Indian
government has introduced
an amnesty scheme for the
one-time settlement of
export obligation defaults.
The scheme will allow
holders of Advance Authorisation and Export Promotion Capital Goods (EPCG)
authorisations to settle their
export obligation defaults
and renew their authorisations without attracting any
penalties or legal action.
This move is expected to
provide relief to exporters
who may have defaulted on
their export obligations due
to the COVID-19 pandemic
or other reasons.
Under the new FTP,
the application fee is also
being reduced for Advance
Authorisation and EPCG
schemes. The move will
benefit 55-60 per cent of
exporters who are MSMEs.
n New
Towns of Export
Excellence
The four new towns – Faridabad, Mirzapur, Moradabad,
and Varanasi – have been
identified as Towns of Export
Excellence (TEE) under the
Foreign Trade Policy (FTP)
2023.
These TEEs will receive
priority access to export
promotion funds under the
Market Access Initiative
(MAI) scheme and will be
FTP 2023 HIGHLIGHTS
India aims for US$2 trillion
exports by 2030 with the
new FTP
10 | CARGOCONNECT MAY 2023