Foreign Trade Policy (FTP) of India

The Foreign Trade Policy (FTP) is a comprehensive framework issued by the Ministry of Commerce & Industry, Government of India to regulate and promote India's exports and imports. It outlines strategies, incentives, and regulations to boost international trade.

📌 Latest FTP: Foreign Trade Policy 2023 (Effective from April 1, 2023)
📌 Governing Body: Directorate General of Foreign Trade (DGFT)
📌 Website: https://www.dgft.gov.in

Key Objectives of Foreign Trade Policy (FTP 2023)

✅ Boost India’s Exports – Promote "Make in India" and global competitiveness.
✅ Ease of Doing Business – Reduce regulatory burdens and simplify processes.
✅ Encourage MSMEs & Startups – Provide financial incentives and support for small exporters.
✅ Promote E-commerce Exports – Facilitate online trade through platforms like Amazon, Flipkart, etc.
✅ Develop Export Infrastructure – Improve ports, logistics, and industrial zones.
✅ Integrate with Global Supply Chains – Strengthen India's participation in Free Trade Agreements (FTAs).

Key Features of Foreign Trade Policy (FTP 2023)

1. Export Promotion Schemes

📌 Remission of Duties and Taxes on Exported Products (RoDTEP) – Refunds embedded taxes on exports.
📌 Rebate of State & Central Taxes & Levies (RoSCTL) – Incentive for textile & apparel exports.
📌 Export Promotion Capital Goods (EPCG) Scheme – Allows duty-free import of capital goods for exports.
📌 Advance Authorization Scheme – Duty exemption on raw materials for export production.
📌 Status Holder Certification – Special privileges for high-performing exporters.

2. Special Focus on E-commerce Exports

🚀 Facilitating Small & MSME Exporters – Faster approvals for e-commerce shipments.
📦 Increased E-commerce Export Limit – Up to ₹10 lakh per consignment via courier.
🏪 Dedicated E-commerce Export Hubs – Infrastructure to support online trade.

3. Simplification of Export Procedures

📝 Paperless Processing – Digital certificates for trade compliance.
📊 Automatic IEC (Import Export Code) Issuance – Online application process via DGFT.
📑 One-Time Amnesty Scheme for Exporters – Allows businesses to resolve past defaults without penalties.

4. Focus on International Trade Agreements

🌍 Leveraging Free Trade Agreements (FTAs) – Exporters get tariff reductions under India's FTAs with UAE, Australia, etc.
🤝 Trade Negotiations – Strengthening partnerships with EU, USA, UK, Japan, and ASEAN nations.

Documents Required for Export & Import Under FTP

1️⃣ Import Export Code (IEC) – Mandatory for all traders.
2️⃣ Registration Cum Membership Certificate (RCMC) – Issued by EPCs like FIEO, APEDA, etc.
3️⃣ Goods and Services Tax (GST) Registration – Required for tax compliance.
4️⃣ Authorized Dealer (AD) Code – Issued by banks for foreign exchange transactions.
5️⃣ Bill of Lading / Airway Bill – Shipping document.
6️⃣ Customs Clearance & E-Way Bill – Required for logistics.

Benefits of Foreign Trade Policy (FTP) for Exporters

✅ Access to Export Incentives & Tax Benefits
✅ Reduced Costs for Exporters Through Duty Exemptions
✅ Easier Market Access via FTAs & Bilateral Trade Agreements
✅ Digital & Simplified Trade Compliance Processes
✅ Enhanced Export Competitiveness in Global Markets