The Indian government on 31st March, 2023 announced the new Foreign Trade Policy (FTP) 2023 proving to be a boost to exports amid slowing global trade. The FTP 2015-20 was extended due to the COVID-19 pandemic and the conflict in Europe in an attempt to respond dynamically to the emerging situations. The new foreign trade policy outlines the vision to take India's goods and services exports to $2 trillion by 2030.
MAIN ASPECTS OF FTP-2023
- Incentive to Remission
- Ease of doing business, reduction in transaction cost and e-initiatives
- Export promotion through collaboration – Exporters, States, Districts, Indian Missions
- Emerging Areas – E-Commerce Developing Districts as Export Hubs and streamlining SCOMET policy
KEY HIGHLIGHTS OF FTP-2023 A. DIGITAZATION PROCESS
- Digitization of Applications pertaining to FTP: All Export promotion schemes processes for managing the lifecycle of AA/EPCG/DFIA/Import/Export Licensing has been made completely paperless and online.
- Automatic System-Based Approval of FTP Applications: Rule-based automatic approval systems using Business Analytics Tools has been implemented by DGFT. The same has been introduced for Advance Authorization Extension/Revalidation Applications.
- Reduction in user charges for MSMEs under AA and EPCG:
Application fee is being reduced for Advance Authorization and EPCG
Schemes will benefit 55-60% of exporters
who are MSMEs. - Process Re-engineering: A process Re-engineering has been undertaken for streamlining as well automating processes under FTP.
- E-Certificate of Origin: Revamp of the e-Certificate of Origin (CoO) platform proposedto provide for self-certification of CoOs as well as automatic approval of CoOs, where feasible.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
