FOREIGN TRADE POLICY

BASIC CONCEPTS

Purpose:• To promote Foreign Trade• Regulate Export & Import• Formulate EXIM Policy• Authorized to appoint a director general of

foreign trade.

AIMS OF POLICY

• Developing Export Potential.• Improving Export performance.• Boasting Foreign Trade.• Earning valuable Foreign Exchange.

Features of FTP1. Export/Import:- Free ( Subject to some conditions specified under law or

provisions of policies)2. There are restrictions on Exports and Imports for various reasons.

(Reasons strategic, health & other reasons) .3. Exports are promoted through various promotional schemes .(SEZ, EOU

schemes etc)4. Capital goods can be imported at 0% rate of duty. (For the purpose of export under the schemes of EPCG promotional

scheme for capital goods.)5. There are some special schemes to avoid taxes at every stage. 6. In certain cases imports get duty exemption/concession for certain

special purpose. In such cases to enable domestic suppliers compete with the International suppliers, the supplies of domestic suppliers are treated as deemed exports.

SCOPE OF FTP

FTP covers the policies and regulations with respect to the following methods:

1. Import and Export of goods and services.2. Export promotional measures.3. Duty remission and duty exemption scheme for

the promotion of Export.4. Export Promotion capital Good Scheme(EPCG)5. EOU, EHTP , STP, & BTP. SEZ6. Deemed Exports.

BOARD OF TRADE

To advice Govt on:- Policy measures to increase Exports.Review Export Performance.

Review policy of Export/Import .:- Commerce and Industry ministerChairman of BOT

Govt nominate 25 persons

Out of 25

10 1 1

Expert in trade policy Chairman of EPCS

President/secretary general of National

chamber of commerce

Note: Board will meet once in Every Quarter.

General Provisions Regarding Export and Import.

1. Export/Import free unless regulated by FTP.2. Compliance with laws:- Every Exporter/ importer shall comply with the provision of

FT(DR) Act, rules and orders made thereunder.FTP/ Authorization/Condition.Domestic law ( legal metrology Act)Environmental and safety norms

3. Interpretation of policy by DGFT4. Procedures( specified by DGFT) 5. Exemption from the provision of FTP/procedure on ground of

genuine hardship and adverse impact on trade.