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Foreign Trade Policy 2023 released
Foreign Trade Policy 2023 released

April 3, 2023

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The Foreign Trade Policy, 2023 (FTP 2023) was launched by the Ministry of Commerce and Industry. FTP 2023 came into force from April 1, 2023 and succeeds the Foreign Trade Policy 2015.

Here is a snapshot of important announcements under the policy relevant for the tech industry. The detailed procedures and other implementation guidelines are awaited.

Promoting Cross Border Trade in Digital Economy

Introduction of a new chapter to promote export of goods and services via e-commerce. Measures to be undertaken include awareness creation, capacity building, skill development, establishing e-commerce export hubs for last-mile e-commerce export infrastructure and facilities, strengthening connection with foreign post offices. This is in line with recommendations made to the government by nasscom on multiple occasions.

Developing Districts as Export Hubs

Focus on increasing exports at the district level. Measures to be undertaken include establishing district-level export promotion committees to address bottlenecks for export growth, identification of high-potential products & services from each district and implementation of a plan to increase exports of the identified products/services. This will be especially beneficial for MSMEs in accessing international markets.

Existing schemes under FTP

  • The Services Exports from India Scheme (SEIS) has been removed, to make India’s foreign trade policy compliant with the World Trade Orgiansation’s rules.

  • No major changes relevant for our industry in the existing schemes such as Advanced Authorisation (AA), Export Promotion Capital Goods (EPCG), Export Oriented Units, Software Technology Parks.

Amnesty Scheme

Introduction of Amnesty Scheme as a one-time measure to address defaults on Export Obligations (EO) under EPCG and AA. The scheme allows for regularising unfulfilled EOs by paying pending customs duty and the applicable interest (no need to pay a penalty now).

Export Controls

  • Consolidation of provisions governing export of restricted/prohibited software and technology, to enable easy understanding and compliance by the industry.

  • Enabling industry to make voluntary disclosers in case of default in complying with export control provisions. While the detailed rules on this are awaited, it might lead to mitigated corrective action by the authorities.

 

The detailed policy is attached. For more information, kindly write to garima@nasscom.in and policy@nasscom.in.


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Foreign Trade Policy 2023.pdf

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Garima Prakash
Manager, Public Policy and Government Affairs

Reach out to me for all things policy about e-commerce, international trade, export controls, start-ups and fintech

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