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    New Foreign Trade Policy 2023

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    Viraaj Verma
    The union government recently unveiled the new Foreign Trade Policy (FTP) 2023-28 with the goal of reaching $2 trillion in exports by 2030. Key aspects of the new policy include shifting from incentives to tax remission, improving trade facilitation through technology and process changes, increased export promotion through collaboration with states and districts, and focusing on emerging areas like e-commerce exports and developing districts as export hubs. The policy aims to improve ease of doing business by enabling online approvals without physical interfaces and reducing processing times. It also introduces initiatives for exporter recognition, town and district export promotion, acceptance of rupee payments, facilitating e-commerce exports, and streamlining SCOMET and introducing an amnesty scheme.

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    New Foreign Trade Policy 2023

    Uploaded by

    Viraaj Verma
    23 views4 pages
    The union government recently unveiled the new Foreign Trade Policy (FTP) 2023-28 with the goal of reaching $2 trillion in exports by 2030. Key aspects of the new policy include shifting from incentives to tax remission, improving trade facilitation through technology and process changes, increased export promotion through collaboration with states and districts, and focusing on emerging areas like e-commerce exports and developing districts as export hubs. The policy aims to improve ease of doing business by enabling online approvals without physical interfaces and reducing processing times. It also introduces initiatives for exporter recognition, town and district export promotion, acceptance of rupee payments, facilitating e-commerce exports, and streamlining SCOMET and introducing an amnesty scheme.

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    The union government recently unveiled the new Foreign Trade Policy (FTP) 2023-28 with the goal of reaching $2 trillion in exports by 2030. Key aspects of the new policy include shifting from incentives to tax remission, improving trade facilitation through technology and process changes, increased export promotion through collaboration with states and districts, and focusing on emerging areas like e-commerce exports and developing districts as export hubs. The policy aims to improve ease of doing business by enabling online approvals without physical interfaces and reducing processing times. It also introduces initiatives for exporter recognition, town and district export promotion, acceptance of rupee payments, facilitating e-commerce exports, and streamlining SCOMET and introducing an amnesty scheme.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    23 views4 pages

    New Foreign Trade Policy 2023

    Uploaded by

    Viraaj Verma
    The union government recently unveiled the new Foreign Trade Policy (FTP) 2023-28 with the goal of reaching $2 trillion in exports by 2030. Key aspects of the new policy include shifting from incentives to tax remission, improving trade facilitation through technology and process changes, increased export promotion through collaboration with states and districts, and focusing on emerging areas like e-commerce exports and developing districts as export hubs. The policy aims to improve ease of doing business by enabling online approvals without physical interfaces and reducing processing times. It also introduces initiatives for exporter recognition, town and district export promotion, acceptance of rupee payments, facilitating e-commerce exports, and streamlining SCOMET and introducing an amnesty scheme.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    New Foreign Trade Policy 2023-28

    The union government recently unveiled a new Foreign Trade Policy (FTP) 2023-28.

    Background: Foreign Trade Policy (FTP) 2015-20


    FTP 2015-20 which was to end on 31.3.2020 was extended due to COVID pandemic
    and volatile geo-political scenario till 31.03.2023.
    Performance: India has reach record high Export Performance in Merchandise and
    Services Exports during this period.
    India’s Merchandise and Services exports is expected to cross record USD 760
    Billion in FY2022-23.
    About the New Foreign Trade Policy (FTP) 2023-28
    It is a policy document based on continuity of time-tested schemes facilitating
    exports as well as a document, which is nimble and responsive to the requirements
    of trade.
    Principles: The policy is based on principles of ‘trust’ and ‘partnership’ with
    exporters.
    Goal: FTP 2023 sets a $2 trillion target for exports of goods and services by 2030
    with a shift from incentives to remission and entitlement-based regime.
    Open ended: FTP 2023-28 is dynamic and has no end date and will be updated as
    and when needed.

    Four key pillars of the new FTP 2023-28:


    1. A shift from incentives to tax remission
    2. Trade facilitation through technology, automation, and continuous process re-
    engineering
    3. Export promotion through collaboration: Exporters, States, Districts
    4. Focus on Emerging Areas – E-Commerce Exports, Developing Districts as
    Export Hubs, Streamlining SCOMET policy etc.

    Key highlights of the New Foreign Trade Policy (FTP) 2023-28


    1. Ease of Doing Business
     Online approvals without physical interface: Automatic approval of various
    permissions under Foreign Trade Policy based on process simplification
    and technology implementation.

     Reduction in processing time and immediate approval of applications


    under automatic route for exporters.

     E-Certificate of Origin: Revamp of the e-Certificate of Origin (CoO)


    platform proposed- to provide for self-certification of CoOs as well as
    automatic approval of CoOs, where feasible.

     Initiatives for electronic exchange of CoO data with partner countries


    envisaged.

     Paperless filing of export obligation discharge applications: All


    authorisation redemption applications to be paperless. With this, the entire
    lifecycle of the authorization shall become paperless.

    2. Export Promotion Initiatives

     Recognition of Exporters: Exporter firms recognized with ‘status’ based on


    export performance will now be partners in capacity-building initiatives on
    a best-endeavour basis.

     2-star and above status holders would be encouraged to provide trade-


    related training based on a model curriculum to interested individuals.

     Towns of Export Excellence (TEE): Four new towns have been designated
    as TEE in addition to the existing 39 towns.


     The TEEs will have priority access to export promotion funds under the
    Market Access Initiative (MAI) scheme.

     The MAI Scheme was launched in 2013 to support the Indian exporters in
    penetrating and expanding their exports to foreign markets by providing
    financial assistance for various export promotion activities.

     Promoting Export from the Districts: The FTP aims at building partnerships
    with State governments and taking forward the Districts as Export Hubs
    (DEH) initiative.

     This would promote exports at the district level and accelerate the
    development of the grassroots trade ecosystem.

     Rupee payment to be accepted under FTP Schemes: FTP benefits


    extended for rupee realisations through special Vostro accounts setup as
    per RBI circular issued on 11 July 2022.

     This is an effective step towards internationalisation of Rupee.

    3. E-Commerce Exports

     Facilitation for E-Commerce exports: All FTP benefits will be extended to


    e-Commerce exports.

     Various estimates suggest India’s e-commerce export potential in the


    range of $200 to $300 billion by 2030.

     Dak Niryat facilitation: Dak Ghar Niryat Kendras shall be operationalised


    throughout the country to work in a hub-and-spoke model with Foreign
    Post Offices (FPOs) to facilitate cross-border e-Commerce and to enable
    artisans, weavers, craftsmen, MSMEs in the hinterland and land-locked
    regions to reach international markets.

     E-Commerce Export Hubs: Designated hubs with warehousing facility to


    be notified, to help e-commerce aggregators for easy stocking, customs
    clearance and returns processing.

    4. Streamlining SCOMET Policy


     India is placing more emphasis on the “export control” regime as its
    integration with export control regime countries strengthens.

     There is a wider outreach and understanding of SCOMET (Special


    Chemicals, Organisms, Materials, Equipment and Technologies) among
    stakeholders.

    5. Amnesty Scheme

     Government is strongly committed to reducing litigation and fostering trust-


    based relationships to help alleviate the issues faced by exporters.

     In line with “Vivaad se Vishwaas” initiative, which sought to settle tax


    disputes amicably, the government is introducing a special one-time
    Amnesty Scheme under the FTP 2023 to address default on Export
    Obligations.

     This scheme is intended to provide relief to exporters who have been


    unable to meet their obligations under EPCG and Advance Authorizations.

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