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 FTP
1.
2.
3.
4.

5.
6.

Export/Import:- Free ( Subject to some conditions specified

under law or provisions of policies)
There are restrictions on Exports and Imports for various
reasons. (Reasons strategic, health & other reasons) .
Exports are promoted through various promotional schemes .
(SEZ, EOU schemes etc)
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.)
There are some special schemes to avoid taxes at every stage.
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. SEZ
6. Deemed Exports.

BOARD OF TRADE
To advice Govt on:-

Policy measures to

increase Exports.
Review Export Performance.
Review policy of
Chairman of BOT
Export/Import .
:- Commerce and Industry minister

Govt nominate 25 persons

Out of
25

10
Expert in
trade policy

1
Chairman of
EPCS

1
President/secreta
ry 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 DGFT
4. Procedures( specified by DGFT)
5. Exemption from the provision of FTP/procedure on ground
of genuine hardship and adverse impact on trade.