Exporters demand three-month extension of FTP 2020 before shifting to new policy

New Delhi, Apr 3 (KNN) The Federation of Indian Export Organisations (FIEO) has urged the government to extend the previous five-year policy for 2015-2020 for three to four months so that existing contracts can be executed factoring the prevailing benefits.

They have given the reason that it will allow them to settle their existing contracts under the previous policy.

Seeking a transition period of at least three months for the new foreign trade policy, FIEO’s President Dr. A Sakthivel said, “We need the old foreign trade policy to continue for at least three to four months so that existing contracts can be executed factoring the prevailing benefits. It is a problem for us.”

“FIEO has requested the government that a 3-6 months’ transition period may be provided, whenever a major change is notified in the Foreign Trade Policy,” he added.

The government had released the new foreign trade policy (FTP) last week after extending the previous five-year policy for 2015-2020 as many as four times amid pandemic-induced restrictions and subsequent global uncertainty.

The last extension was granted in September 2022 until 31 March 2023.

As per an official document, the new FTP incorporating provisions relating to export and import of goods and services, “shall come into force with effect from 1 April 2023”, and shall continue to be in operation unless otherwise specified or amended.

“All exports and imports made up to 31 March 2023 shall, accordingly, be governed by the relevant FTP, unless otherwise specified,” the government stated.  (KNN Bureau)