New Delhi, Mar 31 (KNN) After a prolonged wait, Union Minister of Commerce & Industry, Piyush Goyal and Minister of State for Commerce & Industry, Anupriya Patel on Friday released the Foreign Trade Policy (FTP) 2023 in New Delhi.

Unlike previous policies which would be announced for five years the FTP 2023 comes without a five-year expiry date.

The new policy heralds a new era for e-commerce exports and third party trading. It also brings an amnesty scheme to resolve pending disputes of export obligations under EPCH scheme valid up to 30 September, 2023. 

The FTP 2023 claims to stands on: Incentive to Tax remission; Export Promotion through collaboration with exporters with States and Districts; Trade Facilitation technology and automation and Focus on new emerging areas such as e-commerce, Districts as export hubs or exports under SCOMET framework.

The Micro, Small & Medium Enterprises (MSMEs) sector has welcomed substantial reduction in fees for Advance Authorization and EPCG licence form Rs 1 lakh to Rs 5000 only.  

Four MSME dominated towns have been declared as Town of export excellence namely Faridabad (Apparel); Moradabad (Handicrafts); Mirzapur (handmade carpet) and Varanasi (handloom and handicraft). 

Exporters in these towns would be able to tap cluster based schemes and benefits under export promotion scheme such as EPCG.

In a major move, the FTP 2023 introduces a new chapter on e-commerce. 

The value limit for courier exports has been increased from Rs 5 lakh to Rs 10 lakh and all FTP benefits have been extended to e-commerce.

Department of Commerce, Department of Post & CBIC are tasked to complete the processes in six months. 

To further expand the logistics outreach, dak niryat kendras shall be operationalized in a hub and spoke model with Foreign Post offices.

With this expansion, artisans form small towns would be able to send their small export consignment from far flung areas. 

Another new feature of the FTP is liberalization of merchanting trade. Third party country trading – buying from foreign country and supplying to third country without goods being brought to India, is allowed subject to compliance with RBI guidelines.

To further encourage self-certification and improve access to export support, the eligibility bar for status holder exporters has been lowered from Rs 25 crore to 15 crore for two star; from Rs 100 crore to Rs 50 crore for three star, from Rs 500 crore to Rs 200 crore for four star and finally from Rs 2000 crore to Rs 800 crore for five star status holders.

Export promotion at places emphasis on collaboration with states and district level.

District are being prepared as Export Hubs and District Export Action Plans (DEAPs) are to be prepared to promote identified products and services.

The policy aims to provide support to address both hard and soft infrastructure at district level.  (KNN Bureau)