Foreign Trade Policy 2023: A Comprehensive Breakdown for the Tech Industry

    The Ministry of Commerce and Industry has launched the Foreign Trade Policy 2023 (FTP 2023), which came into effect on April 1, 2023. The policy replaces the previous Foreign Trade Policy 2015 and contains several key announcements that impact the tech industry. While detailed procedures and implementation guidelines are yet to be released, this article offers an in-depth look at the policy’s most relevant aspects for technology companies and professionals.

    Promoting Cross Border Trade in Digital Economy

    New Chapter on E-commerce Exports

    The FTP 2023 introduces a new chapter focused on promoting the export of goods and services through e-commerce. The policy aims to undertake the following measures:

    1. Awareness creation: Increasing knowledge about e-commerce export opportunities and regulations.
    2. Capacity building: Enhancing the ability of businesses to engage in e-commerce exports.
    3. Skill development: Training individuals in the skills required for successful e-commerce exports.
    4. E-commerce export hubs: Establishing dedicated infrastructure and facilities for e-commerce exports.
    5. Strengthening connection with foreign post offices: Improving logistics and delivery systems to support cross-border e-commerce.

    This initiative aligns with the recommendations made to the government by NASSCOM on multiple occasions.

    Developing Districts as Export Hubs

    The policy emphasizes increasing exports at the district level. The following measures will be undertaken to achieve this goal:

    • District-level export promotion committees: Establishing committees to address bottlenecks for export growth in individual districts.
    • Identification of high-potential products & services: Determining the most promising products and services from each district for export enhancement.
    • Implementation of a plan: Developing and executing a strategy to increase exports of identified products and services.

    This approach is particularly beneficial for MSMEs seeking to access international markets and expand their reach.

    Existing Schemes under FTP 2023

    Removal of the Services Exports from India Scheme (SEIS)

    The Services Exports from India Scheme (SEIS) has been removed to make India’s foreign trade policy compliant with the World Trade Organisation’s rules. However, there are no significant changes relevant to the tech industry in other existing schemes, such as Advanced Authorisation (AA), Export Promotion Capital Goods (EPCG), Export Oriented Units, and Software Technology Parks.

    Amnesty Scheme for Export Obligations Defaults

    FTP 2023 introduces a one-time Amnesty Scheme to address defaults on Export Obligations (EO) under the EPCG and AA schemes. This new scheme allows businesses to regularize unfulfilled EOs by paying the pending customs duty and applicable interest, without incurring a penalty.

    Consolidation of Export Controls

    The policy consolidates provisions governing the export of restricted or prohibited software and technology. This consolidation aims to facilitate easy understanding and compliance by the industry. Furthermore, the policy enables businesses to make voluntary disclosures in case of default in complying with export control provisions. While the detailed rules on this are still pending, it might lead to mitigated corrective action by authorities.

    Disclaimer: While we make every effort to update the information, products, and services on our website and related platforms/websites, inadvertent inaccuracies, typographical errors, or delays in updating the information may occur. The material provided on this site and associated web pages is for reference and general information purposes only. In case of any inconsistencies between the information provided on this site and the respective product/service document, the details mentioned in the product/service document shall prevail. Subscribers and users are advised to seek professional advice before acting on the information contained herein. It is recommended that users make an informed decision regarding any product or service after reviewing the relevant product/service document and applicable terms and conditions. If any inconsistencies are observed, please reach out to us.

    Latest Articles

    Related Stories

    Leave A Reply

    Please enter your comment!
    Please enter your name here

    Join our newsletter and stay updated!