Skip to content

CA Final · Indirect Tax Laws · Foreign Trade Policy

Kaveri Exports Pvt Ltd, a Pune firm, wants to know under which legal provision the Foreign Trade Policy 2023 has been notified and who notifies it. Which statement is correct as per the Foreign Trade Policy 2023 and the FT(D&R) Act, 1992?

The Foreign Trade Policy 2023 is notified by the Central Government in exercise of powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992. Section 11 deals with contraventions and penalties, and neither the DGFT nor CBIC is the notifying authority.

  1. AThe Policy is notified by the Director General of Foreign Trade under Section 11 of the FT(D&R) Act, 1992
  2. BThe Policy is notified by the Central Government under Section 5 of the FT(D&R) Act, 1992Correct
  3. CThe Policy is notified by the Central Board of Indirect Taxes and Customs under the Customs Act, 1962
  4. DThe Policy is enacted by Parliament as a separate Act every five years

Explanation

Paragraph 1.00 of FTP 2023 states that the Policy is notified by the Central Government in exercise of powers under Section 5 of the FT(D&R) Act, 1992. Section 11 deals with contravention and penalties, not with notifying the policy, so the first option is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Foreign Trade Policy shows your real accuracy, how long you take and where you lose marks.

Practise Foreign Trade PolicyFree diagnostic mock

More Foreign Trade Policy questions