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CA Final · Indirect Tax Laws · Foreign Trade Policy

Sahyadri Exports Ltd is reading the Foreign Trade Policy 2023 to understand its legal basis. Which statement correctly reflects the source of power under which the Policy is notified?

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. It is not an Act of Parliament and is not issued under the Customs Act or by the GST Council.

  1. AIt is notified by the Central Government under Section 5 of the Foreign Trade (Development & Regulation) Act, 1992Correct
  2. BIt is notified by the DGFT under the Customs Act, 1962
  3. CIt is enacted by Parliament as a separate Act every five years
  4. DIt is notified by the GST Council under the CGST Act, 2017

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. The other options name bodies or Acts that are not the source of this power.

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