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CA Final · Indirect Tax Laws · Foreign Trade Policy

Sunrise Exports Pvt Ltd of Surat wishes to understand the legal source of the Foreign Trade Policy 2023 before relying on it in a dispute. Which statement correctly describes the legal basis of the Policy?

The Foreign Trade Policy 2023 is notified by the Central Government in exercise of the powers given under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, as amended. It is therefore a notified policy under that Act, not a separate statute or a customs instrument.

  1. AIt is notified by the Central Government under Section 5 of the Foreign Trade (Development & Regulation) Act, 1992Correct
  2. BIt is enacted by Parliament as a separate statute independent of the Foreign Trade Act
  3. CIt is issued by the Board of Customs under the Customs Act, 1962
  4. DIt is framed by the DGFT under the GST Acts

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 sources that the text does not mention; the Policy is not a separate statute nor issued by the Board of Customs.

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