Skip to content

CA Final · Indirect Tax Laws · Foreign Trade Policy

Sunrise Exports Pvt Ltd, Surat, wants to know the legal basis of the Foreign Trade Policy 2023 before relying on it in a dispute. Under which provision is the Foreign Trade Policy 2023 notified by the Central Government?

The Foreign Trade Policy 2023 is notified by the Central Government under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, which lets it formulate and announce the policy by Official Gazette notification and amend it likewise. Section 11 concerns contraventions, not the policy's formulation.

  1. ASection 5 of the Foreign Trade (Development and Regulation) Act, 1992Correct
  2. BSection 11 of the Foreign Trade (Development and Regulation) Act, 1992
  3. CSection 5 of the Customs Act, 1962
  4. DSection 11 of the Customs Act, 1962

Explanation

Paragraph 1.00 of FTP 2023 states the policy is notified by the Central Government in exercise of powers under Section 5 of the FT(D&R) Act, 1992. Section 11 of that Act deals with contravention and penalties, not with formulation of the policy, so it is wrong. The Customs Act sections do not empower notification of the FTP.

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