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CA Final · Indirect Tax Laws · Foreign Trade Policy

The Central Government proposes to amend a provision of FTP 2023 relating to export obligations. Some industry associations ask that no change be made without first inviting their comments. Which statement is correct as per FTP 2023?

Stakeholder consultation is discretionary. The Government may seek views from importers, exporters and experts, to the extent possible allowing 30 days, but it reserves the right to formulate or amend any provision suo moto without seeking views. Consultation is neither mandatory nor a precondition for amendment.

  1. AThe Government must always seek stakeholder views and must give exactly 30 days before any amendment
  2. BThe Government may seek views of stakeholders, ordinarily allowing about 30 days, but reserves the right to amend suo moto without seeking viewsCorrect
  3. CThe Government may amend the Policy only after approval from the stakeholders concerned
  4. DThe Government can seek stakeholder views only for a fresh Policy and never for an amendment

Explanation

Paragraph 1.07(A) says the Government may, when it deems reasonable, seek views and, to the extent possible, give 30 days. It expressly reserves the right to formulate or amend suo moto. So consultation is discretionary, not mandatory; the option requiring mandatory 30 days is wrong.

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