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CA Final · Indirect Tax Laws · Foreign Trade Policy

The Central Government proposes to insert a new provision in the Foreign Trade Policy and invites views from importers, exporters and industry experts. Hindustan Gears Ltd asks what the policy says about the consultation process. Which is correct under Para 1.07(A) of FTP 2023?

Under Para 1.07(A), the Central Government may seek views from stakeholders, including importers, exporters and industry experts, and to the extent possible allows 30 days. Consultation is discretionary, and the Government reserves the right to formulate or amend provisions suo moto without seeking views.

  1. AThe Government must always seek stakeholder comments and give exactly 30 days before any amendment
  2. BThe Government may seek stakeholder views, ordinarily allowing about 30 days where possible, but may also amend suo moto without consultationCorrect
  3. CThe Government can never amend the Policy without Parliament's approval after consultation
  4. DConsultation is allowed only with exporters and not importers or industry experts

Explanation

Para 1.07(A) says the Government may seek views when it deems reasonable, and to the extent possible provide 30 days. It also reserves the right to formulate or amend suo moto without seeking views. The first option wrongly makes consultation mandatory.

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