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CA Final · Indirect Tax Laws · Foreign Trade Policy

The DGFT proposes to amend certain provisions of the Foreign Trade Policy and is considering consulting exporters. Which statement is consistent with Paragraph 1.07(A) of FTP 2023 on consultation with stakeholders?

Under Paragraph 1.07(A), the Central Government may seek views from stakeholders such as importers, exporters and industry experts, and to the extent possible allow 30 days. However, it reserves the right to formulate or amend provisions suo moto without consultation, so consultation is not mandatory.

  1. AConsultation is mandatory for every amendment, with a fixed period of 90 days
  2. BThe Central Government may seek stakeholders' views, ordinarily giving about 30 days where possible, but may amend suo moto without seeking viewsCorrect
  3. COnly industry associations, not individual importers or exporters, may be consulted
  4. DAmendments become valid only if a majority of stakeholders approve them

Explanation

Paragraph 1.07(A) says the Government may seek views from importers, exporters and industry experts when it deems reasonable, and to the extent possible 30 days may be provided. It also reserves the right to formulate or amend provisions suo moto without seeking views. Hence mandatory consultation or stakeholder approval is not required.

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