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CA Final · Indirect Tax Laws · Foreign Trade Policy

Veda Exports Pvt Ltd, Surat, claims that a clause in a DGFT trade notice conflicts with the Foreign Trade Policy 2023 and that the Policy itself has no statutory basis. Under the provisions given, on what authority is the Foreign Trade Policy 2023 notified?

The Foreign Trade Policy 2023 is notified by the Central Government in exercise of powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992. It is not issued by the RBI, the GST Council or CBIC.

  1. ACentral Government, exercising powers under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992Correct
  2. BThe Reserve Bank of India, under the Foreign Exchange Management Act
  3. CThe GST Council, under the Central GST Act
  4. DThe Central Board of Indirect Taxes and Customs, under the Customs Act, 1962

Explanation

The Policy states that FTP 2023 is notified by the Central Government in exercise of powers under Section 5 of the FT(D&R) Act, 1992. The other bodies named have no role in notifying the Policy, so they are wrong.

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