Skip to content

CA Final · Indirect Tax Laws · Foreign Trade Policy

Vistara Handicrafts Pvt Ltd, Jaipur, wants to know the legal basis of the Foreign Trade Policy 2023 that governs its exports. Under which provision is the Foreign Trade Policy formulated and announced by the Central Government?

The Foreign Trade Policy is formulated and announced by the Central Government through a notification in the Official Gazette, under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992. It can be amended in the same manner, so no fresh Act of Parliament is needed.

  1. ABy notification in the Official Gazette under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992Correct
  2. BBy an Act of Parliament passed afresh every five years
  3. CBy a Customs Board circular issued under the Customs Act, 1962
  4. DBy a resolution of the GST Council under the CGST Act, 2017

Explanation

The FTP 2023 is notified by the Central Government in exercise of powers under Section 5 of the FT(D&R) Act, 1992, which allows it to formulate and announce the policy by notification in the Official Gazette and to amend it likewise. The other options name bodies or instruments that have no such role.

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