Background
India’s Foreign Trade Policy (FTP) 2023, effective from April 1, 2023, supersedes the FTP 2015–20, which had been extended due to the COVID-19 pandemic and global uncertainties. The FTP 2023 aims to transform India into a global trading powerhouse by focusing on export promotion, ease of doing business, and integration into global value chains.
Applicability
The FTP 2023 applies to all exporters and importers in India, encompassing various sectors including:
Compliance requirements under the Policy
A Free Sale and Commerce Certificate is a certificate issued for export of any item which is not restricted or prohibited for export confirming that the product is freely sold in the country but without any indication that the product is evaluated for safety and efficacy and is registered for use in the country. It gives an assurance from a foreign agency that the products listed on the certificate are freely sold and manufactured in the country seeking to export a particular item.
The Free Sale and Commerce Certificate issued shall be valid for a period of 2 years from the date of issuance.
Registration-Cum Membership Certificate (RCMC) is a certificate that validates an exporter dealing with products registered with an agency / organization that are authorised by the Indian Government. The certificate is issued for five financial years by the Export Promotion Councils (EPCs) / Commodity board / Development authority or other competent authority in India. Registration-cum-Membership Certificate (RCMC) is required for exporters in order to avail benefits under the policy. Holding the certificate can also help exporters in availing benefits with respect to customs and excise.
Effective from the 23rd of October 2024, exporters seeking benefits under the Remission of Duties and Taxes on Exported Products (RODTEP) scheme must submit their ARR via the DGFT portal by March 31 of the following financial year.
ARR to include records of actual taxes and duties incurred during the financial year, and all supporting documentation must be retained for five years.
Penalties & Punishments:
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