The Directorate General of Foreign Trade (DGFT) regularly updates its Foreign Trade Policy (FTP) to align with India's evolving trade landscape. The latest FTP 2023-28 introduced several game-changing provisions that every Indian exporter must understand. Here's a comprehensive breakdown of the key policies.

Foreign Trade Policy 2023-28: Key Highlights

The FTP 2023-28, announced on March 31, 2023, shifted from a traditional 5-year fixed policy to a dynamic and responsive framework that can be updated based on evolving global conditions. Key objectives include:

• Achieving $2 trillion in exports by 2030
• Making India a global manufacturing and services hub
• Simplifying trade processes through digitization
• Promoting e-commerce exports and MSMEs

Major Policy Changes

1. Towns of Export Excellence (TEE)

The threshold for recognizing Towns of Export Excellence has been reduced from Rs 750 crore to Rs 150 crore for MSME-dominated towns. This makes it easier for smaller manufacturing clusters to get TEE status and access benefits like priority customs processing and export infrastructure support.

2. Status Holder Benefits

Exporters achieving specified export thresholds are recognized as Status Holders, offering privileges like:

• One Star (Rs 10 crore+): Self-certification of origin, priority customs clearance
• Two Star (Rs 50 crore+): Additional benefits including enhanced bank limits
• Three Star (Rs 200 crore+): VIP treatment at ports, dedicated customs officers
• Four Star (Rs 800 crore+): Premium benefits including input-output norm flexibility
• Five Star (Rs 1500 crore+): Highest privileges in the trade ecosystem

3. Advance Authorization Scheme

The Advance Authorization scheme allows duty-free import of inputs required for export production. Key updates include:

• Extended validity period from 12 months to 18 months
• Online application and tracking through DGFT portal
• Self-ratification facility for Status Holders
• SION (Standard Input Output Norms) updates for new product categories

4. E-Commerce Export Promotion

Recognizing the growing role of e-commerce, the new FTP includes dedicated provisions:

• E-commerce exports up to Rs 10 lakh per consignment allowed through courier
• Returns handling simplified for e-commerce exporters
• Integration with platforms like Amazon Global Selling and eBay for seamless export
• Dedicated e-commerce export hubs being set up at major airports

5. RoDTEP (Remission of Duties and Taxes)

The RoDTEP scheme has been extended and expanded with revised rates for over 10,000 tariff lines. Key points:

• Rates range from 0.3% to 4.3% of FOB value depending on product category
• Scrip-free mechanism with direct bank credit
• Claims processed through automated ICEGATE system
• Applicable to all goods exported except those specifically excluded

"The new FTP is designed to be a living document that evolves with global trade dynamics. Exporters who stay updated and leverage these policies will have a significant competitive advantage."

6. Districts as Export Hubs (DEH)

Every district in India is being developed as a potential export hub under this initiative. Each district identifies its exportable products and develops infrastructure accordingly. Over 700 districts have already prepared their export plans.

7. Amnesty Scheme

The DGFT introduced a one-time amnesty scheme for exporters who failed to meet export obligations under older schemes. This allows regularization of past defaults by paying reduced penalties, providing a clean slate for businesses.

How to Stay Compliant

To ensure you're always compliant with the latest DGFT regulations:

• Regularly check the DGFT portal for trade notices and public notices
• Subscribe to DGFT email notifications
• Join your sector's Export Promotion Council
• Work with a reliable trade partner like BharatkartX who keeps up with policy changes

BharatkartX's compliance team stays on top of every DGFT update and ensures your exports always meet the latest regulatory requirements. We help you claim all eligible benefits and incentives to maximize your profitability.

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