Foreign Trade Policy Compliances
Foreign Trade Policy (FTP) compliances form the framework through which India regulates and promotes its international trade. At Suvis Associates, we guide exporters and importers through the complexities of this policy, ensuring that businesses can fully utilize the opportunities it provides while maintaining strict adherence to regulatory requirements. The FTP, issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, is designed to promote exports, enhance competitiveness, and align India’s trade practices with global standards. For businesses, compliance with FTP is not only a matter of legal obligation but also a strategic advantage that can reduce costs and open new markets.
One of the central aspects of FTP compliance is the management of Advance Authorisation Scheme, which allows duty-free import of inputs that are physically incorporated in export products. By carefully planning imports under this scheme, businesses can save significant customs duties while ensuring timely fulfilment of export obligations. Equally important is the Export Promotion Capital Goods (EPCG) Scheme, which permits duty-free import of capital goods such as machinery, subject to an export commitment. Proper compliance with EPCG conditions requires maintaining detailed records of production, exports, and fulfilment of obligations — something that Suvis Associates supports with structured documentation and audit processes.
The DGFT has also introduced incentive schemes to make Indian exports globally competitive. Among them, the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme plays a crucial role by refunding embedded taxes and duties not refunded through other mechanisms. This ensures that Indian goods are exported at zero-rated status, in line with World Trade Organization (WTO) norms. Similarly, the earlier Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) had extended direct financial incentives for goods and services exporters, and many businesses continue to handle compliance in relation to pending claims under these programs.
In addition to duty remission and exemption schemes, FTP provides for various status holder certifications such as One Star, Two Star, up to Five Star Export Houses. These certifications recognize consistent exporters and grant them faster clearances, simplified procedures, and access to additional benefits. Compliance with the eligibility criteria for these certifications, including proper filing of returns and proof of export performance, is critical to maintaining the recognition and advantages it offers.
FTP compliances also extend to the correct use of Importer Exporter Code (IEC), e-BRC (Bank Realisation Certificates), e-Sanchit documentation, and submission of periodic returns to DGFT. Any lapses, such as non-fulfilment of export obligations or delayed filings, may attract penalties, debarment from future schemes, or even cancellation of authorisations. At Suvis Associates, we ensure that our clients remain ahead of deadlines, maintain proper records, and respond effectively to DGFT notices or audits.
By integrating compliance management with strategic planning, Suvis Associates enables businesses to treat FTP not as a burden but as a powerful tool for growth. Through correct utilisation of schemes like Advance Authorisation, EPCG, RoDTEP, MEIS, SEIS, and various subsidy-linked programs, Indian exporters can achieve cost competitiveness, expand their market reach, and sustain long-term growth. Our role is to simplify this complex landscape, ensuring that our clients’ trade activities are legally sound, financially optimized, and fully aligned with the objectives of India’s Foreign Trade Policy.