The Institute of Chartered Accountants of India (ICAI), in partnership with the GST & Indirect Taxes Committee, has released the revised edition of the “Handbook on Foreign Trade Policy – Incentives, Schemes & Related FAQs”, capturing the latest amendments and policy updates made up to 31st October 2025. The publication provides comprehensive guidance on India’s evolving Foreign Trade Policy (FTP) 2023, which aims to promote exports, enhance ease of doing business, and strengthen India’s global trade competitiveness.
FTP 2023 – A Dynamic, Open-ended Policy Framework
The FTP 2023, which came into force on 1st April 2023, continues to operate as a dynamic, open-ended policy designed to respond to emerging economic needs and global trade developments. Key objectives include:
- Promotion of export growth through remission-based incentives
- Reduction of transaction costs
- Digital facilitation & paperless processing
- Enhanced collaboration with industry stakeholders
- Focus on emerging areas such as e-commerce and district-level export hubs
Major Highlights Included in the Updated Handbook
The updated publication documents significant reforms and enhancements under FTP 2023, including:
- Digital Ease-of-Doing Business Reforms
- Online approvals with no physical interface
- Automatic approval for self-certified Certificates of Origin
- Paperless filing of Export Obligation Discharge Certificates (EODC)
- Boost to Export Excellence & MSMEs
- Addition of four new Towns of Export Excellence (TEEs)
- Reduced user charges for MSMEs under Advance Authorization (AA) and EPCG
(For example, AA licensing fee for value up to ₹1 crore is reduced to ₹100)
- Enhanced Thresholds under the Status Holder Scheme
Revised export performance requirements:
- Three Star reduced from USD 100 million to USD 50 million
- Four Star reduced from USD 500 million to USD 200 million
- Five Star reduced from USD 2000 million to USD 800 million
- Strengthening Export Promotion Schemes
The Handbook covers detailed procedures, benefits, and recent amendments relating to:
- Advance Authorization & DFIA – duty-free import of inputs
- EPCG Scheme – duty-free import of capital goods
- RoDTEP & Duty Drawback – remission of unrefunded taxes
- Interest Equalisation Scheme, Market Access Initiative (MAI)
- Export Oriented Units (EOUs) and SCOMET regulations
New Policy Focus Areas Added in the 2025 Edition
The revised edition introduces new chapters aligned with Government priorities:
- Promoting Cross-Border Trade in the Digital Economy
- Developing Districts as Export Hubs (DDEH)
- MOOWR Scheme for warehousing-based duty deferment
ICAI Leadership Commends the Release
In his foreword, ICAI’s President emphasized that a robust Foreign Trade Policy is essential to drive India’s export ecosystem and ensure sustainable economic growth. He congratulated the Committee for producing a valuable and timely resource for professionals and industry stakeholders.
The GST & Indirect Taxes Committee highlighted that the 2025 edition reflects latest procedural reforms, enhanced clarity on operational issues, and updated FAQs addressing exporter concerns. The Committee acknowledged contributions from domain experts and encouraged continued stakeholder feedback.
Significance of the Publication
The updated Handbook serves as a single-window reference for exporters, MSMEs, consultants, and policymakers, offering:
- Practical guidance on documentation, compliance, and scheme benefits
- Clarifications on policy conditions such as QCO exemptions, actual user provisions, and EO fulfilment rules
- Step-by-step process flows (e.g., for AA and EPCG applications)
Conclusion
The revised 2025 edition of the FTP Handbook is expected to significantly strengthen exporters’ awareness, operational efficiency, and compliance readiness, thereby contributing to India’s vision of becoming a global export powerhouse.
The Handbook can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/12/Handbook-on-Foreign-Trade-Policy-Incentives-Schemes-Related-FAQs-Nov-2nd-2025-Edition.pdf
