- Export-Import free unless specifically regulated by the provisions of the Policy or any other law for the time being in force.
- There are Restrictions for Exports and Imports for various strategic, health, and other reasons. If the goods are not banned, the government can give a permission/license for specific reasons.
- Exports are promoted through various Promotional Schemes.
- There should be no taxes on exports and hence, the taxes are either exempted or adjusted or refunded on both outputs and inputs, through schemes of Duty Exemption, Duty Refund (Drawbacks and Rebates).
- Even Capital Goods can be imported at NIL duty for the purpose of exports under the scheme of EPCG.
- For units undertaking to export all their production, there are special schemes so that they can avoid taxes at every stage under the scheme of EOU.
- In certain cases imports get duty exemption/concession for certain special purposes. In such cases, to enable domestic suppliers compete with the international suppliers, their supplies are treated as Deemed Exports.
- Policy for import/export for each item available as per ITC HS: published and notified by DGFT.
Foreign Trade Policy is formulated by DGFT , but is administered in close coordination with other agencies. Important authorities dealing with FTP are:
- Director General Foreign Trade: (http://dgft.gov.in/) DGFT is the nodal body formulating the Export Import Policy. It works under the Ministry of Commerce. DGFT has several offices in various parts of the country which issues licenses, incentives etc based on the policy formed by the headquarters at Delhi.
- Customs: (http://www.cbec.gov.in/): Customs are responsible for clearance of export and import goods after their valuation and examination. Customs follow the policy formed by the DGFT while clearing the goods. Customs works under the Ministry of Finance.
- GST: (http://www.cbec.gov.in/): Since there is a GST on almost all the manufactured products, GST authorities need to be involved for all matters of exports, where goods have to be cleared without duty. GST authority works as Customs Departments at various required places, and has a crucial role in the procedural aspects. They work under Ministry of Finance.
- Reserve Bank of India (RBI): (https://www.rbi.org.in/): RBI is the nodal bank in the country which formulates all the policy related to management of money, including payments and receipts of foreign exchange. It also monitors the receipt and payments for exports and imports. RBI works under the Ministry of Finance.