Foreign Trade Policy 2023 and Its Impact on Indian Exports

The Foreign Trade Policy 2023 (FTP 2023-28) introduced by the Indian government marks a significant step toward strengthening India’s export ecosystem and improving ease of doing business. Designed with a long-term vision, the policy focuses on export growth, trade facilitation, digitisation, and reduction of compliance burdens for exporters.

One of the most notable and exporter-friendly measures under Foreign Trade Policy 2023 is the introduction of a special one-time Amnesty Scheme aimed at resolving long-pending export obligation defaults under EPCG and Advance Authorizations.

What Is the Amnesty Scheme Under Foreign Trade Policy 2023?

According to the Directorate General of Foreign Trade (DGFT), the Amnesty Scheme under the Foreign Trade Policy 2023 allows exporters to regularise pending export obligation defaults under EPCG and Advance Authorization through a one-time compliance window.

Under the Foreign Trade Policy 2023, the Amnesty Scheme is a one-time opportunity provided to exporters who were unable to fulfil their export obligations due to genuine business challenges such as global slowdown, supply chain disruptions, or market volatility.

Export Promotion Capital Goods (EPCG) and Advance Authorization schemes allow duty-free imports subject to export commitments. However, failure to meet these obligations often results in heavy customs duties, interest, penalties, and prolonged litigation.

The Amnesty Scheme under Foreign Trade Policy 2023 provides relief by allowing exporters to regularise such defaults by paying proportionate exempted duties.

Amnesty Scheme for EPCG and Advance Authorization Defaults

Under this scheme:

• Exporters can regularise all pending EO default cases

• Duties are payable proportionate to unfulfilled export obligation

• Interest is capped at 100% of exempted duties

• Additional Customs Duty and Special Additional Customs Duty are exempt from interest

• Litigation and enforcement actions are avoided

This structure significantly reduces the financial burden on exporters while offering legal certainty.

Key Benefits of the Amnesty Scheme Under Foreign Trade Policy 2023

The Amnesty Scheme offers multiple advantages:

• Reduced interest liability, easing financial stress

• Closure of long-pending cases, improving compliance records

• Improved liquidity for exporters

• Encouragement for business revival and export growth

• Lower litigation and administrative costs

By addressing legacy issues, Foreign Trade Policy 2023 enables exporters to restart operations with confidence.

How the Amnesty Scheme Aligns With “Vivaad se Vishwas”

The Amnesty Scheme under Foreign Trade Policy 2023 aligns with the government’s broader philosophy of “Vivaad se Vishwas”, which focuses on dispute resolution through trust-based mechanisms rather than prolonged litigation.

The intent is to transform the relationship between exporters and authorities from enforcement-driven to facilitative, ensuring smoother trade operations.

Why Exporters Should Act Now Under Foreign Trade Policy 2023

Since this is a one-time amnesty, exporters with unresolved EPCG or Advance Authorization defaults should act promptly. Delaying may result in loss of benefits and revival of full penalties, interest, and legal action.

The Foreign Trade Policy 2023 Amnesty Scheme is not just a compliance window—it is an opportunity to reset, rebuild, and grow exports in a more stable regulatory environment.

FAQs – Foreign Trade Policy 2023 Amnesty Scheme

1. What is Foreign Trade Policy 2023?

Foreign Trade Policy 2023 is India’s five-year trade framework (2023–28) aimed at boosting exports, simplifying trade procedures, reducing litigation, and promoting ease of doing business through trust-based reforms.

2. What is the Amnesty Scheme under Foreign Trade Policy 2023?

The Amnesty Scheme under Foreign Trade Policy 2023 is a one-time compliance relief measure that allows exporters to regularise export obligation defaults under EPCG and Advance Authorization by paying proportionate duties with capped interest.

3. How is the Amnesty Scheme under Foreign Trade Policy 2023 linked to “Vivaad se Vishwaas”?

The Amnesty Scheme reflects the government’s “Vivaad se Vishwaas” approach by encouraging voluntary compliance instead of prolonged litigation. Under Foreign Trade Policy 2023, exporters are given a fair opportunity to settle disputes amicably, reduce legal conflicts, and rebuild trust with authorities.

4. Who is eligible for the Amnesty Scheme in the Foreign Trade Policy 2023?

Exporters who have pending or unresolved export obligation defaults under:

• Export Promotion Capital Goods (EPCG), or

• Advance Authorization

are eligible to apply under the Foreign Trade Policy 2023 Amnesty Scheme.

5. What payments are required under the Amnesty Scheme?

Under Foreign Trade Policy 2023, exporters must pay:

• Customs duties proportionate to the unfulfilled export obligation

• Interest capped at 100% of the exempted duty

In line with the Vivaad se Vishwaas philosophy, no interest is payable on Additional Customs Duty and Special Additional Customs Duty, reducing financial stress.

6. How does Vivaad se Vishwaas benefit exporters under Foreign Trade Policy 2023?

The Vivaad se Vishwaas approach under Foreign Trade Policy 2023 helps exporters by:

• Avoiding lengthy court cases

• Reducing financial uncertainty

• Enabling faster case closure

• Promoting a cooperative, trust-based trade environment

This allows exporters to focus on business growth rather than disputes.

7. Is the Amnesty Scheme under Foreign Trade Policy 2023 a one-time opportunity?

Yes. The Amnesty Scheme under Foreign Trade Policy 2023 is a one-time measure, consistent with the Vivaad se Vishwaas principle of resolving legacy disputes and moving forward without recurring litigation.

8. Why should exporters act quickly under Foreign Trade Policy 2023?

Exporters should act promptly because once the amnesty window closes, the Vivaad se Vishwaas–based relief will no longer be available, and regular enforcement actions, penalties, and interest may apply.