FTP | Foreign Trade Policy | IEC | RCMC | Trade Agreements | CA Final, C...

The objective of foreign trade policy is to accelerate exports. The focus is to increase export of quality products. FTP is administered by DGFT whic comes under Ministry of Commerce and Industry. No export and import can takes place without import export code which is also called IEC which is based on PAN. Your PAN is your IEC but need to be applied online in dgft.gov.in. e IEC shall be issued online only. Registeration cum membership certificate also called RCMC is obtained from a export promotion council. EPC is to be selected on the basis of main line of product in which applicant is dealing in. If there is no product based EPC then RCMC can be obtained from FIEO. RCMC is mandatory for obtaining authorisation. Authorisation is permission to import and export of restricted goods and also export of SCOMET goods. Trade agreements are entered between single countries or with a group of countries. Trade agreements can be in the area of tariif or non tariff. Almost all old trade agreement are not beneficial for India therefore re-negotiations are being done. Trade agreements also called preferential trade agreements where on the basis of country of origin less custom duties may be charged.