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June 2024Q. 4(b)5 marksSyllabus 2022
(b)What is the meaning of “Deemed Exports” for the purpose of Foreign Trade Policy (FTP) and Goods and Service Tax (GST). What are the benefits for Deemed Exports ?
Deemed Exports for the purposed of foreign Trade Policy (FTP) and Good and Services Tax (GST)
are given below:
•“Deemed Exports” for the purpose of this FTP refer to those transactions in which goods supplied do not leave country, and payment for such supplies is received either in Indian rupees or in free foreign exchange. Supply of goods as specified in Foreign Trade Policy shall be regarded as “Deemed Exports” provided goods are manufactured in India.
•“Deemed Exports” for the purpose of Goods and Service Tax would include only the supplies notified under Section 147 of the CGST/SGST Act, 2017 on the recommendations of the GST Council. The benefits of GST and conditions applicable for such benefits would be as specified by the GST Council and as per relevant rules and notification.
Benefits for Deemed Exports are as follow:
Deemed exports shall be eligible for any/all of following benefits, in respect of manufacture and supply of goods, qualifying as deemed exports, subject to terms and conditions as given in Hand Book & Procedure and ANF-7A:
(a)Advance Authorisation/Advance Authorisation for annual requirement/ DFIA.
(b)Deemed Export Drawback for BCD (Basic Custom Duty).
(c)Refund of terminal excise duty for excisable goods.
Source: ICSI Guideline Answers, June 2024, Q. 4(b) (Syllabus 2022).
December 2025Q. 4A(iii)5 marksSyllabus 2022OR, alternative to Q. 4
(iii)What are the mandatory documents required for export/import of goods from/into India as per India’s Foreign Trade Policy and Procedure ?
Mandatory documents for export/ import of goods from/into India are as under:
a.Mandatory documents required for export of goods from India:
i.Bill of Lading/ Airway Bill/ Lorry Receipt/ Railway Receipt/Postal Receipt ii. Commercial Invoice cum Packing List iii. Shipping Bill/Bill of Export/ Postal Bill of Export b. Mandatory documents required for import of goods into India i. Bill of Lading/Airway Bill/Lorry Receipt/ Railway Receipt/Postal Receipt in form CN-22 or CN 23 as the case may be.
ii.Commercial Invoice cum Packing List iii. Bill of Entry c. For export or import of specific goods or category of goods, which are subject to any restrictions/ policy conditions or require NOC or product specific compliances under any statute, the regulatory authority concerned may notify additional documents for purposes of export or import.
d.In specific cases of export or import, the regulatory authority concerned may electronically or in writing seek additional documents or information, as deemed necessary to ensure legal compliance.
PART–II
Source: ICSI Guideline Answers, December 2025, Q. 4A(iii) (Syllabus 2022).
December 2024Q. 4(b)5 marksSyllabus 2022
(b)What are the Key highlights of Foreign Trade Policy, 2023 ?
Key Highlights of Foreign Trade Policy, 2023 are:
Process Re-Engineering and Automation Towns of Export Excellence Recognition of Exporters Promoting export from the districts Streamlining SCOMET Policy Facilitating E-Commerce Exports Facilitating under Export Promotion of Capital Goods (EPCG) Scheme Facilitating under Advance authorization Scheme Merchanting trade Amnesty Scheme
Source: ICSI Guideline Answers, December 2024, Q. 4(b) (Syllabus 2022).
June 2026Q. 3(a)5 marksSyllabus 2022
(a)Arvind Mehra, an Indian exporter of readymade garments, returns to India from Italy after attending an international trade fair. While returning, he carries in his passenger baggage certain items including :
•Imported price tags, designer labels and embellishments required for his export orders.
•Two prototype fashion accessories purchased abroad for product development as he is actual user.
•A restricted electronic gadget as a gift for his cousin in India.
At the Customs counter, he claims that since all goods are part of his passenger baggage and some are for business purposes, no authorisation is required under the Foreign Trade Policy (FTP). In the above circumstances, examine whether Arvind Mehra can import all the above items without authrorisation under the Foreign Trade Policy provisions.
•Price tags, designer labels and embellishments Under the Foreign Trade Policy, Exporters coming from abroad are allowed to import drawings, patterns, labels, price tags, buttons, belts, trimming and embellishments required for export, as part of their passenger baggage, without an authorization subject to value limit as laid down in FTP or as per the relevant Customs notification(s) in this regard.
In the present case, Arvind Mehra is an exporter of readymade garments and the imported price tags, designer labels and embellishments are required for fulfilling export orders. Therefore, their import as passenger baggage without Authorisation is permissible, subject to compliance with value limits and Baggage Rules.
•Prototype fashion accessories Import of new / second hand prototypes / second hand samples may be allowed on payment of duty without an Authorisation to an Actual User (industrial) engaged in production of or having industrial license / letter of intent for research in item for which prototype is sought for product development or research, as the case may be, upon a self-declaration to that effect, to the satisfaction of Customs authorities.
Arvind Mehra is an Actual User (Industrial) engaged in manufacturing garments and imports the prototypes for product development in his own unit, the import may be allowed without Authorisation upon self-declaration and payment of duty.
•Restricted electronic gadget as a gift The FTP clearly states that any item whose import policy is “restricted” is not permitted as part of passenger baggage without a valid Authorisation issued by DGFT.
Since the electronic gadget is a restricted item, it cannot be imported as passenger baggage without Authorisation, even if intended as a gift. Therefore, Arvind Mehra cannot import the restricted electronic gadget without obtaining a valid Authorisation.
Source: ICSI Guideline Answers, June 2026, Q. 3(a) (Syllabus 2022).
June 2025Q. 4A(iii)5 marksSyllabus 2022OR, alternative to Q. 4
(iii)State the objectives of the National Committee on Trade Facilitation (NCTF). How does the National Trade Facilitation Action Plan aim to achieve these objectives under the Foreign Trade Policy, 2023 ?
India has ratified the World Trade Organization’s Trade Facilitation Agreement (TFA) in April 2016.
To facilitate coordination and implementation of the TFA provisions, an inter-ministerial body i.e., National Committee on Trade Facilitation (NCTF) has been constituted. The aims to achieve the objects, NCTF has followed the four pillars of TFA as follows:
•Transparency: focus on improved access to accurate and complete information.
•Technology: development and use of digital and detection technologies to ease out trade bottlenecks and improve efficiency.
•Simplification: of procedures and Risk based Assessments. Simplified, uniform and harmonised procedures with increased adoption of a risk based management approach.
•Infrastructure Augmentation: enhancement of infrastructure, particularly the road and rail infrastructure leading to ports, and the infrastructure within ports, airports, ICDs, Land Customs Stations is a major enabler for growth in trade that cuts across all stakeholders.
National Trade Facilitation Action Plan aims to achieve: -
•Improvement in Ease of Doing Business through reduction in transaction cost and time
•Reduction in cargo release time
•A paperless regulatory environment
•A transparent and predictable legal regime
•Improved investment climate through better infrastructure.
(5 Marks)
PART-II
Source: ICSI Guideline Answers, June 2025, Q. 4A(iii) (Syllabus 2022).
December 2025Q. 3(a)5 marksSyllabus 2022
(a)Shyam is a successful exporter who has recently been awarded a Status Holder Certificate in recognition of his consistent contribution to India’s foreign trade. He now plans to participate in export promotion by sending product samples abroad free of cost. What customs and authorization related privileges can Shyam avail under the Foreign Trade Policy ?
A Status Holder shall be eligible for privileges as under:
(a)Self-Declaration: Authorisation and Customs Clearances for both imports and exports may be granted on self-declaration basis;
(b)Priority Norms Fixation: Input-Output norms may be fixed on priority within 60 days by the Norms Committee; Special scheme in respect of Input Output Norms to be notified by DGFT from time to time, for specified status holder;
(c)Bank Guarantee Exemption: Exemption from furnishing of Bank Guarantee for Schemes under FTP, unless specified otherwise anywhere in FTP or Hand Book of Procedure (HBP);
(d)Document Negotiation Exemption: Exemption from compulsory negotiation of documents through banks. Remittance/receipts, however, would be received through banking channels;
(e)Export Warehouses: Two star and above Export houses shall be permitted to establish Export Warehouses as per Department of Revenue guidelines;
(f)Preferential Treatment: The status holders would be entitled to preferential treatment and priority in handling of their consignments by the concerned agencies;
(g)Self-Certification of Origin: Manufacturers who are also status holders (Three Star/Four Star/ Five Star) will be enabled to self-certify their manufactured goods (as per their IEM/IL/LOI)
as originating from India with a view to qualify for preferential treatment under different preferential trading agreements (PTA), Free Trade Agreements (FTAs), Comprehensive Economic Cooperation Agreements (CECA) and Comprehensive Economic Partnership Agreements (CEPA). Subsequently, the scheme may be extended to remaining Status Holders. Manufacturer exporters who are also Status Holders shall be eligible to self-certify their goods as originating from India as per Para 2.93 (e) of Hand Book of Procedures.
(h)Free Export of Samples: Status holders shall be entitled to export freely exportable items (excluding Gems and Jewelry, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit of Rupees One Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower. For export of pharma products by pharmaceutical companies, the annual limit would be 2% of the average annual export realisation during preceding three licensing years. In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes, the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years. Such free of cost supplies shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme.
Source: ICSI Guideline Answers, December 2025, Q. 3(a) (Syllabus 2022).
December 2023Q. 4A(i)4 marksSyllabus 2022OR, alternative to Q. 4Law changed
Law changed after this attempt: The answer says status is based on export performance in the current and previous two financial years, requires performance in at least two out of three years, counts FOB earnings in free foreign exchange and cites the CBEC exchange rate. The FTP 2023 text in the supplement for the June 2024 exam (supp_2024-06, and repeated in later supplements) says the current and preceding three financial years count (two preceding years for Gems and Jewellery), performance is needed in all the three preceding financial years, earnings may be in freely convertible currency or Indian Rupees, and the rate is notified by CBIC. The star category thresholds (3, 15, 50, 200, 800 million USD) are unchanged. The answer below reflects the law as it stood for December 2023.
(i)Who is status holder under the Foreign Trade Policy and Procedure of India enumerated as per Foreign Trade Policy.
a.Status Holders are business leaders who have excelled in international trade and have successfully contributed to country's foreign trade, Status Holder are expected to not only contribute towards India's exports but also provide guidance and handholding to new entrepreneurs.
b.All exporters of goods, services and technology having an import-export code (IEC) number shall be eligible for recognition as a status holder. Status recognistion depends upon export performance. An applicant shall be categorized as status holder upon achieving export performance during current and previous two financial years, as indicated in Foreign Trade Policy.
The export performance will be counted on the basis of FOB value of export earnings in free foreign exchange.
c.For deemed export, for value of exports in Indian Rupees shall be converted in US$ at the exchange rate notified by CBEC, as applicable on 1st April of each Financial Year.
d.For granting status, export performance is necessary in at least two out of three years.
Status Category Export Performance (in US $ million)
One Star Export House (3)
Two Star Export House (15)
Three Star Export House (50)
Four Star Export House (200)
Five Star Export House (800)
Source: ICSI Guideline Answers, December 2023, Q. 4A(i) (Syllabus 2022).