What is FTP or Foreign Trade Policy and ITC ( HS ) ?
What is FTP or Foreign Trade Policy ?
The F.T.P is published in 3 parts
(i) The Policy Document.
(ii) Hand Book Of Procedures
(iii) ITC (H.S) Classification.
The first part contains the basic policy in a broad sense with objectives, strategies to achieve those objectives and a brief review of the last policy.
The second part is handbook of procedures which contains the detailed procedures for implementing the policy.
The third part is ITC (HS) classification of goods of import and export.
The current policy is called FTP 2015-2020
What is ITC (H.S) classification ?
ITC stands for India Trade Classification and H.S stands for harmonized
system. In other words, it is India Trade Classification (based on) harmonized system of coding adopted in India for goods imported or exported through customs.
Customs department uses the coding system for goods. In India we use eight digit system of coding for goods.All goods for international trade are given section wise. There are 21 sections.For example, Section 1 contains Animals & Animal products; Section 2 vegetable products. These sections are further divided into chapters. These chapters contain goods with H.S. codes, description, export/import policy for the goods and type of restriction. Separate schedules are given for imported and export goods. Schedule 1 contains the lists of imported goods and schedule 2 has export goods. Status of goods will be denoted by specific alphabet in the schedules. As per the policy of the government, goods are categorized as follows :
1. Free Goods: Alphabet ‘F’ is used for this. These goods are allowed to be imported/ exported as the case may be freely without any license or authorization from DGFT.
2. Prohibited Goods: (P is used) these can not be imported at all.
3. Restricted Goods: (R): These ‘R’ category goods can be imported only with license / authorization.
4. State Trading Goods (S or STE) : These goods can be exported or imported only by or through state trading enterprises. (STEs) such as MMTC/ Indian Oil Corporation etc. If an importer or exporter still wants to deal directly, he has to get permission/authorization from DGFT.