What Are the Key Foreign Trade Policy 2023 Changes for Small Exporters?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
- Published:
- Last modified:
Short answer
The Foreign Trade Policy 2023 took effect on 1 April 2023 with no fixed end date. For small exporters, it added an e-commerce exports chapter, raised the courier limit to ₹10 lakh, offered a one-time amnesty for export obligation defaults and lowered status holder thresholds. The courier cap was later removed from 1 April 2026.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Every Indian exporter and importer of goods, services and technology, including small e-commerce sellers, holders of Advance and EPCG authorisations, and firms seeking status holder recognition | Foreign Trade Policy 2023, issued under Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, with the Handbook of Procedures 2023. Payment and realisation rules come from RBI under FEMA, now the FEMA (Export and Import of Goods and Services) Regulations, 2026 | Amnesty registration closed on 31 December 2023 and duty payment on 31 March 2024. Export proceeds must still be realised within RBI's period, nine months for most exports | Unrealised export proceeds mean returning all FTP benefits availed on those exports, plus action under the FT (D&R) Act (FTP para 2.54) | 8 Oct 2026 |
What changed for small exporters in the Foreign Trade Policy 2023?
The Foreign Trade Policy 2023 changed four things that matter most to small exporters: e-commerce exports, the amnesty for old defaults, status holder thresholds and rupee trade. The policy came into force on 1 April 2023 and continues until amended (FTP 2023, para 1.01).
- No end date: FTP 2015-20 was set to end on 31 March 2020 and was extended to 31 March 2023 (DGFT presentation, slide 9). FTP 2023 stays in operation unless otherwise specified or amended, and the Government amends it by notification (FTP 2023, paras 1.01 and 1.02; PIB, 31 March 2023).
- E-commerce: A new Chapter 9 defines e-commerce exports of goods and services, sets up E-Commerce Export Hubs and plans Dak Ghar Niryat Kendras for postal exports (FTP 2023, Chapter 9).
- Courier limit: The value cap per courier export consignment rose from ₹5 lakh to ₹10 lakh in 2023 (DGFT presentation on FTP 2023). The cap was removed completely from 1 April 2026 (PIB, 31 March 2026).
- Amnesty: A one-time scheme let Advance and EPCG authorisation holders close export obligation defaults by paying the exempted duty with interest capped at 100% of that duty (PIB, 31 March 2023). The scheme has closed.
- Status holders: Thresholds for Two Star to Five Star Export House status were cut sharply, while One Star stayed at USD 3 million (FTP 2023, para 1.26).
- Rupee trade: Exports invoiced and settled in INR through Special Rupee Vostro Accounts can claim FTP benefits and count toward export obligations (FTP 2023, paras 2.52(d) and 2.53).
FTP 2023 sets DGFT rules on who can export and which benefits apply. RBI rules under FEMA still decide how and when export money must reach India, so a small exporter follows both. See what DGFT is and recent RBI and DGFT changes.
Who do the Foreign Trade Policy 2023 changes apply to?
The Foreign Trade Policy 2023 changes apply to anyone exporting or importing goods, services or technology from India. Each change targets a different group, from small courier sellers to holders of old duty-free import authorisations (FTP 2023, Chapter 1).
| Entity type | Applicable | Why | Best for |
|---|---|---|---|
| Small seller shipping by courier or post | Yes | Chapter 9 covers e-commerce exports, courier exports and Dak Ghar Niryat Kendras (FTP 2023, paras 9.01 to 9.12) | Marketplace and website sellers. See ecommerce export rules |
| Seller of services through an online platform | Yes | Para 9.02 defines e-commerce exports of services sold through an e-commerce platform and paid through RBI-approved electronic channels (FTP 2023) | Freelancers and digital product sellers |
| Holder of an old Advance or EPCG authorisation in default | Was eligible, now closed | The amnesty covered authorisations issued from 27 August 2009 to 31 March 2015, and older ones whose obligation period ran beyond 12 August 2013 (PIB, 9 June 2023) | Manufacturers with pending export obligation cases. See EPCG scheme |
| Exporter with an IEC and steady export history | Yes | Any IEC holder exporting goods, services or technology can be recognised as a status holder on export performance (FTP 2023, para 1.25(b)) | Growing exporters. See DGFT status holder |
| Micro or small enterprise | Yes | MSE exports get double weightage for One Star status (FTP 2023, para 1.27); Advance and EPCG application fees were cut for MSMEs (DGFT presentation) | Small manufacturers near the USD 3 million mark |
| Indian intermediary in merchanting trade | Yes | Merchanting trade is allowed subject to RBI guidelines, except CITES and SCOMET items (FTP 2023, para 2.39) | Traders buying abroad and selling abroad. See merchanting trade |
How do the main Foreign Trade Policy 2023 changes work in practice?
The main Foreign Trade Policy 2023 changes work through DGFT's online systems and customs rules. E-commerce and courier changes apply at shipment, and status holder recognition is granted by DGFT's IT system (PIB, 9 October 2023). The amnesty ran through registration on the DGFT portal (PIB, 9 June 2023).
How does the Foreign Trade Policy 2023 treat e-commerce exports?
The Foreign Trade Policy 2023 treats e-commerce exports as goods or services sold online through an e-commerce platform and paid through international cards or other electronic channels that RBI authorises (FTP 2023, paras 9.01 to 9.03).
- Courier and Foreign Post Office exports are allowed under customs notifications, and exportability still follows the ITC(HS) export policy (para 9.05).
- E-Commerce Export Hubs are set up mainly through private initiative and may offer storage, packaging, labelling, certification and testing (paras 9.09 and 9.10).
- Dak Ghar Niryat Kendras work in a hub-and-spoke model with Foreign Post Offices to reach artisans, weavers and MSMEs in the hinterland (para 9.12).
- DGFT's Niryat Bandhu Scheme includes outreach and training on e-commerce exports (para 9.07).
How did the courier export value limit change after the Foreign Trade Policy 2023?
The courier export value limit rose from ₹5 lakh to ₹10 lakh per consignment in FTP 2023, and the policy said the cap could later be revised or removed (PIB, 31 March 2023). CBIC removed the ₹10 lakh cap for commercial courier exports from 1 April 2026 (PIB, 31 March 2026).
- CBIC amended the courier regulations through Notifications 33/2026-Customs (N.T.) and 34/2026-Customs (N.T.), and explained the changes in Circular No. 17/2026-Customs.
- For example, a seller who earlier split a ₹14 lakh order into two parcels to stay under the cap can now send it as one courier consignment.
How did the Foreign Trade Policy 2023 amnesty scheme work?
The Foreign Trade Policy 2023 amnesty scheme let holders of defaulted Advance and EPCG authorisations register on the DGFT portal and pay the exempted customs duty in proportion to the unfulfilled export obligation. Interest was capped at 100% of that duty (PIB, 9 June 2023).
- No interest was payable on the Additional Customs Duty and Special Additional Customs Duty portions, and any penalty in an adjudicated case was waived.
- The scheme was notified by Public Notice No. 2/2023 dated 1 April 2023 and amended by Public Notice No. 7/2023 dated 18 April 2023.
- Public Notice No. 20/2023 extended registration to 31 December 2023 and duty payment to 31 March 2024 (DGFT PN 20/2023).
How is status holder recognition granted under the Foreign Trade Policy 2023?
Status holder recognition under the Foreign Trade Policy 2023 is granted on export performance in the current and preceding three financial years (FTP 2023, para 1.25). Since October 2023, DGFT's IT system issues certificates automatically each August using DGCIS export data (PIB, 9 October 2023).
- Exporters eligible for a higher status because of services exports, deemed exports or double weightage can apply online for a modification.
- Export performance is needed in all three preceding financial years, or two for gems and jewellery (para 1.25(d)).
- Two Star and above status holders are asked to endeavour to train a set number of people in international trade each year (para 1.30).
Which thresholds, limits and dates in the Foreign Trade Policy 2023 matter to small exporters?
The thresholds, limits and dates that matter most to small exporters are the status holder export thresholds, the courier consignment limit and the closed amnesty deadlines. The table shows the value before FTP 2023, the FTP 2023 value and the current position as of October 2026.
| Item | Before FTP 2023 | Under FTP 2023 | Current position | Best for |
|---|---|---|---|---|
| One Star Export House | USD 3 million | USD 3 million (para 1.26) | Unchanged; MSE exports get double weightage | Small exporters seeking first recognition |
| Two Star Export House | USD 25 million (DGFT presentation) | USD 15 million | Can set up export warehouses (para 1.29(e)) and use the self-ratification scheme for input-output norms (PIB, 31 March 2023) | Mid-sized exporters |
| Three Star Export House | USD 100 million | USD 50 million | Manufacturers can self-certify origin of their goods for trade agreements (para 1.29(g)) | Larger manufacturer exporters |
| Four Star Export House | USD 500 million | USD 200 million | As above | Large exporters |
| Five Star Export House | USD 2,000 million | USD 800 million | As above | Very large exporters |
| Courier export limit per consignment | ₹5 lakh | ₹10 lakh (para 9.05) | No value cap from 1 April 2026 (PIB) | E-commerce sellers using courier |
| Amnesty registration | Not applicable | 30 June 2023, extended | Closed on 31 December 2023 (PN 20/2023) | Authorisation holders checking old cases |
| Amnesty duty and interest payment | Not applicable | 31 March 2024 | Closed | Authorisation holders checking old cases |
What happens if a small exporter ignores the Foreign Trade Policy 2023 rules on export proceeds?
If a small exporter does not realise export proceeds within the time RBI sets, the exporter must return all FTP benefits availed on those exports and may face action under the FT (D&R) Act (FTP 2023, para 2.54). RBI rules add their own restrictions.
- Benefits returned: Incentives and export obligation credit claimed on unrealised exports must be returned, without prejudice to penalties under other laws (para 2.54(a)).
- Advance only: From 1 October 2026, proceeds unrealised for more than one year after the due or extended date mean further exports only against full advance or an irrevocable letter of credit (FEMA Regulations 2026, Regulation 13).
- Missed amnesty: Authorisation holders who did not register by 31 December 2023 cannot use the amnesty terms. Check the current Advance or EPCG provisions with your DGFT regional office.
- Inactive IEC: An IEC not updated online every April to June is de-activated until it is updated (FTP 2023, para 2.05(d) and (e)).
If proceeds are late for reasons beyond your control, ask your AD bank for an extension, which Regulation 5 of the FEMA Regulations 2026 allows. Regulation 6 lets the AD bank allow a reduction or non-realisation of export value. FTP para 2.54(b) still refers to an RBI write-off process. See extension of the export realisation period.
Which RBI rule and DGFT notice says this for the Foreign Trade Policy 2023 changes?
The Foreign Trade Policy 2023 itself and DGFT public notices set the e-commerce, amnesty and status holder changes. RBI's FEMA (Export and Import of Goods and Services) Regulations, 2026 set the realisation and merchanting rules that FTP 2023 relies on, in force from 1 October 2026.
| Circular or regulation | Clause | Date | Plain meaning | Best for |
|---|---|---|---|---|
| Foreign Trade Policy 2023, Chapter 1 | Paras 1.01, 1.25 to 1.30 | In force from 1 April 2023 | No end date; status holder thresholds, double weightage and privileges | Exporters planning status recognition |
| Foreign Trade Policy 2023, Chapter 9 | Paras 9.01 to 9.12 | In force from 1 April 2023 | E-commerce export definitions, courier exports, export hubs and postal export centres | E-commerce and courier sellers |
| Foreign Trade Policy 2023, Chapter 2 | Paras 2.05, 2.39, 2.52 to 2.54 | In force from 1 April 2023 | IEC, merchanting trade, INR invoicing and the effect of non-realisation | All exporters |
| DGFT Public Notice No. 20/2023 | Amends para II(vii) of PN 2/2023 | 30 June 2023 | Amnesty registration extended to 31 December 2023 and payment to 31 March 2024 | Authorisation holders reviewing old defaults |
| CBIC courier reforms (PIB) | Notifications 33/2026 and 34/2026-Customs (N.T.); Circular 17/2026-Customs | Effective 1 April 2026 | ₹10 lakh cap on commercial courier export consignments removed | Courier and e-commerce exporters |
| FEMA (Export and Import of Goods and Services) Regulations, 2026 | Regulations 5, 6, 13 and 16 | Notified 13 January 2026; in force 1 October 2026 | Nine months to realise (twelve if invoiced or settled in INR); advance-only exports after long delays; merchanting trade conditions | All exporters receiving foreign payments |
| RBI A.P. (DIR Series) Circular No. 20 | Paras 2 and 4 | 16 January 2026 | AD banks must follow FEMA and the Foreign Trade Policy; old export Master Direction superseded from 1 October 2026 | Exporters reading older bank guidance |
What are common mistakes small exporters make about the Foreign Trade Policy 2023 changes?
- Old cap: Still splitting courier orders to stay under ₹10 lakh, a cap removed for commercial courier exports from 1 April 2026.
- Expired amnesty: Assuming the export obligation amnesty is still open; registration closed on 31 December 2023 and payment on 31 March 2024.
- Expiry date: Waiting for a new five-year policy. FTP 2023 has no end date and changes through notifications, so check the current text on DGFT.
- Status application: Filing a manual status application for goods exports when, under the system announced in October 2023, DGFT grants status automatically each August; apply only for a modification.
- Missing services: Not applying for a status modification when services exports, which DGCIS goods data may not capture, would lift you to a higher category.
- FTP only: Following DGFT rules but ignoring RBI realisation timelines. FTP benefits depend on proceeds being realised as RBI requires. See export realisation period.
- IEC lapse: Forgetting the yearly April to June IEC update, which de-activates the IEC. See how to apply for an IEC.
How did we verify this?
Every rule, deadline and form on this page is linked to its official source, checked on the dates below.
- Foreign Trade Policy 2023, Chapter 1: Legal Framework and Trade Facilitation (DGFT), Paras 1.00, 1.01, 1.02, 1.25, 1.26, 1.27, 1.29, 1.30 (checked 8 Oct 2026)
- Foreign Trade Policy 2023, Chapter 2: General Provisions Regarding Imports and Exports (DGFT), Paras 2.05, 2.39, 2.52, 2.53, 2.54 (checked 8 Oct 2026)
- Foreign Trade Policy 2023, Chapter 9: Promoting Cross Border Trade in Digital Economy (DGFT), Paras 9.01 to 9.12 (checked 8 Oct 2026)
- DGFT presentation: Foreign Trade Policy 2023, 31 March 2023, Slides 9 (FTP 2015-20 end date), 16 (MSME fees), 17 (status thresholds old and new), 20 (self-ratification), 21 (courier limit), 24 (amnesty) (checked 8 Oct 2026)
- PIB: Foreign Trade Policy 2023 announced, 31 March 2023, Facilitating E-Commerce Exports; Facilitation under Advance authorization Scheme (self-ratification); Amnesty Scheme; Recognition of Exporters; Merchanting trade (checked 8 Oct 2026)
- PIB: Last date for registration under the Amnesty Scheme for Advance Authorizations and EPCG Scheme, 9 June 2023, Coverage, interest cap, penalty waiver, Public Notices 2/2023 and 7/2023 (checked 8 Oct 2026)
- DGFT Public Notice No. 20/2023 dated 30 June 2023: Amnesty scheme, amendment, Para 2, amended para II(vii) of PN 2/2023 (checked 8 Oct 2026)
- PIB: System based automatic Status Holder certificates under FTP 2023, 9 October 2023 (checked 8 Oct 2026)
- PIB: CBIC operationalises reforms for e-commerce exports and courier trade from 1 April 2026, 31 March 2026, Removal of ₹10 lakh cap; Notifications 33/2026 and 34/2026-Customs (N.T.); Circular 17/2026-Customs (checked 8 Oct 2026)
- RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification FEMA 23(R)/2026-RB, amended up to 22 September 2026, Regulations 1(2), 5(1) and provisos, 6, 13, 16 (checked 8 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20, RBI/2025-26/194: Export and Import of Goods and Services, 16 January 2026, Paras 2, 4 and 7 (checked 8 Oct 2026)
Frequently asked questions
Is the Foreign Trade Policy 2023 still in force in 2026?
The Foreign Trade Policy 2023 came into force on 1 April 2023 and continues unless otherwise specified or amended, under para 1.01. It has no fixed end date. The Government changes it through DGFT notifications, so check the latest chapter text and notifications on the DGFT website before relying on any figure.
Can I still apply for the FTP 2023 amnesty scheme for Advance or EPCG defaults?
No. The FTP 2023 amnesty scheme for Advance and EPCG export obligation defaults was one-time. Public Notice No. 20/2023 set 31 December 2023 as the last date to register and 31 March 2024 as the last date to pay duty and interest. For an old default now, check with your DGFT regional office.
What export value is needed for One Star Export House status under FTP 2023?
One Star Export House status under FTP 2023 needs export performance of USD 3 million, counted over the current and preceding three financial years. Exports by micro and small enterprises, ISO or BIS certified manufacturers, units in the North East, Jammu, Kashmir and Ladakh, and some fruit and vegetable exports count double for this category only.
Do services exporters get status holder recognition under FTP 2023?
Yes. Under para 1.25(b) of FTP 2023, exporters of goods, services and technology with an IEC can be recognised as status holders. The automatic system uses DGCIS merchandise data, so services exporters who qualify for a higher status can apply online to DGFT for a modification.
Does FTP 2023 allow export benefits on payments received in Indian rupees?
Yes. FTP 2023 para 2.53 lets export proceeds realised in Indian rupees through Special Rupee Vostro Accounts claim export benefits and count toward export obligations. Under RBI's 2026 regulations, exports invoiced or settled in INR have twelve months to be realised. See Special Rupee Vostro accounts.
Is there still a value limit on courier exports under FTP 2023 para 9.05?
FTP 2023 para 9.05 originally set ₹10 lakh per courier export consignment. CBIC removed this cap for commercial courier exports from 1 April 2026, amending the courier regulations through Notifications 33/2026 and 34/2026-Customs (N.T.). Exportability of each item still follows the ITC(HS) export policy, and RBI realisation rules still apply.
What are E-Commerce Export Hubs under FTP 2023 Chapter 9?
E-Commerce Export Hubs under FTP 2023 Chapter 9 are designated areas offering common facilities for cross-border e-commerce, such as storage, packaging, labelling, certification and testing. They are set up mainly through private initiative or public-private partnership, with approval from a committee DGFT constitutes, and may get MAI scheme support.