Difference between FTP & SEZ

[sukhvinder singh]

Respected  All,

 Sir Please tell me the difference between Foreign Trade Policy & Special Economic Zone.

 Thanks

[YAGAY andSUN]

'FTP'  stands for Foreign Trade Policy.  It is frame work under which provisions related to IEC, Advance Authrizations, EPCG, export promotion scheme have been mentioned for purpose of enhancing India's exports.

Whereas SEZ stands for Special Economy Zones.  It is a part of FTP.  SEZs are treated as deemed foreign territories and the purpose was to establish such SEZ to enhance the exports of goods and services and earn precious foreign currency.

For details please refer the FTP Policy with HBP Vol 1.  SEZ Act and Rules made thereunder.

AI Summary

Special Economic Zones create deemed foreign territories to promote exports under the Foreign Trade Policy framework. The Foreign Trade Policy establishes the regulatory framework for export promotion measures and schemes such as Import Export Code, Advance Authorisations and EPCG to enhance exports. Special Economic Zones, as an instrument within that framework, are treated as deemed foreign territories to promote exports of goods and services, with their establishment and special regulatory treatment governed by the SEZ Act and Rules alongside the FTP.