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Paragraphs 1.07(A) and 1.07(B) of the Foreign Trade Policy, 2023: consultation with stakeholders, the 30-day period and reasons for not accepting views

Under paragraph 1.07(A) the Central Government may seek views, suggestions, comments or feedback from stakeholders when it formulates or amends the Policy, and, to the extent...

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International Trade
Published
October 2, 2026
Last updated
Oct 2, 2026
Reading time
7 min
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Last updated: October 2026Verified against: Government sources

Paragraphs 1.07(A) and 1.07(B) deal with how the Government may ask exporters, importers and industry experts for views before it makes or changes the Policy, and whether it will tell them why a view was not accepted. Both are written in permissive terms: the Government "may", "to the extent possible" and "if it deems reasonable". Neither paragraph creates a right to be consulted or a right to be answered. If you need the text read against a particular change, a legal consultation can take you through it.

This article is based on the chapter-wise text of the Foreign Trade Policy, 2023 published on the DGFT website, as consulted on 2 October 2026; the copy carries no "updated up to" date. Paragraph 1.04(k) of the Handbook of Procedures, 2023, read with it, is taken from Chapter 1 of the Handbook as published on the DGFT website (file of July 2026), consulted on 2 October 2026. Later Notifications, Public Notices and Trade Notices should be checked before you act.

What the Policy says

Paragraph 1.07(A): seeking views

The central Government, in the course of formulating the Policy, "as and when it deems reasonable to do so", may seek views, suggestions, comments or feedback from relevant stakeholders. The paragraph names importers, exporters and industry experts as examples ("including"), so the circle is not closed to them. The subject of consultation is the formulation, the incorporation of specific provisions or an amendment of the Policy.

On time, the paragraph says: "to the extent possible, 30 days' time-period may be provided" for submissions. Three softeners are stacked in that one sentence: "to the extent possible", "may" and "provided". It is therefore not an assured 30 days, and the paragraph does not say what happens if the period is shorter.

The last sentence reserves the Government's right to act on its own: it may formulate, amend or incorporate specific provisions "without seeking views, suggestions, stakeholders". The sentence ends loosely in the printed copy and is quoted here as printed. The sense is clear enough: consultation is a practice the Government may follow, not a condition for amending the Policy. This fits with paragraph 1.02, which lets the Government amend the Policy by notification in public interest; our article on paragraphs 1.00 to 1.05 sets that out, with the power under section 5 of the Foreign Trade (Development and Regulation) Act, 1992.

Paragraph 1.07(B): reasons for not incorporating views

If the views received under paragraph 1.07(A) are not incorporated in the Policy, the Central Government "may to the extent possible and if deems reasonable to do so" give the stakeholders from whom views came the reasons for not considering them. Again the wording is permissive.

There is then a proviso. Nothing in the paragraph obliges the Government to disclose reasons for not incorporating feedback that:

CaseFeedback that need not be answered with reasons
(i)has the potential to, or will, adversely affect trade relations with any foreign country
(ii)would adversely affect food, economic or national security of India
(iii)is in conflict with Government policies, strategic programmes, international obligations or commitments or long-term plans, and would undermine their objectives
(iv)addresses matters unrelated to trade, or serves narrow, private or special interests to the detriment of or contrary to the broader public interest
(v)would require the disclosure of confidential or classified information

The paragraph ends: "Nothing shall confer any legal right whatsoever on any person to seek reasons" for his views, comments, opinions or feedback not being incorporated in the Policy.

What the Handbook requires

The Handbook does not add a procedure for 1.07(A) in this form. Paragraph 1.04(k) of the Handbook, under the heading "Submission of views, suggestions, comments, or feedback", says only that the mode of receiving views, suggestions, comments or feedback, as provided in paragraph 1.07(A) of the Policy, shall be provided for in the Public Notice or Trade Notice seeking such views. In short, the mode is whatever the particular Public Notice or Trade Notice that invites comments says. Paragraph 1.04(k) is explained along with the other e-governance items in our article on DGFT online facilities. The mode and deadline are those of each notice, so none is stated here.

How to read these paragraphs

  • The Policy "may" consult. A trade body that has not been asked has no claim under this paragraph to be asked.
  • The 30-day period is qualified by "to the extent possible".
  • Reasons "may" be given. Where the feedback falls in any of the five cases, the Government need not give reasons at all.
  • The final sentence rules out a legal right to seek reasons. These are statements of how the Government proposes to proceed.

A practical example

Suppose a Public Notice invites comments on a proposed amendment, and Silver Coast Packaging, an invented company, sends a note through its trade association. The Government amends the Policy without adopting the suggestion and does not write back. Under paragraph 1.07(B) that is within the paragraph: reasons may be given, but the Government need not give them where, for example, the suggestion falls in case (iii) because it conflicts with an international commitment. The company cannot point to paragraph 1.07(B) as a right to a reply. What it can do is use the stated mode in the Public Notice or Trade Notice inviting comments, as paragraph 1.04(k) of the Handbook indicates, and keep a copy of what it submitted.

Need help with a policy change?

When a Notification changes a provision your business relies on, the useful question is what the new text allows and from when. Our team can walk through the amended paragraph and your contracts on a legal consultation, and tell you which Handbook paragraph carries the procedure.

Key takeaways

  • The Government may seek views on the Policy and, to the extent possible, may allow 30 days (paragraph 1.07(A)).
  • It may amend the Policy on its own, without seeking views.
  • It may give reasons for not accepting a view, but need not do so in five stated cases (paragraph 1.07(B)).
  • No legal right to seek reasons is conferred.
  • The mode of giving views is stated in the Public Notice or Trade Notice that invites them (Handbook paragraph 1.04(k)).

Read next

Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Paragraphs 1

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Must the Government consult before amending the Policy?

No. Paragraph 1.07(A) says it may seek views as and when it deems reasonable, and reserves the right to formulate or amend provisions on its own.

Is a 30-day period for comments assured?

No. The paragraph says that, to the extent possible, 30 days' time may be provided.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

No. Paragraph 1.07(A) says it may seek views as and when it deems reasonable, and reserves the right to formulate or amend provisions on its own.

No. The paragraph says that, to the extent possible, 30 days' time may be provided.

The paragraph speaks of relevant stakeholders, including importers, exporters and industry experts.

Paragraph 1.07(B) says the Government may, to the extent possible and if it deems reasonable, give reasons. It need not in the five cases (i) to (v), and no legal right to seek reasons is conferred.

Paragraph 1.04(k) of the Handbook says the mode will be given in the Public Notice or Trade Notice that seeks the views. Check that notice.

The copy prints the last sentence as "without seeking views, suggestions, stakeholders". It is quoted as printed; the DGFT website text should be checked.