IDT MCQ — What is the primary objective of Duty Exemption and Remission Schemes under the Foreign Trade Policy

**What is the primary objective of Duty Exemption and Remission Schemes under the Foreign Trade Policy?** A) To enable duty-free import of inputs for export production or replenish inputs B) To provide direct cash subsidies to exporters for every shipment C) To exempt exporters from paying Income Tax on export profits D) To allow unrestricted import of prohibited items for domestic consumption ✅ **Answer: (A) To enable duty-free import of inputs for export production or replenish inputs** **Purpose of Duty Exemption & Remission Schemes — duty-free inputs for export production.** These schemes (Advance Authorisation, DFIA, Drawback, RoDTEP) rest on the principle that *goods are exported, not taxes*. They enable **duty-free import of inputs required for export production, including replenishment of inputs or remission of duty**. The option describing **duty-free import of inputs / replenishment** is correct. Cash subsidies and income-tax relief are wrong — WTO discourages direct export subsidies, and these schemes deal with indirect taxes on inputs, not income tax; allowing import of prohibited items for domestic use is contrary to the scheme's export-linked design. _Practise 1000s more free CA Final MCQs 👉 https://conferenza.in/mcqs — and discuss your approach below._