Contents
What is EXIM policy?
Brief history about EXIM
Objectives of EXIM policy
Documents in Indian EXIM Policy
Indian imports and exports
Comparison of Post and Pre 90’s imports and exports
EXIM policy 2009-2014
Highlights of EXIM Policy 2015-2020
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
What is EXIMpolicy?
Also knows as Foreign Trade Policy
The foreign trade of India is guided by the Export-Import
policy of India
The Ministry of Commerce and Industry, Government of India, pronounces the
Indian EXIM policy or Export-Import policy of India.
It contains policies in the sphere of Foreign trade i.e. with respect to import &
export from the country and more especially export promotion measures, policies
and procedure related to it.
Export means selling abroad and import as bringing into India, any goods and
services.
The Government of India advises the Exim Policy of India for a phase of five
years under Section 5 of the Foreign Trade Development and Regulation Act,
1992.
The Exim Policy is renewed every year on the 31st of March and the revisions,
improvements and new proposals become effective from 1st April of every year.
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
Brief History aboutEXIM
In the year 1962, the Government of India selected a special Exim Policy
Committee to review the government preceding policies of export import
(Indian Exim policy).
The committee was afterward permitted by the Government of India. Mr. V.
P. Singh, the then Commerce Minister and pronounced the new Exim Policy
of India on the 12th of April, 1985.
Primarily the Export-Import Policy of India was launched for the period of
three years with main intention to boost the export business in India.
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
Objectives of EXIMPolicy
To establish the framework for globalisation.
To promote the productivity, competitiveness
of Indian industry.
To encourage the attainment of high &
internationally accepted standards of quality.
To increase export by facilitating access to raw materials, intermediate
components, consumables and capital goods from the international market
To generate new employment.
To provide quality consumer products at reasonable prices.
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
Indian top Imports andExports
Agricultural products
Automobiles
Chemicals
Food and beverage products
Industrial goods
Pharmaceuticals and
biotechnology
Defense products, etc.
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
India’s share in GlobalTrade
According to the WTO, in merchandise trade, India was the 19th largest exporter in
the world with a share of 1.7 percent and the 12th largest importer with a share of
2.5 percent in 2013.
In commercial services, India was the 6th largest exporter in the world with a share of
3.2 percent and the 9th largest importer with a share of 2.8 percent.
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
Comparison of Pre 90’s & Post90’s Exim Policy
Year Impor
t (cr.)
Export
s (cr.)
Balance
of trade
(cr.)
Remarks
1948-51 650 647 -3 Excess of imports due to pent-up-
demand of war, shortage of food and
raw material due to partition, etc.
1951-56 730 622 -108 Trade deficit was largely due to
programme of industrialization which
gathered momentum and pushed up
the import of capital goods
1956-61 1080 613 -467 Excess of import due to setting of
steel plants, heavy expansion &
renovation on railways &
modernization of many industries.
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
Comparison of Pre 90’s & Post90’s Exim Policy
Year Import
s (cr.)
Export
s (cr.)
Trade
balance
(cr.)
Remarks
1961-66 1224 747 -477 Excess imports due to defence needs
caused by aggression by China & Pakistan,
rapid industrialization, need of food grains
due to failure of crops
1985-90 28,874 18033 -10841 Huge trade balance compelled
government to approach for loan to World
Bank/IMF
1990-92 45522 38300 -7222 Push was given to export, but as a
consequence of Gulf war govt. failed to
curb imports. Govt. introduced a no. of
measures but failed to boost exports.Dr. S.THILAGA /DoMS/EXIM
MANAGEMENT/BA5060
Comparison of Pre 90’s & Post90’s Exim Policy
Year Import
s (cr.)
Exports
(cr.)
Trade
balance
(cr.)
Remarks
1992-01 140740 118252 -22488 In 1992-01,slow down in exports due to-
•Depressed nature of world markets.
•Saturation of developed countries
•Increased protectionism by industrialized
countries in area of textile andclothing.
•Increasing competition from China &
Taiwan.
•In 2000-01 export was largely due to rupee
depreciation along with further trade
liberalization, more openness to foreign
investment in EOU sectors like ITDr. S.THILAGA /DoMS/EXIM
MANAGEMENT/BA5060
Comparison of Pre 90’s & Post90’s Exim Policy
Year Imports
(US
$mn)
Exports
(US
$mn)
Trade
bal. (US
$mn)
Remarks
2002-03 65422 52512 -12910 Rise in oil imports, food and allied
products, capital goods
2003-04 80177 64723 -15454 Exim policy gave massive thrust to
exports by
Duty free import facility for service
sector up to earning 10lakh foreign
exchange
Liberalization of duty exemption
scheme
Besides all these measures, trade balance
is high because of imports of petroleum
products.Dr. S.THILAGA /DoMS/EXIM
MANAGEMENT/BA5060
Export Import Policy, 2009-14
Legal Framework
General Provisions regarding Import and Export
Special Focus Initiatives
Promotional Measures
Duty Exemption / Remission Schemes
Export Promotion Capital Goods Scheme
Export Oriented Units (EOUs) etc
Special Economic Zones
Deemed Exports
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
Aims is General
The policy aims at developing export
potential, improving export performance,
boosting foreign trade and earning
valuable foreign exchange. FTP assumes
great significance this year as India's
exports have been battered by the global
recession
A fall in exports has led to the closure of
several small- and medium-scale export-
oriented units, resulting in large-scale
unemployment.
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
GeneralProvisions
Exports and Imports free unless regulated
Compliance of Imports with Domestic Laws
The norms applicable to domestically produced goods shall apply to imports, unless specifically
exempted
Interpretation of Policy
The decision of DGFT shall be final and binding on all matters relating to interpretation of
policy
Procedure
DGFT may, specify procedure to be followed by an exporter or importer or by any licensing/
regional authority or by any other authority
Exemption from Policy / Procedure
DGFT may exempt any person or class or category of persons from any provision of FTP or
any procedure and may, while granting such exemption, impose some conditions
Principles of Restriction
Protection of public morals
Protection of human, animal or plant life or health
Protection of patents, trademarks and copyrights, and the prevention of deceptive practices
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
GeneralProvisions
Importer-Exporter Code (IEC) Number is mandatory unless specifically
exempted
Transit Facility shall be regulated in accordance with bilateral treaties between India
and those countries
Actual User Condition
Capital goods, raw materials, intermediates, components, consumables, spares,
parts, accessories, instruments and other goods, which are importable without any
restriction, may be imported by any person. However, if such imports require an
Authorization, actual user alone may import such goods unless actual user
condition is specifically dispensed with by DGFT
Second Hand Goods
Import of second hand goods, except second hand capital goods, shall be restricted
for imports and may be imported only in accordance with the provisions of FTP,
ITC(Indian Trade Classification) (HS), HBP v1(Handbook of Procedures), Public
notice or an Authorization in this regard. Import of re-manufactured goods shall
be allowed only against a license
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
GeneralProvisions
Import of Gifts shall be ‘free’ unless otherwise specified/ restricted
Passenger Baggage
These may be imported as part of passenger baggage without an
Authorization- household goods and personal effects, samples of items
that are freely importable, exporters coming from abroad are also allowed
to import drawings, patterns, labels, price tags, buttons, belts, trimming
and embellishments required for export
Import on Export basis
Freely exportable new or second hand capital goods, equipments,
components, parts and accessories, containers meant for packing of goods
for exports, jigs, fixtures, dies and moulds may be imported for export
without an Authorization on execution of BG(Bank Guarantee) with
Customs Authorities
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
GeneralProvisions
Clearance of Goods from Customs
Goods already imported / shipped / arrived, in advance, but not cleared from
Customs may also be cleared against an Authorization issued subsequently
Private / Public Bonded Warehouses for Imports
Private / Public bonded warehouses may be set up in DTA(Domestic Tariff Area).
Any person may import goods, except prohibited items, arms and ammunition,
hazardous waste and chemicals and warehouse them in such bonded warehouses.
Such goods may be cleared for home consumption whenever required. Customs
duty as applicable shall be paid at the time of clearance.
Free Exports
All goods may be exported without any restriction except to the extent that such
exports are regulated by ITC (HS) or any other provision of FTP or any other law
for the time being in force. DGFT may however, specify through a public notice
such terms and conditions according to which any goods, not included in ITC(HS),
may be exported without an Authorization
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
Special Focus InitiativesThe Chapter on Special Focus Initiatives
is broadly classified into:
Market Diversification
Technological Upgradation
Support to status holders
Agriculture and Village Industry
Handlooms
Handicrafts
Gems & Jewellery
Leather and Footwear
Marine Sector
Electronics and IT HardwareManufacturing Industries
Sports Goods and Toys
Green products and technologies
Incentives for Exports from the North Eastern Region
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
Duty Exemption/RemissionSchemes
The schemes initiated by the Government under this category are as
follows:
Export Promotion Capital Goods Scheme (EPCG)
Advance Authorization Scheme
Duty Free Import Authorization Scheme (DFIA)
Duty Entitlement Passbook (DEPB) Scheme
Duty Drawback (DBK) Scheme
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
Export Promotion Capital Goods Scheme (EPCG)
in Foreign Trade Policy under followingThis scheme has been discussed
headings:
Zero duty EPCG Scheme
Concessional 3% duty EPCG Scheme
EPCG for projects
EPCG for Retail Sector
EPCG Authorization for Annual Requirement
Export Obligation
Provisions for BIFR Units
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
Export Promotion Capital Goods Scheme (EPCG)
EPCG for agro units
Indigenous Sourcing of capital goods and benefits to domestic supplier
Fixation of Export Obligation
Technological Up gradation of existing EPCG machinery
Incentives for Fast Track Companies
EPCG for Green Technology Products -reduced EO
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
Special Economic Zones(SEZ)
Exemption from Service Tax
Single window clearance for Central and State level approvals
Exemption from State sales tax and
other levies as extendedby the respective
State Governments
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
Highlights of EXIM Policy 2015-2020
1st April 2015 to 31st March2020.
Vision, Mission and objectives:
• The vision is to make India a significant partner in world trade
by 2020.
• Government aims to increase India’s exports of merchandise and
services from USD 465.9 billion in 2013-14 to approximately
USD 900 billion by 2019-20.
• Raise India’s share in world exports from 2 percent to 3.5
percent.
• Initiatives such as “Make in India”, “Digital India” and “Skills
India” to create an “Export Promotion Mission” to provide a
stable and sustainable policy environment for foreign trade.Dr. S.THILAGA /DoMS/EXIM
MANAGEMENT/BA5060
The Mega Agreements: Implications for India
• Trans Pacific Partnership,
• Trans-Atlantic Trade and Investment Partnership and
• Regional Comprehensive Economic Partnership (RCEP)
These will add a completely new dimension to the global trading
system.
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060
Market Strategy
India’s future bilateral/regional trade engagements will be with countries that
are not only promising markets but also major suppliers.
Employment-generating sectors such as textiles, agriculture, leather and gems
& jewellery will continue to receive major attention for promoting exports to
the US market.
India will focus trade promotion activities on new products with higher value
addition particularly in the categories of defence equipment, medical
equipment, construction material, processed foods, as also services.
India is negotiating Comprehensive Economic Cooperation/Partnership
Agreements with Australia and New Zealand.
Another focus area is South-East Asia. Trade integration with the CLMV
(Cambodia, Lao PDR, Myanmar and Vietnam), to enable the Indian private
sector to set up manufacturing hubs in this region
Dr. S.THILAGA /DoMS/EXIM MANAGEMENT/BA5060