export and import policies

8/14/2019 Export and Import Policies

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NDIM SECTION B 1

PRESENTED BY:Manpriya Maken( 83)Medhavi Tandon (84)

Priyanka Gubrele (96)Rakesh Jaswani (98)

Sulabh Khandelwal (114)

12/20/09


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CONTENTS

Introduction of EXIM policyEXIM policy 1997-2002EXIM policy 2002-2007EXIM policy 2004-2009Conclusion

NDIM SECTION B 212/20/09


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EXPORT & IMPORT



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What is EXIM policy?

Exim Policy or Foreign Trade Policy is a set of guidelinesand instructions established by the DGFT in mattersrelated to the import and export of goods in India.

The Foreign Trade of India is guided by the Export ImportPolicy (EXIM Policy ) of the Indian Government and isregulated by the Foreign Trade Development andRegulation Act, 1992.

DGFT (Directorate General of Foreign Trade) is the maingoverning body in matters related to Exim Policy.



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Who announces EXIM

policy? The Government of India notifies the Exim Policy fora period of five years.

The Exim Policy is updated every year on the 31stof March and the modifications, improvements andnew schemes became effective from 1st April of every year.

All types of changes or modifications related to theEXIM Policy is normally announced by the UnionMinister of Commerce and Industry who co-ordinates with the Ministry of Finance, theDirectorate General of Foreign Trade and itsnetwork of regional offices.



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Objectives Of The Exim PolicyGovernment control import of non-essential items throughthe EXIM Policy. At the same time, all-out efforts are madeto promote exports.

Thus, there are two aspects of Exim Policy; the importpolicy which is concerned with regulation and managementof imports and the export policy which is concerned with

exports not only promotion but also regulation. The main objective of the Government's EXIM Policy is topromote exports to the maximum extent.

To stimulate sustained economic growth by providingaccess to essential raw materials, intermediates,

components,' consumables and capital goods required foraugmenting production.



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Whom does it apply to?

The regulations and restrictions apply to thoseinvolved in commercial trade through the exportand import of items.

This becomes particularly important in a countrylike India, where the import and export of itemsdoes play a crucial role not just in balancingbudgetary targets, but also from an economydevelopmental viewpoint.



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1997-2002

NDIM SECTION B 8

EXPORT IMPORT POLICIES

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OBJECTIVES

To derive maximum benefits from theexpanding global market opportunities

To enhance the technological strengthand efficiency of Indian agriculture,industry and services

To create more employmentopportunities.

To attain internationally acceptedstandards of quality at reasonableprices

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HIGHLIGHTSDuty exemption scheme- Advance licenses with actual usercondition will be allowed based on positive value addition only.Requirement of minimum value addition of 33%for this categoryof advance license has been done away with.

Gem and jewellery- Wastage norms,which have beenrevised,have been de-linked from value addition norms . Valueaddition norms has also been revised on the basis of input outputanalysis. This should give a fillip to jewellery exports throughsimplification of the procedures.

Exports -Exports of all oilseeds such as HPS groundnut,sesameseeds,sunflower seeds,musturd seeds etc.When exported forconsumption purposes are being made free without anyquantitative/licensing requirements.


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Export house/trading house/star tradinghouse/super star trading house- Thresholdlimit for export house is being fixed at Rs 12.50crores on an average fob value of the exportsmade during the preceeding three licensingyears. Limits of trading house/star tradinghouse/super star trading house have also beenfixed accordingly.

EOU/EPZ -In the agricultural and allied sectorEOU/EPZ units will be permitted on the basis of positive net foreign exchange earning only.Accordingly for this sector, the requirement of minimum net foreign exchange earning of 20%is being done away with.

HIGHLIGHTS


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2002-2007

NDIM SECTION B 12

EXPORT IMPORTPOLICIES

12/20/09

This Policy recognized that international trade is a vitalpart of development strategy and that it can be aneffective instrument of economic growth, employmentgeneration and poverty alleviation.


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OBJECTIVES OF EXIM

POLICY 2002-20071. To attain a share of 1% globalmerchandised trade

2. To stimulate sustained economic growth3. To enhance technological strength,

efficiency of Indian agriculture , industryand services

4. To provide consumers with good qualitygoods and services at internationallycompetitive prices.



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HIGHLIGHTS..


SPECIAL ECONOMIC ZONES ( SEZs)

SEZs provide a congenial and investment friendly environment where units,both Indian and foreign can manufacture their products at internationally

competitive prices for exports or sale to domestic tariff area.

Offshore Banking units permitted under this policy to be set up in SpecialEconomic Zones.

These units would act as branches of foreign banks. They would provide world class financing facilities to SEZ units as well as the private sector firms whichwill be involved in developing infrastructure in SEZs.

AGRICULTURE

Restrictions on export of all cultivated (other than wild) varieties of seed, exceptJute and Onion, removed.

In order to promote diversification of agriculture, transport subsidy made

available for export of fruits, vegetables, floriculture, poultry and dairy products.


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HIGHLIGHTSSMALL SCALE INDUSTRY Common service providers in these areas shall be entitled for facility of EPCG scheme .

GEM AND JEWELLERY Customs duty on import of rough diamonds reduced to 0%.

Import of rough diamonds is already freely allowed. Licensing regime for roughdiamond abolished.

Value additon Norms for export of plain jewellery reduced from 10% to 7%. Export of all mechanised unstudded jewellery allowed at a value addition of 3% only

To help the country emerge as a major international centre for diamonds.

COTTAGE SECTOR AND HANDICRAFTS

An amount of Rs. 5 crore under Market Access Initiative (MAI) earmarked forpromoting cottage sector exports coming under the KVIC.

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HIGHLIGHTSTECHNOLOGY ORIENTED

a) ELECTRONIC HARDWARE The Electronic Hardware Technology Park (EHTP) scheme imodified to

enable the sector to face the zero duty regime under ITA(Information Technology Agreement).

b) Chemicals and Pharmaceuticals Free export of samples without any limit. Reimbursement of 50% of registration fees for registration of drugs.

c ) Projects

Free import of equipment and other goods used abroad for more thanone year.



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HIGHLIGHTSGROWTH ORIENTED a) Re-location of industries To encourage re-location of industries to India, plant and

machineries permitted to be imported without a license, wherethe depreciated value of such relocating plants exceeds Rs. 50crores.

b ) North Eastern States, Sikkim and Jammu & Kashmir Transport subsidy for exports given to units located in North

East, Sikkim and Jammu & Kashmir so as to offset thedisadvantage of being far from ports.

C ) Banks Direct negotiation of export documents to be permitted. This

will help the exporters to save bank charges.



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2004-2009

NDIM SECTION B 18

EXPORT IMPORTPOLICIES

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OBJECTIVES On 31 st August 2004, Mr. Kamal Nathannounced Indias foreign trade

policy (2004-2009).The duration of policy is from 1 st September,2004 to31 st March,2009.

To double the percentage share of global trade within 5 years and toexpand employment opportunities,especially in semi urban and ruralareas.

Certain special focus initiatives have been identified for the agriculture,handlooms, handicraft, gems &

jewellery and leather sectors.



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OBJECTIVES (contd)

3. Government of India shall make concerted efforts to promote exports in these sectors by specific sectoralstrategies that shall be notified from time to time.



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HIGHLIGHTS.

AGRICULTUREBenefits under 'Vishesh Krishi UpajYojana (Special Agricultural ProduceScheme) shall be extended to exportsof poultry and dairy products inaddition to export of flowers, fruits,vegetables, minor forest produce andtheir value added products.

Import of capital goods shall be permitted duty free under the EPCGScheme.

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AGRICULTURE (contd)

Capital goods imported under EPCG shall be permitted to beinstalled anywhere in the AEZ.

Import of inputs such as pesticidesshall be permitted under theAdvance License for agro exports.

Funds shall be earmarked under ASIDE for development of AgriExport Zones (AEZ)

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HANDLOOMS AND HANDICRAFTSSpecific funds would be earmarked under MAI (Market Access Initiatives)/ MDA(Market Development Scheme) for

promoting handloom exports

Duty free import of old pieces of hand

knotted carpets on consignment basis for re-export after repair shall be permitted.

New Handicraft SEZs shall be establishedwhich would procure products from the

cottage sector and do the finishing for exports

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HANDLOOMS AND HANDICRAFTS

Specific funds would be earmarked under MAI & MDA Schemes for promotingHandicraft exports.

The Handicraft Export Promotion Councilshall be authorized to import trimmings,embellishments and consumables on

behalf of those exporters for whom

directly importing may not be viable.

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Gems & Jewellery

Import of gold of 18 carat and above shall be allowed under the replenishmentscheme

Supply of gold of 0.995 and above purityshall also be allowed for release bynominated agencies for export purposes.Earlier this facility was only available for supply of gold in the domestic market

Treatment of cut and polished preciousand semi-precious stones enhance thequality and afford higher value in theinternational market. For this purpose,Gems & Jewellery

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Gems & Jewellery

exporters will now be allowed to exportsuch items for treatment and subsequentre-import, within a period of 120 days.

We have large unutilized melting,refining and jewellery-making productioncapacity. To enable such capacities to beused in a productive manner, import of

precious metal scrap and used jewellerywill now be allowed for melting, refiningand re-export of jewellery.

Many a times exporters faced the12/20/09 27NDIM SECTION B
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Gems & Jewellery

dilemma of unsold jewellery in theforeign markets because of changingdesigns and other such factors.

To overcome this problem, Gems &exporters will now, be allowed toexport jewellery on consignment

basis.

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AVIATION SECTOR Supplies of stores (food, beverages and other supplies) and refueling of long distance flights hasemerged as a big business opportunity. Currently,most airlines replenish supplies or refuel atThailand, Malaysia or Singapore.

These supplies were not treated as exports in India

According to the new FTP, such supplies will betreated on an equal footing with other exports,qualifying for benefits under various Export

Promotion Schemes. This will enable India to offer competitive fuel prices and will attract mid routestops of the international flights

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MARINE SECTOR To encourage the existing mechanizedvessels to adopt modern technology for scientific exploitation of our marineresources in an eco-friendly manner and

boost marine sector exports, it is proposed to allow import of monofilament long line system for tunafishing at a concessional rate of duty.

The present system of disposal of waste of perishable commodities like

seafood after inspection by a customsofficial is very cumbersome and leads todevelopment of unhygienic conditions.To overcome this, a self removal

procedure for clearance of waste shall beapplicable, subject to prescribedwastage norms 12/20/09 31NDIM SECTION B
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SERVICE EXPORTS

Till now Hotels & Restaurants wererequired to submit a CharteredAccountant certificate that the entire duty

benefits availed under the 'Served fromIndia' Scheme have been passed on to theconsumer. From now on, only adeclaration will be submitted by theHotels & Restaurants that the duty

benefits shall be passed on to theconsumer and no CA certificate will berequired to be submitted .

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HIGHLIGHTS

GENETICALLY MODIFIED (GMO)MATERIAL

For the benefit of the consumer clear guidelines for import of Genetically Modified Material are

being laid down. While making such imports, products which have been subjected to GeneticModification will have to carry a declarationstating the fact.

INTEREST PAYMENT ON REFUNDSIt has been decided that interest for delayed payment

of refunds would be made by the Government toensure accountability and cut delays.

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TRADE FACILITATION

Clearance of import or export consignmentsare held up for want of test reports of samples drawn at the time of import or export. Therefore, to accelerate cargoclearances, it has been decided to allow pre-shipment test certificates from accreditedinternational agencies in lieu of demandingonly test reports.

REMOVAL OF EXPORT CESS:

Department of Commerce has proposed toabolish cess on export of all agricultural and

plantation commodities levied under variousCommodity Board Acts.

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Promotional Measures

Assistance to States forInfrastructure Development of Exports (ASIDE):In Order to enable the State

Government to participate in promotingexports, the Department of Commercehas formulated a scheme called ASIDE.Under this scheme, the Department of Commerce provides funds to states for the development of infrastructure on the

basis of gross exports and the rate of growth of exports in such states.

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Promotional Measures (contd)

Market Access Initiative (MAI):The Market Access Initiative (MAI)scheme is intended to provide financialassistance for medium term export

promotion efforts with a sharp focus on acountry and product.

A whole range of activities can be fundedunder the MAI scheme. These includemarket studies, setting up of showroom/warehouse, sales promotion campaigns,

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, sales promotion campaigns, internationaldepartmental stores, publicity campaigns,

participation in international trade fairs, , brand promotion,etc.

Market Development Assistance (MDA ): Under MDA exporters with annual export

turnover up to Rs 5 crores are eligible for

financial assisatnce for a range of export promotion activities such as participation intrade fairs, buyer-seller meets abroad or inIndia, export promotion seminars.

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Towns of Export Excellence:With a view to maximize the potential of industrial towns,which have contributed to Indias exports, and to enable themto tap new markets, selected towns producing goods of

Rs1000 crore or more have been notified as Towns of ExportsExcellence.

Export Promotion Council for Services:

An exclusive Export Promotion Council for Services shall beset up in order to map opportunities for key services in keymarkets and develop strategic market access

programmes,including brand building in coordination withsectoral players.



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CONCLUSION

The FTP provided a road map that can help Indian companies become globally competitive and simultaneously aims atgiving Indian consumers world class products and services.

Specific sectoral initiatives have helped in creating more jobs,higher exports and an enhanced level of confidence for Indian

products and services in the global economy.

Government is committed to resolving all outstanding

problems and disputes pertaining to the past policy periodsthrough the Grievance Redressal Committee for condoningdelays, resolving disputes over entitlements, grantingextensions for utilization of licenses etc.



40/40

Thank

You!

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