EXPORT POLICY

BY-ZEBA RUKHSARROLL-13MBA030

DEPARTMENT OF BUSINESS

ADMINISTRATION, UTKAL UNIVERSITY.

BHUBANESWAR,ODISHA, INDIA.

CONTENTS

What is EXPORT? Who are Involved? Why do we need

Export? Foreign Trade

Policy(FTP) FTP’s Objectives

( 2009-2014) AIM of the policy

Announcement for marine sector, jewellery,leather, handloom,tea exports

Export Promotion Measures

Export Promotion Schemes

Country Comparison-Exports

References

What is Export ?

Goods produced in one country are sent to other

countries for sale is termed as export.

Export is also the foreign demand for goods

produced by the home country.

Domestic producer foreign consumers.

WHO ARE INVOLVED?

Exporter (individuals or businesses)

Ministry of Banks

Foreign Trade

Customs Administration

Customs Transport Agent

WHY DO WE NEED EXPORT?

A developing country like India with its fast growing agricultural production to keep pace with the population growth & growing Industrial infrastructure needs high-import and this can be sustained only with fast export growth.

INDIA’S FOREIGN TRADE POLICY(FTP)

Formulated under the Import & Export(control) Act, 1947 Now its known as Foreign Trade(Development &

Regulation) Act, 1992 Headed by Director General of Foreign Trade. The Union Commerce Ministry, Government of India

announces the integrated FTP in every five years.This is also called EXIM policy.

This policy is updated every year with some modifications and new schemes. New schemes come into effect on the first day of financial year i.e. April 1. The Foreign trade Policy which was announced on August 28, 2009 is an integrated policy for the period 2009-14.

INDIA’S FOREIGN TRADE POLICY (2009-14)

OBJECTIVES

1. To arrest and reverse declining trend of exports which will be reviewed after every two years.

2. To Double India's exports of goods and services by 2014.

3. To double India's share in global merchandise trade by 2020 (long term aim). India's share in Global merchandise exports was 1.45% in 2008.

INDIA’S FOREIGN TRADE POLICY (2009-14)

OBJECTIVES (CONT..)

4. Simplification of the application procedure for availing various benefits.

5. To set in motion the strategies and policy measures which catalyze the growth of exports.

6. To encourage exports through a "mix of measures including fiscal incentives, institutional changes, procedural rationalization and efforts for enhancing market access across the world and diversification of export markets.

AIM OF THE POLICY-

Aims at developing export potential, improving export performance, boosting foreign trade and earning valuable foreign exchange(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.

ANNOUNCEMENT FOR MARINE SECTOR Fisheries exempted from maintenance of average

EO under EPCG Scheme (along with 7 sectors) however Fishing Trawlers, boats, ships, and other similar items shall not be allowed for this exemption.

Additional flexibility under Target Plus Scheme / Duty free certificate of Entitlement Scheme for the marine sector.

ANNOUNCEMENTS FOR GEMS & JEWELLERY SECTOR

Duty Drawbacks is allowed on Gold JewelleryExports to neutralize duty incidence.

Plan to establish “Diamond Bourse (s ) with an aim to make India an International Trading Hub announced.

ANNOUNCEMENT FOR LEATHER EXPORT

On the payment of 50 % applicable export duty, Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi finished leather from public bonded ware houses.

ANNOUNCEMENT FOR HANDLOOM EXPORTS

The claim under Focus Product Scheme, the requirement of " Handloom mark" was required earlier. This has been removed.

ANNOUNCEMENTS FOR TEA EXPORTS

The existing Minimum value addition under advance authorization scheme for export of tea is 100 %. It has been reduced from the existing 100% to 50%.

DTA (Domestic Tariff Area) sale limit of instant tea by EOU(Export oriented units) increased from 30% to 50%.

Export of tea has been included under VKGUY(Vishesh Krishi & Gram Udyog Yojana)Scheme benefits.

EXPORT PROMOTION

MEASURES

The Export Promotion Councils ( EPC’s ) are non-profit

organizations registered under the Companies Act,1956 or

the Societies Registration Act, 1870. They are supported by

financial assistance from the Central Government.

Import Facilitation for Export Production.

Export incentives.

Export production units(EOU’s).

Cash subsidies.

Fiscal Incentives.

Foreign Exchange Facilities.

EXPORT PROMOTION SCHEMES

DUTY DRAWBACK: sec 74 & 75 of Customs Act

Defined as the rebate of duty chargeable on any imported or excisable material used in the manufacture of goods exported from India.

EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME:

Introduced in 1990 to enable the Indian exporters obtain capital goods at concessional rates of customs duty against an obligation,to export the goods manufactured using the imported capital goods.

EXPORT PROMOTION SCHEMES

DUTY EXEMPTION SCHEMES

Enable duty- free import of inputs required for export production.

Consumables like fuel, oil, energy, catalysts, etc. too are included.

DUTY REMISSION SCHEMES

DEPB-introduced in 1997; grant of credit on post export basis as specified percentage of freight on board value of export made in freely convertible currency

Duty free replenishment certificate(DFRC)-introduced on 1 April 2000; to provide the benefits of advance license on post-export basis

COUNTRY

COMPARISON-

EXPORTSRank Country Exports / $

1. CHINA 1,904,000,000,000

2. UNITED STATES 1,497,000,000,000

3. GERMANY 1,408,000,000,000

4. JAPAN 788,000,000,000

5. FRANCE 587,100,000,000

REFERENCESwww.slideshare.net

www.eximpolicy.com

www.google.com

BOOKS-

Handbook on Import & Export-Institute of Chartered Accountants of India(ICAI)

International Marketing-Francis Cherunilam

THANK YOU

FOR

YOUR

ATTENTION

(DO LIKE MY PPT)