trade policy ppt

7/29/2019 Trade Policy Ppt.

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Foreign Trade PolicyAka EXIM policy and Trade policyBy

Shalini Singh


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INTRODUCTION

Foreign Trade (Development and Regulation) Act,1992

As per the provisions of the Act, the Government :-

(i) may make provisions for facilitating and

controlling foreign trade

(ii) may prohibit, restrict and regulate exports andimports

(iii) is authorised to formulate and announce an

export and import policy and also amend the samefrom time to time, by notification in the OfficialGazette

(iv) is also authorized to appoint a 'Director

General of Foreign Trade'


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INTRODUCTION

Ministry of Commerce and Industry

The announcement of a new ForeignTrade Policy for a five year period of

2009-2014 replacing the hithertonomenclature of EXIM Policy byForeign Trade Policy (FTP)


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Strategies for achievingobjectives Unshackling of controls and creating an atmosphere of trustand transparency

Simplifying procedures and bringing down transaction costs

Neutralizing incidence of all levies on inputs used in exportproducts

Facilitating development of India as a global hub formanufacturing, trading and services

Identifying and nurturing special focus areas to generate

additional employment opportunities, particularly in semi-urban and rural areas

Facilitating technological and infrastructural up gradation ofthe Indian economy, especially through import of capitalgoods and equipment


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Strategies for achievingobjectives Upgrading the infrastructure network related to the

entire foreign trade chain to international standards

Revitalizing the Board of Trade by redefining its

role and inducting into it experts on trade policy

Activating Indian Embassies as key players in theexport strategy

Avoiding inverted duty structure and ensuring thatdomestic sectors are not disadvantaged in tradeagreements


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SPECIAL FOCUS INITIATIVES

Market Diversification: 26 new countries have been included

within the ambit of Focus MarketScheme.

The incentives provided under FocusMarket Scheme have been increasedfrom 2.5% to 3%.

There has been a significant increase in

the outlay under Market Linked FocusProduct Scheme by inclusion of moremarkets and products. This ensuressupport for exports to all countries in

Africa


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Technological Upgradation EPCG Scheme at zero duty has been introduced

for certain engineering products, electronicproducts ,basic chemicals and pharmaceuticals,apparel and textiles, plastics, handicrafts,

chemicals and allied products and leather andleather products.

The existing 3 % EPCG Scheme has beenconsiderably simplified

A number of products including automobiles andother engineering products have been includedfor incentives under Focus Product, and MarketLinked Focus Product Schemes.

Steps to encourage Project Exports shall betaken.


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Support to status holdersAdditional duty credit scrip @ 1 % of the

FOB of past export shall be granted forspecified product groups includingleather, specific sub sectors inengineering, textiles, plastics, handicraftsand jute.

This duty credit scrip can be used forimport of capital goods by these statusholders. The imported capital goods shallbe subject to actual user condition.


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Agriculture and VillageIndustry Vishesh Krishi and Gram Udyog Yojana Capital goods imported under EPCG will be

permitted to be installed anywhere in AEZ. Import of restricted items, such as panels,

are allowed under various export promotionschemes. Import of inputs such as pesticides are

permitted under Advance Authorization foragro exports.

New towns of export excellence with athreshold limit of Rs 150 crore shall benotified.

Certain specified flowers, fruits and

vegetables are entitled to a special dutycredit scrip, in addition to the normal benefit


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Handlooms

Specific funds are earmarked under MAI / MDA Schemefor promoting handloom exports. Duty free import entitlement of specified trimmings and

embellishments is 5 % of FOB value of exports duringprevious financial year.

Duty free import entitlement of hand knotted carpetsamples is 1 % of FOB value of exports during previousfinancial year.

Duty free import of old pieces of hand knotted carpetson consignment basis for re-export after repair ispermitted.

New towns of export excellence with a threshold limit ofRs 150 crore shall be notified.

Machinery and equipment for effluent treatment plantsis exempt from customs duty.


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Handicrafts

Duty free import entitlement of tools, trimmings andembellishments is 5 %of FOB value of exports duringprevious financial year

Handicraft EPC is authorized to import trimmings,embellishments and consumables on behalf of those

exporters for whom directly importing may not be viable. Specific funds are earmarked under MAI & MDA

Schemes for promoting Handicraft exports. New towns of export excellence with a reduced

threshold limit of Rs 150 crore shall be notified. Machinery and equipment for effluent treatment plants

are exempt from customs duty. All handicraft exports would be treated as special

Focus products and entitled to higher incentives.


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Gems & Jewellery

Import of gold of 8 k and above is allowed underreplenishment scheme

Duty Free Import for:1. Jewellery made out of:

(a) Precious metals (other than Gold&Platinum) 2%(b) Gold and Platinum 1%(c ) Rhodium finished Silver 3%

2. Cut and Polished Diamonds 1%

(d) Duty free import entitlement of commercialsamples shall be Rs. 300,000.

(e) Personal carriage of Gems & Jewelleryproducts in case of holding/participating in overseasexhibitions increased to US$ 5 million to US$ 1


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Leather and Footwear

Duty free import entitlement of specifieditems is 3% of FOB value of exports ofleather garments

Machinery and equipment for Effluent

Treatment Plants shall be exempt frombasic customs duty CVD is exempted on lining and

interlining material, raw, tanned and

dressed fur Re-export of unsold hides, skins and

semi finished leather shall be allowedfrom Public Bonded warehouse at 50%

of the applicable export duty


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Marine Sector

Imports for technological up gradation underEPCG in fisheries sector (except fishingtrawlers, ships) exempted from maintainingaverage export obligation.

(b) Duty free import of specified specializedinputs / chemicals and flavoring oils isallowed to the extent of 1% of FOB value ofpreceding financial years export.

(c) To allow import of monofilament long linesystem for tuna fishing at a concessional rateof duty and Bait Fish for tuna fishing at Nilduty.

(e) Marine products are considered forVKGUY


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Electronics and IT HardwareMfg Industries Expeditious clearance of approvals

required from DGFT shall be ensured

Exporters /Associations would beentitled to utilize MAI & MDA Schemesfor promoting Electronics and IT

Hardware Manufacturing industryexports.


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Sports Goods and Toys

Duty free import of specified specializedinputs allowed to the extent of 3 % of FOBvalue of preceding financial years export.

Sports goods and toys shall be treated as a

Priority sector under MDA / MAI Scheme.Specific funds would be earmarked underMAI /MDA Scheme

Applications relating to Sports Goods and

Toys shall be considered for fast trackclearance by DGFT.

Sports Goods and Toys are treated as specialfocus products and entitled to higher

incentives.


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Green products &technologies Focus would be on items relating to

transportation, solar and wind powergeneration and other products as may

be notified which will be incentivizedunder Reward Schemes


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Board of Trade- objectives

Commerce & Industry Minister will be theChairman of the Board of Trade (BOT).Government shall also nominate up to 25persons, of whom at least 1 0 will be experts intrade policy.

Objectives: To advise Government on Policy measures for

preparation and implementation of both short andlong term plans for increasing exports

To review export performance of various sectors,

identify constraints and suggest industry specificmeasures to optimize export earnings

To examine existing institutional framework forimports and exports and suggest practicalmeasures for further streamlining to achieve

desired objectives


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GENERAL PROVISIONS RDG.IMPORTS & EXPORTS Exports and Imports shall be free, except

where regulated free unless regulated byFTP or any other law in force

Import / export of arms and related

material from / to Iraq shall be prohibited Every exporter or importer shall comply

with the provisions of FT (D&R) ActAny goods, export or import of which is

restricted under ITC(HS) may beexported or imported only in accordancewith an Authorization


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PROMOTIONAL MEASURES

Scheme for Assistance to States for Developing Export forDeveloping Export Infrastructure and Allied Activities(ASIDE) :

Creation of new Export Promotion IndustrialParks/Zones (SEZs/Agri Business Zones) andaugmenting facilities in the existing ones.

Setting up of electronics and other related infrastructurein export conclave.

Equity participation in infrastructure projects includingthe setting up of SEZs.

Meeting requirements of capital outlay of EPZs/SEZs Development of complementary infrastructure such as,

roads connecting the production centers with the portsetc. & stabilizing power supply through additionaltransformers and islanding of export production


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MAI scheme:Activities funded under this scheme: Market studies/surveys Setting up of showroom / warehouse Participation in international trade fairs

Displays in International departmental stores Publicity campaigns, Brand promotion Reimbursement of registration charges for

pharmaceuticals and expenses for carrying outclinical trials etc., in fulfillment of statutory

requirements in the buyer country Testing charges for engineering products abroad Assistance for contesting Anti Dumping litigations


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MDA Scheme: financial assistance isprovided:

Trade Fairs and Buyer Seller meets

abroad or in India Export promotions seminars.

Financial assistance with travel grantis available to exporters traveling tofocus areas, viz., Latin America,

Africa, CIS region, ASEAN countries,Australia and New Zealand


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Towns of Export Excellence (TEE) Selected towns producing goods of

Rs. 750 Crore or more will be notified

as TEE based on potential for growthin exports. However for TEE inHandloom, Handicraft, Agriculture andFisheries sector, threshold limit would

be Rs 150 Crores Common Service Providers in these

areas shall be entitled for EPCG

scheme


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EXPORT AND TRADING HOUSES:

Merchant as well as ManufacturerExporters, Service and Trading Houses

Providers, Export Oriented Units (EOUs)and Units Status located in SpecialEconomic Zones (SEZs), Agri ExportZones (AEZs), Electronic Hardware

Technology Parks (EHTPs), SoftwareTechnology Parks (STPs) and Bio-Technology Parks (BTPs) shall be

eligible for status


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SERVICES EXPORTS: Software exporters shall register

themselves with Membership CertificateElectronics and Software EPC

Government shall promote establishmentof Common Facility Centres for use byhome-based service providers,

particularly in areas like Engineering &Architectural Design, Multi-mediaoperations, Software developers etc., inState and District level towns


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REWARD / INCENTIVESCHEMES IN DGFTSERVED FROM INDIA SCHEME (SFIS):

Objective is to accelerate growth inexport of services so as to create a

powerful and unique Served From India'brand, instantly recognized andrespected world over.

All Indian Service Providers, of serviceslisted in Appendix 1 0, who have freeforeign exchange earning of at least Rs.10 Lakhs in preceding financial year /

current financial year shall qualify for


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DUTY EXEMPTION &REMISSION SCHEMES Duty exemption schemes enable dutyfree import of inputsrequired for export

production. Duty Exemption Schemesconsist of (a) Advance Authorization

scheme and (b) Duty Free ImportAuthorization (DFIA) scheme. A DutyRemission Scheme enables post exportreplenishment / remission of duty oninputs used in export product. DutyRemission Schemes consist of

(a) Duty Entitlement Passbook (DEPB)Scheme and

(b) Duty Drawback (DBK) Scheme

trade policy ppt

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