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Export Import Policy - Presentation Transcript 1. Import - Export

Export Import Policy - Presentation Transcript 1. Import - Export

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export import Policy - Presentation Transcript
1.Import - Export Policy of India2.Contents • Introduction • Why do we need export,brief history • Exim policy,objectives • Export Promotion Measures • Import Control in India • Pre90’s Exim Policy of India • Post 90’s Exim Policy of India3.Why do we need export • Export means trade across the politicalboundaries of different nation. No Nation is self sufficient and had all thegoods that it needs. This happens because of climatic variation & unequaldistribution of natural resources. As a result, countries all over the worldhave become interdependent, which necessitated foreign trade. Adeveloping country like India with its fast growing agricultural production tokeep pace with the population to keep pace with the population growthand growing Industrial infrastructure4.• needs high-import and this can be sustained only with fast export growth.To meet the oil import bill, export is unavoidable. Thus, it is evident thatexport promotion continues to be a major thrust area for the government.Several measures have been under taken in the past for improving exportperformance of the country. In India, Govt. has come out from time to timewith various policies on foreign trade to promote export thereby increasingthe “Foreign Exchange Reserve”. These policies are termed as “EximPolicy”5.Brief history • Import export act was introduced by gov . during secondworld war and it lasted for around 45 yrs and in June 1992 this act wassuperceded by the Foreign Trade (Development & Regulation Act), 1992. .The basic objective of this new act was to give effect to the new liberalizedexport and import policy of the Govt. till 1985 annual policies were madebut from 1985-92, three yr policy was made and then 5 yr policy wasmade coinciding with 5 yr plans 1992-97, 1997-02, 2002-07.6.What is Exim Policy? • It contains policies in the sphere of Foreign tradei.e. with respect to import & export from the country and more especiallyexport promotion measures, policies and procedure related there to. •Export means selling abroad and import as bringing into India, any goodsand services7.Objective of Exim Policy • Accelerating the country’s transition to aglobally oriented vibrant economy with a view to derive maximum benefitsfrom expanding global market opportunities; • Stimulating sustainedeconomic growth • Enhancing the technological strength and efficiency •Encouraging the attainment of internationally accepted standards ofquality • Providing consumers with good quality products and services atreasonable prices.8.General provisions regarding export import • Exports and Imports freeunless regulated • Compliance with Laws • Interpretation of Policy •
Procedure: • Exemption from Policy/ Procedure • Principles of Restriction •Restricted Goods • Terms and Conditions of a Licence • Importer-ExporterCode Number • Exemption from Bank Guarantee • Clearance of Goodsfrom Customs9.EXPORT PROMOTION MEASURES • Policy measures • Institutional setup. • Import Facilitation for Export Production. • Cash subsidies. • FiscalIncentives. • Foreign Exchange Facilities. • Export incentives • Exportproduction units10.Import Facilitation for Export Production • Export Promotion Capital GoodsScheme • Special Import Licences • Duty Free Licences under DutyExemption Scheme • Duty free licences are issued as : • (1) Advancelicence • (2) Advance Intermediate licence. • (3) Special Imprest licence. •(4) Licence for jobbing, repairing etc. for re- export. • (5) Licence underexport production programme. • (6) Advance Release Order. • (7) Back toBack Inland Letter of Credit.11.Export Incentives • Duty Exemption • Duty Drawback Scheme • DFRC(Duty free replenishment certificate) • DEPB( Duty entitlement pass book)• Deemed Exports12.Export Production Units • Export Oriented Unit (EOU) • Special EconomicZones (SEZ) • Software Technology Parks (STP) • Electronic HardwareTechnology Parks (EHTP)13.Cash subsidies • Marketing development assistance • Air freight subsidy •Spices export promotion scheme • Jute externel marketing assistance •Financial assistance scheme agriculture &meat exports • Financialassistance to marine products exports14.Fiscal incentives • Exemption from payment of central excise duty &simplified procedure for clearance. • Exemption from sales tax •Exemptions & deductions under income tax act,1961. • Duty draw backScheme (DDS) • Cash Compensatory Support ( CCS ) • InternationalPrice Reimbursement Scheme (IPRS)15.Import control regime • 1956-57, restrictions on imports started as lot ofimports were there as such gov even had to import foodgrains for selffulfillment • Imports were classified into • Banned items ,Canaliseditems ,Restricted items, OGL • In 1966 ruppee was devalued by 36.5% Bydevaluation gov expressed the hope that the devaluation would lead toexpansion in export earnings as indian goods will become cheaper ininternatinal market on the other hands import would decline as price ofimported goods would increase.16.• Because of a rigid itemization of permissible imports, an element ofinflexibility in the pattern of utilization of imports was introduced. Thetransferability of licenses among same and different industries was notpermissible. This gave rise to an expanding black market in importlicenses. Therefore, the import allocation system was so designed as to
eliminate the possibility of all competition, either domestic or foreign. TheGovt of India has liberalized the import regime from time to time. Atpresent, practically all controls on import have been lifted. Under the newEXIM policy 2002-07.17.Comparison of Pre 90’s & Post 90’s Exim Policy Year Import Export Trade(Cr.) (Cr.) Bal.(Cr.) Excess of Import due to- 1948-51 650 647 -3 •Pent-updemand of war. •Shortage of food & raw material due to partition. •Importof capital goods due to starting of hydro-electric & other projects. Tradedeficit was largely due to 1951-56 730 622 -108 programmes ofindustrialization which gathered momentum and pushed up the imports ofcapital goods. No improvement in exports.18.Year Import Export Trade (Cr.) (Cr.) Bal.(Cr.) Excess of import due tosetting of steel 1956-61 1080 613 -467 plants,heavy expansion &renovation on railways & modernization of many industries. Export lowerthan occur in second plan which shows that export promotion drive did notmaterialize. Excess of import due to- 1961-66 1224 747 -477 •Rapidindustrialization needs capital goods as raw material. •Defence needs hadincreased due to aggression by China & Pakistan. •Need of foodgrainsdue to failure of crops in 1965-66.19.Year Import Export Trade (Cr.) (Cr.) Bal.(Cr.) Devaluation was resorted toessentially- 1966-69 5775 3708 -2067 •To reduce volume of import.(Annual- •To boost export. •Create favourable balance of trade and plans)balance of payment. As a consequence of import restriction 1969-74 19721810 -162 policies with vigorous export promotion measures ,during 1972-73 the country had favourable balance of trade for first time sinceindependence. But several international factors pushed up the price ofpetroleum product,steel,fertilizers etc.results low magnitude of tradebalance.20.Year Import Export Trade (Cr.) (Cr.) Bal.(Cr.) Significant increase in exportduring 1974-79 5540 4730 -810 every year of this period.Export ofcoffee,tea,cotton fabrics etc.recorded substantial increase in this period.But,Janta Government followed policy of haphazard import liberalizationresults decline trade balance from 1977-78. Decline in POL imports wasmore than 1980-85 14,986 9051 -5935 by a big hike in non-POL importsas a consequence of import liberalization. Consequently, huge tradebalance.21.Year Import Export Trade (Cr.) (Cr.) Bal.(Cr.) Huge trade balancecompelled the 1985-90 28,874 18,033 -10,841 government to approachthe World Bank/IMF for loan. The government was also forced to applybrakes on the licensing policy of imports. In 1990-91,push was given to1990-92 45,522 38,300 -7222 export,but as a consequence of Gulf wargovernment failed to curb imports. In1991-92, government introducednumber of measures in trade policy allowing exim scripts,abolishing cash

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