Export import policy

Parkhita Kundu (29054

Rupesh Kumar (29062)
EXIM Policy, EARM Class Presentation,
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The process of globalisation is a reality which
can not be denied and also should not be
avoided . However, it needs to be managed so
that we can derive the maximum advantage
from the world market.

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EXIM Policy
EXIM policy is the collection of various policies with
respect to import and export announced by the central
government with the aim for developing export potential,
improving export performance, encouraging foreign trade
and creating favorable balance of payment position.

EXIM Policy, EARM Class Presentation,

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General Objectives of EXIM Policy
• To increase our percentage of share of global
merchandise trade within the five year.
• To act as an effective instrument of economic
growth by giving a thrust to employment
generation.
• To establish the framework for globalization.
• To promote the productivity competitiveness of
Indian Industry.
• To Encourage the attainment of high and
internationally accepted standards of quality.

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 India’s share in world trade

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 India’ major trading partners
country 2000- 2002-03 2003-04 2004-05 2005-06
01
US 13.0 13.4 11.6 10.7 10.6
U.K 5.7 4.6 4.4 3.7 3.6
Belgium 4.6 4.7 4.1 3.6 3.0
German 3.9 4.0 3.8 3.5 3.8
Japan 3.8 3.2 3.1 2.8 2.6
Switzer 3.8 2.4 2.6 3.3 2.8
Hongkong 3.7 3.1 3.3 2.8 2.7
UAE 3.4 3.8 5.1 6.2 5.1
China 2.5 4.2 4.9 6.5 7.0
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Singapore 2.5 2.5 Date=12/02/2009 3.0 3.4 3.5
 Historical back ground
Import and Export Act 1947
 Annual Import and export policy announced
 After 1986 three year policy announced
Foreign trade (Development and Regulation) Act ,
1992
 Empowering the central government to formulate and
announce the export and import policy and amend the
same
 Emphasis changed from the protection to promotion
and development
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 Export and import policy, 1992-1997
Salient feature
 Dismantling of protectionist and regulatory
policies
 Emphasis on agriculture commodity export
 Announcement about establishing industrial
parks in different states

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 Export import policy 1997-2002
• Target –achieving 1% share in world trade
• Import of essential raw material, capital goods
required for export made cheaper
Salient feature
• Export import free unless specified(negative list)
• Licence for item on negative list
• First time importer- Exporter licence made
compulsory unless specified
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 Modifies export import policy, April
1998
Salient feature-
 Reduction in negative list of item to 2200 from
10202
 Export promotion capital good scheme extended
to software sector, limit reduced from 20 crore
to 10 lakhs
 Post of Director general of anti dumping duty and
allied duties created
 Regional licenses officer delegated rights to issue
license

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 Export-import policy 1999-2002
Salient features
 Liberalisation in licensing requirement
 Policy of fiscal control of import were brought
 The maximum import duty limit as prescribed
by WTO taken into account

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 Export import policy 2000-2001
Salient feature
Major export promotion scheme announced
 SEZ
 Seven Sector specific package
 Gems and jewellery
 Pharmaceutical
 Agro-chemical
 Biotechnology
 Silk
 Leather
 Garments
 State government involvement into export promotion

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 Special Economic Zone
• A SEZ is defined as a “specifically delineated
duty-free enclave and shall deemed to be
foreign territory for the purpose of trade
operations and duties and tariffs”.

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 Some of the salient feature of SEZ
1. Entire production need to be exported from these zone
2. 100% FDI allowed
3. Import of capital goods and raw material duty free
(unrestricted)
4. Tax incentive including tax holiday

Some of the bottle neck of SEZ

1.Infrastructure bottleneck like power shortage, poor
transport facilities and procedure delays
2.Difference in SEZ facilities across the nation

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 Gems and Jewellery
 Customs duty on import of rough diamonds is being
reduced to 0%.
 Import of rough diamonds is already freely allowed.
 Licensing regime for rough diamond is being abolished.
This should help the country emerge as a major
international centre for diamonds.
 Value addition norms for export of plain jewellery
reduced from 10% to 7%.
 Personal carriage of jewellery allowed through
Hyderabad and Jaipur airport in addition to Delhi,
Bombay, kolkata and Chennai
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 Technology oriented scheme
Electronic hardware:-
 Electronic Hardware Technology Park (EHTP)
 Obligation –positive net export in the next five year
Chemical and pharmaceutical industry
 Free export of sample with out any limit
 Reimbursement of 50% of registration fee for registration of
new drug
Projects
 Free import of equipment and good for export oriented unit

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 Export import policy 2001-2002
Salient feature
 Complete removal of quantitative restriction
on import (WTO)
 Some sensitive item put under State Trading
categories
 Agriculture Export Zone

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 Export import policy 2002-2007
Some sector specific policy:-
Agriculture
 Export related packaging requirement were removed
for item like butter etc.
 Restrictions on export of all cultivated (other than
wild) varieties of seed, except Jute and onion
 20 AEZ notified
 Announcement of transport subsidy for fruits, poultry,
dairy and some other products

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 Foreign Trade Policy 2004-09
Objectives
Enhance exports of major export commodities
 Identify potential export commodities
 Diversify export destinations
Some of the scheme initiated
Target plus
Vishes Krishi Upaj Yojana
Serve from India scheme
Export promotion capital goods scheme liberalized
New status holding categories
EXIM Policy, EARM Class Presentation,
Biotechnology park
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Vishesh Krishi and Gram Udyog Yojana
Objective :
 Promotion of export of fruits, vegetable,
flowers, minor forest produce and value added
products and artistic wooden furniture
Incentive :
 Duty credit of 5% free on board value of
export

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 Total Export VS Agriculture export

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 Changes in agriculture export over the
year

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 Agriculture exporting zone
• To maximize foreign exchange earnings through increased
agro exports
• To provide better income to the farmers through higher unit
value realization
• To create employment opportunities in rural areas by
encouraging value added exports of farm produce.
• Establishing India as a reliable supplier of quality agro
products at competitive prices.

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Main thrust area
1.Main fruits - Banana, Citrus, Pineapple, Jackfruit, Apple, Guava, Papaya,
Mango, Plum, Peach Pear etc.
2. Thrust Fruits -Citrus, Banana, Passion Fruit and Pineapple
3. Spices -Ginger, Cardamom, Pepper & Turmeric
4. Medicinal & Aromatic Plants
5. Tea
Main activities undertaken
• Provision of infrastructure facilities., viz package houses, cold storages,
refrigerated transport units
• Educating the farmers through
• 1. Pre and post harvest training programmes
• 2. Quality awareness programmes
• 3. Preparation of pre and post harvest manuals in local languages and
distribution among the farmers.
• Transport Assistance for Horticulture Products
• Building external market linkage for food processing units in NER with
major players in food sectors like Hindustan Liver, Dabur, ITC and other
companies.

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 Assistance to States for Infrastructure Development
of Exports [ASIDE]

States will be provided assistance for

 Infrastructure construction like roads connecting
production centres with port
 Setting up of inland container depot
 New state level export promotion industrial park
 Development of minor ports
 Stabilisation of power supply
 Augmenting common facilities in common zones
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 Market Access Initiative [MAI]

Financial assistance is provided for

• Market studies, sales promotion campaign,
international departmental store, publicity
campaign, participation in international trade fare,
brand promotion
Assistance
 25% to 100% of the total cost
Beneficiary
 Export promotion council, industry and agency
of state government and Indian commercial
mission abroad
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 Marketing Development Assistance [MDA]

• Financial assistance for export promotion

activities
• Participation in trade fares, buyer-seller meet
• Export promotion seminar
• Travel grants for participation in trade fare in
focus areas like Latin America, Asian countries,
Australia and New Zealand
Criteria –
• Minimum annual export turn over 5 crore
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 Towns of Export Excellence

Criteria
 Town producing the goods of 1000 crore or more
on the basis of export potential
 In case of handloom, handicraft agriculture and
fisheries sectors threshold limit 250 crore
Benefits
 All benefits of EPCG schemes
 MAI scheme
 Infrastructure development under ASIDE scheme
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 Target Plus Scheme.

• Accelerated growth in export by rewarding star

exporters who have achieved more growth
• High performing star export house shall be entitled
for duty credit based on incremental export target
substantially higher than general export target fixed
pegged at 20%
Export Duty credit
20%-25% 5%
25%-100% 10%
>100 20%
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 Served from India Scheme

Objective : Creation of powerful and served from India brand

Eligibility
• Service provider : minimum foreign exchange of 10 lakh
• Individual service provider :minimum 5 lakhs
Benefits :
• Duty credit equal to 10% of earning in previous year(all)
• For one star hotels 5% duty credit, for stand alone hotel it is
20%
• Health and educational institute duty credit 10%
• Duty credit can be used to import the capital goods and
professional equipments

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 Service Export Promotion Council

Activities
• Map opportunities for key services in key markets
and develop strategic market access program
• Coordinate with sectoral player in undertaking
brand building and marketing program in target
market
• Make necessary intervention with regard to policy
procedure in coordination with recognised local
bodies
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 What can make India the export
power house?
 Improving the domestic demand by reducing the direct
taxes and import duties
 Debottle-neck ports and power sector reform
 Current port facilities will be insufficient to support
future demands
 Encouragement of SEZ in a big way needed-
 We need to allow the selling in domestic tariff area by
charging import duties on input and excise duty on out
put
 Accelerated labour reforms and facilitate skill
development
 20 million trained technician will be required by 2015
 Assessing the projects before allowing for SEZ formation
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 Thank you

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