ASSISTANCE TO

EXPORT PROMOTION

Abhinav Madra
Ankush Raina
Aurnob Chakraverty
Ankush Singla
 INSTRUMENTS
OF
EXPORT
PROMOTION

PRODUCTION FINANCE
INFRASTRUCTU INPUTS FOR
TECHNOLOGY QUALITY
RAL EXPORT
UPGRADATION CONTROL
FACILITIES CAPITAL PRODUCTION
EQUIPMENT TRAINING
PHYSICAL INFRASTRUTURE
 Nodal Point
• Promotes infrastructural support to country’s foreign trade for carriage
goods by sea, air, rail, etc

 SCOPE – AIR/Shipping
• Resolves problem relating to quality, adequacy and transportation services
faced by exporters
• High level standing committees on promotion of exports by air and sea
known as SCOPE-AIR & SCOPE –SHIPPING

 Air Cargo Complexes

• To provide air cargo booking, customs clearance, etc under one roof
 Open Sky policy
• scheduled or non schedules freighters have been permitted to operate ad
hoc services to provide extra capacity plus extra sectional services have
been permitted

 Airport Cold Storage for Agri Exports

• These airport infrastructure are expected to contribute in facilitating export
of quality products such as perishable agri commodities
 Bonded Trucks
• Increase the air evacuation capacity and facilitate movement of export
cargo from Varanasi to Mumbai, Kolkata and now even Delhi

 Trade Facility
• To provide a system wherein trade documents especially related to
import/export require single submission of any of the regulatory
• Internet working of all community partners for electronic document
exchange
• Electronic document filing/exchange facility by every regulatory to
importers/exporters
PRODUCTION INPUTS

Duty Exemption/ Remission Scheme

Target Plus Scheme--- Duty Credit Based on Incremental
Exports
Advance Licenses for Annual Requirement
Duty free Imports for Jobbing, etc.
Gem and Jewellery EP Scheme
 ASSISTANCE TO
EXPORT
PROMOTION

CREDIT
EXPORT
/FINANCE AND INFORMATION
MARKETING
FOREX TECHNOLOGY
ASSISTANCE
FACILITIES
 EXPORT MARKETING
ASSISTANCE

Marketing Information
Physical infrastructure
Marketing infrastructure/support
MARKETING INFORMATION

NCIT(National Centre for Trade Information)

BIC/Trade Portal
Commercial Library
Export Promotion Organization
International Sources
MARKETING
INFRASTRUCTURE/SUPPORT
 Trading Corporations
• STC(State Trading corporation)
• MMTC(Mineral and Metal Trading Corporation)
• PEC(Projects and equipments Corporation)
• TTCI(Tea Trading Corporation of India Ltd.)
• STCL(Spices Trading Corporation Ltd.)

 Star Export Houses

• EOUs(Export oriented units)
• SEZs(Special Economic Zones)
• AEZs(Agri Export Zone)
• EHTP(Electronic Hardware Technology Park)
 Joint Ventures abroad
• In collaboration with local are promoted
• Procedure for setting up the venture is liberalized
• No govt. approval is required, only RBI permission for export

 Project and Services Exports

• Opening and maintaining of foreign currency bank account
• Establishment of site offices
• Remittance of agency commission
• Raising foreign currency loans/overdraft abroad against bank guarantee
from India
• Services like releasing the reasonable amount of foreign exchange for initial
expenses
• Remittance of commission
• Purchase of tender documents
• Opening of offices abroad
• Liberal export finance and risk insurance and assistance from MDA(Market
Development Assistance) for providing consultancy abroad

 India Brand Equity Fund(IBFE) Trust

• To promote Indian brands in overseas markets
• To make ‘made in India’ label a symbol of quality, competitive price, reliable
supplier good and services
• To facilitate dissemination of knowledge of our product and services, obtain
feedback
• To promote programme for the creation of countrywide awareness of global
imperative for quality and high business ethics
CREDIT/FINANCE AND FOREX
FACILITY
Post Shipment Credit
Foreign exchange facilities
Trade fairs/exhibitions
Foreign currency account
Tax incentives
INFORMATION TECHNOLOGY

Computer based information system

Facilitator counters
World wide access
E-Governance
MIS and its application
Computer awareness and training
 Another Important Assistance for
Agriculture: VKGUY
VISHESH KRISHI AND GRAM UDYOG YOJANA
OBJECTIVES: To Promote Exports of
 Agricultural produce and their value added products
 Minor Forest Produce and their value added variants
 Gram Udyog Products for exports
VKGUY: Assistance by governments
Cold storage facilities including Controlled
Atmosphere(CA) & Modified Atmosphere(MA) stores
Pack Houses
Reefer Vans/ Containers
Also given some tax benefits
 Assessment of applicant’s proposal to be done on the
basis of past export performance and first come first
served basis.
SERVED FROM INDIA SCHEME (SFIS)
Objective is to accelerate growth in export of services
so as to create a powerful and unique ‘Served From
India’ brand, instantly recognized and respected world
over.
All Service Providers, of services listed in Appendix
10 of HBP v1, who have a total free foreign exchange
earning of at least Rs. 10 Lakhs in preceding financial
year shall qualify for Duty Credit scrip. For Individual
Service Providers, minimum would be Rs 5 Lakhs.
FOCUS MARKET SCHEME (FMS)
Objective is to offset high freight cost and other
externalities to select international markets with a view
to enhance our export competitiveness in these
countries.
Duty Credit Scrip
EXIM Policy 2004-09 : 2.5%
FTP 2009-14 : 3.0%
EXIM Policy 2004-09
8 Latin American countries - Argentina, Bolivia, Chile,
Ecuador, Paraguay, Peru, Uruguay and Venezuela.
49 African countries Angola, Botswana, Burundi,
Cameroon, Mauritius and Zimbabwe.
FTP 2009-14
26 new markets of Africa, Latin America, Oceania and
CIS countries.
Now 83 countries under FMS.
Export of products like pharmaceuticals, synthetic textile
fabrics, value-added rubber products, value-added plastic
goods, textile made-up, knitted and crocheted fabrics,
glass products, certain iron and steel products and certain
articles of aluminum would be eligible for FMS if exports
are made to 13 identified markets (Algeria, Egypt, Kenya,
Nigeria, South Africa, Tanzania, Brazil, Mexico, Ukraine,
Vietnam, Cambodia, Australia and New Zealand).
FOCUS PRODUCT SCHEME (FPS)
Objective is to incentivise export of such products,
which have high employment intensity in rural and
semi urban areas, so as to offset infrastructure
inefficiencies and other associated costs involved in
marketing of these products.
Duty Credit Scrips
EXIM Policy 2004-09 : 1.25%
FTP 2009-14 : 2.00%
EXIM Policy 2004-09
value added leather products and leather footwear (15
items listed under the ITC-HS),
Sports goods, fire works and stationery (18 items)
 handicraft (11 items)
 handloom products (all handloom products bearing
Handloom Mark)
value added fish products (29 items).
FTP 2009-14
Engineering products such as agricultural machinery,
parts of trailers, sewing machines, hand tools, garden
tools, musical instruments, clocks and watches and
railway locomotives, value-added plastic products, jute
and sisal products, technical textiles, green technology
products such as wind mills and wind turbines,
electrically operated vehicles, project goods, and
certain electronic items have been included in FPS.
Common Facility Centers
Stress on establishment of Common Facility Centers
for use by home-based service providers, particularly
in areas like Engineering & Architectural design,
Multi-media operations, Software developers etc., in
State and District level towns, to draw in a vast
multitude of home-based professionals into services
export arena.
Privileges
i) Authorization and Customs clearances for both imports and
exports on self-declaration basis;
ii) Fixation of Input-Output norms on priority within 60 days;
iii) Exemption from compulsory negotiation of documents
through banks. Remittance / Receipts, however, would be
received through banking channels;
iv) 100% retention of foreign exchange in EEFC account;
v) Enhancement in normal repatriation period from 180 days
to 360 days;
vi) Exemption from furnishing of BG in Schemes under FTP;
and
Vii) SEHs and above shall be permitted to establish Export
Warehouses, as per DoR guidelines.
ENTITLEMENT
Duty Credit Scrip
All Service Providers (except Service Providers in
Tourism Sector) - equivalent to 10% of free foreign
exchange earned during preceding financial year.
Service providers in tourism sector registered with
DoT shall be entitled to duty credit scrip equivalent
to 5% of free foreign exchange earned during
preceding financial year.
Stand-alone restaurants will be entitled to duty credit
equivalent to 10% of foreign exchange earned by
them in preceding financial year.
EXPORT-IMPORT ORGANIZATIONAL
STRUCTURE

CENTRAL MINISTRIES

COMMERCE
OTHER
& TEXTILES
MINISTRIES
INDUSTRY

BOARD OF
TRADE
ADVISORY BOARDS/
DEVELOPMENT
COUNCILS
HANDICRAFT BOARD
HANDLOOM BOARD
POWERLOOM BOARD
WOOD DEVELOPMENT BOARD
Others
DEPARTMENTS/
OFFICES/STATUORY BODIES
DGFT (Director General Foreign Trade)
DGCI&S (Director General Commercial Intelligence &
Statistics)
DGAD (Director General Antidumping & Allied duties)
TEXTILE COMMISSIONER
JUTE COMMISIONER etc.
 ADVISORY BODIES
BOARD OF TRADE(BOT)
 Set Up On MAY 5, 1989 Under the Chairmanship of
the Minister of Commerce & Industry.
 BOT as reconstituted should have 25 members of
whom at least 10 will be experts in trade policy.
 Chairman of recognized Export promotion councils or
Secretary Generals of National Chambers of
Commerce to be ex-officio members.
 BOT
TERMS OF REFERENCE
 To advise the Govt. on Policy Measures for preparation of
short and long term plans for increasing exports.
 To review export performance of various sectors, identify
constraints and suggest measures.
 To examine the existing institutional framework for
exports.
 To review the policy instruments & procedures for
imports and exports and suggest steps.
EXPORT PROMOTION BOARD
 Under the chairmanship of the cabinet secretary
 Provide policy and infrastructural support through
greater coordination among concerned
ministries/departments for boosting growth
 BOARD OF APPROVAL FOR EOUs/SEZ
Units
 A special board of Approvals for EOUs and SEZ units
has been constituted for the consideration of large
proposals which can not be approved by the
Development Commissioner of the SEZs.
 The Board of Approval has been constituted by the
Central Government in exercise of the powers
conferred under the SEZ Act.
(SPECIAL ECONOMIC ZONE)SEZ
 List of SEZs
Nokia SEZ in Tamil Nadu
Quark City SEZ in Chandigarh
Flextronics SEZ in Tamil Nadu
Mahindra World City in Tamil Nadu
Motorola, DELL and Foxconn
Apache SEZ (Adidas Group) in Andhra Pradesh
Divvy's Laboratories, Andhra Pradesh
Rajiv Gandhi Technology Park, Chandigarh
ETL Infrastructure IT SEZ, Chennai
Hyderabad Gems Limited, Hyderabad
Maha Mumbai SEZ
Statutory Body: Directorate General, Foreign
Trade(DGFT)
 Headquarters in New Delhi
 Offices in almost all States and UTs : Regional
Licensing Authorities(RLAs)
 Formerly known as CCI&E (Chief Controller of
Imports & Exports)
 Help in formulation of India’s export-import(EXIM)
i.e. Foreign Trade Policy and implementation thereof
 Developments in Assistance by DGFT
Counter Assistance : For speedy disposal of
applications a counter assistance function at each
office of DGFT
Clarification on FTP: Any request for clarification on
any provision may be sent to the DGFT.
Chat Window: Office of DGFT has opened a chat
window on its website for interacting with the trade &
industry(3:00 to 5:00 pm on every 2nd Wednesday of
every month)
 Developments in Assistance by DGFT
Facilitation Committee: Resolve problems related to
different departments
Online Grievances: All grievances can be conveyed
to the jt. DGFT on MSN messenger
zkhuma@hotmail.com
Publications: handbook of procedures, Classification
of Export Import items brought out.
 Commodity Specialization

For development of ,production and exports of commodities.

Mostly controlled/financed by government.

Commodity Development
EPCs
boards authorities
Export promotion council

 EPC encourage and monitor the observance of international

standards and specification by exporters. EPC keep abreast
of trends and opportunities in international market for
goods and services and assist their members in taking
advantage of such International markets for goods and
services
 Most EPC`S are for a group of items ,but in some cases
items may overlap.
MAIN ACTIVITIES :

Issues RMRC.
Link between govt and their respective members.
Collection and dissemination export information.
Inviting business delegation and sales team for
developing export.
Foreign publicity in overseas market.
Any other issue covering production and marketing of
products under their purview.
 EPC
 At present there are 21 EPC (12 under ministry of
commerce and 9 under ministry of textiles)
 These deal with various commodities, such as basic
chemicals , and allied products, cotton textiles,
handlooms, apparels, cashew, gem and jewellery, silk,
marine product, carpets, leather manufactures, plastic,
spices, sport goods, engg goods, tobacco, wool,
handicraft, electronics and computer software.
 Commodity Boards

Are boards, which have been specially established by the

Government of India for the promotion of some of the
traditional commodities of exports having high export
potentials. These boards are supplementary to the Export
Promotion Councils (EPCs).

7 boards :
Coffee Board , Rubber board , Tobacco board , Spice board ,
Central Silk board , Tea board , Coir board
 Functions of Commodity Boards

• To takes active interest in production, development and exports

of respective commodities.
• To introduce new methods of cultivation of commodities.
• To offer advice to the government on export matters such as
fixing quota for exports and significant trade agreements.
• To provide trade information, guidance and various other
services to their members and help them in their export
promotion efforts.
• To participate in trade fairs and exhibitions abroad.
• To sponsor trade delegations and conduct market surveys for
the benefit of their members.
• To arrange pre-shipment inspection for export items.
Difference Between EPCs and CBs

• Commodity Boards look after the export promotion of

primary and traditional items of exports while Export
Promotion Councils look after the export promotion of
non-traditional items like engineering goods, computers,
chemicals, etc. with promising export potential.

• EPCs are concerned only with the promotion of exports

of their respective products; the scope of Commodity
Boards is much broader. The functions of Commodity
Boards also encompass the development and production
of the respective commodity and domestic marketing.
Development authorities
• MPEDA: covers fisheries of all
kinds.
Increasing exports, specifying
standards, processing, marketing, extension and
training in various aspects of the industry.
• APEDA: promotion and development of exports value
added items in agriculture, horticulture, livestock
products, processed food items, confectionary and agro
based goods.
Training institutes
1: Indian Institute of Foreign Trade( IIFT) was set up by govt of India in 1963.
Functions:
• Training and imparting education in international business.
• IIFT conducts market studies and surveys in the overseas market .
• Organizes Seminars and Workshops.
• Trade Delegations

• Publications:
- Foreign Trade Review (FTR), a quarterly journal.
- Focus WTO, a bimonthly magazine.
- Technology Exports, a quarterly newsletter.

• Research and Consultancy: IIFT has so far brought out over 650 research
studies and surveys.
2: Indian Institute of Packaging (IIP): was set up as a national
institute jointly by ministry of commerce, government of India,
Indian packaging industry in 1956.

Functions :
• Training Programmes: pertaining to packaging and also provides
suggestions & technical assistance in regard to packaging.
• Testing Facilities: It also undertakes testing of packing materials
and packages to ensure export quality.
• Recognized as an agency for testing, evaluation and approval of
packages for hazardous cargo as per IMDG(International
Maritime Dangerous Goods ) Code and authorization for UN
certification of exports.
• Is engaged in developing national standards of packaging and
eco-friendly packages.
• Coordinating agency for introduction of bar coding technology.
3: NIFT (1986): working under ministry of textiles, conducts professional
programmes in the disciplines of apparel merchandising & marketing,
fashion design & garment manufacturing technology.

4: Indian diamond institute (1978):strengthening the availability of trained

manpower for gems and jewellery industry by conducting various courses.
 undertakes consultancy works.
 Its IDI-GTL certifies colored stones and diamonds authenticating their
color, purity, cut, shape & weight.
5: Indian institute of handloom technology: development of new designs
,improvement in weaving and processing techniques.
 Financial institutions

EXIM
BANK ECGC OTHER

FOR PROVIDING CREDIT AND FINANCE AND

INSURING EXPORT CREDIT RISK
 RBI
 Apex central bank to authorize, extend and regulate export
credit and transaction including foreign exchange affairs.
 Framed various schemes for providing relending facilities
and at concessive rate of interest, authorize other banks to
extend credit and regulating foreign exchange in a manner
which results in more exports.
 Its DBOD(department of Banking Operations and
Development) administers various policies relating to
export finance/credit and FED (Foreign Exchange Depp)
with those concerning foreign exchange.
 EXIM bank
 Exim Bank is managed by a Board of Directors, which has representatives

from the Government, Reserve Bank of India, Export Credit Guarantee

Corporation (ECGC) of India, a financial institution, public sector banks, and

the business community .

 OBJECTIVE

 “… for providing financial assistance to exporters and importers, and for

functioning as the principal financial institution for coordinating the

working of institutions engaged in financing export and import of goods and

services with a view to promoting the country’s international trade…” 

 Functions of EXIM bank

Extends overseas buyer credit, suppliers credit, lines of credit,

relending services to
banks .

Also provides finance to Indian

companies towards their equity participation in joint ventures
abroad.
 ECGC

Export Credit Guarantee Corporation : Export Credit

Guarantee Corporation of India Limited, was established in
the year 1957 by the Government of India to strengthen the
export promotion drive by covering the risk of exporting on
credit.
 Functions:
 Provides a range of credit risk insurance covers to exporters against
loss in export of goods and services.
 Offers guarantees to banks and financial institutions to enable
exporters to obtain better facilities from them .
 Provides Overseas Investment Insurance to Indian companies
investing in joint ventures abroad in the form of equity or loan.
 BIBLIOGRAPHY
Internet:
Commerce.nic.in
Eximbankindia.com
Ecgc.in
Book : exports by Paras ram
THANK
YOU