EXIM POLICY

EXIM POLICY

 The economic policy which regulates the

Export-Import activities.
 Also known as Foreign Trade Policy.
Cont…

 It is announced under ‘The foreign Trade

Act, 1992’
 By reflecting LPG policy
 It is five year policy, but still announced on
31st march every year.
Objectives of EXIM Policy
 To promote Export and Import
 To establish framework for globalization.
 To promote productivity competitiveness
of Indian industry.
 To encourage attainment of high and
internationally accepted standard of
quality.
Features of EXIM policy 2004-2009
 Mostly focused on export of farm produce.
5% duty free credit entitlement on FOB value
Agriculture exporter allowed to import duty free capital goods.

 ‘Special Focus Initiative’ for employment intensive sectors (Gems and

jewelry, Handicrafts, Leather and footwear, etc.)

 Limit is reduced to 15 cr from 45 cr for ‘Status holding exporter’

 Limit is reduced to 250 cr from 1000 cr for ‘Town of export excellence’

 Small and medium Exporter get benefit by Export Promotion Capital Goods
(EPCG) scheme
Cont…
 Three new Export promotion schemes were introduce

1. “Target Plus” for those exporters who excel others

2. “Vishesh Krishi Upaj Yojana” for those exporters who
export farm products.
3. “Served from India” for those exporters who provide
services
Under ‘Serve from India’….
 Procedure simplification and rationalization is provided to reduce
long run cost of exporters

 Provide warehouse infrastructure for both export and import.

 Set up of FTWZs (Free Trade and Warehousing Zones) and SEZs

(Special Economic Zone)

 Provision for Bio-Tech park across the country.

 Service tax was exempted for all goods and services exported.
Implications of EXIM policy 2004-2009
 On Economy
Simplify procedure and development of IT
 On Agriculture
Export of agriculture goods has rised.
 On Handicraft
Establishment of Handicraft SEZ and Handicraft EPC.
 On Gem and Jewelry
Duty free import of some essential inputs.
 On Leather and footwear
Duty free import as specified percentage of export and exemption from
custom duty on equipments.
 On Service Industry
Establishment of Service Promotion Council
Features of EXIM policy 2009-2014
 Export target of $200 bn set for 2010-11.
 Growth Target of 15% for two years and then 25% for remaining
period.
 Obligations on EPCG schemes are relaxed.
 Tax refund scheme for jewelry sector.
 Take steps to help exporters for reducing transaction costs.
 Minimum value addition for tea is reduced yo 50% from 100%
 Export Units are allowed to sell 90% of goods in domestic
market.
 Provisions are made for dollar credit
 Number of duty free samples raised to 50 pieces from 15.
 ZERO duty under technology upgrade system.