IIMM/DH/02/2006/8154, Export and Import Management
Q 1. (a) The First & Second Export and Import Policies were announced in 1992 and Mar 1997 respectively. The Second policy is operating currently and applies for all Export & Imports. What are the objectives of Imports & Exports (Control) Act 1947 and Present Second Policy. Answer:-
INTRODUCTION: -Trade policy governs exports from and imports into a country. It is one of the various policy instruments used by acountry to attain her goals of economic develop-ment. This policy is thus, formulated keeping in view, the nationalpriorities for economic development and the international commitments made by the country. It is essential that theentrepreneurs and the export managers understand the trade policy as it provides the vital inputs for the formulation of their business growth strategies. In India, the trade policy Le., export-import policy is formulated by the Ministry of Commerce, Government of India in terms of section 5 of the Foreign Trade (Development and Regulation)Act,1992Besides, the Government of India also announced on January 30,2002 a Medium Term Export strategy, toguide the formulation the Export-Import Policy: 2002 - 07 with the, objective of achieving a share of 1 % in worldtrade by the end of 2006 - 07 from the present I share of 0.6% (2000 - 01). The text of this strategy is given asAppendix VII at the end of the book. The present Export - Import Policy was announced on 31.3.2002 for a period of 5years with effect from 1.4.2002 to 31.3.2007 co-terminus with Tenth Five Year Plan. It covers both the trade inmerchandise and services. The present chapter explains legal framework affecting foreign trade of India particularlywith reference to Export-Import Policy; 2002 - 2007. It also discusses the preferential trading arrangements affectingexports and imports of India.
The foreign trade of India is guided by the Export-Import (EXIM) Policy of the government of India arid is regulatedby the Foreign Trade (Development and Regulation) Act, 1992.EXIM Policy contains various policy decisions taken by the government in the sphere of foreign trade, i.e., withrespect to imports and exports from the country and more especially export promotion measures, policies andprocedures related thereto. It is prepared and announced by the Central Government (Ministry of Commerce). India'sEXIM policy, in general, aims at developing export potential, improving export performance, encouraging foreigntrade and creating favourable balance of payments position.
LEGAL FRAMEWORK FOR FOREIGN TRADE OF INDIA:-
In India, the legal framework for the regulation of foreign trade is mainly provided by the Foreign Trade(Development and Regulation) Act, 1992, Garments Export Entitlement Policy: 2000-2004, Export (Quality Controland Inspection) Act, 1963, Customs and Central Excise Duties Drawback Rules, 1995, Foreign Exchange ManagementAct, 1999 -and the Customs and Central Excise Regulations.The main objective of the Foreign Trade (Development and Regulation) Act is to provide for the development andregulation of foreign trade by facilitating imports into, and augmenting exports from India. This Act has replaced theearlier law namely, the
imports and Exports (Control) Act1947
. A comparison of the nomenclature of the two Actsmakes it very dear that there is a shift in the focus of the law from control to development of foreign trade. This shift inthe focus is the outcome of the emphasis on liberalisation and globalisation as a part of the process of economicreforms initiated in India since June 1991.The application of the provisions of the Foreign Trade (Development & Regulation) Act 1992 has been exempted forcertain trade transactions vide Foreign Trade (Exemption from application of Rules in certain cases) Order 1993GENERAL OBJECTIVES OF THE EXIM POLICY: -