Exim Policy | Exports | Trade

Exim Policy

Exim Policy
 The foreign trade of India is guided by the ExportImport policy of the Government of India.  Regulated by The Foreign Trade Development and Regulation Act 1992.  Exim policy contain various policy decisions with respect to import and exports from the country.  Exim Policy is prepared and announced by the central government.  Exim Policy of India aims to developing export potential, improving export performance, encouraging foreign trade and creating favorable balance of payment position.

3 . components.intermediate.  To augment export by facilitating access to raw material.General Objectives of Exim Policy  To establish the framework for globalization.  To promote internationally competitive import substitution and self-reliance.  To Encourage the attainment of high and internationally accepted standards of quality. consumables and capital goods from the international market.  To promote the productivity competitiveness of Indian Industry.

The duration of the policy from 1st Sept. It takes an integrated view of the overall development of India’s foreign trade. Aim of the policy is to double the global merchandise trade within the policy time period of 5 years 4 . Shri Kamal Nath minister for commerce and industry has announced on 31st Aug 2004. India’s first Exim policy. 2004 to 31st March 2009.Exim Policy of India 2004-2009  Hon.

Objectives of Exim Policy 2004-2009  To double our percentage of share of global merchandise trade within the five year. 5 .  To act as an effective instrument of economic growth by giving a thrust to employment generation.

 Gems and Jewellery: Import of gold of 18 carat and above has been permitted under the replenishment scheme  Leather and Footwear : Duty free import entitlement of specified items shall be 5% of FOB value of exports during the preceding year 6 .Highlights of the New Foreign Trade Policy 2004-2009  Special Focus Initiatives: Semi-urban and Rural Area  Agriculture : Vishesh Krishi Upaj Yojana and Agri Export Zones  Handlooms and Handicrafts: Mark under Market Access Initiatives Scheme and Proposed to Start new SEZ.

 Export Promotion Schemes – Assistance to States for Infrastructure Development of Exports [ASIDE] – Market Access Initiative [MAI] – Marketing Development Assistance [MDA] – Towns of Export Excellence – Target Plus Scheme. – Served from India Scheme – Service Export Promotion Council 7 .

 New Status Holder Categorization Category One Star Export House Total Performance (In Rs) 15 crore Two Star Export House Three Star Export House Four Star Export House Five Star Export House 100 crore 500 crore 1500crore 5000 Crore 8 .

9 . Board of Trade: The role is to advising government on relevant issues connected with Foreign Trade Policy.

 Implications on Agriculture: – Special Agricultural Produce Scheme has been introduced for promoting the export of fruits. vegetables.Implications of The Foreign Trade 2004-09  Implications on Indian Economy: – This policy propose to simplify procedures and develop technology and infrastructure. flowers. 10 .  Implications on Handlooms and Handicraft: – Establishment of Handicraft SEZ and Handicraft Export Promotion Council would promote development of Handloom and Handicraft Industry. and their value added products.

 Implications on Gem and Jewellery Sector : – This is special thrust area in this policy. 11 . – Exemption on customs duty on equipment for effluent treatment plants would help promoting export form this sector. – Duty free imports of other inputs would give a further boost to this sector  Implications on Leather and Footwear Industry : – Duty free import as a specified percentage of exports.

– Develop strategic market access programmes like brand building in co-ordination with sectoral players and recognize nodal bodies of the service industry. 12 . Implications on Service Industry : – An exclusive service promotion council has been set up in order to map the opportunities for key services in key market.

to the Foreign Trade Policy 2004-09 on the 8th April 2005. Government of India has announced Annual Supplement 2005.Annual Supplement to Foreign Trade Policy 2004-09 Minister for Commerce and Industry. 13 .

Highlights of the Supplement  Inter State Trade Council : To engage the State Government in providing an enabling environment for boosting international trade. SSI sector. 14 .  Removal of Export Cess : Proposed to abolish cess on export of all agricultural and plantation commodities levied under various Commodity Board Acts. Retail Sectors in order to promote exports from them. by setting up an Inter State Trade Council.  Export Promotion Capital Goods Scheme (EPCG) : This scheme is extended to Agricultural sector.  Service Export : To upgrade infrastructure in the service related companies.

fruits. 15 . Agri Export : Benefits under ‘Vishesh Krishi Upaj Yojana’ have been extended to exports of poultry and dairy products in addition to export of flowers.  Advance Licensing Scheme : The Scope of Advance License for annual requirement has been extended to all categories of exporters having past export performance.  Package for Marine Sector : Duty free import of specified specialized chemicals and flavoring oils as per a defined list shall be allowed to the extent of 1% of FOB value of preceding financial years export. vegetables and their value added products.

 EDI Initiatives : DGFT shall introduce an automated electronic system for filing.  Procedural Simplification : Proposed to simplify procedures and reduce the documentation requirements so as to reduce the transaction cost of the exporters and thereby increase their competitiveness. Additives. and dye stuff have been removed from the list of items prescribed for import under DFRC. retrieval and authentication of documents based on agreed protocols and message exchange with other authorities such including Customs and banks. 16 . Duty Free Replenishment Certificate : Brass scrap. paper board.

17 . – All forms of wild animals including their parts and products. – Peacock Tail – sandal wood in any form. the import or export of which is ether prohibited. as specified – Human Skeleton. – Exotic birds as notified by the DGFT. – Special Chemicals as notified by the DGFT. The negative list of exports. – Beef.Negative List of Exports 2002-07 The negative list consists of goods. – Sea Shells. as per the EXIM Policy 2002-07  Prohibited Items : Which items completely banned from the exports. restricted through licensing or otherwise to be canalized through a designate government agency.

– Fresh and frozen silver prom frets of weight less than 300gm. and Manipuri breeds. Restricted Items : which items allowed for exports under special license issued by the DGFT. fabrics or textile items with imprints of excerpts or verses of the Holy Quran. – Chemical Fertilizer all types. – Paddy (Rice in husk). – Seaweeds of all types. – Horses – Kathiawadi. ready-made garments. Marwari. 18 . – Dress materials.

Crude Oil 19 . Manganese ore. New Delhi Metals and Minearals Trading Corporation (MMTC). and Chrome ore. Canalized Items : can be exported without an export license through designated State Trading Enterprise Items Niger Seeds Canalizing Agency Tribal Cooperative Marketing Federation of India (TRIFED) New Delhi National Agricultural Cooperative Marketing Federation of India(NAFED) Tribal Cooperative Marketing Federation of India(TRIFED). Indian Oil Corporation Limited Onions (Except Bangalore Rose onion Export Permitted through Specified and Krishnapuram Onion) STEs Gum Karaya Iron ore.

shipment inspection. Freely Exportable Items : can be exported without an export license from DGFT. White finches and Zebra Bones and bone products Subject to a certificate from chemical and Allied Products Export Promotion Council (CAPEXIL) Basmati Rice Subject to registration of contracts with Agriculture and Processed food Products Export Development Authority. However export of such items is subject to certain procedures or conditions. Item Description Military Stores as notified by DGFT Procedures or Conditions No objection certificate from the Department of Deface Production and Supplies Exotic Birds. such as Bangali Subject to Pre. 20 . finches.

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