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Since the announcement of first Export Import Policy and Hand Book of
Procedures, in 1992, the government has made substantial changes in the
policy and procedure from time to time till date and provided many
concessions for all type of Exporters and Importers.
The first EXIM Policy was announced in 1992, for the period of five
years (1992-97). EXIM Policy is basically a set of four books. The four
books are:
^EXIM Policy
^Handbook of Procedure Volume I
^Handbook of Procedure Volume II
^ITC & HSE (Introduced in 1995)
EXIM Policy is controlled and governed by DGFT. It classifies goods as
free export or negative list export:

 FREE EXPORTS

 DEGATIVE LIST
^Prohibited item
^Restricted item
^Canalized item
The EXIM Policy controls many aspects of international trade like
India¶s Export, direction of Trade, Provision for different schemes used
for Import and Export
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 nder this scheme import of inputs like raw material, intermediates
components, consumables, parts, accessories, mandatory spares, packing
material and computer software required for the product to be exported
are allowed duty free for processing and export by competent authority
under the various categories of license.
However, such input shall be subject to the payment of additional
custom duty equal to the excise duty at the time of import. The said
additional custom duty will be adjusted as per the provisions.



An Advance License is granted for the import of inputs without payment
of basic custom duty. Such license shall be issued in accordance with the
policy and the procedure in force on the date of issue of the license and
shall be subject to the fulfillment of time bond export obligation and
specified value addition. Advance license may be either value or
quantity based.
The licensing authority shall specify in the license the FOB value of
exports and CIF value of Imports in freely convertible currency. It
should also specify in bracket the CIF value in Indian rupees at the
exchange rate on the date of issue of the license.







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This scheme is available for the manufacturer-Exporter or an Exporter
granted an export house / trading house / star trading house / super house
trading house certificate.
The DEPB scheme shall apply for the export of products where standard
inputs / output norms have been published.
 pon the export of goods by a DEPB license holder, the designated
authority shall calculate, on the basis of standard input / output norms,
including packing material, thedeemed import content of the said
exports and determine the basic customs duty payable on such deemed
imports. He shall credit the said amount in the passbook.

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A drawback will be allowed on the export of goods of such amount on

such rates, as may be determined by central government.
Provided where any goods are produced or manufactured from imported
materials or excisable materials of some of which only, duty chargeable
there on which has been paid and not on the rest, or only a part of the
duty chargeable has been paid; or the whole duty has been rebated or
refunded in the whole or in part or given as a credit under any of the
provisions of the custom act 1962.

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The EPCG scheme allows import of capital goods (including spares,
computer software systems, jigs, fixtures, dice and moulds) at 0% /
3.09% custom duty as against the normal total of 23.895% / 20.805%,
thus providing a duty saved value of more than 20% of the import value.
This is subject to an export obligation equivalent to 6/8 times of duty
saved, to be fulfill over a period of 6/8 years reckoned from the date of
issuance of license.
The scheme covers the manufacturer, exporter, with or without
supporting manufacturers/ vendors, merchant exporters tied to
supporting manufacturers and service providers.
Both new and Second hand capital goods may be imported under this
scheme.
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The EO needs to be fulfilled by the export of goods capable of being
manufactured or produced by the use of the capital goods imported
under the scheme.















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The manufacturer has to first pay the excise duty on the goods mend for
exports and then claim refund for the same to exportation of such goods.
This is done under rule 12 of central excise rules. Rebate of duty is
granted for the finished stage as well as input stage. Rebate of duty in
respect of excisable materials used in the manufacture of the exported
goods shall not be allowed if the exporter avails of the drawback
allowed under duty drawback rules or Modvat.
ARE 1 form in such cases should be prepared giving all particulars and
declarations. The exporter shall deliver 3 copies of ARE 1 to the
superintendent of the central excise having jurisdiction over the factory
or the warehouse. The other two copies (original and duplicate) should
be presented within 24 hrs. of removal of consignment from factory r
warehouse, to the custom officers at the time of exports.

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 to custom department at the time of export.

 
 to central excise department.

  to be retained by the exporter