Amity School of Business

Amity School of Business

BBA, V Semester
International Marketing
Prof. Ruchi Khandelwal
Export Import Policy
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 Amity School of Business

Influence of Exim Policy

• Selection of Product
• Market selection
• Product Modification for customization for
target market
• International Market entry decision
• International pricing decision
• International market promotion decision
• International marketing strategy decision

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 Amity School of Business

India’s Export-Import Policy

• Import Prohibitions and Restrictions
– Prohibitions on
• Tallow, fat, and/or oils, rendered of any animal origin, Animal
rennet, Wild animals, including their body parts and products, and
ivory, Beef and products containing beef in any form.
– Restrictions on
• Firearms and ammunition, certain medicines and drugs, poppy
seeds and some other products used for the preservation of wildlife
and environment.
• Export Prohibitions and Restrictions
– Prohibitions on
• Export of wild animals, birds, tallow, wood products, beef,
sandalwood products, certain species of sea shells, peacock
feathers, antlers of deer, human skeleton etc.
– Export of restricted items is permitted only after obtaining
license from DGFT. 3
 Amity School of Business

India’s Export-Import Policy

• Export Promotion Schemes and Incentives
– Duty Drawback
• Rebate of duty chargeable on any imported or excisable material
used in the manufacture of goods exported from the country.
• Customs Allocation and Central Excise Allocation
• All Industry rates and Brand rates
• No export obligation
– End-use tariff
• Concessional rates of duty on imports of certain items.
– Export Promotion Capital Goods (EPCG)
• Import of Capital goods at concessional rates of duty subject to an
appropriate export obligation accepted by the exporter.
• In case of failure to fulfill the export obligation, an exporter has to
pay the customs duties saved in proportion of unfulfilled portion of
export obligations along with interest at 15%.
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 Amity School of Business

India’s Export-Import Policy

• Export Promotion Schemes and Incentives
– Duty Exemption schemes
• Enable duty-free import of inputs required for export
production, through an advance license.
– Advance license for physical exports
– Advance license for intermediate supply
– Advance license for deemed export

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 Amity School of Business

India’s Export-Import Policy

• Export Promotion Schemes and Incentives
– Duty Remission Schemes
• Enable post-export replenishment of duty on inputs used for export
production.
– Duty free replenishment certificate (DFRC) : provides the benefits of
advance license on post-export basis.
– Duty entitlement passbook scheme (DEPB) : is a Duty Credit
Entitlement issued on post-export to neutralize the incidence of
Customs duty on the import content of the export product. Under the
DEPB scheme, an exporter may apply for credit, as a specified
percentage of FOB value of exports, made in freely convertible
currency.
– Deemed Exports :"Deemed Exports" refers to those transactions in
which the goods supplied do not leave the country and the payment
for such supplies is received either in Indian rupees or in free foreign
exchange.

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 Amity School of Business

India’s Export-Import Policy

• Schemes to promote Export Production and Related
Infrastructure
– Special Economic Zones (SEZs) :
• Special Economic Zones in the country have been set up to provide an
internationally competitive and hassle free environment for exports.
• The units in the Zone have to be a net foreign exchange earner but they shall
not be subjected to any pre-determined value addition or minimum export
performance requirements.
– Agricultural Export Zones (AEZs)
– Export Oriented Units (EOUs):
• Complementary to the SEZ scheme.
• Adopts the same production regime but offers a wide option in locations
with reference to factors like source of raw materials, ports of export,
hinterland facilities, availability of technological skills, existence of an
industrial base and the need for a larger area of land for the project.
– Software Technology Parks (STPs): same as SEZs
– Electronic Hardware Technology Parks (EHTPs): same as SEZs 7
 Amity School of Business

India’s Export-Import Policy

• Schemes to promote Export Production and Related
Infrastructure
– Export houses, Trading houses, Star Trading Houses, Super Star
Trading Houses
• To give recognition to the established exporters and large export houses to
build up the marketing infrastructure and expertise required for export
promotion.
• They are further entitled to a number of benefits, like, custom-clearance on
self-declaration basis, priority finance etc.
– Assistance to States for Infrastructure Development for Exports and
other Allied Activities (ASIDE)
• State component of funds
• Central Component
– Market Development Assistance (MDA)
• Assist EPCs, Commodity Boards to undertake promotional activities for
their products and commodities, in overseas markets.
– Market Access Initiative (MAI)
• Assist export promotion organizations, trade promotion organizations or
exporters in new market ventures overseas. 8