With a view to doubling our percentage share of global trade within 5 years and expanding employment opportunities, especially

in semi urban and rural areas, certain special focus initiatives have been identified for the agriculture, handlooms, handicraft, gems & jewellery and leather sectors. Government of India shall make concerted efforts to promote exports in these sectors by specific sectoral strategies that shall be notified from time to time. Further Sectoral Initiatives in other sectors will also be announced from time to time. For the present, the thrust sectors indicated below shall be extended the following facilities: New Sectoral Initiatives to be announced (a)A new scheme called the Vishesh Krishi Upaj Yojana (Special Agricultural Produce Scheme) for promoting the export of fruits, vegetables, flowers, minor forest produce, and their value added products has been introduced (Para 3.8). (b)Funds shall be earmarked under ASIDE for development of Agri Export Zones (AEZ) (i) Agriculture

(c)Import of capital goods shall be permitted duty free under the EPCG Scheme (d)Units in AEZ shall be exempt from Bank Guarantee under the EPCG Scheme. (e)Capital goods imported under EPCG shall be permitted to be installed anywhere in the AEZ. (f)Import of restricted items, such as panels, shall be allowed under the various export promotion schemes . (g)Import of inputs such as pesticides shall be permitted under the Advance Licence for agro exports. (h)New towns of export excellence with a threshold limit of Rs 250 crore shall be

notified.

(ii)

Handlooms : (a)Specific funds would be earmarked under MAI/ MDA Scheme for promoting handloom exports (b)Duty free import entitlement of specified trimmings and embellishments shall be 5% of FOB value of exports during the previous financial year. (c)Duty free import entitlement of hand knotted carpet samples shall be 1% of FOB value of exports during the previous financial year. (d)Duty free import of old pieces of hand knotted carpets on consignment basis for reexport after repair shall be permitted. (e)New towns of

export excellence with a threshold limit of Rs 250 crore shall be notified.

(iii)

Handicrafts: (a)New Handicraft SEZs shall be established which would procure products from the cottage sector and do the finishing for exports (b)Duty free import entitlement of trimmings and embellishments shall be 5% of the FOB value of exports during the previous financial year. The entitlement is broad banded, and shall extend also to merchant exporters tied up with supporting manufacturers. (c)The Handicraft Export Promotion Council shall be authorized to import

trimmings, embellishments and consumables on behalf of those exporters for whom directly importing may not be viable. (d)Specific funds would be earmarked under MAI & MDA Schemes for promoting Handicraft exports. (e)CVD is exempted on duty free import of trimmings, embellishments and consumables. (f)New towns of export excellence with a reduced threshold limit of Rs 250 crore shall be notified.

(iv)

Gems & Jewellery (a)Import of gold of 18 carat and above shall be allowed under the replenishment scheme

(b)Duty free import entitlement of consumables for metals other than Gold, Platinum shall be 2% of FOB value of exports during the previous financial year. (c)Duty free import entitlement of commercial samples shall be Rs 100,000. (d)Duty free reimport entitlement for rejected jewellery shall be 2% of the FOB value of exports (e)Cutting and polishing of gems and jewellery, shall be treated as manufacturing for the purposes of exemption under Section 10A of the Income Tax Act

(v)

Leather and Footwear (a)Duty free import entitlement of

specified items shall be 5% of FOB value of exports during the preceding financial year. (b)The duty free entitlement for the import of trimmings, embellishments and footwear components for footwear (leather as well as synthetic), gloves, travel bags and handbags shall be 3% of FOB value of exports of the previous financial year. The entitlement shall also cover packing material, such as printed and non printed shoeboxes, small cartons made of wood, tin or plastic materials for packing footwear . (c)Machinery and equipment for Effluent Treatment Plants shall be exempt from basic customs duty.

(d)Re-export of unsuitable imported materials such as raw hides & skins and wet blue leathers is permitted. (e)CVD is exempted on lining and interlining material notified at S.No 168 of Customs Notification No 21/2002 dated 01.03.2002. (f)CVD is exempted on raw, tanned and dressed fur skins falling under Chapter 43 of ITC(HS).

Optimum Development programme for Pragati Maidan

1B.2

In order to showcase our industrial and trade prowess to its best advantage and leverage existing facilities to enhance the quantity of space and service, Pragati Maidan will be transformed into a world-class complex with visitor friendliness ingress and

egress system. The complex utilisation will be improved, increased and diversified. There shall be brand new , state-ofthe-art , environmentallycontrolled, airconditioned exhibition areas, and Permanent Exhibition Marts. In addition, a large Convention Centre to accommodate ten thousand delegates will be developed, with multiple and flexible hall spaces, auditoria and meeting rooms with hitech equipment. A year-round Food and Beverage destination will be developed, with a large number of outlets covering all cuisines and pricing levels. There will be a multi- level park to accommodate over nine thousand vehicles within the envelope of Pragati Maidan.

Indian Exim Policy
Home - Export Import Guide - Indian Exim Policy

In every five years, the Ministry of Commerce and Industry, Government of India, announces the ExportImport (EXIM) policy. This is an effort towards the encouragement of foreign trade and creation of a complimentary Balance of Payments. The EXIM policy, updated yearly on 31st of March, is followed from 1st April.

Some of the chief highlights of the current policy are: 1. Extension of the DEPB scheme till May, the next year. 2. Service tax will be refunded on maximum services 3. Extending Income tax benefit for EOUs. 4. Extension of FMS coverage and inclusion of ten more countries including Mongolia, Croatia, Ghana, Colombia, Albania, etc. 5. Introduction of split-up facility 6. Payment of excise duty by export oriented units on monthly basis rather than consignment basis.

However, the central government reserves the right to amend any of the sections of this policy in public interest. Some of the focus initiatives of the policy are: To have a greater share in the global trade and generate more employment opportunities, a number of focus initiatives that have been identified for various sectors are:

Agriculture: Some of the policies that have been introduced are-Vishesh Krishi and Gram Udyog Yojana. Moreover, diverse export promotion schemes have allowed the use of export of certain restricted items. Import of certain pesticides has been approved under the advance authorization schemes for export of agricultural products.

Handloom: MAI/MDA schemes have granted specific plans for the promotion of export of handloom items. Duty free

import on certain items has been conferred which has proved to be beneficiary. These include hand knotted carpets.

Handicraft: Establishment of new handicraft SEZs would enable the procurement of products from the cottage sector and also help in the finishing for exports. It is also suggested that the import entitlement of machineries, tools, trimmings and equipments will be 5% of the value of FOB for export that was recorded the previous year. Import trimmings, consumables and embellishments are under the authorization of handicraft EPC.

Gems and Jewellery: The replenishment scheme holds the authority to allow the import of 8K or above gold backed up by an Assay certificate for the specification of weight, alloy content and purity. Several import duties have been revised for jewellery, cut and polished diamonds, marine sector, electronics, leather and footwear, etc.

This site provides comprehensive information on Exim Policy India. The site also focuses on India's achievements as a result of its well crafted modern Exim policy. The major points of Exim Policy India is discussed as hereunder for each and every export sectors and schemes Service  Duty free import facility for service sector having a minimum foreign exchange earning of Rs.10 lakhs.  The duty free entitlement shall be 10% of the average foreign exchange earned in the preceding 3 licensing years. Agro Corporate sector with proven credential will be encouraged to sponsor Agri Export Zone and to provide services such as provision of pre/post harvest treatment and operations, plant protection, processing, packaging, storage and related R&D. Status Holders  Duty-free import entitlement for status holders having incremental growth of more than 25% in FOB value of exports.  It shall be 10% of the incremental growth in exports and can be used for import of capital goods, office equipment and inputs. Hardware & Software  To promote growth of exports in embedded software, hardware duty free import for testing and development purposes allowed.  Hardware upto a value of US$ 10,000 shall be allowed to be disposed off. 100% depreciation to be available for 3 years.

Gem & Jewelery Sector  Diamond & Jewelery Dollar Account for exporters dealing in purchase/sale of diamonds and diamond studded jewelery.  Gem & Jewelery units in SEZ and EOUs can receive precious metal i.e Gold/silver/platinum prior to exports or post exports equivalent to value of jewelery exported. Export Clusters Upgradation of infrastructure in existing clusters/industrial locations under the Department of Industrial Policy & Promotion (DIPP) scheme to increased. Rehabilitation of Sick Units Steps for for revival of sick units and extension of export has been modified. Removal of Quantitative Restrictions Import of 69 items covering animal products, vegetables and spices, antibiotics and films removed from restricted list. Special Economic Zones  Sales from Domestic Tariff Area (DTA) to SEZs to be treated as export. Foreign bound passengers will now be allowed to take goods from SEZs to promote trade, tourism and exports.  Export/import of all products through post parcel/courier by SEZ units will now be allowed.  SEZ units will now be allowed to sell all products including gems and jewelery through exhibitions and duty free shops or shops set up abroad. EOU of Exim Policy India  Agriculture/Horticulture processing EOUs will now be allowed to provide inputs and equipments to contract farmers in DTA.  Period of utilization of raw materials prescribed for EOUs increased from 1 year to 3 years.  Export/import of all products through post parcel/courier by EOUs will now be allowed.  EOUs will now be allowed to sell all products including gems and jewelery through exhibitions and duty free shops or shops set up abroad. EPCG of Exim Policy India  Shall allow import of capital goods for pre-production and post-production facilities also.  To facilitate upgradation of existing plant and machinery, import of spares shall also be allowed.  To facilitate diversification into the software sector. DEPB of Exim Policy India Facility for provisional DEPB rate introduced to encourage diversification and promote export of new products. DFRC of Exim Policy India Duty Free Replenishment Certificate scheme extended to deemed exports to provide a boost to domestic manufacturer. Value addition under DFRC scheme reduced from 33% to 25%. Advance License Standard Input Output Norms for 403 new products notified in Exim Policy India. Anti-dumping and safeguard duty exemption to advance license for deemed exports for supplies to EOU/SEZ/EHTP/STP. Transaction Cost Reduction

Applications filed online shall have a 50% lower processing fee as compared to manual applications is notified in Exim Policy India. Other benefits extended by new Exim Policy India are  Actual user condition for import of second hand capital goods upto 10 years old dispensed with.  Reduction in penal interest rate from 24% to 15% for all old cases of default under Exim Policy.  Export of free of cost goods for export promotion @ 2% of average annual exports in preceding three years subject to ceiling of Rs.5 lakh permitted.

INTRODUCTION This Annual Supplement is the second in the series supplementing the Foreign Trade Policy 2004-09. In line with Government’s promise of a stable Foreign Trade Policy regime, this year’s supplement (in the same way as last year) does not alter the broad contours of the main Policy. However, recognizing the dynamic nature of international trade and the consequent need for periodic realignment of our international trade strategies, contemporary issues have to be addressed from time to time, and this is what this initiative does. The changes in the Annual Supplement resulted from the inputs received through interactive sessions with various Export Promotion Councils, Industry organizations, Apex Chambers of Commerce & Industry and sister Departments of Government. The Board of Trade has emerged as an effective institutional mechanism and idea-generator for the FTP. A number of useful inputs have been obtained through the Working and Study Group reports and brain storming sessions of the Board of Trade. 2. TRADE PERFORMANCE When the Government launched the new Foreign Trade Policy in August 2004, it set out with the ambitious objective of doubling India’s percentage share of global merchandize trade within five years. Merchandize trade in the very first year of the policy period grew at the rate of 26%. This year’s export figures are unprecedented. I am delighted to share with you that merchandize exports have crossed the ‘magic figure’ of 100 billion dollars. In fact, they have touched the ‘auspicious figure’ of 101 billion dollars. The annual growth rate is 25%.

Handicraft Buyers Handicraft Importers Worldwide Exim Market Export, Import Market Information & Data. Exim Survery Worldwide Exim Market database Lamp Business Lamps & Lighting Fixtures List. Gems Buyers Gems & Jewellery Buyers around the World Rubber Importers Rubber & Rubber Products Directory Giftware Buyers Giftware Buyers & Suppliers South Korea Pages South Korea Yellow Pages

Our imports have grown 32%, and stand at 140 billion dollars – but 43 billion is our oil bill. Thus, our non-oil imports are 97 billion dollars, a full 4 billion lower than our exports. On the non-oil front, therefore, we have a positive balance of trade. 3. SECTORAL EXPORT GROWTH Exports from many sectors have surpassed our expectations. Project goods exports grew at the rate of 173%. Exports of non-ferrous metals, guar gum meal, computer software in physical form, rice, pulses, dairy products, all recorded a growth surpassing 50%. Commodities like man-made staple fibres, cosmetics and toiletries, iron-ore, coffee, processed food and transport equipment grew at the rate above the average, i.e. more than 25% during this period. 4. MARKET SHARE IN DIFFERENT COUNTRIES India is steadily increasing its share in important markets. Growth in exports to UK has been 30%, to Singapore (with which we implemented the CECA) 54%. India’s exports to South Africa grew at 44% while for China the growth rate is 35%. We shall be releasing detailed statistics on all this in the form of a Ready Reckoner next month, after exact figures come in. 5. ‘FOCUS PRODUCT’ & ‘FOCUS MARKET’ SCHEMES The other chief objective of the Foreign Trade Policy was providing a thrust to employment generation, particularly in semi-urban and rural areas. We are therefore introducing two new schemes to nurture this. We realized that certain industrial products can generate large employment per unit of investment compared to other products, and promoting their export would in turn give a thrust to their manufacture. This realization led to the formulation of the ‘Focus Product Scheme’ which aims to promote such exports. The Scheme allows duty credit facility at 2.5% of the FOB value of exports on fifty percent of the export turnover of notified products, such as value added fish and leather products, stationery items, fireworks, sports goods, and handloom & handicraft items.

It is also necessary to penetrate markets, especially to which our exports are comparatively low. Some of our competitors are aggressively ‘occupying space’ in Latin America, in Africa and other destinations which Indian exporters have unfortunately been neglecting, perhaps due to high freight costs & undeveloped networks. But these are the markets of the future, and it is of strategic necessity that we enlarge our market share here. For this we have a ‘Focus Market Scheme’ which allows duty credit facility at 2.5% of the FOB value of exports of all products to the notified countries. The scrip and the items imported against it for both these schemes would be freely transferable. These two Schemes would replace the Target Plus Scheme. To take the benefits of foreign trade further to rural areas, the Vishesh Krishi Upaj Yojana is being expanded to include village industries based products for export benefits, and it is therefore renamed as Vishesh Krishi Upaj aur Gram Udyog Yojana – a rather long name, but one which adequately reflects its intent and coverage. 6. PROMOTING SERVICES EXPORT While Services account for 52% of our GDP, our total services trade – exports & imports – totals more than 100 billion dollars. Expansion of the Services sector is vital for providing jobs to urban educated youth. In the WTO too we are actively engaged in the Services negotiations. A number of features have been added in the Served from India Scheme to encourage service exports. The Scheme ill now allow transfer of both the scrip and the imported input to the Group Service Company, whereas earlier transfer of imported material only was allowed. 7. INDIA EMERGING AS GEM AND JEWELLERY HUB Because of a rich tradition of craftsmanship, enterprise and availability of skilled, low cost manpower India has the potential to become an international hub for Gems and Jewellery. We have already introduced some measures in the Budget. The diamond trade, which was concentrated in Antwerp, is moving

out – to Dubai, to Tel Aviv. I want Mumbai be right up there, and not lose out to its fellow Asian cities. This Supplement now introduces a number of measures for facilitating export of value added products catering to changing needs of the market and facilitating easier product movement across the borders and allowing import of precious metal scrap for refining. (a) We have large unutilized melting, refining and jewellery-making production capacity. To enable such capacities to be used in a productive manner, import of precious metal scrap and used jewellery will now be allowed for melting, refining and re-export of jewellery. However, such import will not be allowed through hand baggage. (b) Gems & Jewellery exporters will now be allowed to re-import the rejected precious metal jewellery subject to refund of duty exemption benefits on the inputs only and not the duty on jewellery as was being done earlier. (c) Many a times exporters faced the dilemma of unsold jewellery in the foreign markets because of changing designs and other such factors. To overcome this problem, Gems & Jewellery exporters will now, be allowed to export jewellery on consignment basis. (d) Treatment of cut and polished precious and semi-precious stones enhance the quality and afford higher value in the international market. For this purpose, Gems & Jewellery exporters will now be allowed to export such items for treatment and subsequent re-import, within a period of 120 days. (e) Increase of gold and silver prices in the international market over the past few years has made the present value addition norms on export of gold & silver jewellery unrealistic. The value addition norm for such items is being reduced from 7% to 4.5%.

Such measures will help Indian Gems and Jewellery to sparkle on the world stage. 8. AUTO-COMPONENTS India is on the move, metaphorically as well as literally. We not only have the fastest growing automobile market in the world, but India is fast emerging as

an important centre for sourcing auto-components. The FTP already extends a number of facilities for the sector. We shall now allow import of new vehicles by auto component manufacturers for R & D purposes without homologation. This is necessary to give our R&D labs easier access to the latest technologies current in the auto component industry. 9. AVIATION SECTOR Supplies of stores (food, beverages and other supplies) and refueling of long distance flights has emerged as a big business opportunity. Currently, most airlines replenish supplies or refuel at Thailand, Malaysia or Singapore. Since these supplies were not treated as exports in India and the suppliers could not obtain the duty neutralisation benefits available to other export products the store supplies from India were not competitive enough. We have decided to treat such supplies on an equal footing with other exports, qualifying for benefits under various Export Promotion Schemes. This will hopefully enable India to offer competitive fuel prices and will attract mid route stops of the international flights. 10. MARINE SECTOR Having done something for the ‘land’ and the ‘air’, we felt we must do something for the ‘sea’ too! We had already brought in some benefits for shrimp and tuna fishing through the budget. Now the list of specialized inputs used in the marine sector has been expanded to include additional items of chemicals and other additives within the present duty free entitlement of 1%. 11. DUTY FREE IMPORT AUTHORISATION SCHEME Export production requires use of many inputs in small quantities. Even though such inputs are allowed for import without payment of customs duty under Advance Licensing Scheme, exporters generally do not import them because of lack of economies of scale and are forced to source them locally at a higher price. The existing Duty Exemption Schemes have been of little help in such cases because of design limitations. To address the issue, the salient features of the Advance Licensing scheme (which allows imports before exports) and Duty Free Replenishment Certificate

(which allows transferability of import entitlements) have been clubbed to evolve a new scheme named Duty Free Import Authorisation Scheme. The new scheme offers the facility to import the required inputs before the exports. It allows transferability of scrip once the export obligation is complete. Imports made under this authorisation will be exempt from payment of basic custom duty, additional customs duty, education cess, anti-dumping duty and safeguard duty, if any. The scheme will come into effect from 1st May, 2006. 12. SERVICE TAX & FRINGE BENEFIT TAX The incidence of un-rebated Service Tax and Fringe Benefit Tax on exports will be factored in the various duty neutralisation and remission schemes. 13. EPCG SCHEME We have introduced certain flexibilities in the conditions relating to maintenance of average export performance under the EPCG Scheme, and also in the extension of export obligation period by 2 years, based on certain conditions. 14. EOUs EOUs account for a substantial portion of our exports. Just because we have the new SEZ Act in place, it does not mean that our EOUs can be neglected. On the contrary, we will continue to nurture them. In order to facilitate the smooth functioning of the EOU units, Development Commissioners will fix time limits for finalizing the disposal of matters. EOU units in the textile sector are allowed to dispose of the left over fabrics upto 2% of CIF value of imports, on consignment basis. Settling accounts for every consignment is complex and time consuming. It has therefore been decided to allow disposal of left over material on the basis of previous year’s imports. 15. GENETICALLY MODIFIED (GMO) MATERIAL For the benefit of the consumer clear guidelines for import of Genetically

Modified Material are being laid down. While making such imports, products which have been subjected to Genetic Modification will have to carry a declaration stating the fact. 16. INTEREST PAYMENT ON REFUNDS It has been decided that interest for delayed payment of refunds would be made by the Government to ensure accountability and cut delays. 17. TRADE FACILITATION Clearance of import or export consignments are held up for want of test reports of samples drawn at the time of import or export. Therefore, to accelerate cargo clearances, it has been decided to allow pre-shipment test certificates from accredited international agencies in lieu of demanding only test reports. 18. EDI INITIATIVES We are committed to simplifying procedures relating to international trade and putting in place an exporter friendly regime for obtaining import authorizations and disbursement of export linked incentives. A web based online system of filing import & export applications is functional. Requests for obtaining authorizations relating to Advance Licence, EPCG Licence and DEPB are to be filed on the DGFT website with a digital signature and payment of licence fee through the Electronic Fund Transfer mode. No manual applications and supporting documents are required to be submitted. All EDI applications are processed within one working day. We propose to take more EDI initiatives in the next six months to take the process further. 19. CONCLUSION Our FTP has served us well. What else could account for the ‘grand leap forward’ by our exports? Within just two years we have jumped 60%, from 63 billion dollars to 101 billion! But the real congratulations are due not to us – we have only prepared a document – but to you the exporters, the

businessmen, the traders, the entrepreneurs. It is you who have given this policy flesh and blood and meaning. I assure you, my Ministry will continue to work closely with you all, to continue to energise and invigorate the national economy, so that our Prime Minister’s vision of double-digit growth is achieved sooner rather than later.

Thank you.

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