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Digital Assignment 1

Exporters and Importers Obligations

Prof. (Dr.) Sudipto Bhattacharya, VITBS, Vellore

Export and Import Management (BMT1018)

Assignment date September 20, 2017

Deadline of Submission September 30, 2017

Uploading to be completed by 23.59 hrs. of September30. If and only if VIT intranet

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1. Prepare a checklist of activities to be performed right from the moment an export order is
received till the time it is executed and the payment received.
2. Visit the website of Reserve Bank of India and prepare the various provisions in Foreign
Exchange Management Act (FEMA) applicable to exporters from India

Study the news clip below and answer the question which follows:-


Proposals virtually ruled out; Developers face stringent norms
(The Economic Times, April 6, 2007)

The government has overhauled its policy on Special Economic Zones (SEZs) making large,
multi-product SEZs virtually impossible to build. The empowered group of ministers, headed by
foreign minister Pranab Mukherjee, which met in the political shadow of the Nandigram violence
in West Bengal, has changed several binding parameters:
The size cannot exceed 5,000 hectares (12,500 acres) Earlier, there was only a lower limit
of 1,000 hectares. State government can impose lower ceilings, if they so choose.
At least 50% of the area has to be earmarked for processing for all SEZs Earlier, the norm
was 35% for multi-product SEZs and 50% for sector specific SEZs
A state government cannot acquire land for an SEZ on behalf of private developers, nor can
state governments form joint ventures with private developers if they do not already have
land in possession to offer the project. States can acquire land to develop SEZs on their
own, provided they stick to the new relief and rehabilitation package to be announced soon.
SEZs will have tougher export obligations to meet instead of being merely net foreign
exchange earners; they will have to earn gross export earnings at least equivalent to their
purchases from the domestic tariff area.

3. (a) Do you think that the central government policy on SEZ is crippling the growth of SEZ in
states of India? Justify your answer.
(b) Why do you think the press reporter has concluded that SEZs have tougher export
obligations to meet?

Be original in your answers. Students who share their answers and those who depend
on others for their assignments, both, will face penalization. Give your best and
deserve the best credits for the hard work. Happy Learning!!!

September 19, 2017