ASSIGMENT 1

NAME : MOHD SAJID

ENR NO : 1900101207

GROUP :B

SUBMITTED TO : DR AYESHA BADRUDDIN

DATE : 23/03/24

YEAR/SEM : 2ND YR
 EXPORT AND IMPORT POLICY
What is EXIM Policy?
The EXIM (Export-Import) Policy contains guidelines governing the imports and
exports of products and services in and out of India. EXIM Policy’s primary
objective is to regulate and develop foreign trade by facilitating imports into
and exports from India.

The Foreign Trade Development and Regulation Act, 1992, provides for the
Indian government to announce the EXIM Policy every five years. Each EXIM
Policy announced by the Indian Government is valid for five years, and they can
amend, enhance or add new provisions to the policy every year on 31 March,
taking effect from 1 April.

The Ministry of Finance, in collaboration with the DGFT, its network of regional
offices and the Union Minister of Commerce and Industry, announces
amendments or changes to the EXIM Policy of India.

In 2004, the EXIM Policy was renamed the Foreign Trade Policy to provide a
comprehensive approach to foreign trade in India. The Ministry of Commerce
announced the recent FTP, which came into effect on 1 April 2023. FTP 2023-
2028 seeks to make India an export hub and to integrate India further into
global value chains. It creates an enabling ecosystem for exporters, which aligns
with India’s vision of becoming ‘Atmanirbhar’.

Objectives of EXIM Policy

• To increase growth in exports and imports in India.
• To stimulate long-term economic growth by expanding access to
components, intermediates, essential raw materials, consumables and
capital goods.
• To improve agriculture service and industry competitiveness, create new
employment opportunities and encourage attaining internationally
accepted quality standards.
• To supply high-quality goods and services at an affordable cost.
• To encourage economic expansion by providing access to necessary raw
materials, capital goods, installations, consumables, intermediate
 products and essential elements for expanding production and providing
services.
• To improve the technological productivity and potency of Indian
agriculture, services and companies, thus enhancing competitive power
while creating employment possibilities, and to accomplish globally
acknowledged quality norms.
• To supply consumers with fine-condition services and goods at globally
competitive rates.
•
Features of EXIM Policy

The features of EXIM Policy 2023, effective from 1 April 2023 to 31 March 2028,
are as follows:

Process Re-Engineering and Automation

The FTP emphasises export development and promotion based on technology

interface and principles of collaboration, moving away from an incentive
regime to a facilitating regime. The ongoing schemes like EPCG, Advance
Authorisation, etc., under the FTP 2015-20 will be continued considering their
effectiveness along with technology enablement and substantial process re-
engineering for facilitating the exporters.

Towns of Export Excellence

Four new towns, i.e. Mirzapur, Faridabad, Varanasi, and Moradabad, are
designated as Towns of Export Excellence (TEE) along with the existing 39
towns. The TEEs have priority access to export promotion funds under the MAI
(Market Access Initiative) scheme. They can avail of the Common Service
Provider (CSP) benefits under the EPCG scheme for export fulfilment, which
boosts the exports of handicrafts, handlooms, and carpets.

Recognition of Exporters

Exporter firms that are recognised based on export performance can be

partners in capacity-building initiatives on a best-endeavor basis. Two-star and
above status holders are encouraged to give trade-related training to interested
individuals based on a model curriculum.

Promoting Export From the Districts

The FTP aims to build partnerships with State Governments and take forward
the DEH (Districts as Export Hubs) initiative for promoting district-level exports
and accelerating the development of the grassroots trade ecosystem.

Streamlining SCOMET Policy

There is a broader outreach and understanding of the SCOMET (Special

Chemicals, Organisms, Materials, Equipment and Technologies) among
stakeholders. The FTP is being made more robust to implement international
agreements and treaties entered into by India. A robust export control system
would provide access to dual-use high-end technologies and goods to Indian
exporters while facilitating exports of controlled technologies or items under
SCOMET from India.

Facilitating e-Commerce Exports

FTP outlines the roadmap for establishing e-commerce hubs and related
matters, such as bookkeeping, returns policy, payment reconciliation and
export entitlements.

Rationalisation of the Export Promotion of Capital Goods (EPCG) Scheme

The EPCG scheme, which allows capital goods imports at zero customs duty for
export productions, are being further rationalised. PM MITRA (Prime Minister
Mega Integrated Textile Region and Apparel Parks) scheme is added as an
additional scheme to claim benefits under the CSP (Common Service Provider)
scheme of EPCG.

Dairy Sector Exempted From Maintaining Average Export Obligation

Dairy sectors are exempted from maintaining the average export obligation to
support them in upgrading technology. Vertical farming equipment, Battery
Electric Vehicles (BEV) of all types, rainwater harvesting systems and rainwater
filters, wastewater treatment and recycling, and green hydrogen are added to
green technology products and are eligible for reduced export obligation
requirements under the EPCG scheme.

Facilitation Under the Advance Authorisation Scheme

The advance authorisation scheme provides duty-free raw material imports for
manufacturing export items and is similar to the EOU and SEZ schemes. The
FTP contains certain facilitation provisions under the Advance Authorisation
scheme based on interactions with industry and Export Promotion Councils.

Merchanting Trade

Under the FTP, merchanting trade of prohibited and restricted items is possible.
Merchanting trade involves the shipment of goods from a foreign country to
another foreign country without touching Indian ports by involving an Indian
intermediary. However, it will be subject to compliance with the RBI guidelines
and will not be applicable for items or goods classified in the SCOMET and
CITES list. This will allow Indian entrepreneurs to convert places like GIFT City
into major merchanting hubs, like certain places in Singapore, Dubai and Hong
Kong.

Amnesty Scheme

The government introduced a special one-time Amnesty scheme under the FTP
2023 to address export obligation defaults. This scheme provides relief to
exporters who are not able to meet their obligations under the EPCG and
Advance Authorisation scheme and are burdened by interest costs and high
duty associated with pending cases. The interest payable is capped at 100% of
the exempted duties.

Importance of EXIM Policy

It emphasises trade facilitation through digitisation and technology, promotes
e-commerce, and facilitates exports through various measures and schemes.
It plays a significant role in accelerating the economic flow of trade activities
from a country to India by making the Indian economy globally oriented.
It plays a critical role in expanding global market opportunities.
It helps to increase the gross domestic product of India.
It facilitates the flow of the economy from a country to India and increases
foreign exchange in India.
It aids in facilitating liberalisation and free trade and improves the overall
market for domestic consumers.
 SPECIAL ECONOMIC ZONE

What Is a Special Economic Zone (SEZ)?

A special economic zone (SEZ) is an area in a country that is designed to generate
positive economic growth. An SEZ is normally subject to different and more
favorable economic regulations compared to other regions in the same country,
including tax incentives and the opportunity to pay lower tariffs. SEZ economic
regulations tend to be conducive to—and attract—foreign direct investment (FDI).
FDI refers to any investment made by a firm or individual in one country into
business interests located in another country.

KEY TAKEAWAYS

• A special economic zone is an area in a country that is subject to different

economic regulations than other regions within the same country.
• The economic regulations of special economic zones (SEZs) tend to be
conducive to—and attract—foreign direct investment.
• Special economic zones are typically created in order to facilitate rapid
economic growth by leveraging tax incentives to attract foreign investment
and spark technological advancement.
• While many countries have set up special economic zones. China has been
the most successful in using SEZs to attract foreign capital.
Understanding How Special Economic Zones (SEZs)
Special economic zones are special areas designated within a country that have
different business and trade regulations. They are normally established to facilitate
rapid economic growth and development in certain geographic regions.

Economic growth may come locally, regionally, and/or internationally. The growth
that results from special economic zones is accomplished by leveraging tax
incentives as a way of attracting foreign dollars through FDI and technological
advancement.

SEZs may increase export levels for the implementing country and other countries
that supply it with intermediate products. However, there is a risk that countries may
abuse the system and use it to retain protectionist barriers in the form of taxes and
fees. SEZs can also create a high level of bureaucracy due to their regulatory
requirements. This can have the effect of funneling money away from the system,
making it less efficient.

Types of SEZs include free-trade zones, industrial parks, and specialized zones.
We go into more detail about these and other types of SEZs below.

While there are benefits for businesses, individuals, or entities operating within
an SEZ, the macroeconomic and socioeconomic benefits for a country using
an SEZ strategy are subject to debate.
History of Special Economic Zones (SEZs)
The first SEZs appeared in the late 1950s in industrialized countries. They were
designed to attract foreign investment from multinational corporations. The first was
at Shannon Airport in Clare, Ireland.1 In the 1970s, SEZs were also established in
Latin American and East Asian countries. The most successful SEZs to date have
been in China.

There were more than 7,000 SEZs as of 2022, according to the United Nations
Conference on Trade and Development.2 They are found in every part of the
world—notably in developing and transitional economies that use them as a tool for
industrialization.3

Types of Special Economic Zones (SEZs)

As noted above, there are a number of different types of special economic zones.
The following are some of the most common categories.

• Free-Trade Zone: Free-trade zones are specially secured areas that are
designated for the processing of imported and exported goods. Also called
commercial-free or foreign-trade zones, these areas involve special customs
procedures and duty-free treatment.
• Export Processing Zone: These zones are generally meant for commercial
and industrial exports. The goal is to encourage economic growth through
foreign investment. Export processing zones offer certain benefits, such as
tax and import duty exemptions, and little to no barriers.
• Industrial Park: As the name suggests, industrial areas or parks are
designed to be used for industrial instead of commercial or residential
purposes. Tax-related incentives are common benefits for those that use
these special zones.
• Specialized Zone: Some of the most common uses for these areas include
technology hubs, airport-based zones, and logistics parks.

Example of Special Economic Zones (SEZs)

While many countries have set up SEZs, China has been the most successful in
using SEZs to attract foreign capital. The first four SEZs in China were created in
1979 in the Southeastern coastal region: Shenzhen, Zhuhai, and Shantou in
Guangdong province, and Xiamen in Fujian province.