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Dr. Anuj Sharma BIMTECH Greater Noida
Total Exports (2010-11)
US $ 246 bn (Up by 37.5%)
Total Exports (2009-10)
US $ 176.5 bn (Down by 4.7%)
Scenario (2009-10) India's merchandise exports fell for the 13 straight month (2008-09) In April-October 2009 . UNCTAD) .5% Exporter’s worked at very low (4-5 %) margins Lakhs of workers lost jobs (13 lakhs. exports contracted by 26.
Achieving an annual export growth of 15% with an annual export target of US$ 200 billion by March 2011.Objectives of EXIM Policy (2009-14) Short term objective Arrest and reverse the declining trend of exports Provide additional support to those sectors which have been hit badly by recession in the developed world. In the remaining three years of this FTP the country should be able to come back on the high export growth path of around 25% per annum. Long term policy objective double India’s share in global trade by 2020. .
It is also being extended to sectors like Toys. Assam. Mizoram. Nagaland. Tripura. Scope enlarged To promote employment in North East export obligation under the EPCG Scheme shall be 25% of the normal export obligation (Arunachal Pradesh. carpets and G&J were benefited. Processed Agricultural Products and RMG EPCG scheme at zero duty and export obligation relaxed to 50% extended till March 2013. Sports Goods. handlooms. Meghalaya.Major Decisions DEPB scheme after series of extension finally comes to end 2 % Interest subvention extended till March 2013. and Sikkim) . Earlier exporters of handicrafts. Manipur.
The support is given to Engineering. Pharmaceutical and Chemical sectors. These countries are Algeria. 7 new markets are being added to FMS. and Ukraine . Special Focus Market Scheme (SFMS) to increase the competitiveness of exports with a geographical targeting. Aruba. Netherland Antilles. Myanmar. Cambodia. The scheme would provide additional @1% duty credit. Special Bonus Benefit Scheme to provide special assistance to specified sectors for 6 months as special assistance. The rate of duty credit is 1% of FOB value of exports. Austria.
and Uruguay. These countries are Belize. Morocco. and protein concentrates & textured protein substances. These are roasted cashew kernel. El Salvador. 46 new items are being added to MLFPS. DGFT has undertaken a through revision of Foreign Trade Policy / Handbook of Procedures. Honduras. 7 new markets are being added to Special FMS). Chile. Vol. 110 new items are being added to FPS list.1 to make it more user friendly. . Guatemala. New items are being added to VKGUY.
The towns of Firozabad for glassware. The present Policy allows scrips under different schemes of Chapter 3 of FTP for import of goods as per conditions of these Schemes. updated. On DGFT website. . These are Ahmedabad & Kolhapur(Textiles) and Shaharanpur (Handicrafts) (2012-13). Bhubaneswar for marine products and Agartala for bamboo and cane products have been notified as town of export excellence (2011-12). ITC (HS) classification of Export and Import items. a facility has been provided to search / enquire about the current Import Policy of an item by entering ITC (HS) Code. 3 new towns are being declared as TEE. DGFT has published a new. Now these scrips shall be permitted to be utilized for payment of Excise Duty for domestic procurement.
In furtherance of the EDI initiatives now Advance Authorization. MDA Enhanced ECGC cover at 95% to adversely effected sectors to continue. EOU allowed to sell 90% of products in DTA. EPCG and DFIA are completely EDI enabled. Reduction in transaction cost From on line filing of application to electronic issuance of licenses. Under this. . the EPCs would upload the RCMC data of their members on DGFT’s website only once Application under EPCG simplified Fee slashed under FPS. FMS. To remove redundancy of repeated submissions of RCMC. an ‘e-RCMC’ initiative has been commenced. MAI. it has been a great success story.
Foreign Trade Policy (2009-14) Handbook of Procedures (Vol 1) Handbook of Procedures (Vol 2) ITC (HS) Classification of Import-Export items I Schedule – Import Policy II Schedule – Export Policy .Foreign Trade Policy is described in following documents.
7a Free Trade & warehousing zones Chapter 8 Deemed exports . STPs. BTPs Chapter 7 SEZs. EHTPs.Framework of Foreign Trade Policy Chapter 1 Legal framework. 1c board of trade Chapter 2 General provisions Chapter 3 Promotional Measures Chapter 4 Duty exemption / Remission schemes Chapter 5 Export Promotion Capital Goods Scheme Chapter 6 EOUs. 1b special focus initiatives.
Duty Exemption / Remission Scheme (Chapter 4) I. Duty Remission Scheme DEPB Duty Drawback . Duty Exemption Scheme Advance Authorisation (15% VA) Duty Free import Assistance [DFIA] II.
Steps in determining the amount of duty payable. Obtain the Tariff Classification of goods Compute the Basic Customs Duty Surcharge Additional Duty of Customs (equal to excise duty) Special Additional Duty Determine if there are any additional levies under different statutes Whether there are concessions and exemptions available on the item. .
It requires 15 % (earlier positive value) addition.Duty Exemption/Remission Scheme: A) Advance Authorization B) DFIA Advance Authorization It is issued to allow duty free import of input as in SION which are physically used in the export of product Duty free import of mandatory spares upto 10 % of CIF value of authorisation are also allowed It is issued to a) Manufacturer Exporter b) Merchant Exporter It is used on actual user condition. .
DFIA It is issued to allow duty free import of inputs for production of export product. Issued both in pre export and post export basis Min. Validity is 24 months which can be extended by another 6 months Advance authorisation for annual requirement Status Certificate holder & exporters having past export performance Period of Export Obligation is 24 months which can be extended by 6 months and one year. 20% value addition .
It shall be subject to payment of additional custom duty which would be reimbursed to exporter as drawback. which shall be the port where exports have been made. DEPB Scheme Objective is to neutralize effect of customs duty on import content of export product Credit shall be available against export products at rates specified by DGFT which may be utilized for payment of Custom duty on freely importable items. It is valid for 24 months from date of issuance. It should be at specified port. Transferability is allowed after fulfillment of export obligation. . It is freely transferable.
EPCG Scheme (Chapter 5) It allows import of capital goods at 0%(Earlier 3%) custom duty subject to an export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years for following sectors Engineering & electronic products. In agro units – 6 times – 12 yr. import to be made is 10% of existing investment in plant. chemicals and leather products. min. 5 yrs from date of issuance. . 40% of exports Facility available only once and min. For SSI – 6 times – 8 yr Issued on actual user condition Export obligation shall be over and above average level of exports achieved in preceding 3 yrs Technological up gradation Min. chemicals & pharmaceuticals. handicrafts. plastics. apparels & textiles.
Promotional Measures (Chapter – 3) Assistance to States for Infrastructure Development of Exports [ASIDE] Market Access Initiative [MAI] Marketing Development Assistance [MDA] Towns of Export Excellence [TEE] Export and Trading Houses [Status certificate] Served from India Scheme [SFIS] Vishesh Krishi and Gram Udyog Yojana [VKGUY] Focus Market Scheme [FMS] Focus Products Scheme [FPS] .
Financial grant is available to exporters traveling to Latin America. participation in trade fairs etc. sales promotion campaigns. can be funded MDA Range of export promotion activities implemented by EPCs. Africa. Activities like market studies. creation of export promotion parks etc. CIS. MAI It is intended to provide financial assistance for medium term export promotion efforts. ASEAN. setting ICD.Promotional Measures ASIDE Its objectives are to develop infrastructure. setting showrooms. Australia and New Zealand .
and Gram Udyog products by providing incentives to exporters of such products. whereas in the case of hotels. it would be 5 %.SFIS [earlier duty-free entitlement certificate (DFEC) scheme ] To accelerate growth in export services Individual service providers who earn foreign exchange of at least Rs 5 lakh and other service providers who earn forex of at least Rs 10 lakh will be eligible for a duty credit entitlement of 10 % of the forex earned by them. . VKGUY The objective of the Scheme is to promote export of agricultural produce and their value added products. Hotels and restaurants can use their duty credit entitlements for import of food items and alcoholic beverages. In case of stand-alone restaurants. the entitlement would be 20 %.
It allows duty credit facility at 3.Exporter shall be entitled duty credit equivalent to 5% of FOB All status holders will receive duty credit of 10% which can be used for duty free import of capital goods meant for agroprocessing. Focus Market Scheme Objective is to offset high freight cost and other externalities to select international markets with a view to enhance our export competitiveness in these countries. The DGFT has specified eight countries from the Latin American block and 49 countries from the African block .0 % of the FOB value of exports of all products to the notified countries.
Agriculture & Fisheries (Rs 150 Cr). . Financial assistance under MAI scheme.Focus Product Scheme Objective is to incentivise export of such products which have high employment intensity in rural and semi urban areas. on priority basis Service Providers in these areas shall be entitled for EPCG scheme Financial assistance under ASIDE. Export of notified products shall be entitled for duty credit of 2. Handicraft.0% of FOB value Towns of Export Excellence [TEE] 750 Crore Handloom.
Permits import of capital goods and inputs without payment of duty .EOU / EHTP/ STP/ BTP Scheme (Chapter 6) Units undertaking to export their entire production of goods and services except permissible sales in Domestic Tariff Area (DTA) are known as Export Oriented Units (EOUs).
Additional duty credit scrip @ 1 % of the FOB of past export shall be granted for specified product groups Status Category Export Performance (Rupees in Crores) Export House (EH) 20 Trading House(TH) 500 Premier Trading House Star Export House (SEH) 100 Star Trading House (STH) 2500 (PTH) 10000 .Incentive to Status Holder Custom clearance on self declaration basis Fixation of I-O norm on priority basis within 60 days Exemption from compulsory negotiation of documents through banks 100% retention of foreign exchange Enhancement from normal repatriation from 180 to 360 days.
Benefits Advance Authorisation / DFIA Export drawback Exemption from Excise Duty .Deemed Exports (Chapter 8) Goods supplied do not leave country and payment is received in Indian Rupees or in Free Foreign Exchange.
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