PRESENTED BY: Manpriya Maken( 83) Medhavi Tandon (84) Priyanka Gubrele (96) Rakesh Jaswani (98) Sulabh Khandelwal (114

)

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CONTENTS
 Introduction of EXIM policy  EXIM policy 1997-2002  EXIM policy 2002-2007  EXIM policy 2004-2009  Conclusion

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EXPORT & IMPORT

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What is EXIM policy?
 Exim Policy or Foreign Trade Policy is a set of guidelines

and instructions established by the DGFT in matters related to the import and export of goods in India.
 The Foreign Trade of India is guided by the Export Import

Policy (EXIM Policy ) of the Indian Government and is regulated by the Foreign Trade Development and Regulation Act, 1992.
 DGFT (Directorate General of Foreign Trade) is the main

governing body in matters related to Exim Policy.

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Who announces EXIM policy?
 The Government of India notifies the Exim Policy for

a period of five years.

 The Exim Policy is updated every year on the 31st

of March and the modifications, improvements and new schemes became effective from 1st April of every year.

 All types of changes or modifications related to the

EXIM Policy is normally announced by the Union Minister of Commerce and Industry who coordinates with the Ministry of Finance, the Directorate General of Foreign Trade and its network of regional offices.
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Objectives Of The Exim Policy
 Government control import of non-essential items through

the EXIM Policy. At the same time, all-out efforts are made to promote exports.  Thus, there are two aspects of Exim Policy; the import policy which is concerned with regulation and management of imports and the export policy which is concerned with exports not only promotion but also regulation.  The main objective of the Government's EXIM Policy is to promote exports to the maximum extent.  To stimulate sustained economic growth by providing access to essential raw materials, intermediates, components,' consumables and capital goods required for augmenting production.

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Whom does it apply to?
 The regulations and restrictions apply to those

involved in commercial trade through the export and import of items.
 This becomes particularly important in a country

like India, where the import and export of items does play a crucial role not just in balancing budgetary targets, but also from an economy developmental viewpoint.

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EXPORT IMPORT POLICIES

1997-2002

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OBJECTIVES
 To derive maximum benefits from the

expanding global market opportunities  To enhance the technological strength and efficiency of Indian agriculture ,industry and services  To create more employment opportunities.  To attain internationally accepted standards of quality at reasonable prices
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HIGHLIGHTS
 Duty exemption scheme- Advance licenses with actual user

condition will be allowed based on positive value addition only. Requirement of minimum value addition of 33%for this category of advance license has been done away with.

 Gem and jewellery- Wastage norms,which have been

revised,have been de-linked from value addition norms . Value addition norms has also been revised on the basis of input output analysis. This should give a fillip to jewellery exports through simplification of the procedures.

 Exports-Exports of all oilseeds such as HPS groundnut,sesame

seeds,sunflower seeds,musturd seeds etc.When exported for consumption purposes are being made free without any quantitative/licensing requirements.

HIGHLIGHTS
 Export house/trading house/star trading

house/super star trading house- Threshold limit for export house is being fixed at Rs 12.50 crores on an average fob value of the exports made during the preceeding three licensing years. Limits of trading house/star trading house/super star trading house have also been fixed accordingly. EOU/EPZ units will be permitted on the basis of positive net foreign exchange earning only. Accordingly for this sector, the requirement of minimum net foreign exchange earning of 20% is being done away with.

 EOU/EPZ-In the agricultural and allied sector

EXPORT IMPORT POLICIES 2002-2007
This Policy recognized that international trade is a vital part of development strategy and that it can be an effective instrument of economic growth, employment generation and poverty alleviation.

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OBJECTIVES OF EXIM POLICY 2002-2007
1. To attain a share of 1% global

merchandised trade 2. To stimulate sustained economic growth 3. To enhance technological strength, efficiency of Indian agriculture , industry and services 4. To provide consumers with good quality goods and services at internationally competitive prices.
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HIGHLIGHTS…..
SPECIAL ECONOMIC ZONES ( SEZs)
•SEZs provide a congenial and investment friendly environment where units, both Indian and foreign can manufacture their products at internationally competitive prices for exports or sale to domestic tariff area. •Offshore Banking units permitted under this policy to be set up in Special Economic Zones. •These units would act as branches of foreign banks. They would provide world – class financing facilities to SEZ units as well as the private sector firms which will be involved in developing infrastructure in SEZs.

AGRICULTURE
•Restrictions on export of all cultivated (other than wild) varieties of seed, except Jute and Onion, removed. •In order to promote diversification of agriculture, transport subsidy made available for export of fruits, vegetables, floriculture, poultry and dairy products.
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SMALL SCALE INDUSTRY

HIGHLIGHTS
Common service providers in these areas shall be entitled for facility of EPCG scheme. Customs duty on import of rough diamonds reduced to 0%. Import of rough diamonds is already freely allowed. Licensing regime for rough diamond abolished. Value additon Norms for export of plain jewellery reduced from 10% to 7%. Export of all mechanised unstudded jewellery allowed at a value addition of 3% only To help the country emerge as a major international centre for diamonds.

GEM AND JEWELLERY
• •

COTTAGE SECTOR AND HANDICRAFTS

An amount of Rs. 5 crore under Market Access Initiative (MAI) earmarked for promoting cottage sector exports coming under the KVIC.

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HIGHLIGHTS
TECHNOLOGY ORIENTED
ELECTRONIC HARDWARE • The Electronic Hardware Technology Park (EHTP) scheme imodified to enable the sector to face the zero duty regime under ITA(Information Technology Agreement).

a)

b) Chemicals and Pharmaceuticals
• •

Free export of samples without any limit. Reimbursement of 50% of registration fees for registration of drugs.

c ) Projects

Free import of equipment and other goods used abroad for more than one year.

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HIGHLIGHTS
GROWTH ORIENTED a) Re-location of industries
• To encourage re-location of industries to India, plant and

machineries permitted to be imported without a license, where the depreciated value of such relocating plants exceeds Rs. 50 crores.

  b ) North Eastern States, Sikkim and Jammu & Kashmir • Transport subsidy for exports given to units located in North East, Sikkim and Jammu & Kashmir so as to offset the disadvantage of being far from ports. C ) Banks • Direct negotiation of export documents to be permitted. This will help the exporters to save bank charges.

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EXPORT IMPORT POLICIES 2004-2009

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OBJECTIVES

On 31st August 2004, Mr. Kamal Nath announced India’s foreign trade policy (2004-2009).The duration of policy is from 1st September,2004 to 31st March,2009. To double the percentage share of global trade within 5 years and to expand 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.

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OBJECTIVES (contd…)
3. 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.

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HIGHLIGHTS….
Special Focus Initiatives
 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

 Further Sectoral Initiatives in other sectors will also be

announced from time to time.

For the present, the sectors indicated below shall be extended the following facilities: .
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HIGHLIGHTS….
AGRICULTURE
 Benefits under 'Vishesh Krishi Upaj

Yojana‘ (Special Agricultural Produce Scheme) shall be extended to exports of poultry and dairy products in addition to export of flowers, fruits, vegetables, minor forest produce and their value added products.

 Import of capital goods shall be

permitted duty free under the EPCG Scheme.

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AGRICULTURE (contd…)
 Capital goods imported under

EPCG shall be permitted to be installed anywhere in the AEZ.
 Import of inputs such as pesticides

shall be permitted under the Advance License for agro exports.
 Funds shall be earmarked under

ASIDE for development of Agri Export Zones (AEZ)

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HANDLOOMS AND HANDICRAFTS
 Specific funds would be earmarked under

MAI (Market Access Initiatives)/ MDA (Market Development Scheme) for promoting handloom exports

 Duty free import of old pieces of hand

knotted carpets on consignment basis for reexport after repair shall be permitted.

 New Handicraft SEZs shall be established

which would procure products from the cottage sector and do the finishing for exports

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HANDLOOMS AND HANDICRAFTS
 Specific funds would be earmarked under

MAI & MDA Schemes for promoting Handicraft exports.
 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.

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Gems & Jewellery
 Import of gold of 18 carat and above shall

be allowed under the replenishment scheme

 Supply of gold of 0.995 and above purity

shall also be allowed for release by nominated agencies for export purposes. Earlier this facility was only available for supply of gold in the domestic market and semi-precious stones enhance the quality and afford higher value in the international market. For this purpose, Gems & Jewellery
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 Treatment of cut and polished precious

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Gems & Jewellery
exporters will now be allowed to export such items for treatment and subsequent re-import, within a period of 120 days.
 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.
 Many a times exporters faced the
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Gems & Jewellery
dilemma of unsold jewellery in the foreign markets because of changing designs and other such factors.
 To overcome this problem, Gems &

exporters will now, be allowed to export jewellery on consignment basis.

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AUTO-COMPONENTS
 India is fast emerging as an important

centre for sourcing auto-components. The FTP already extends a number of facilities for the sector. Allows import of new vehicles by auto component manufacturers for R & D purposes This is necessary to give our R&D labs easier access to the latest technologies current in the auto component industry.

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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.

These supplies were not treated as exports in India According to the new FTP, such supplies will be treated on an equal footing with other exports, qualifying for benefits under various Export Promotion Schemes. This will enable India to offer competitive fuel prices and will attract mid route stops of the international flights

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MARINE SECTOR
 To encourage the existing mechanized

vessels to adopt modern technology for scientific exploitation of our marine resources in an eco-friendly manner and boost marine sector exports, it is proposed to allow import of monofilament long line system for tuna fishing at a concessional rate of duty. The present system of disposal of waste of perishable commodities like seafood after inspection by a customs official is very cumbersome and leads to development of unhygienic conditions. To overcome this, a self removal procedure for clearance of waste shall be applicable, subject to prescribed wastage norms SECTION B 12/20/09 NDIM

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SERVICE EXPORTS 
 Till now Hotels & Restaurants were

required to submit a Chartered Accountant certificate that the entire duty benefits availed under the 'Served from India' Scheme have been passed on to the consumer. From now on, only a declaration will be submitted by the Hotels & Restaurants that the duty benefits shall be passed on to the consumer and no CA certificate will be required to be submitted.

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HIGHLIGHTS
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.

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.
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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 preshipment test certificates from accredited international agencies in lieu of demanding only test reports. REMOVAL OF EXPORT CESS: Department of Commerce has proposed to abolish cess on export of all agricultural and plantation commodities levied under various Commodity Board Acts.
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Promotional Measures
 Assistance to States for

Infrastructure Development of Exports (ASIDE):
In Order to enable the State Government to participate in promoting exports, the Department of Commerce has formulated a scheme called ASIDE. Under this scheme, the Department of Commerce provides funds to states for the development of infrastructure on the basis of gross exports and the rate of growth of exports in such states.
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Promotional Measures (contd…)
 Market Access Initiative (MAI):
The Market Access Initiative (MAI) scheme is intended to provide financial assistance for medium term export promotion efforts with a sharp focus on a country and product.

A whole range of activities can be funded under the MAI scheme. These include market studies, setting up of showroom/ warehouse, sales promotion campaigns,
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Promotional Measures (contd…)
 , sales

promotion campaigns, international departmental stores, publicity campaigns, participation in international trade fairs, , brand promotion,etc.

 Market Development Assistance (MDA):

Under MDA exporters with annual export turnover up to Rs 5 crores are eligible for financial assisatnce for a range of export promotion activities such as participation in trade fairs, buyer-seller meets abroad or in India, export promotion seminars.
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Promotional Measures (contd…)
 Towns of Export Excellence:
With a view to maximize the potential of industrial towns, which have contributed to India’s exports, and to enable them to tap new markets, selected towns producing goods of Rs1000 crore or more have been notified as Towns of Exports Excellence.

 Export Promotion Council for Services:
An exclusive Export Promotion Council for Services shall be set up in order to map opportunities for key services in key markets and develop strategic market access programmes,including brand building in coordination with sectoral players.
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CONCLUSION
 The FTP provided a road map that can help Indian companies

become globally competitive and simultaneously aims at giving Indian consumers world class products and services.

 Specific sectoral initiatives have helped in creating more jobs,

higher exports and an enhanced level of confidence for Indian products and services in the global economy.

 Government is committed to resolving all outstanding

problems and disputes pertaining to the past policy periods through the Grievance Redressal Committee for condoning delays, resolving disputes over entitlements, granting extensions for utilization of licenses etc.
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Thank You!
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