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  • 1. Foreign Trade Policy, 2009-14 1
  • 2. Outline Of Presentation India’s Foreign Trade Current Economic Crisis Foreign Trade Policy – Components and Schemes Foreign Trade Policy – New Initiatives Role of CAs in trade facilitation as in FTP 2
  • 3. India’s Foreign TradeIn the last five years, robust growth in merchandiseexports From US$ 63 billion in 2003-04 to US $ 185 billion in2008-09.Share of global trade (WTO estimates): 2003 2008Merchandise trade 0.83% 1.45%Commercial Services 1.4% 2.8%exportsGoods & Services Trade 0.92% 1.64% 3
  • 4. India’s Foreign Trade Exports & Imports (Figures in US$ billion)Year Export Actual % Imports % Target Export Growth Growth2004-05 75 83.53 30.8 111.52 42.72005-06 100 103.09 23.4 149.17 33.82006-07 125 126.26 22.5 185.60 24.42007-08 160 162.90 29.0 235.9 27.02008-09 175 185.29 13.6 287.76 14.3 (Revised)2009-10 91.05 146.77(April-Oct’09)* 4
  • 5. Impact on Indian Exports (Figures in US$ billion)Period 2007-08* (US $ Increase(+) / Decrease (-) 2008-09**(US $ Billion) Billion)April- Sept. 73.558 108.907 + 48.1October 14.675 14.131 -3.7November 12.909 11.163 -13.5December 14.625 13..368 -8.6January 2009 14.889 12.869 -13.6February 15.221 11..941 -21.5March 17.254 12..916 -25.1April’ 08 to March’ 09 163.13 185.295 +13.6Month 2008-09@ 2009-10 Increase(+) / Decrease (-)April 2009 18.460 11.909 -35.5May 18.687 11.368 -39.2June 19.181 13.059 -31.9July 19.030 13.623 -28.4August 17.759 14.289 -19.5September 15.789 13.608 -13.8 5
  • 6. DECLINE IN EXPORTSImpact on Indian exports:•Suffered a decline in the last 11 months since October 2008.•April - September 2009 exports show a decline of 28.5% (in $ terms) and 18.6% (in Rupee terms) vis-à-vis last year.Employment intensive sectors have been severely affected.Tea (-37.2%), Spices (-27.8%), Cashew (-27.5%), Oil-meals (- 42.9%)Iron-ore (-29.5%), Leather and Leather Manf. (-26.6%),Gems & Jewellery (-28%), Basic Chemicals (-26.9%),Engineering Goods (-32.1%), Electronic Goods (-32.2%).Cotton Yarn /Fabrics /Made-ups (-31.5%), Jute Mfg. incl. Floor Covering (-39.8%), Carpets (-29.8%), Handicrafts (-29.8%),Petroleum Products (-43.1%), Plastics & Linoleum (-23.2%). 6
  • 7. REASONS FOR EXPORT DECLINEMajor Hurdles faced by Indian Exporters: Unprecedented Rupee Appreciation by about 12% in the year 2007-08; Global Economic Slowdown and Recession in Developed Economies during 2008-09 and its impact. High Interest Rates Non-availability of trade credit Withdrawal of GSP Benefits by US on certain products such as Gems and Jewellery items, certain leather products etc. Ban on exports of certain food products since 2007. High Incentives provided by some of the countries like China, Bangladesh etc. 7
  • 8. Apprehension of severe downturn in November 2008  Series of stimulus measures announced o Fiscal incentives o Monetary liberalization 8
  • 9. MEASURES TAKEN BY GOVT. AND RBI Measures taken by the Government: • Interest subvention of 2% extended till 31.3.2010, to labour intensive sectors for exports:- Textiles (including Handlooms), Handicrafts, Carpet, Leather, Gems & Jewellery, Marine Products and SMEs; • Continuation of Duty Entitlement Passbook (DEPB) Scheme upto 31st December, 2010; • Restoration of DEPB rates for all items where they were reduced in November, 2008 and increase in Duty Drawback rates on certain items effective from 1st September, 2008; • DEPB and Freely transferable Incentive Schemes allowed without the initial requirement of BRC; 9
  • 10. Stimulus package – Key features• CENVAT reduced from 14 per cent to 8 per cent• Service tax reduced from 12 percent to 10 per cent• Additional Plan expenditure for critical rural & infrastructure schemes• Monetary policy measures  Repo rate reduced from 9 percent to 4.75 per cent  Reverse repo rate reduced from 6 per cent to 3.25 percent  CRR reduced from 9 percent to 5 percent• Large program for construction of affordable housing announced• Assistance under the JNNURM for the purchase of buses for their urban transport systems.• Accelerated depreciation of 50 percent for commercial vehicles• Removal of ban on Government departments for replacement of vehicles 10
  • 11. MEASURES TAKEN BY GOVT. AND RBI (Contd…)• Back-up guarantee of Rs.350 crores made available to ECGC to provide guarantees for exports to difficult markets / products;• Additional funds of Rs 350 crore provided to cover handicraft items etc. in Vishesh Krishi and Gram Udyog Yojana (VKGUY);• Market Linked Focus Product Scheme extended for bicycle parts, Motor Cars and Motor Cycles, Apparels and Clothing accessories, Auto Components etc.• Additional Rs 1100 crore provided to ensure full refund of claims of CST / Terminal Excise duty /Duty drawback.• Additional funds of Rs 1400 crore provided for textile sector to clear the backlog claims of TUF;• Export duty on iron ore fines eliminated, and for lumps, reduced to 5%;• Some pending issues relating to Service Tax refund on exports resolved. 11
  • 12. MEASURES TAKEN BY GOVT. AND RBI (Contd…)• A Committee constituted under the Chairmanship of Finance Secretary to fast track resolution of procedural issues. Secretaries of Department of Revenue and Commerce other Members of the Committee; Measures taken by RBI:• Increase in Liquidity to the banks for improving credit flow by reduction of CRR from 9% to 5%, SLR reduced from 25% to 24%; Repo rate from 7.5% to 4.75% and Reverse Repo rate from 6% to 3.25%.• Refinance facility to the EXIM Bank for Rs. 5000 crores for providing pre-shipment and post-shipment credit.• Increase in FOREX Liquidity• Easing of Credit Terms by Enhancing the period of pre- shipment and post-shipment Rupee Export Credit by 90 days each, Increasing the time period of export realization for non- status holder exporters to 12 months etc. 12
  • 13. India’s Foreign Trade Major Export Destinations Country 2008-09 ($ bn) % share in Total1 USA 19.7 12%2 United Arab Emirates 17.8 11%3 China 8.5 5%4 Singapore 7.6 5%5 Hong Kong 6.4 4%6 United Kingdom 6.2 4%7 Germany 5.9 4%8 Netherlands 5.9 4%9 Saudi Arabia 4.8 3%10 Belgium 4.3 3% 13
  • 14. India’s Foreign Trade Major Import Commodities Commodity 2008-09 % share in Total ($ bn)1 Petroleum, Crude and products 93.1 32.36%2 Machinery, Electrical and non-electrical 24.3 8.44%3 Electronic goods 21.5 7.48%4 Gold and silver 19.5 6.76%5 Fertilizer, crude and manufactured 13.6 4.72%6 Pearls, precious and semi-precious 12.8 4.44%7 Organic and inorganic chemicals 12.8 4.43%8 Coal, coke and briquettes 10.5 3.64%9 Iron & Steel 9.5 3.30%10 Metaliferrous ores and metal scrap 8.3 2.89% 14
  • 15. Foreign Trade Policy 2009-14 Short Term Objectives:• To arrest and reverse the declining trend of exports; and• To provide additional support to those sectors which have been hit badly by recession in the Developed World. Medium term Policy Objectives :• To achieve an Annual Export growth of 15% with an Annual Export Target of US$ 200 billion by March 2011.• To achieve an Annual Export growth of around 25% by 2014.• To double India’s exports of goods and services by 2014. Long Term Objective :• To double India’s share in Global Trade by 2020. 15
  • 16. Foreign Trade Policy – 2009-14 New Initiatives Strategies• Stable Policy environment• Fiscal incentives• Diversification of export markets• Procedural rationalization• Institutional changes 16
  • 17. Foreign Trade Policy Components and schemes• Import / Exports controls• Schemes for Duty Exemption/Remission• Promotional Measures/ Incentive Schemes• Technological Upgradation• Deemed Exports• Export Oriented Units (EOUS), Electronics Hardware Technology Parks (EHTPS), Software Technology Parks (STPS) and Bio- Technology Parks (BTPS)• Special Economic Zones 17
  • 18. Foreign Trade Policy Import / Export ControlsImport:• Around 5% Tariff Lines are under Import Controls.• 11600 Tariff Lines are free for import.• Almost total control on imports in 1991,• Restrictions removed over the next 10 years, removing almost all the Quantitative Restrictions.• Presently:  Prohibited items - 53 Lines  Restricted items - 485 Lines  State Trading Items - 33 Lines. 18
  • 19. Foreign Trade Policy Import / Export Controls Exports• Controls primarily on account of security, public health, public morals, exhaustible resources and environment grounds.  Prohibited items - 59  Restricted items - 155  State Trading Items - 12.• Restrictions fall under two Categories  Dual Use Items (SCOMET items) – Special provision for these items under Weapons of Mass Destruction Act, 2005.  General Trading Items - Export Facilitation Committee looks into applications for license for these items. 19
  • 20. CENTRAL DUTIES:CUSTOMS DUTY—Basic, Addl customs (CVD including 4% Addl. duty, Education Cess, Anti- dumping, Safeguard duties etc.EXCISE DUTY--- Basic, Addl Excise duty etc.CENTRAL SALES TAX (CST)SERVICE TAXEXPORT CESSINCOME TAX [Exemption for SEZs ;EOUs (upto 31.3.2011)FBT (Withdrawn)OTHERS: ELECTRICITY DUTY, SALES TAX, OCTROI, etc.GST-- Implications 20
  • 21. Foreign Trade Policy Schemes for Duty Exemption/Remission Principle - Goods and Services are to be exported and not the Taxes and Levies. Purpose: Procure inputs and capital goods without the component of Central Indirect Taxes & LeviesPre Export Schemes :8. For Inputs: Advance Authorisation Scheme Duty Free Import Authorisation (DFIA) Scheme Schemes for Gems & Jewellery Sector2. For Capital Goods: Export Promotion Capital Goods (EPCG) SchemePost Export Schemes : Duty Entitlement Pass Book (DEPB) Duty Drawback Scheme Terminal Excise Duty (TED) Refund 21
  • 22. Foreign Trade Policy Schemes for Duty Exemption/Remission Advance Authorization Scheme• For making available duty free Inputs required to manufacture the export product.• Inputs allowed as per Standard Input Output Norms and with Actual User condition• Facility available for Physical exports (including supplies to SEZ units & SEZ Developers), deemed exports and Intermediate supplies.• Minimum 15% V.A.• Time period for import & export• Penalty clauses 2008-09 – 19,146 authorizations issued for CIF value of Rs. 1,04,333 crores 22
  • 23. Foreign Trade Policy Schemes for Duty Exemption/Remission Duty Free Import Authorisation (DFIA) Scheme made operational from 1.5.06.• This was introduced to facilitate transfer of the authorisation or the inputs imported, once export is completed• Minimum 20% value addition stipulated.• Based on SION• 22 sensitive items• Validity – similar to advance authorisation• Sectors availing 2008-09 – 3,815 authorizations issued for CIF value of Rs. 8,779 crores 23
  • 24. Foreign Trade Policy Schemes for Duty Exemption/Remission Duty Entitlement Passbook Scheme (DEPB)• Post Exports scheme to neutralize the Basic customs duty on inputs.• Post export Freely transferable Duty Credit Scrips issued at notified percentage of FOB value of Exports. Duty Credit Scrips used for payment of customs duty on imports DEPB rates notified for 2137 items• Most popular scheme• DEPB on pre realisation and post realisation• Validity• Usability• Sectors availing 2008-09 – 1,12,764 DEPB scrips issued for duty credit worth Rs.7,713 crores. 24
  • 25. Foreign Trade Policy Schemes for Duty Exemption/Remission Gems & Jewellery Scheme Duty Free Procurement of precious metal (Gold / Silver / Platinum) from the nominated agencies either in advance or as replenishment. Duty Drawback scheme notified Duty Free Import of Consumables for export production upto a specified percentage of FOB value of previous years’ export. 25
  • 26. Promotional Measures/ Incentive Schemes• Vishesh Krishi and Gram Udyog Yojana (VKGUY)• Focus Market Scheme (FMS)• Focus Product Scheme (FPS)• Market Linked Focus Product Scheme (MLFPS)• Served From India Scheme (SFIS) 26
  • 27. Foreign Trade Policy Promotional Measures/ Incentive SchemesVishesh Krishi & Gram Udyog Yojana (VKGUY)• To promote exports of : (i) Agricultural Produce and their value added products; (ii) Minor Forest Produce and their value added variants; (iii) Gram Udyog Products; (iv) Forest Based Products; and (v) Other Products, as notified from time to time.• VKGUY benefits are granted with an aim to compensate high transport costs, and to offset other disadvantages.• Duty Credit Scrip benefits, at 5% of FOB value of exports; Lower rate of 3% when specific DEPB/ Drawback more than 1% /Advance Authorisation benefit availed; Additional 2% provided for a few items.• 2008-09 - Duty credit scrips issued under VKGUY Rs.2676 crores 27
  • 28. Focus Market Scheme• Objective is to offset high freight cost and other externalities to select international markets with a view to diversify the markets and to enhance India’s export competitiveness in these countries.• Currently 109 markets have been notified;• Exports of all products (except some in-eligible items / categories) to notified countries entitled for Duty Credit Scrips equivalent to 3 % of FOB value of exports.• Pre realisation & post realisation• Validity• Utility• 2008-09 - Duty credit scrips issued under FMSRs.347 crores 28
  • 29. Focus Product Scheme• Objective is to incentivise export of such products which have high export intensity / employment potential, so as to offset infrastructure inefficiencies and other associated costs involved in marketing of these products.• Exports of notified products to all countries entitled for Duty Credit scrip equivalent to 2 % of FOB value of exports.• Currently over 1000 Products (at 8 digit level) covered under FPS.• Validity• Utility• 2008-09 - Duty credit scrips issued under FPS Rs 215 crores. 29
  • 30. Market Linked Focus Product Scheme (MLFPS)• To promote exports of products of high export intensity but which have a low penetration in countries;• Export of Products/Sectors of high export intensity / employment potential (which are not covered under present FPS List) would be incentivized at 2 % of FOB value of exports.• Validity• Utility• Currently over 1550 products (at 8 digit level) covered under MLFPS. 30
  • 31. Served From India Scheme (SFIS)• To accelerate growth in export of Services to create a powerful and unique “Served from India” Brand;• All service providers (except a few ineligible sectors / services) entitled to duty credit scrips equivalent to 10 % of free foreign exchange earned during the year;• Validity• Utility• Actual User 2008-09 – 785 SFIS scrips issued for duty credit worth Rs.736 crores. 31
  • 32. Schemes for Technological Upgradation• Export Promotion Capital goods Scheme (EPCG)• Status Holders Incentive Scrip (SHIS) 32
  • 33. Export Promotion Capital goods (EPCG) Scheme• Import of capital goods for modernization and technological upgradation at a concessional import duty of 3% and at Zero duty for certain export sectors (against normal basic customs duty of 5% to 7.5%)• Zero Duty Scheme valid for specified sectors and till 31.3.2011.• Export obligation: Block-wise E.O. monitoring; Specific E.O.:- Subject to export obligation of 8 times duty saved over 8 years (3% duty scheme) and 6 times duty saved over 6 years (zero duty scheme); Exceptions for Small scale, tiny industries, agri sector etc. Average E.O.:- Exemption to certain sectors. E.O. extension: EPCG committee Physical, deemed and Third party exports• Penalty clauses• 2008-09 - 19,931 authorisations issued for duty saved amount Rs.17,038 crores 33
  • 34. Status Holders Incentive Scrip• With an objective to promote investment for upgradation of technology of specified sectors Status Holders shall be entitled to incentive scrip @1% of FOB value of exports in those sectors made during 2009-10 and during 2010-11, in the form of duty credit scrip.• Mutually exclusive with EPCG 34
  • 35. Export Oriented Units (EOUS), Electronics Hardware Technology Parks (EHTPS), Software Technology Parks (STPS) and Bio-Technology Parks (BTPS) EOUs are permitted for manufacture of goods including repair, remaking, reconditioning, re-engineering and rendering of services. Trading activity is not permitted. Duty free imports of all inputs. Exemption from Income Tax under Section 10 B (presently extended till 31.3.2011.) Refund of Central Sales Tax (CST) paid on supply of goods from Domestic Tariff Area (DTA) to EOU. 50% of FOB value of exports allowed to be sold in the DTA on payment of concessional duty (50%). EOUs have to be a positive net foreign exchange earner. NFE is to be achieved cumulatively in a block of 5 years. 35
  • 36. Deemed Export Drawback / Terminal Excise Duty Refund Supply of goods manufactured by Domestic Units to certain authorisation holders / recognised projects which are otherwise entitled for Duty Free Imports. Purpose is: • Import Substitution. Benefits available in the form of: • Advance Authorisation / DFIA; • Deemed Export Duty Drawback and TED Refund. 36
  • 37. Agreement on Subsidies and Countervailing MeasuresProhibited subsidies:a) Contingent upon export performanceb) Contingent upon the use of domestic overimported goods (Import Substitution Subsidy)--.Exception: Foot note 61 of Annex II to theagreement: Exemption or remission of duty (Indirecttax) on the inputs (which are physically incorporated)or Oil, fuel, energy, catalyst used in the exportproduction permitted. 37
  • 38. PROHIBITED SUBSIDIES: (Exceptions)Agreement recognises the important role of subsidies ineconomic development of developing countries andtransformation of centrally planned economies to marketconditions.Least developed countries and developing countrieshaving less than US$ 1000 per capita GNP are exemptedfrom discipline of prohibited subsidies. 38
  • 39. ASCM and DISCIPLINE ON EXPORT SUBSIDIES -Export subsidies generally prohibited--Prohibition not applicable to ANNEX VII countrieswhich includes India provided “ExportCompetitiveness” in a product not reached;(Export Competitiveness –Export of the productreached a share of at least 3.25% in world trade ofthat product for two consecutive calendar years–Phase out over a period of 8 years)--However export subsidies granted by ANNEX VIIcountries can be subject to countervailing duty 39action.
  • 40. Electronic Data Interchange (EDI) Initiatives• One of the first Government Departments to enable online processing of applications.• DGFT website updated on daily basis.• All DGFT Offices computerised and networked to the DGFT – NIC Server.• Applications for Export / Import are made online with digital signature and Electronic Fund Transfer Facility. 40
  • 41. Home Page of DGFT Website (return to Next slide in the Main Presentation) 41
  • 42. Foreign Trade Policy – 2009-14 New Initiatives Higher Support for Market and Product Diversification• 26 new markets added under FMS (16 in Latin America, 10 in Asia-Oceania)• Incentive under FMS raised from 2.5% to 3%.• Incentive under FPS raised from 1.25% to 2%. 42
  • 43. Foreign Trade Policy – 2009-14 New Initiatives Higher Support for Market and Product Diversification (contd.)• New products under FPS - Engineering products Plastic (value added products), Jute and Sisal products, Technical Textiles, Green Technology products Project goods, vegetable textiles and certain Electronic items.• New products/markets under MLFPS - Pharmaceuticals, Synthetic textile fabrics, value added rubber products, value added plastic goods, textile madeups, knitted and crocheted fabrics, glass products, certain iron and steel products and certain articles of aluminium among others. Benefits to these products will be provided, if exports are made to 13 identified markets (Algeria, Egypt, Kenya, Nigeria, South Africa, Tanzania, Brazil, Mexico, Ukraine, Vietnam, Cambodia, Australia and New Zealand).• The above markets also included for existing products i.e. Auto Components, Motor cars, Bicycles & Parts, Apparels. 43
  • 44. Foreign Trade Policy – 2009-14 New Initiatives Stability/ continuity of the Foreign Trade Policy• DEPB Scheme extended beyond 31-12-2009 till 31.12.2010.• Interest subvention of 2% for pre-shipment credit for 7 specified sectors has been extended till 31.3.2010 in the Budget 2009-10.• Income Tax exemption to 100% EOUs and to STPI units under Section 10B and 10A of Income Tax Act, has been extended for the financial year 2010-11 in the Budget 2009-10.• The adjustment assistance scheme initiated in December, 2008 to provide enhanced ECGC cover at 95%, to the adversely affected sectors, is continued till March, 2010. 44
  • 45. Foreign Trade Policy – 2009-14 New Initiatives Gems & Jewellery Sector• To neutralize duty incidence on gold Jewellery exports, Duty Drawback to be allowed.• A new facility for import on consignment basis of cut & polished diamonds for the purpose of grading/ certification purposes has been introduced [Branch of Gemological Institute of America (GIA) at Mumbai has been notified for the purpose].• In an endeavour to make India a diamond international trading hub, plans are to establish “Diamond Bourse (s)”. 45
  • 46. Foreign Trade Policy – 2009-14 New Initiatives Pharmaceutical Sector• Pharma sector extensively covered under MLFPS for countries in Africa and Latin America; some countries in Oceania and Far East.• Export Obligation Period for advance authorizations issued with 6-APA as input increased from the existing 6 months to 36 months. 46
  • 47. Foreign Trade Policy – 2009-14 New Initiatives Agriculture Sector• To reduce transaction and handling costs, a single window system to facilitate export of perishable agricultural produce has been introduced. The system will involve creation of multi-functional nodal agencies to be accredited by APEDA. 47
  • 48. Foreign Trade Policy – 2009-14 New Initiatives Thrust to Value Added Manufacturing• Coverage of Project Exports and a large number of manufactured goods under FPS and MLFPS.• To encourage Value Added Manufactured export, a minimum 15% value addition on imported inputs under Advance Authorization Scheme has now been prescribed. 48
  • 49. Foreign Trade Policy – 2009-14 New Initiatives Flexibility provided to exporters• Payment of customs duty for Export Obligation (EO) shortfall allowed through debit of Duty Credit scrips. Earlier the payment was allowed in cash only.• Import of restricted items, as replenishment, shall now be allowed against transferred DFIAs.• Time limit of 60 days for re-import of exported gems and jewellery items, for participation in exhibitions extended to 90 days in case of USA.• Transit loss claims received from private approved insurance companies in India allowed for the purpose of EO fulfillment, as against only public sector general insurance companies earlier. 49
  • 50. Foreign Trade Policy – 2009-14 New InitiativesWaiver of Incentives Recovery, On RBISpecific Write offIn cases, where RBI specifically writes off the exportproceeds realization, the incentives under the FTPshall now not be recovered from the exporterssubject to certification by the Indian missionsabroad and the RBI. 50
  • 51. Foreign Trade Policy – 2009-14 New Initiatives Simplification of Procedures• Exemption from payment of excise duty up to two stages rather than refund, for supply against advance authorisation. Earlier, exemption was allowed upto one stage only.• Greater flexibility for conversion of Shipping Bills from one Export Promotion scheme to other scheme. Customs shall now permit this conversion within three months, instead of one month stipulated earlier.• Regional Authorities authorised to issue licences for import of sports weapons by ‘renowned shooters’, on the basis of NOC from the Ministry of Sports & Youth Affairs.• The procedure for issue of Free Sale Certificate has been simplified and the validity of the Certificate has been increased from 1 year to 2 years.• Automobile industry, having their own R&D establishment, would be allowed free import of reference fuels (petrol and diesel), upto a maximum of 5 KL per annum. 51
  • 52. CERTIFICATES / AUTHORISATIONS ISSUED BY REGIONAL OFFICES OF DGFT.• IEC Number• Authorisations under Duty Neutralization Schemes and Export Promotion Schemes (Incentive Schemes)• Import licences for Restricted Items• Export Licences including SCOMET licences• Status Certificates• Preferential (GSP) & Non-preferential certificates of origin• Tariff rate quota allocation• Authorisations for Imports at concessional duty for R& D purpose for Pharmaceuticals and Bio-technology Sectors• Authorisation for Duty Free import of consumables by Gems & Jewellery Sector• Terminal Excise Duty (TED) refund and Duty Drawback on deemed exports 52
  • 53. Criteria for recognition of statusStatus Category Export Performance FOB/ FOR Value (Rupees in Crores)Export House (EH) 20Star Export House (SEH) 100Trading House (TH) 500Star Trading House (STH) 2500Premier Trading House (PTH) 7500About 4000 Status Holders, including about a dozen PTH.(return to Next slide in the Main Presentation) 53
  • 54. Major contributions from CAs:--Status Certificate issuance– Export figures (ANF 3A)-- Duty Neutralisation Schemes: App. 23 for Adv Authorisation & DFIA EPCG Scheme – ANF 5A to 5D; Append. 26 & 26A Gems & Jewellery Scheme– ANF 4 I-- Reward Schemes: Export certification for all schemes-- Turnover cft for Marble import entitlement etc 54
  • 55. IMPACT OF GLOBAL ECONOMIC CRISIS MODERATE• Relatively lower share of exports to GDP Country Share of exports to GDP (Percent) OECD 58 CHINA 35 INDIA 22• Strong demand stimulus – Farm Loan waiver – Higher food procurement prices – Sixth Pay Commission – Increased Infrastructure spending 55 55
  • 56. Impact Assessment• GDP growth figures for India for 2008 is 5.4%; and it has been projected at a higher level of 6.5% for the Year 2009, with due credit to Stimulus Measures announced by the Government of India and the RBI.• IIP figures for May, 2009 onwards show that certain industrial sectors like steel, commercial vehicles, cement, two wheelers, intermediate goods etc have started looking up.• Rate of decline in export growth is somewhat reducing, which indicates that while the impact of global recession is still continuing on our exports, the stimulus packages have started showing their impact in arresting the steep decline in 56 exports.
  • 57. Details available in the site: Department of commerce: http://commerce.nic.in DGFT: http://dgft.gov.in 57
  • 58. Thank You 58