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EXPORT POLICY
BY-
ZEBA RUKHSAR
ROLL-
13MBA030
DEPARTMENT OF
BUSINESS
ADMINISTRATION, UTKAL
UNIVERSITY.
BHUBANESWAR,ODISHA,
INDIA.
CONTENTS
 What is EXPORT?
 Who are Involved?
 Why do we need
Export?
 Foreign Trade
Policy(FTP)
 FTP’s Objectives
( 2009-2014)
 AIM of the policy
 Announcement for
marine sector,
jewellery,leather,
handloom,tea exports
 Export Promotion
Measures
 Export Promotion
Schemes
 Country Comparison-
Exports
 References
What is Export ?
 Goods produced in one country are sent to other
countries for sale is termed as export.
 Export is also the foreign demand for goods
produced by the home country.
 Domestic producer foreign consumers.
WHO ARE INVOLVED?
 Exporter (individuals or businesses)
 Ministry of Banks
 Foreign Trade
 Customs Administration
 Customs Transport Agent
WHY DO WE NEED EXPORT?
 A developing country like India with its fast
growing agricultural production to keep pace
with the population growth & growing Industrial
infrastructure needs high-import and this can be
sustained only with fast export growth.
INDIA’S FOREIGN
TRADE POLICY(FTP)
 Formulated under the Import & Export(control) Act, 1947
 Now its known as Foreign Trade(Development &
Regulation) Act, 1992
 Headed by Director General of Foreign Trade.
 The Union Commerce Ministry, Government of India
announces the integrated FTP in every five years.This is
also called EXIM policy.
 This policy is updated every year with some modifications
and new schemes. New schemes come into effect on the
first day of financial year i.e. April 1. The Foreign trade
Policy which was announced on August 28, 2009 is an
integrated policy for the period 2009-14.
INDIA’S FOREIGN TRADE POLICY (2009-14)
OBJECTIVES
1. To arrest and reverse declining trend of exports which
will be reviewed after every two years.
2. To Double India's exports of goods and services by
2014.
3. To double India's share in global merchandise trade by
2020 (long term aim). India's share in Global
merchandise exports was 1.45% in 2008.
INDIA’S FOREIGN TRADE POLICY (2009-14)
OBJECTIVES (CONT..)
4. Simplification of the application procedure for availing
various benefits.
5. To set in motion the strategies and policy measures
which catalyze the growth of exports.
6. To encourage exports through a "mix of measures
including fiscal incentives, institutional changes,
procedural rationalization and efforts for enhancing
market access across the world and diversification of
export markets.
AIM OF THE POLICY-
 Aims at developing export potential, improving
export performance, boosting foreign trade and
earning valuable foreign exchange(as India's
exports have been battered by the global
recession).
 A fall in exports has led to the closure of several
small- and medium-scale export-oriented units,
resulting in large-scale unemployment.
ANNOUNCEMENT FOR MARINE
SECTOR
 Fisheries exempted from maintenance of average
EO under EPCG Scheme (along with 7 sectors)
however Fishing Trawlers, boats, ships, and other
similar items shall not be allowed for this exemption.
 Additional flexibility under Target Plus Scheme /
Duty free certificate of Entitlement Scheme for the
marine sector.
ANNOUNCEMENTS FOR GEMS &
JEWELLERY SECTOR
 Duty Drawbacks is allowed on Gold Jewellery
Exports to neutralize duty incidence.
 Plan to establish “Diamond Bourse (s ) with an aim to
make India an International Trading Hub announced.
ANNOUNCEMENT FOR LEATHER
EXPORT
 On the payment of 50 % applicable export duty,
Leather sector shall be allowed re-export of
unsold imported raw hides and skins and semi
finished leather from public bonded ware
houses.
ANNOUNCEMENT FOR HANDLOOM
EXPORTS
 The claim under Focus Product Scheme, the
requirement of " Handloom mark" was required
earlier. This has been removed.
ANNOUNCEMENTS FOR TEA EXPORTS
 The existing Minimum value addition under advance
authorization scheme for export of tea is 100 %. It has
been reduced from the existing 100% to 50%.
 DTA (Domestic Tariff Area) sale limit of instant tea
by EOU(Export oriented units) increased from 30% to
50%.
 Export of tea has been included under
VKGUY(Vishesh Krishi & Gram Udyog Yojana)
Scheme benefits.
EXPORT PROMOTION
MEASURES
 The Export Promotion Councils ( EPC’s ) are non-profit
organizations registered under the Companies Act,1956 or
the Societies Registration Act, 1870. They are supported by
financial assistance from the Central Government.
 Import Facilitation for Export Production.
 Export incentives.
 Export production units(EOU’s).
 Cash subsidies.
 Fiscal Incentives.
 Foreign Exchange Facilities.
EXPORT PROMOTION SCHEMES
 DUTY DRAWBACK: sec 74 & 75 of Customs Act
 Defined as the rebate of duty chargeable on any imported
or excisable material used in the manufacture of goods
exported from India.
 EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME:
 Introduced in 1990 to enable the Indian exporters obtain
capital goods at concessional rates of customs duty
against an obligation,to export the goods manufactured
using the imported capital goods.
EXPORT PROMOTION SCHEMES
 DUTY EXEMPTION SCHEMES
 Enable duty- free import of inputs required for export
production.
 Consumables like fuel, oil, energy, catalysts, etc. too are
included.
 DUTY REMISSION SCHEMES
 DEPB-introduced in 1997; grant of credit on post export
basis as specified percentage of freight on board value of
export made in freely convertible currency
 Duty free replenishment certificate(DFRC)-introduced on
1 April 2000; to provide the benefits of advance license on
post-export basis
COUNTRY
COMPARISON-
EXPORTS
Rank Country Exports / $
1. CHINA 1,904,000,000,000
2. UNITED STATES 1,497,000,000,000
3. GERMANY 1,408,000,000,000
4. JAPAN 788,000,000,000
5. FRANCE 587,100,000,000
REFERENCES
 www.slideshare.net
 www.eximpolicy.com
 www.google.com
BOOKS-
 Handbook on Import & Export-Institute of
Chartered Accountants of India(ICAI)
 International Marketing-Francis Cherunilam
THANK YOU
FOR
YOUR
ATTENTION
(DO LIKE MY PPT)

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India's Export Policy and Promotion Schemes Explained

  • 1. EXPORT POLICY BY- ZEBA RUKHSAR ROLL- 13MBA030 DEPARTMENT OF BUSINESS ADMINISTRATION, UTKAL UNIVERSITY. BHUBANESWAR,ODISHA, INDIA.
  • 2. CONTENTS  What is EXPORT?  Who are Involved?  Why do we need Export?  Foreign Trade Policy(FTP)  FTP’s Objectives ( 2009-2014)  AIM of the policy  Announcement for marine sector, jewellery,leather, handloom,tea exports  Export Promotion Measures  Export Promotion Schemes  Country Comparison- Exports  References
  • 3. What is Export ?  Goods produced in one country are sent to other countries for sale is termed as export.  Export is also the foreign demand for goods produced by the home country.  Domestic producer foreign consumers.
  • 4. WHO ARE INVOLVED?  Exporter (individuals or businesses)  Ministry of Banks  Foreign Trade  Customs Administration  Customs Transport Agent
  • 5. WHY DO WE NEED EXPORT?  A developing country like India with its fast growing agricultural production to keep pace with the population growth & growing Industrial infrastructure needs high-import and this can be sustained only with fast export growth.
  • 6. INDIA’S FOREIGN TRADE POLICY(FTP)  Formulated under the Import & Export(control) Act, 1947  Now its known as Foreign Trade(Development & Regulation) Act, 1992  Headed by Director General of Foreign Trade.  The Union Commerce Ministry, Government of India announces the integrated FTP in every five years.This is also called EXIM policy.  This policy is updated every year with some modifications and new schemes. New schemes come into effect on the first day of financial year i.e. April 1. The Foreign trade Policy which was announced on August 28, 2009 is an integrated policy for the period 2009-14.
  • 7. INDIA’S FOREIGN TRADE POLICY (2009-14) OBJECTIVES 1. To arrest and reverse declining trend of exports which will be reviewed after every two years. 2. To Double India's exports of goods and services by 2014. 3. To double India's share in global merchandise trade by 2020 (long term aim). India's share in Global merchandise exports was 1.45% in 2008.
  • 8. INDIA’S FOREIGN TRADE POLICY (2009-14) OBJECTIVES (CONT..) 4. Simplification of the application procedure for availing various benefits. 5. To set in motion the strategies and policy measures which catalyze the growth of exports. 6. To encourage exports through a "mix of measures including fiscal incentives, institutional changes, procedural rationalization and efforts for enhancing market access across the world and diversification of export markets.
  • 9. AIM OF THE POLICY-  Aims at developing export potential, improving export performance, boosting foreign trade and earning valuable foreign exchange(as India's exports have been battered by the global recession).  A fall in exports has led to the closure of several small- and medium-scale export-oriented units, resulting in large-scale unemployment.
  • 10. ANNOUNCEMENT FOR MARINE SECTOR  Fisheries exempted from maintenance of average EO under EPCG Scheme (along with 7 sectors) however Fishing Trawlers, boats, ships, and other similar items shall not be allowed for this exemption.  Additional flexibility under Target Plus Scheme / Duty free certificate of Entitlement Scheme for the marine sector.
  • 11. ANNOUNCEMENTS FOR GEMS & JEWELLERY SECTOR  Duty Drawbacks is allowed on Gold Jewellery Exports to neutralize duty incidence.  Plan to establish “Diamond Bourse (s ) with an aim to make India an International Trading Hub announced.
  • 12. ANNOUNCEMENT FOR LEATHER EXPORT  On the payment of 50 % applicable export duty, Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi finished leather from public bonded ware houses.
  • 13. ANNOUNCEMENT FOR HANDLOOM EXPORTS  The claim under Focus Product Scheme, the requirement of " Handloom mark" was required earlier. This has been removed.
  • 14. ANNOUNCEMENTS FOR TEA EXPORTS  The existing Minimum value addition under advance authorization scheme for export of tea is 100 %. It has been reduced from the existing 100% to 50%.  DTA (Domestic Tariff Area) sale limit of instant tea by EOU(Export oriented units) increased from 30% to 50%.  Export of tea has been included under VKGUY(Vishesh Krishi & Gram Udyog Yojana) Scheme benefits.
  • 15. EXPORT PROMOTION MEASURES  The Export Promotion Councils ( EPC’s ) are non-profit organizations registered under the Companies Act,1956 or the Societies Registration Act, 1870. They are supported by financial assistance from the Central Government.  Import Facilitation for Export Production.  Export incentives.  Export production units(EOU’s).  Cash subsidies.  Fiscal Incentives.  Foreign Exchange Facilities.
  • 16. EXPORT PROMOTION SCHEMES  DUTY DRAWBACK: sec 74 & 75 of Customs Act  Defined as the rebate of duty chargeable on any imported or excisable material used in the manufacture of goods exported from India.  EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME:  Introduced in 1990 to enable the Indian exporters obtain capital goods at concessional rates of customs duty against an obligation,to export the goods manufactured using the imported capital goods.
  • 17. EXPORT PROMOTION SCHEMES  DUTY EXEMPTION SCHEMES  Enable duty- free import of inputs required for export production.  Consumables like fuel, oil, energy, catalysts, etc. too are included.  DUTY REMISSION SCHEMES  DEPB-introduced in 1997; grant of credit on post export basis as specified percentage of freight on board value of export made in freely convertible currency  Duty free replenishment certificate(DFRC)-introduced on 1 April 2000; to provide the benefits of advance license on post-export basis
  • 18. COUNTRY COMPARISON- EXPORTS Rank Country Exports / $ 1. CHINA 1,904,000,000,000 2. UNITED STATES 1,497,000,000,000 3. GERMANY 1,408,000,000,000 4. JAPAN 788,000,000,000 5. FRANCE 587,100,000,000
  • 19. REFERENCES  www.slideshare.net  www.eximpolicy.com  www.google.com BOOKS-  Handbook on Import & Export-Institute of Chartered Accountants of India(ICAI)  International Marketing-Francis Cherunilam

Editor's Notes

  1. It contains policies in the sphere of Foreign trade i.e. with respect to import & export from the country.