1. P EXIM POLICY
R
E
S
E
N
T
A
T
I INTERNATIONAL BUSINESS AND
on PROJECT EXPORTS

2. EXIM POLICY
INTRODUCTION
• Exim policies are provisions related to export import of goods incorporated
in foreign trade policy
• Every exporter or importer is complied with provisions made here
• Announced every 5 years by director general of foreign trade, ministry of
commerce and industry, government of India
• Updated every year on the 31st March and are effective from 1st April
• Separate policies are designed for units in the special economic zones
• Different procedures are to be followed in each of these schemes
• Current policy covers the period 2009-2014
• The policies are important in India where import export balance budgetary
target and also adds to economic development

3. EXIM POLICY
NEED OF THE POLICY
• Exports in India are witnessing an upward trend
• Need to sustain this growth and accelerate country's transition to vibrant economy
and leading global player
• Need to derive maximum benefits from expanding global market opportunity
• Need to provide Indian consumer with good quality products at reasonable prices
OBJECTIVES OF THE POLICY
• Provide access to essential raw materials, intermediates, components, consumable
items and capital goods required for manufacture/production of items to boost
economic growth
• Improve state of key sectors like agriculture, industry and manufacturing sectors,
making them competitive and generate employment opportunities

4. EXIM POLICY
IMPORT RESTRICTIONS
• Freely importable items are open general license category or free list of imports -
anybody is allowed to bring in items listed under this category
• Exim policy prohibits import of certain products
• Prohibited list contains sensitive items: explosives banned for security reasons. Items
banned for environment and pollution-related aspects
• Wildlife and related products can only be imported for specific purpose with prior
permission
• CANALIZATION for some categories - can be imported only by designated agencies.
• E.G. Urea can be imported only by MMTC and STC, the government's trading arms
• Gold, in bulk, by specified banks like SBI , some foreign banks , designated agencies
• Earlier sugar, edible oil, wheat and rice used to be imported by the government only.
liberalization led to freely importable items
• Imports allowed only if importer gets license

5. EXIM POLICY
FUCTIONS OF BOARD OF TRADE
• Its Role is of advising government on issues related to foreign trade
• To advise for preparation and implementation of plans for increasing exports
• To review export performance of various sectors and suggest measures to optimize
export earnings
• To examine institutional framework and suggest measures for streamlining to
achieve desired objectives
• To review policy instruments and procedures and suggest steps to rationalize and
channelize such schemes for optimum use
• To examine issues for promotion of India’s foreign trade, and to strengthen
international competitiveness of Indian goods and services
• To commission studies for furtherance of above objectives

6. EXIM POLICY
PROVISIONS
• Exports and Imports shall be free and can be imported by any person, except where regulated
• All imported goods shall be subject to domestic Laws, Rules, Orders, Regulations, technical
specifications, environmental and safety norms
• DGFT’s decision shall be final and binding in case of interpretation of any policy
• DGFT specifies procedure of export /import and is entitled for exemption of any provision
• Export/import of restricted goods can be done only under authorization valid for certain period
with terms and conditions related to quantity , description and value of goods; actual user
condition; Export obligation; Value addition to be achieved; and Minimum export / import price
• Import-export code (IEC) number is required for any foreign trade
• Transit of goods with adjacent countries is regulated by bilateral treatise with those countries
• All second hand goods, except second hand capital goods, shall be restricted
• Import of re manufactured goods ,personal computers / laptops, photocopier machines, air
conditioners, diesel generating sets will only be allowed against a licence

7. EXIM POLICY
PROVISIONS
• Customs Clearance Permit required for import of gifts
• Household goods may be imported as part of passenger baggage
• Packing materials etc. used for goods to be exported may be imported without authorization
• Goods sent abroad for repairs, testing, quality improvement or up gradation or standardization
of technology and re-imported without an Authorization
• Contractors may import used capital goods after completion of projects abroad without
authorization.
• Prohibited goods may be imports for home consumption by a payment of custom duty. if the
goods are not cleared within specified time it is re exported back
• Scrap/ waste generated in SEZ area will be allowed to be dumped in DTA with payment of
customs duty
• goods and services may set up under Export Oriented Unit (EOU) Scheme, Electronics Hardware
Technology Park (EHTP) Scheme, Software Technology Park (STP) Scheme or Bio-Technology
Park (BTP) Scheme for manufacture repair, re-making, reconditioning, reengineering and
rendering of services.

8. EXIM POLICY
downfall of Indian exports
• Slowdown in the manufacturing, trade and consumer-spending front of
large developed economies
• Non-tariff barriers through developed nations due to environmental
concerns, technical and non-technical standards and regional groupings.
• High interest on export credit, uncertainty in export policy and infrastructure
constraints
• But , these very low exports helped India beat economic recession facing
the entire world as it was less dependent on external factors

9. EXIM POLICY
PROVISIONS IN CURRENT
POLICY
• Current policy:2009-14
• 2009 a year of severe global recession. Entire world facing economic slow down
• India not affected much, only exports have suffered
• Strategies and policies required to catalyze growth of exports
• objective : 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
• need to improve infrastructure related to exports, bring down transaction cost,
provide full refund of indirect taxes
• Special trust needs to be provide for those who lost jobs in recession
• Need to encourage value addition in manufactured exports, with 15% value addition
on imported inputs
• Need to diversify export markets in Africa , Latin America, oceanic and CIS countries

10. EXIM POLICY
PROVISIONS IN CURRENT
POLICY
• Comprehensive economic partnership agreement with south Korea which gives
enhanced market access to Indian exports.
• Trade in goods agreement with ASEAN
• For technology up gradation imports of certain capital goods is sought by zero
percent duty under EPCG
• For upgradation of export sector infrastructure, ‘Towns of Export Excellence’ and
units located therein would be granted additional focused support and incentives.
• to reduce the transaction cost and institutional bottlenecks, the e-trade project
would be implemented in a time bound manner to bring all stake holders on a
common platform

11. EXIM POLICY
PROVISIONS IN CURRENT
POLICY
• SPECIAL BONUS BENEFIT SCHEME : provide special assistance to certain products for
6 months where rate of duty credit is 1% of FOB value of exports
• SPECIAL FOCUS MARKET SCHEME : additional 1% duty credit provided for products
exported to certain countries listed here( Africa ,Latin America, CIS)
• SUPPORT TO APPARAL SECTOR : 2% duty credit available to these products
• FOCUS PRODUCT SCHEME : 2% duty credit is available to certain chemicals, textiles,
engineering items, electronics.
• 'NIRYAT BANDHU' - A SCHEME FOR INTERNATIONAL BUSINESS MENTORING: officers
of DGFT will be investing Time and Knowledge primarily to mentor the interested
individuals who want to conduct the business in a legal way

12. THANK
YOU