ppt on Exim

1. CHAPTER 1
Foreign Trade:
Institutional
Framework and Basics
© Oxford University Press 2013. All rights reserved.

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COMMON OBJECTIVES
• To stimulate and support the export efforts in the
country.
• Help exporter develop particular product and commodity
export.
• Establish and develop incentives/schemes to enable self
sustenance in international market.
• Develop guidelines principals, policies for country’s forex
administration.
• Establish laws for smooth running of international
business.

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Departmentof commerce( Ministry of
Commerce)
• It is an umbrella organization for the entire country’s
foreign trade.
• Connected with all foreign commercial matters.
• Formulates policies related to import/ export
development.
• Development of commercial relations with other
countries.

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Ministry of commerce comprises of seven different
divisions each headed by a divisional head.
These divisions are:
• Trade policy division.
• Export products division.
• Export services division.
• Economics division.
• Administrative and general division.
• Foreign trade division.
• Export industries division.
• Finance division.

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Director General of Foreign
Trade
• Earlier known as Chief Controller of Exports and Imports.
• Responsible for execution of import and export policy of
government of India.
• Promote exports.
• Facilitate removal of control
• Operates through regional offices spread all over the
country.

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Cabinet Committee on Exports
• Works under the chairmanship of Prime Minister.
• Expedites policy matters related to exports

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Board of Trade
• Consultative set up to advise government on commercial
matters related to Exim business.
• Highest forum of trade and government interface.
• Headed by minister of commerce.
• DGFT is a member of the board of trade.
• Presidents and chairmen of chambers of commerce and
trade are members.
• Reps of ministry of finance, ministry of industry, the exim
bank, SBI,RBI.

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Functions of Board of Trade
• Deliberate on policy matters related to Exim Business.
• Clear bottlenecks faced by trade and industry.
• Send recommendations to government.

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Commodity Boards
• Related to specific products in the country and abroad.
• They deal with entire range of problems of production,
development and marketing of products.
• Undertake promotional activities e.g. participation in
international trade fairs, exhibitions, sponsorship of
delegations for international trade studies etc.

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Contd.
Some of the commodity boards are:
• Tea board.
• Coffee board.
• Coir board.
• Central silk board.
• All India handloom and handicraft board.
• Tobacco board.
• Rubber board.
• Spices board.
• Jute mills association and sugar mills association.

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Marine Product Export Development
Authority
• Help boost the exports of fisheries and marine products.
• Educating exporters and importers on various aspects of
marine exports e.g. quality, processing, packaging,
exporting.
• Offices at all major sea food processing areas and Tokyo.

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Agricultureand ProcessedFood Products
DevelopmentAuthority
• Focal point of agriculture exports.
• Helps , guides and educates on marketing and exporting
of processed foods.

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Export Promotion Councils
Councils for :
• Apparels, basic chemicals, pharmaceuticals and
cosmetics, chemical and allied products, carpets, cashew,
cotton textiles, electronics, computer software,
engineering, gems and jewelry, handicrafts, handloom,
leather, overseas construction, plastics and linoleums,
shellac, silk, synthetic and rayon textiles, sports goods
,wools and woolens.

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Functions of Export PromotionCouncils
• To appraise the government of problems faced by
exporters.
• To keep members posted of trade enquiries.
• To help members identify and explore foreign markets.
• To liaise with government for various facilities.
• To help resolve disputes amicably amongst importers/
exporters.
• Assisting small scale units in exports.
• These councils are autonomous in their functioning
and they need not seek approvals from any
government agency for their functioning.

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Contd.
• These councils offer advice to members in areas of
technological development, design improvement
standards, and specifications, product development and
innovations to meet the international standards.
• Organize participations in trade fairs, exhibitions and
importer/ exporters meet.
• Organize visits of members delegations abroad and
receive trade delegates from abroad.
• Build a statistics and data base on exports and imports of
members and international trade data, for members
usage.
• To keep track of changing trends and opportunities
abroad and educate members on each country
opportunity accordingly.

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Service Institutes
Indian institute of foreign trade
• Acts as a nucleus of human resource development in the field
of foreign trade .
• Organizes special training program on exim business.
• Research into problems related to exim business, undertakes
commodity studies, foreign market surveys.
• Exchange of trade delegates
• Provides consultancy to export organizations.
• Publishes journal on exim business.

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Export Inspection Council of
India
• A statutory body made responsible for enforcement of quality
control and compulsory preshipment inspection of exportable
goods in the country.
• Establishes labs and testing centers all over the country.

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Export Credit GuaranteeCorp. of India
• Wholly owned subsidiary of Govt. of India under
administrative control of ministry of Commerce with trade
banking, insurance and Industrial members on board
• Supports and strengthens export drive
• Covers commercial and political risks of exporters
• Arranges insurance against pre and post shipment credit
finance to commercial bankers
• Provides guarantee to commercial banks against export
credits extended
• Issues overseas investment insurance policies
• Covers exchange investment risks through forwards and
futures
• Provides guarantees against projects, term loans, export
finance, export performance.

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Indian Institute of Packaging
• Undertakes research on raw materials for packing
• Helps improve standards of packaging for exports
• Render consultancy and training services in packaging

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Indian Council of Arbitration
• Promotes arbitration as a mean of settling commercial
disputes in exim business

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DirectorateGeneralof Commercial
Intelligence and Statistics
• Collects complete information, compiles it and
disseminates it to trade organizations
• Publishes journals and informatic bulletins
• It helps Indian businessmen with letters of introduction
when visiting abroad

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Trade Fair Authority of India
• Organizes trade fairs and other exhibitions in India and
abroad for industrial products
• Sets up showrooms in India and abroad for promotion of
exports of new items
• Publishes journals such as Journal of industry and trade,
Udhyog Vyapaar Patrika and Indian export services
bulletin

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Federationof Indian Exporters
Organization
• Apex body of various exporters and export promotion
organizations
• Common coordinating platforms for commodity councils,
boards, service institutions

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Export-Import Bank
• Finances, facilitates and promotes exports
• Major function is to arrange loans/funds for exporters
either directly or through other commercial banks also
• Undertakes financing with regional/global development
banks, agencies and other FIs
• Arranges pre and post bid finance for export projects

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The StateTrading Corporationof India Ltd.
Following subsidiaries help promotes exports of
commodities:
• Handicraft and handloom export corporation of India Ltd.
• Cashew corporation of India Ltd.
• Central cottage industries corporation of India Ltd.
• Tea trading corporation of India Ltd.
• Project and equipment corporation of India Ltd.

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Mineral and MetalTradingCorporationof
India Ltd.
• Handles import and export of canalised items like iron
ore, manganese ore, chrome, bauxite.
• Non-canalised items like diamonds, non-ferrous metals,
industrial raw materials, fertilisers and raw material for
fertilisers
• Extends service support to manufacturers for export of
their products

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Indian Govt. Trade
Representatives
• Embassies, High Commissions, commercial counselors,
Commercial Secretaries attached to India houses abroad
act as eyes & ears of Govt. in that country for trade
opportunities
• They help in settlement of trade disputes

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Drawback Committee
• Relates to rebates on excise duty on exported goods.
• Refund/rebate of customs duty on goods imported
against various export schemes.
• Drawback committees work under the ministry of
finance.

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Freight Investigation Bureau
• Based at the office of Director General Shipping Mumbai.
• Looks into the problems related to ocean freights.
• Makes suggestions, settle disputes related to ocean
freight.

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Railway Freight Committee
• Railway freight problems, disputes etc. are handled by
this committee.

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Customs and CentralExcise Department
• Operates through customs houses at Mumbai, Calcutta,
Chennai, New Delhi and other industrial areas, export
zones.
• Handles and implements the policy related to drawback
imposition and recovery of customs and central excise.

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Reserve Bank of India
• Most important functionary of handling forex operations
within and outside the country.
• Foreign Exchange regulations

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Central Warehousing
Corporation
• Sets up warehouses at ports and other trade zones for
facilitating storage of exportable and imported goods.