Ftp asha

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India's Foreign Trade Policy 2009-2014

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Ftp asha

  1. 1. INTERNATIONAL BUSINESS STRATEGY PRESENTATION ON FOREIGN TRADE POLICY 27th August 2009 - 31st March 2014 PRESENTED TO DR. P.R.S. SARMA PRESENTED BY ASHA PAKKI P.SREE REKHA BIDISHA BANERJEE OM PALANI RAJA JAYA KRISHNA DIPINTHI CHAKRABARTI SUDHIR RAJA CEDRIC
  2. 2. INTRODUCTION SPECIAL FOCUS INITIATIVES GENERAL PROVISIONS – IMPORTS &EXPORTS PROMOTIONAL MEASURES DUTY EXEMPTION/REMISIION SCEMES EPCG EOU’S , EHTP’s , STP’s & BTP’s SEZ , FTA & WAREHOUSING ZONES DEEMED EXPORTS CONCLUSION
  3. 3. • ST -To arrest and reverse the declining trend of exports and to provide additional support especially to those sectors which have been hit badly by recession in the developed world. • LT- To double India’s share in global trade by 2020.
  4. 4. • DEPB scheme – upto December 2010 • Income Tax benefits for IT industry under 100% EOU extended till 2011. • Insurance coverage – exports – ECGC – 2010 • Encourage value addition in exports. • Additional resources under Market Development Assistance Scheme & Market Access Initiative Scheme. • Comprehensive Economic Partnership Agreement - South Korea • Trade in Goods Agreement with ASEAN (Look East Policy) • Made in India shows – 6 or more in the world • Towns of Export Excellence – support
  5. 5. SPECIAL FOCUS INITIATIVES MARKET DIVERSIFICATION a) Focus market scheme b) Market linked focus product scheme TECHNOLOGICAL UPGRADATION a) EPCG scheme relaxed b) Value addition of imports c) Encouraging project exports. SUPPORT TO STATUS HOLDERS a) Leather ,engineering, textiles, plastics, handicrafts and jute. b) Credit strip – import of capital goods. AGRICULTURE AND VILLAGE INDUSTRY a) Vishesh Krishi & Gram Udyog Yojana b) Capital goods – under EPCG permitted – installed in AEZ. c) Import of pesticides & panels – permitted. d) Certian flowers , fruits & vegetables – VKGUY – Credit strip applied.
  6. 6. SPECIAL FOCUS INITIATIVES CONTD.. HANDLOOMS a) Special funds under MAI & MDI b) Duty free import- old pieces of hand knotted carpet– for re export. c) Machinery – effluent treatment – custom duty relaxed. HANDICRAFTS a) Treated as special focus products and given high incentives. b) Same as handlooms. GEMS AND JEWELLERY a) Import of gold- >= 8k under replenishment scheme subject to import being accompanied by an Assay Certificate specifying purity, weight and alloy content. b) Duty Free Import Entitlement for : • Precious metals (other than Gold &Platinum)– 2% • Gold and Platinum – 1% • Rhodium finished Silver – 3% • Cut and Polished Diamonds – 1% LEATHER & FOOTWEAR a) Re export of raw hides & skins and wet blue leathers is permitted b) Same as Handlooms MARINE SECTOR a) Import for technological upgradation – under fisheries – exempted from avg export obligation b) Marine exports considered for VKGUY scheme.
  7. 7. SPECIAL FOCUS INITIATIVES CONTD.. ELECTRONICS / IT HARDWARE MANUFACTURING a) Expeditious clearance of approvals required from DGFT shall be ensured. SPORTS GOODS & TOYS a) Applications relating to Sports Goods and Toys shall be considered for fast track clearance by DGFT. b) Special focus products and entitled to higher incentives. GREEN PRODUCTS &TECHNOLOGIES a) Special initiative will be taken to promote development and manufacture of such products and technologies for exports b) Focus would be on items relating to transportation, solar and wind power generation and other products as may be notified which will be incentivized INCENTIVES FOR EXPORTS FROM THE NORTH EAST REGION a) In order to give a fillip to exports of products from the northeastern States, notified products of this region would be incentivized under Reward Schemes
  8. 8. GENERAL PROVISIONS REGARDING IMPORTS AND EXPORTS • Diamonds - KPCS - Import of rough diamond from Ivory Coast is prohibited under UNSCR - Import/export of rough diamond from Venezeula is prohibited under KPCS • Arms - Import / export of arms and related material from / to Iraq shall be prohibited. - All items, materials equipment, goods and technology which could contribute to DPRK’s nuclear-related, ballistic missile-related or other weapons of mass destruction-related programmes. - Direct or indirect export and import of all items, materials, equipment, goods and technology which could contribute to Iran’s enrichment-related, reprocessing or heavy water related activities, or to development of nuclear weapon delivery systems, as mentioned below, whether or not originating in Iran, to /
  9. 9. • Exemption from policy/procedure • Restricted Goods may be exported or imported only in accordance with an Authorisation or in terms of a public notice issued in this regard. • Importer – Exporter Code (IEC) Number
  10. 10. • Transit Facility Transit of goods through India from / or to countries adjacent to India shall be regulated in accordance with bilateral treaties between India and those countries • Second Hand Goods All second hand goods, except second hand capital goods, shall be restricted for imports • Scrap/Waste in SEZ Shall be allowed to be disposed in DTA freely subject to payment of applicable Customs Duty. • Import of Gifts It is permitted if they are freely importable under FTP. Otherwise, Customs Clearance Permit (CCP) shall be required from DGFT • Passenger Baggage Bonafide household goods and personal effects may be imported (as per Baggage Rules, Ministry of Finance)
  11. 11. • Re-import of goods repaired abroad for repairs, testing, quality improvement or upgradation or standardization of technology and re-imported without an Authorisation. • Import of goods used in projects abroad After completion of projects, may import without any authorisation provided, they have been used for atleast one year • Free Exports All goods may be exported without any restriction except to extent such exports are regulated by ITC (HS) or any other provision of FTP or any other law for time being in force. • Export of Passenger Baggage Bonafide personal baggage may be exported either along with passenger or, if unaccompanied, within one year before or after passenger’s departure from India.
  12. 12. • Export of Gifts Goods, including edible items, of value not exceeding Rs.5,00,000 /- in a licensing year, may be exported as a gift. (not for restricted) • Private Bonded Warehouses for Exports Such warehouses procure goods from domestic manufacturers without payment of duty. Payments are made in foreign currency for the supplies • Export Promotion Council (EPC) promote and develop Indian exports. • Registration cum Membership Certificate (RCMC) Inorder to apply for an authorisation to import/export or any other benefit or concession from FTP, shall furnish RCMC • Trade Facilitation through EDI initiatives simplification, standardization and harmonization of trade documents using international best practices. • Grievance Redressal Committee (GRC) • Export of Perishable Agricultural Products - a single window system to facilitate export of perishable agricultural produce - creation of multi-functional nodal agencies
  13. 13. PROMOTIONAL MEASURES • • • • • Market Access Initiative (MAI) Market Development Assistance (MDA) Towns Of Export Excellence (TEE) Export And Trading Houses Services Exports
  14. 14. REWARD / INCENTIVE SCHEMES IN DGFT • Served From India Scheme (SFIS) • Vishesh Krishi And Gram Udyog Yojana (VKGUY) • Focus Market Scheme (FMS)
  15. 15. Duty Exemption Scheme • Duty Exemption: Enable duty free import of inputs (DFII) recquired for export production. The scheme consists of advance authorisation and duty free import autorisation An advance autorisation can be issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer for - Physical exports - Intermediate supplies - Supply of goods ( depend on the category)
  16. 16. Remission scheme • Remisssion scheme: Enable post export replenishment or remission of duty on inputs used in export product. It consists of duty entitlement passbook scheme and duty drawback scheme Duty entitlement passbook is to neutralise incidence of customs duty on import content of export product.
  17. 17. Drawback Scheme • Refers to any goods manufactured in India and exported, means rebate of duty chargeable on any imported material or excisable material used in manufacture of such goofs in india. • Goods include imported spares, if supplied with capital goods manufactured in India.
  18. 18. EXPORT PROMOTION CAPITAL GOODS SCHEME (EPCG) • Zero duty EPCG Scheme : -allows import of capital goods at zero Customs duty, subject to an export obligation equivalent to 6 times of duty saved on capital goods imported under EPCG scheme • 3 % duty EPCG : - allows import of capital goods at 3 % Customs duty, subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme.
  19. 19. Cont.… EPCG for projects EPCG for Retail Sector Conditions for import of capital goods Export obligations
  20. 20. • Reduced EO for domestic sourcing of capital goods. • Reduced EO for units in the state of Jammu & Kashmir. • EPCG for Agro units. • Fixation of export obligation. • Technological upgradation of existing EPCG machinery. • Incentives for fast track company.
  21. 21. EXPORT ORIENTED UNITS (EOUs), ELECTRONICS HARDWARE TECHNOLOGY PARKS (EHTPs), SOFTWARE TECHNOLOGY PARKS (STPs) AND BIO-TECHNOLOGY PARKS (BTPs). Eligibility :Units undertaking to export their entire production of goods and services maybe setup under the Export Oriented Unit(EOU)Scheme. Trading units are not covered under these schemes. Application : applications for conversion into an EOU/EHTP/STP/BTP unit from existing DTA units, having an investment of Rs.50 crores and above in plant and machinery or exporting Rs. 50crores and above annually, shall be placed before BoA for decision. Regected in 15 days Approved/clearance of proposal in 45 days
  22. 22. EOU SCHEME • The EOU scheme is, at present, governed by the provisions of Export and Import (EXIM) Policy. The Export Oriented Units (EOUs) scheme, introduced in early 1981, is complementary to the SEZ scheme. • EOUs are mainly concentrated in textiles and yarn, food processing, electronics, chemicals, plastics, granites and minerals/ores • It adopts the same production regime but offers a wide option in locations with reference to factors like • Source of raw materials • Ports of export • Land facilities • Availability of technological skills • Existence of an industrial base
  23. 23. OBJECTIVE • The main objectives of the EOU scheme is • To increase exports • Earn foreign exchange to the country • Transfer of latest technologies stimulate direct foreign investment • Generate additional employment.
  24. 24. RECENT POLICIES • Procurement and export of spares/components up to one and half percent of the FOB value of exports will be allowed to the same consignee/buyer of the export article within the warranty period. The exports of such spares/components could be effected separately from the capital goods. • In order to facilitate the smooth functioning of the EOU units, the Development Commissioners will fix time limits for finalizing the disposal of matters relating to EOUs. • New units engaged in export of Agriculture/Horticulture/Aqua-Culture products have been now allowed to remove capital goods inputs to the DTA farm on producing bank guarantee equivalent to the duty foregone on the capital goods/input proposed to be taken out. • The EOU units in Textile Sector are allowed to dispose off the left over material/fabrics up to 2 per cent of Cost Insurance Freight (CIF) value of imports, on consignment basis. Recognizing that settling the accounts for every consignment is complex and time consuming it has been decided to allow disposal of left over material on the basis of previous year's imports.
  25. 25. POLICIES cont* • Import of second-hand capital goods to be permitted without any age restrictions. Minimum depreciated value for plant and machinery to be relocated into India reduced from Rs.50 crores to Rs.25 crores. • All exporters with minimum turnover of Rs.5 crores and good track record to be exempt from furnishing bank guarantee in any of the schemes. • All goods and services exported, including those from Domestic Tariff Area (DTA) units, to be exempt from Service Tax . • Export Oriented Units (EOUs) to be exempted from Service Tax in proportion of export of goods and services • EOUs to be permitted to retain 100 per cent of export earnings in Export Earners Foreign Currency (EEFC) accounts. • Income Tax benefits on plant and machinery to be extended to DTA units, which convert to EOU. • Biotechnology Parks to be set up and granted all facilities of 100 per cent EOUs. • Facility of filing digitally signed applications and use of Electronic Fund Transfer Mechanism for paying application fees made available to exporters.
  26. 26. • EXPORT THROUGH EXHIBITONS/ PROMOTIONAL TOURS/ SHOWROOMS ABROAD/DUTY FREE SHOPS :Export goods for display/sale in permitted shops set up abroad. Display/sell in permitted shops set up abroad, or in showrooms of their distributors agents. Setup showrooms/retail outletsat InternationalAirports. • PERSONAL CARRAIGE OF IMPORTS/EXPORT VIA FOREIGN BOUND PASSENGERS : Import/export through personal carriage of gems and jewellery items maybe undertaken as per Customs procedure. Import / export through personal carriage by units ,other than gems and jewellery units ,shall be allowed provided goods are not in commercial quantity. An authorized person of Gems &Jewellery EOU may also import gold in primary form,upto10 Kgs in a financial year through personal carriage ,as per guidelines prescribe by RBI andDoR.
  27. 27. • Export / Import by Post / Courier :Goods including free samples, maybe exported /imported by airfreight or through foreign post office or through courier, as per Customs procedure.
  28. 28. • Approval of BT Bio-Technology Parks (BTP) would be notified by DGFT on recommendations of Department of case of units in BTP,necessary approval or permission under relevant provisions of this chapter will be granted by designated office of Department of Biotechnology. • Approval of EHTP / STP : In case of units under EHTP / STP schemes, necessary approval shall be granted by officer designated by Ministry of Communication,ITdept,instead of DC and by Inter Ministerial Standing Committee(IMSC)instead of BoA
  29. 29. Deemed Exports • • • • • • The concept of deemed exports Covers supply of goods against: Advance authorization/ DFIAS EOU/ STP/EHTP/BTP EPCG Projects under International competitive bidding procedure
  30. 30. Deemed exports contd. • Projects approved by ministry of finance • Supplies of capital stock to fertilizer plants • Supplies of goods to Refineries and power projects • Supplies of goods to UN- funded projects • Supplies of goods to Nuclear power projects thro competitive bidding
  31. 31. Benefits to deemed exports • Advance authorization / DFIAS • Deemed duty drawback • Exemption from terminal excise duty if supplies are against International competitive bidding • In other cases refund of terminal excise duty paid will be given
  32. 32. Advance Authorization Scheme … (Erstwhile ‘Advance License Scheme’) • Issued on the basis of – Inputs and export given under Standard Input Output Norms (SION); or – Adhoc norms or self declared norms • Para 4.7 of the Handbook of Procedure – Authorization can also be applied for annual requirement for a particular product group by Status holders and by the other exporters having at least past two years export performance • Eligibility – Manufacturer/Exporter as well as Merchant/Exporter tied up with supporting manufacturer
  33. 33. Special Economic Zones (SEZ) SEZs an engine for economic growth supported by quality infrastructure complemented by an attractive fiscal package • IT SEZs Exports (2012-2013): 1.40 lakh crore registering a growth of over 70%. • No Exit Policy.
  34. 34. Free Trade Agreement • India Singapore Trade Agreement , 2009 • India-South Korea, 2009 • Exemption of Customs duty on certain goods when imported into India from the Malaysia, Singapore & Thailand • India-UN FTA
  35. 35. Warehousing Zones • The free trade and warehousing zones (FTWZ) shall be a special category of Special Economic Zones with a focus on trading and warehousing • Benefits
  36. 36. Conclusion • India needs to try diversifying its exports • Although India has made major strides in diversifying its exports, a lot needs to be done not only to diversify the export basket but also to have a perceptible share in the top items of the world. • Thus we can say that India is trying to be more liberal in its foreign trade policy.
  37. 37. VIDEO • http://www.youtube.com/watch?v=taUH3Oto w3E

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