The document summarizes India's export-import (EXIM) policy. It discusses the objectives of EXIM policy as facilitating globalization and promoting productivity and competitiveness. It outlines various export promotion schemes like duty drawback, export promotion capital goods scheme, and duty exemption/remission schemes. It also discusses volumes of EXIM policy, foreign trade policy 2009-2014 which aimed to double India's exports and share in global trade, and highlights incentives introduced or extended like benefits for status holders, income tax exemptions, and enhanced export credit insurance coverage.

1. EXPORT-IMPORT POLICY PRESENTED BY:SANOBER SHIVANI SUNITA VANDANA

2. INTRODUCTION Throughout knowledge & understanding of the regulatory environment Critical appreciation of a country’s trade policy & regulatory framework It facilitates decisions that are crucial to the development of a successful strategy.

3. Thus EXIM policy influences the following major decisions: Selection of product Market selection Product modification for customization for target market International pricing decisions International market promotion decision International marketing strategy decisions

5. Set of guidance and instruction established by the DGFT in matters related to the import and export of goods in India.

6. Formulated under the Import & Export(control) Act, 1947

7. Now its known as Foreign Trade(Development & Regulation) Act, 1992

9. VOLUMES OF EXIM EXIM policy is established in 5 volumes: Export-import policy: provisions & schemes related to exports & imports. Handbook of procedures(vol 1): export-import procedures to be followed by parties like exporter, importer, licenser etc. Handbook of procedures(vol 2): input-output norms used for working out the proportion of various inputs used/required in the manufacturing of the resultant products so as to determine the advance license entitlement & DEPB (Duty Exemption Pass Scheme) rates.

10. 4) ITC (HS) Classification of Export & Import Items: it serves as a comprehensive references manual for finding out exportability or importability of products with references to the current exim policy. 5) Schedule of DEPB Rates (Vol 5): it provides a complete rate structure of DEPB(Duty Exemption Passbook Scheme).

12. Defined as the rebate of duty chargeable on any imported or excisable material used in the manufacture of goods exported from India.

13. EXPORT PROMOTION CAPITAL GOODS(EPCG)

14. Introduced in 1990

16. Enable duty- free import of inputs required for export production.

17. Consumables like fuel, oil, energy, catalysts, etc. too are included

18. DUTY REMISSION SCHEMES

19. DEPB-introduced in 1997

21. The schemes provide an outlay for the development of export infrastructure, which is distributed among the states according to pre-defined criteria.

22. i.e the schemes proposes to provide funds to state govts/union territories for export promotion

24. EPIP introduced in august 1995 & merged with ASIDE from 1 April 2002.

25. Govt through this scheme provides financial support to create infrastructure for export production.

26. EX: Sitapur (Rajasthan); Bangalore; Chengalpattu(TM); Kundli(Haryana); Medak(AP); Kakkanad(Kerala);etc.

27. CRITICAL INFRASTRUCTURE BALANCE(CIB) SCHEME

28. Introduced in 1996-1997

30. INDIA’S FOREIGN TRADE POLICY 2009-14 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. Objectives

31. INDIA’S FOREIGN TRADE POLICY 2009-14 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 enhance market access across the world and diversification of export markets.

32. INDIA’S FOREIGN TRADE POLICY 2009-14 Aims at developing export potential, improving exportperformance, 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. Aim in General

33. INDIA’S FOREIGN TRADE POLICY 2009-14 Export Target : $ 200 Billion for 2010-11 Export Growth Target: 15 % for next two year and 25 % thereafter. Targets:

34. INDIA’S FOREIGN TRADE POLICY 2009-14 Re-fixation of Annual Average Export Obligation: Taking into account the decline in exports, the facility of Re-fixation of Annual Average Export Obligation for a particular financial year in which there is decline in exports from the country, has been extended for the 5 year Policy period 2009-14. Support for Green products and products from North East extended. EPCG Scheme: 1. Obligation under EPCG(Export Promotion Capital Goods) scheme relaxed. 2. To aid technological up gradation of export sector, EPCG Scheme at Zero Duty has been introduced. 3. Export obligation on import of spares, moulds etc. under EPCG Scheme has been reduced by 50%.

35. INDIA’S FOREIGN TRADE POLICY 2009-14 1. 26 new markets added under Focus Market Scheme(FMS); 16 in Latin America & 10 in Asia-Oceania). 2. Incentives under FMS raised from 2.5 % to 3 % 3. Incentive available under Focus Product Scheme (FPS) raised from 1.25% to 2%. 4.Extra products included in the scope of benefits under FPS Higher support for market & product diversification

36. INDIA’S FOREIGN TRADE POLICY 2009-14 5. Market Linked Focus Product Scheme (MLFPS) expanded by inclusion of products like pharmaceuticals, textile fabrics, rubber products, glass products, auto components, motor cars, bicycle and its parts.etc. (However , 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). 6. Focus Product Scheme benefit extended for export of ‘green products 'and some products from the North East. 7. A common simplified application form has been introduced to apply for the benefits under FPS, FMS, MLFPS and VKGUY.

39. INDIA’S FOREIGN TRADE POLICY 2009-14 3. This facility shall be available up to 31 March, 2011. 4. Transferability for the Duty Credit scrip's being issued to status holders under VKGUY Scheme permitted only for the procurement of cold chain equipments.

41. INDIA’S FOREIGN TRADE POLICY 2009-14 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 (TPS) / Duty Free Certificate of Entitlement (DFCE) Scheme for the marine sector. Announcements For Marine sector :

42. INDIA’S FOREIGN TRADE POLICY 2009-14 Duty Drawback is allowed on Gold Jewellery. Plan to establish "Diamond Bourse (s) with an aim to make India and International Trading Hub . Introduction of a new facility to allow import on consignment basis of cut & polished diamonds for the purpose of grading/ certification. Announcements for Gems & Jewellery Sector:

43. INDIA’S FOREIGN TRADE POLICY 2009-14 Introduction of a single window system to facilitate export of perishable agricultural product with an aim to reduce transaction and handling cost. This system will involve creation of multi-functional nodal agencies. These agencies will be accredited by APEDA. Announcements for Agro Exports:

44. INDIA’S FOREIGN TRADE POLICY 2009-14 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 frompublic bonded ware houses. Announcements for Leather Exports

45. INDIA’S FOREIGN TRADE POLICY 2009-14 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(VisheshKrishi & Gram UdyogYojana)) Scheme benefits. Announcements for Tea Exports:

46. INDIA’S FOREIGN TRADE POLICY 2009-14 Export Obligation Period for advance authorizations increased from existing 6 months to 36 months. Pharma sector included under MLFPS for countries in Africa and Latin America & some countries in Oceania and Far East. Announcements for Pharma Exports

47. INDIA’S FOREIGN TRADE POLICY 2009-14 The claims under Focus Product Scheme, the requirement of " Handloom mark" was required earlier. This has been removed. Announcements for Handloom Exports

49. INDIA’S FOREIGN TRADE POLICY 2009-14 Announcements for Value Added Manufacturing (VAM) To encourage Value Added Manufactured export, a minimum 15% value addition on imported inputs under Advance Authorization Scheme. Announcements for Project Exports: Project Exports and a large number of manufactured goods covered under FPS and MLFPS.

50. INDIA’S FOREIGN TRADE POLICY 2009-14 Easy Import of samples: Number of sample pieces has been increased from the existing 15 to 50. This will facilitate the duty free import of samples by exporters. Convertibility of Shipping Bills Greater flexibility has been permitted to allow conversion of Shipping Bills from one Export Promotion scheme to other scheme. Customs shall now permit this conversion within three months, instead of the present limited period of only one month.