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Karan Mehta 15
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Kavita Shetty 27
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Contents
• Introduction
• Exim policy ,objectives
• General provisions regarding export import
• India's Foreign Trade policy 2009-2014
• Export Promotion Measures
• Reward / Incentive Schemes in DGFT
• Duty Exemption & Remission Schemes
• Export Promotion Capital Goods (EPCG) Scheme
• Special Focus Initiatives
• Export and Trading Houses
• Deemed Exports
Introduction
•Export
•Import
•Balance Of Trade
•Balance Of Payments
India's Exports, Imports, and Balance of Trade from 2000-2010
VALUE IN Rs.'00 Crores Percentage Growth
Year Exports Imports Balance Of Trade Exports Imports Balance Of Trade
2000-01 2035.71 2308.73 -273.02 27.58 7.26 -50.96
2001-02 2090.18 2452 -361.82 2.68 6.21 32.53
2002-03 2551.37 2972.06 -420.69 22.06 21.21 16.27
2003-04 2933.67 3591.08 -657.41 14.98 20.83 56.27
2004-05 3753.4 5010.65 -1257.25 27.94 39.53 91.24
2005-06 4564.18 6604.09 -2039.91 21.6 31.8 62.25
2006-07 5717.79 8405.06 -2687.27 25.28 27.27 31.73
2007-08 6558.64 10123.12 -3564.48 14.71 20.44 32.64
2008-09 8407.55 13744.36 -5336.8 28.19 35.77 49.72
2009-10 8455.34 13637.36 -5182.02 0.57 -0.78 -2.9
Source:http://www.dgciskol.nic.in/annualreport/book_3e.pdf
India's Exports, Imports, and Balance of Trade from 2000-2010
Source:http://www.dgciskol.nic.in/annualreport/book_3e.pdf
Exim Policy and Its Objectives
•It contains policies in the sphere of Foreign trade.
Objectives
•Globalization
•Sustained economic growth
•Improving Technology
•International Standards
•Quality Products
General provisions regarding export import
• Exports and Imports free unless regulated
• Compliance with Laws
• Interpretation of Policy
• Procedure:
• Exemption from Policy/ Procedure
• Principles of Restriction
• Restricted Goods
• Terms and Conditions of a License
• Importer-Exporter Code Number
• Exemption from Bank Guarantee
• Clearance of Goods from Customs
INDIA’S FOREIGN TRADE POLICY 2009-14
What is Foreign Trade
Policy? The Union Commerce
Ministry, Government of India
announces the integrated Foreign
Trade Policy FTP in every five year.
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, every year. 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 of Foreign Trade Policy
2009-14 1. To arrest and reverse declining trend
of exports is the main aim of the policy.
This aim will be reviewed after 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 as a long term
aim of this policy. India's share in Global
merchandise exports was 1.45% in 2008.
INDIA’S FOREIGN TRADE POLICY 2009-14
Objectives of 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
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.
Source : Website: http://dgft.gov.in
Export Promotion Measures
• Assistance to States for Infrastructure Development
of Exports (ASIDE)
• Market Access Initiative (MAI)
• Marketing Development Assistance (MDA)
• Meeting Legal expenses for Trade related matters
• Towns of Export Excellence
• Brand Promotion and Quality
• Test Houses
• Quality Complaints/ Disputes
• Trade disputes affecting trade relations
REWARD / INCENTIVE SCHEMES IN DGFT
•SERVED FROM INDIA SCHEME (SFIS)
•VISHESH KRISHI AND GRAM UDYOG YOJANA
(VKGUY)
•FOCUS MARKET SCHEME (FMS)
1. Market Linked Focus Products Scrip (MLFPS)
2. Status Holders Incentive Scrip (SHIS)
•FOCUS PRODUCT SCHEME (FPS)
DUTY EXEMPTION & REMISSION SCHEMES
• Duty Exemption Schemes
1.Advance Authorization scheme
2.Duty Free Import Authorization (DFIA) scheme
• Duty Remission Schemes
1. Duty Entitlement Passbook (DEPB) Scheme
2. Duty Drawback (DBK) Scheme
EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME
• Zero duty EPCG Scheme
• Concessional 3% Duty EPCG Scheme
• EPCG for Projects
• EPCG for Retail Sector
• EPCG for agro units
Special Focus Initiatives
SECTORS INITIATIVES
MARKET DIVERSIFICATION •27 New Countries have been included in Focus
Market Scheme.
•The incentives increased from 2.5 to 3%.
TECHNOLOGICAL UPGRADATION •EPCG scheme at zero duty have been introduced and
has been simplified.
AGRICULTURE AND VILLAGE
INDUSTRY
•Vishesh Krishi and Gram Udyog Yojana.
•Capital goods imported under EPCG will be
permitted to be installed anywhere in AEZ.
•Import of inputs such as pesticides are permitted.
Special Focus Initiatives
SECTORS INITIATIVES
HANDLOOMS AND HANDICRAFTS •Duty free import of old pieces of hand knotted
carpets on consignment basis for re-export after
repair is permitted.
GEMS & JEWELLERY •Import of Gold of 8k and above is allowed
under replenishment scheme.
• Duty free re-import entitlement for rejected
jewellery shall be 2% of FOB value of exports.
•Duty free import entitlement of commercial
samples shall be Rs. 300,000.
LEATHER AND FOOTWEAR •Finished Leather exports to be incentivized.
SECTORS INITIATIVES
MARINE SECTOR •Duty free import of specified specialized inputs
and chemicals is allowed to the extent of 1% of
FOB value of preceding financial year’s export.
• Marine sector included for benefits under zero
duty EPCG scheme.
ELECTRONICS AND IT
HARDWARE
MANUFACTURING
INDUSTRIES
•Export of electronic goods to be incentivized
under Focus Product Scheme.
•Electronics Sector included for benefits under
SHIS schemes.
GREEN PRODUCTS AND
TECHNOLOGIES
•Focus would be on items relating to
transportation, solar and wind power generation
and other products as may be notified, which will
be incentivized under Reward Schemes.
INCENTIVES FOR EXPORTS
FROM THE NORTH EASTERN
REGION.
•Notified products of this region
would be incentivized under Reward Schemes.
Special Focus Initiatives
Export and Trading Houses
Merchant as well as Manufacturer Exporters, ServiceProviders, Export Oriented Units
(EOUs) and Units located in Special Economic Zones (SEZs), Agri Export Zones
(AEZs), Electronic Hardware Technology Parks (EHTPs), Software Technology Parks
(STPs) and Bio-Technology Parks (BTPs) shall be eligible for status and avail various
privileges.
SPECIAL ECONOMIC ZONES
•Developed to enhance foreign investments and promote exports from the
country.
•Geographic regions where economic laws related to export and import are
more liberal as compared to rest parts of the country.
•No license required for import made in SEZ units.
•Exemption from central sales tax on the sale or purchase of goods and
exemption from payment of service tax.
• Kandla, Gujarat Multi product Mumbai, Maharashtra Electronics and
Gems and Jewellery, Noida ,Cochin Special Economic Zone Cochin, Falta
Special Economic Zone ,Visakhapatnam SEZ.
•There are 114 SEZs in India.
•Growth of 121.4% is achieved in 2009-10
Deemed Exports
• What are Deemed Exports?
• Categories of Supply
• Benefits for Deemed Exports
• Benefits to the Supplier
• Eligibility for refund of terminal excise duty /
drawback
• Supplies to be made by the main / subcontractor
India's Foreign Trade Policy 2009-2014 Summary

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India's Foreign Trade Policy 2009-2014 Summary

  • 1.
  • 2. Vishal Agarwal 01 Karan Mehta 15 Neeta Pai 18 Kavita Shetty 27 Kishori Sawant 38
  • 3. Contents • Introduction • Exim policy ,objectives • General provisions regarding export import • India's Foreign Trade policy 2009-2014 • Export Promotion Measures • Reward / Incentive Schemes in DGFT • Duty Exemption & Remission Schemes • Export Promotion Capital Goods (EPCG) Scheme • Special Focus Initiatives • Export and Trading Houses • Deemed Exports
  • 5. India's Exports, Imports, and Balance of Trade from 2000-2010 VALUE IN Rs.'00 Crores Percentage Growth Year Exports Imports Balance Of Trade Exports Imports Balance Of Trade 2000-01 2035.71 2308.73 -273.02 27.58 7.26 -50.96 2001-02 2090.18 2452 -361.82 2.68 6.21 32.53 2002-03 2551.37 2972.06 -420.69 22.06 21.21 16.27 2003-04 2933.67 3591.08 -657.41 14.98 20.83 56.27 2004-05 3753.4 5010.65 -1257.25 27.94 39.53 91.24 2005-06 4564.18 6604.09 -2039.91 21.6 31.8 62.25 2006-07 5717.79 8405.06 -2687.27 25.28 27.27 31.73 2007-08 6558.64 10123.12 -3564.48 14.71 20.44 32.64 2008-09 8407.55 13744.36 -5336.8 28.19 35.77 49.72 2009-10 8455.34 13637.36 -5182.02 0.57 -0.78 -2.9 Source:http://www.dgciskol.nic.in/annualreport/book_3e.pdf
  • 6. India's Exports, Imports, and Balance of Trade from 2000-2010 Source:http://www.dgciskol.nic.in/annualreport/book_3e.pdf
  • 7. Exim Policy and Its Objectives •It contains policies in the sphere of Foreign trade. Objectives •Globalization •Sustained economic growth •Improving Technology •International Standards •Quality Products
  • 8. General provisions regarding export import • Exports and Imports free unless regulated • Compliance with Laws • Interpretation of Policy • Procedure: • Exemption from Policy/ Procedure • Principles of Restriction • Restricted Goods • Terms and Conditions of a License • Importer-Exporter Code Number • Exemption from Bank Guarantee • Clearance of Goods from Customs
  • 9. INDIA’S FOREIGN TRADE POLICY 2009-14 What is Foreign Trade Policy? The Union Commerce Ministry, Government of India announces the integrated Foreign Trade Policy FTP in every five year. 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, every year. The Foreign trade Policy which was announced on August 28, 2009 is an integrated policy for the period 2009-14.
  • 10. INDIA’S FOREIGN TRADE POLICY 2009-14 Objectives of Foreign Trade Policy 2009-14 1. To arrest and reverse declining trend of exports is the main aim of the policy. This aim will be reviewed after 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 as a long term aim of this policy. India's share in Global merchandise exports was 1.45% in 2008.
  • 11. INDIA’S FOREIGN TRADE POLICY 2009-14 Objectives of 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 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. Source : Website: http://dgft.gov.in
  • 12. Export Promotion Measures • Assistance to States for Infrastructure Development of Exports (ASIDE) • Market Access Initiative (MAI) • Marketing Development Assistance (MDA) • Meeting Legal expenses for Trade related matters • Towns of Export Excellence • Brand Promotion and Quality • Test Houses • Quality Complaints/ Disputes • Trade disputes affecting trade relations
  • 13. REWARD / INCENTIVE SCHEMES IN DGFT •SERVED FROM INDIA SCHEME (SFIS) •VISHESH KRISHI AND GRAM UDYOG YOJANA (VKGUY) •FOCUS MARKET SCHEME (FMS) 1. Market Linked Focus Products Scrip (MLFPS) 2. Status Holders Incentive Scrip (SHIS) •FOCUS PRODUCT SCHEME (FPS)
  • 14. DUTY EXEMPTION & REMISSION SCHEMES • Duty Exemption Schemes 1.Advance Authorization scheme 2.Duty Free Import Authorization (DFIA) scheme • Duty Remission Schemes 1. Duty Entitlement Passbook (DEPB) Scheme 2. Duty Drawback (DBK) Scheme
  • 15. EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME • Zero duty EPCG Scheme • Concessional 3% Duty EPCG Scheme • EPCG for Projects • EPCG for Retail Sector • EPCG for agro units
  • 16. Special Focus Initiatives SECTORS INITIATIVES MARKET DIVERSIFICATION •27 New Countries have been included in Focus Market Scheme. •The incentives increased from 2.5 to 3%. TECHNOLOGICAL UPGRADATION •EPCG scheme at zero duty have been introduced and has been simplified. AGRICULTURE AND VILLAGE INDUSTRY •Vishesh Krishi and Gram Udyog Yojana. •Capital goods imported under EPCG will be permitted to be installed anywhere in AEZ. •Import of inputs such as pesticides are permitted.
  • 17. Special Focus Initiatives SECTORS INITIATIVES HANDLOOMS AND HANDICRAFTS •Duty free import of old pieces of hand knotted carpets on consignment basis for re-export after repair is permitted. GEMS & JEWELLERY •Import of Gold of 8k and above is allowed under replenishment scheme. • Duty free re-import entitlement for rejected jewellery shall be 2% of FOB value of exports. •Duty free import entitlement of commercial samples shall be Rs. 300,000. LEATHER AND FOOTWEAR •Finished Leather exports to be incentivized.
  • 18. SECTORS INITIATIVES MARINE SECTOR •Duty free import of specified specialized inputs and chemicals is allowed to the extent of 1% of FOB value of preceding financial year’s export. • Marine sector included for benefits under zero duty EPCG scheme. ELECTRONICS AND IT HARDWARE MANUFACTURING INDUSTRIES •Export of electronic goods to be incentivized under Focus Product Scheme. •Electronics Sector included for benefits under SHIS schemes. GREEN PRODUCTS AND TECHNOLOGIES •Focus would be on items relating to transportation, solar and wind power generation and other products as may be notified, which will be incentivized under Reward Schemes. INCENTIVES FOR EXPORTS FROM THE NORTH EASTERN REGION. •Notified products of this region would be incentivized under Reward Schemes. Special Focus Initiatives
  • 19. Export and Trading Houses Merchant as well as Manufacturer Exporters, ServiceProviders, Export Oriented Units (EOUs) and Units located in Special Economic Zones (SEZs), Agri Export Zones (AEZs), Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-Technology Parks (BTPs) shall be eligible for status and avail various privileges. SPECIAL ECONOMIC ZONES •Developed to enhance foreign investments and promote exports from the country. •Geographic regions where economic laws related to export and import are more liberal as compared to rest parts of the country. •No license required for import made in SEZ units. •Exemption from central sales tax on the sale or purchase of goods and exemption from payment of service tax. • Kandla, Gujarat Multi product Mumbai, Maharashtra Electronics and Gems and Jewellery, Noida ,Cochin Special Economic Zone Cochin, Falta Special Economic Zone ,Visakhapatnam SEZ. •There are 114 SEZs in India. •Growth of 121.4% is achieved in 2009-10
  • 20. Deemed Exports • What are Deemed Exports? • Categories of Supply • Benefits for Deemed Exports • Benefits to the Supplier • Eligibility for refund of terminal excise duty / drawback • Supplies to be made by the main / subcontractor