Exim policy


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Exim policy

  2. 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. 3. EXIM POLICY NEED OF THE POLICY• Exports in India are witnessing an upward trend• Need to sustain this growth and accelerate countrys 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 pricesOBJECTIVES 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. 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 governments 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. 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. 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. 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. 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. 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. 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. 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. 12. THANK YOU