All national governments have established institutional set-ups

to support export activities.

The major objective of export promotion programs is to create
awareness about exports and make the people understand that
it is one of the most crucial instruments of growth and market
expansion.


A non-exporter needs to be motivated by making him or her
aware of the international marketing opportunities.


A first-time exporter has to be assisted in finding export
marketing opportunities and may be supported on matters
related to export policy, procedures and documentations.

An exporters consistently attempt to explore ways to improve
their international marketing operations and need to be
assisted by way of trade fairs, buyer sellers meet, and market
promotion programs.

The export promotion programs initiated by the government
are in the form of public policy measures.




To create awareness about exporting as an instrument of growth and
market expansion.

To reduce and remove barriers of exporting,

To create promotional incentives.

To provide various forms of assistance to potential and actual
exporters.

The export promotion programs are basically designed to assist firms
in entering international markets and achieving optimum
opportunities from their international business activities.

Functions of export promotion
Programs

Export promotion policy in India has three main segments.

Policies for increasing Investment and production in export
sector.

Price-support measures for rendering exports more
competitive.

Measures for strengthening marketing effort by the export
sector.
Export Assistance in India

Duty Free Replenishment Certificate (DFRC)
DFRC is issued to a merchant exporter or manufacturer exporter for the duty
free import of inputs such as raw materials, components, intermediates,
consumables, spare parts, including packing materials to be used for export
production.
Duty Entitlement Passbook Scheme (DEPB)
exporter may apply for credit as a specified percentage of FOB value of exports,
made in freely convertible currency. The credit shall be available against such
export products and at such rates as may be specified
Export Promotion Capital Goods Scheme (EPCG)
EPCG scheme was introduced by the EXIM policy of 1992-97 in order to enable
manufacturer exporter to import machinery and other capital goods for export
production at concessional or no customs duties at all. This facility is subject to
export obligation, i.e., the exporter is required to guarantee exports of certain
minimum value, which is in multiple of total value of capital goods imported.


Import Facilities for Exporters

Duty Drawback (DBK)
Under this scheme, an exporter is entitled to claim :- .
Customs duty paid on the import of raw materials, components and
consumables.
Central excise duty paid on indigenous raw materials, components
and
Consumables utilized in the manufacture of goods meant for export
Excise Duty Refund
Export goods are totally exempted from central excise duty. However,
necessary clearance has to be obtained in one of the following ways.
Export under rebate.
Export under bond
Octroi Exemption

Duty Exemption Schemes

Exemption from Income Tax
In order to enable exporters to plough back their earnings and
promote exports, the Government of India has given tax exemption
to exporters on export earnings under section 80 HHC provision of
the Income Tax Act. For example, for the A.Y. 2012-13, 60% of the
export income is exempted from tax. At the same time, a ten year
tax holiday is provided to 100% EOUs and units in EPZs.

Sales Tax Exemption
Exportable goods are exempted from sales tax, provided the
exporter or his firm is registered with the Sales Tax Authorities.
This exemption is given on the following categories of goods :-
Goods exported.
Goods purchased from the local market from export purpose
Fiscal Incentives

Market Development Assistance (MDA)
The government of India has set up a separate fund under the
head Marketing Development Assistance (MDA) for developing
marketing abilities of Indian exporters. It is granted by the
Ministry of Commerce for export market development and
research abroad. The amount granted under MDA varies from
25% to 60% of the actual expenditure incurred.
Market Access Initiative (MAI)
Under this scheme, financial assistance is available to the export
promotion councils, C industry and trade associations and other
eligible entities on the basis of the competitive merits of proposals
received in this regard for undertaking marketing studies, setting
up of common showrooms, warehousing facility, participation in
sales promotion campaigns, publicity campaigns, international
trade fairs, seminars, buyers-sellers meet, etc.

Marketing Assistance

Industrial Raw Material Assistance Centers (IRMAC)
This enables exporters to get timely supply of raw
materials at reasonable prices. Such centers import raw
materials in bulk and supply them to the registered
exporters against a valid import license.
Back to-Back Inland Letter of Credit
Back to-back L/C is one, which can be opened in favor of
local suppliers of raw materials or goods so as to enable
exporters to got raw materials or goods for export on credit
basis. It is a kind of pre-shipment finance procured by the
exporter for the processing of export order.
Supply of Raw Materials

The Government of India (GOI) has established a number of
organizations to promote and expand export trade. These
organizations are
Indian Institute of Foreign Trade (IIFT) to provide training facilities.
Indian Institute of Packaging (IIP) to upgrade, packaging standards.
Export Promotion Councils (EPCs) to undertake export promotion
activities.
Export Inspection Council (EIC) to upgrade quality standards.
Export Credit Guarantee .-Corporation (ECGC) to protect exporters
against payment rises.
Indian Council of Arbitration (ICA) to settle and solve disputes
between importers and exporters.

Apart from the above institutions, there are a number of other
organizations such as Federation of Indian Export Organization
(FIEO), EXIM Bank, etc.
Institutional Measures

The first prerequisite of export promotion policy is to ensure larger
exportable surpluses. In. other words, if a country wants to exports
more, it must have more to export. It will have more to export only
if more and more is produced for export. Hence, it calls for
increasing flow of production and investment resources into the
export sector
To facilitate relatively easier creation/expansion of production
capacities for increasing export potential of Indian economic,
necessary relaxations have been provided for in the policies for
industrial licensing
MRTP (Monopolies and Restrictive Trade practices Act)
Foreign Exchange Regulation Act
Foreign Collaborations




Rupee has been made fully convertible for all approved external
transactions. As a result, exporters of goods and services and those who
are in receipt of remit-tances are able to sell their foreign exchange at
market determined rates

Exporters have also been allowed to maintain foreign currency
accounts.

Foreign collaboration and foreign capital investment is liberally
permitted for the export sector.

100% foreign equity has been permitted to the units in
EPZ/EOU/EHTP/STP

Schemes implemented to ensure supply of raw materials to
Exporters.
Duty exemption
Duty Remission

The duty exemption scheme enables import of inputs required
for export production.

The duty remission scheme enables post export
replenishment/remission of duty on inputs used in the export
product

Assured Supply of Raw Material
Imports

Export/Trading/Star Trading/Super Star Trading Houses have
been accorded special status. When exporters achieve the
specified level of exports over a period, they may be recognized
as EH/TH/STH/SSTH.
EH/TH/STH/SSTH are entitled to the following special
benefits:
Import Facilities
Marketing Development Assistance.
Foreign Currency, Accounts
Foreign Exchange Facilities
Golden Status Certificate
Eligibility for Export/Trading/Star
Trading/Super Star Trading Houses

Avg free
foreign
exchange
earning during
preceding 3
licensing years
Free foreign
exchange
earning during
preceding
licensing year

Average
NFE earned
made during
the
preceding
licensing year
NFE
earned
during the
preceeding
licensing
year
Service Export
House
4 Crore 6 crore 3 crore 5 crore
International
SEH
20 crore 30 crore 15 crore 25 crore
International
star SEH
100 crore 150 crore 75 crore 125 crore
International
Superstar SEH
300 crore 450 crore 225 crore 375 crore
Export of Services For Recognition as Export Houses

Price support measures in the form of financial & fiscal
incentives

Need for price support measures:

1)price levels in international markets are invariably the lowest

2) to encourage trade & industry in India to undertake export
efforts
Rendering export price
competitive

Price support measures include:
1) Fiscal incentives
2) Financial incentives
- Interest subsidy
- Financial assistance scheme for agricultural ,
horticulture & meat exports


Marketing effort provides necessary link between
production & sales
Institutions established for strengthening marketing
effort include Export promotion Council,
Primary function of these institutions is to provide
exporter with export marketing guidance & advice
Separate institutions have been established for
providing technical & specialized services
Strengthening Export marketing
effort

MARKET ACCESS PROGRAM (MAP)
- State government program
- targeting new and irregular exporters
TRADESTART
- Partnership with Australian govt.
- targeting new and irregular exporters
EXPORT MARKET DEVELOPMENT SCHEME
- Commonwealth Government program
- targeting sustainable exporters
EFIC HEADWAY
- Commonwealth Government programme
- Provides access to extended bank credit facilities

Assistance programme for South
Australian Exporters

Thank you!!!!!!!!!!!!