GJSM

EXIM POLICY
By:Shalini

INTRODUCTION

Foreign exchange required for importing essential new materials, machinery etc. and bills of imports of developing country should be paid through its exports. Strategy of import substitution (replacing imported commodities by domestic production) and export promotion The foreign trade of India is guided by the Export- Import policy of the Government of India. Regulated by The Foreign Trade Development and Regulation Act 1992. Exim policy contain various policy decisions with respect to import and exports from the country.

EXIM POLICY

The Govt. of India, Ministry of Commerce and Industry announces Export Import Policy every five years.

The Export Import Policy (EXIM Policy) is updated every year on the 31st of March and the modifications, improvements and new schemes are effective w. e. f. 1st April of every year.

FOCUS

OF EXIM POLICY

2004-09

Mainly on 3 aspects

Small Scale Sector Agricultural Sector Export oriented SEZs

O BJECTIVES &

STRATEGIES

To double our percentage of share of global merchandise trade within the five year. To act as an effective instrument of economic growth by giving a thrust to employment generation. Strategies to achieve this

Unshackling of controls Simplify procedures Identify & nurture different special focus areas to facilitate development

S PECIAL
1.

FOCUS INITIATIVES

Agriculture
1.

Vishesh Krishi Upaj Yojana to boost exports of fruits, vegetables, flowers etc.

2.

Import of seeds and planting material has been liberalized.

To promote export of medicinal plants and herbal products, export of plant portions, derivatives & extracts has been liberalized

3.

2. Gems & jewellery duty free import of commercial samples of jewellery increased to Rs. 1 lakh and import of gold of 18 carat and above allowed under the replenishment scheme

3. Handlooms and Handicrafts new Handicraft SEZ to be established

- Handicraft Export Promotion Council authorized to import trimmings, embellishments and samples for small manufacturers

4. Leather & Footwear Machinery & equipment for Effluent Treatment Plants for Leather industry shall be exempt from Customs Duty

- duty free import of specified items for this sector increased to 5% of FOB value of exports

E XPORT PROMOTION S CHEMES

Target plus scheme for status holders

Status holders achieved a quantum growth in exports

Such persons or firms entitled to duty free credit

For incremental growth of

20% duty free credits = 5%

25% duty free credits = 10%

100% duty free credits = 15%

of FOB value of
increment

Revised Threshold for Status Holder Recognition

Category One Star Export House Total Performance (In Rs) 15 crore

Two Star Export House

100 crore
500 crore 1500crore

Three Star Export House Four Star Export House -

Five Star Export House

5000 Crore

Served from India mainly for service industry Export Promotion Capital Goods additional flexibility introduced for fulfillment of export obligation under EPCG scheme in order to reduce difficulties of exporters of goods Free Trade and Warehousing Zones

Import of second hand capital goods

B OARD
1.

OF TRADE

To advise Government on Policy measures for preparation and implementation of both short and long term plans for increasing exports in the light of emerging national and international economic scenarios; To review export performance of various sectors, identify constraints and suggest industry specific measures to optimize export earnings;

2.

3.

To examine existing institutional framework for imports and exports and suggest practical measures for further streamlining to achieve desired objectives;
To review policy instruments and procedures for imports and exports and suggest steps to rationalize and channelize such schemes for optimum use; To examine issues which are considered relevant for promotion of Indias foreign trade, and to strengthen international competitiveness of Indian goods and services;

4.

5.

P ROMOTIONAL

MEASURES

Scheme for Assistance to States for Infrastructure Development of Exports (ASIDE) is formulated to encourage State Governments to participate in promoting exports Objectives of ASIDE include: Developing infrastructure such as roads connecting production centres with ports,

(i)

(ii)

Creation of new State level export promotion industrial parks / zones,

Augmenting common facilities in existing zones, Development of minor ports, Assistance in setting up of common effluent treatment facilities, Stabilizing power supply,

(iii) (iv) (v)

(vi)

P ROHIBITED I TEMS

items completely banned from the exports.

All forms of wild animals including their parts and products. Special Chemicals as notified. Exotic birds as notified. Beef. Sea Shells, as specified

Human Skeleton.
Peacock Tail.

R ESTRICTED I TEMS

Items allowed for exports under special license issued by Director General of Foreign Trade

Dress materials, ready-made garments, fabrics or textile items with imprints of excerpts or verses of the Holy Quran. Horses Kathiawadi, Marwari, and Manipuri breeds. Paddy (Rice in husk).

Seaweeds of all types.

Chemical Fertilizer all types.