Indian import and export trade policies

Presented by : anita

Foreign Trade Policy

Export Import Policy or better known as Exim Policy or Foreign Trade Policy is a set of guidelines and instructions related to the import and export of goods.

The Government of India notifies the Exim Policy for a period of five years (19972002) under Section 5 of the Foreign Trade (Development and Regulation Act), 1992

Export Import Policy is updated every year on the 31st of March and the modifications, improvements and new schemes became effective from 1st April of every year.

All types of changes or modifications related to the Exim Policy is normally announced by the Union Minister of Commerce and Industry who co-ordinates with the Ministry of Finance, the Directorate General of Foreign Trade and its network of dgft regional offices.

Objectives of Exim Policy :

To facilitate sustained growth in exports from India and import in India. To stimulate sustained economic growth by providing access to essential raw materials, intermediates, components, consumables and capital goods scheme required for augmenting production and providing services. To enhance the technological strength and efficiency of Industry Agriculture industry and services, thereby improving their competitive strength while generating new employment opportunities, and to encourage the attainment of internationally accepted standards of quality. To provide clients with high-quality goods and services at globally competitive rates. Canalization is an important feature of Exim Policy under which certain goods can be imported only by designated agencies. For an example, an item like gold, in bulk, can be imported only by specified banks like SBI and some foreign banks or designated agencies.

Foreign trade policy (2004-2009)

Objective
# Facilitate sustained growth in exports to attain a share of atleast 1.5% of global merchandise trade. # Present share - 0.67% # Export target (2006-07)- 85 b $. # Present Annual growth rate(CAGR) -11.9%

 Objectives (Contd.) # Facilitating high share of Indian Goods

and Services in the International market
# Act as Instrument of Economic Growth, Employment Generation and Poverty Alleviation # Reflect the priorities for development of the Indian Economy

STRATEGY TO ACHIEVE THE OBJECTIVES

# Bring down transaction cost Simplified procedure,
Unshackling of controls, built-in transparency & mutual trust; # India to be a Global hub for Manufacturing, Trading & Services; # Special Focus area Initiatives; # Facilitating Technological & Infra-structural upgradation; # Neutralising incidence of all levies & duties on inputs Duties & Levies should not be exported.

Thrust Sectors

# Agricultural
# # # # # Handicrafts Handlooms Gems and Jewellery Leather Textile

SCHEMES
# SEZ Scheme # EOU/EHTP/STP/BTP Schemes # EPIP Scheme # Warehousing Scheme # CCP # DTA Schemes

Highlights of the Annual Supplement 2010-11 to the Foreign Trade Policy 2009-14

Higher Support for Market and Product Diversification Support for Technological up-gradation Benefit and flexibility to Status Holders Stability / Continuity of the Foreign Trade Policy Procedural Simplification and Reduction of Transaction Cost EDI Initiatives Leather Sector Handloom sector Textiles sector

Higher Support for Market and Product Diversification

Additional benefit of 2% bonus, over and above the existing benefits of 5% / 2% under Focus Product Scheme, allowed for about 135 existing products, which have suffered due to recession in exports. Major sectors include all Handicrafts items, Silk Carpets, Toys and Sports Goods (all of which were earlier eligible for 5% benefits); Leather Products and Leather Footwear, Handloom Products and Engineering Items including Bicycle parts and Grinding Media Balls (all of which were earlier eligible for 2% benefit). 256 new products added under FPS (at 8 digit level), which shall be entitled for benefits @ 2% of FOB value of exports to all markets. Major Sectors / Product Groups are Engineering, Electronics, Rubber & Rubber Products, Other Oil Meals, Finished Leather, Packaged Coconut Water and Coconut Shell worked items. Instant Tea and CSNL Cardinol included for benefits under VKGUY @ 5% of FOB value of exports. Nearly 300 products (at 8 digit level) from the readymade garment sector incentivised under MLFPS for further 6 months from October, 2010 to march, 2011 for exports to 27 EU countries.

Support for Technological upgradation

Zero duty EPCG scheme, introduced in August 2009 and valid for only two years upto 31.3.2011, has been extended by one more year till 31.3.2012. In addition, to give a boost to technological upgradation for additional sectors as well, the benefit of the scheme has been expanded to cover paper & paperboard and articles thereof, ceramic products, refractories, glass & glassware, rubber & articles thereof, Plywood and allied products, marine products, sports goods and toys and additional engineering products. Additional Towns of Export Excellence (TEEs) announced viz.Barmer (Rajasthan) for Handicrafts; Bhiwandi (Maharashtra) for Textiles; and Agra (Uttar Pradesh) for Leather Products.

Benefit and flexibility to Status Holders:

Status Holders contribute to a substantial part of our exports. To support them to upgrade their technology, 1% Status Holder Incentive Scheme (SHIS) introduced in August 2009 and valid for only two years upto 31.3.2011, has been extended by one more year for 2011-12 exports. In addition, to give a boost to technological up-gradation for additional sectors as well, the benefit of the scheme has been expanded to cover chemical & Allied products, paper, paperboard and articles thereof, ceramic products, refractories, glass & glassware, rubber & articles thereof, plywood and allied products, electronics products, sports goods and toys and additional engineering products. Additional flexibility provided for transferability of Duty Credit Scrips being issued to Status Holders under paragraph 3.13.4 of FTP under VKGUY scheme by allowing transfer of scrip for import of cold chain equipments to unit(s) in the Food Park.

Stability / Continuity of the Foreign Trade Policy:

The popular and exporter friendly Duty Entitlement Passbook (DEPB) scheme has been extended beyond 31.12.2010 till 30.06.2011. Availability of concessional Export Credit: Interest subvention of 2% for pre-shipment credit for export sectors namely, Handloom, Handicraft, Carpet and SMEs for all export sectors, have been allowed till 31.3.2011 in the budget 2010-11. This facility has now been extended to a number of additional products pertaining to sectors like Engineering, leather, textiles, Jute. Advance Authorization for Annual Requirement shall also be exempted from payment of anti-dumping & Safeguard duty in line with the underlying principle that goods and services should be exported and not the taxes and levies.

Procedural Simplification and Reduction of Transaction Cost:

Exporters shall now have the flexibility to get a high value EPCG authorisation by filing their EPCG application on Annual basis, without the need to file the application for individual capital goods from time to time. It will reduce transaction time and cost. Exporters shall now have the flexibility to Club Advance authorisation with Advance Authorisation for Annual Requirement for the purpose of account closure. To impart flexibility to exporters and to facilitate smooth clearance of consignments, a Single customs notification for the two variants of Advance Authorization scheme namely advance authorisation for physical exports & deemed exports shall be issued. It will also eliminate the ambiguity in clubbing of such exports. Adhoc Norms ratified under Advance Authorisation scheme shall henceforth apply to all cases for the same export product upto one year not only prospectively but also retrospectively. Clarification on the availability of 4% SAD refund benefit, as given by DOR in terms of customs Notification No. 102/2007, only to trader importers, to be also extended to manufacturers, who sell the imported items like traders. Chartered Engineer Certificate for Advance Authorisation on self declared basis, has been dispenced with. This will reduce documentation and the transaction cost.

India Trade Promotion Organization

nodal agency of the Government of India for promoting the country's external trade. ITPO is miniratna PSE of Govt. of India. ITPO, during its existence of nearly three decades, in the form of Trade Fair Authority of India and Trade Development Authority, has played a proactive role in catalysing trade, investment and technology transfer processes. Its promotional tools include organizing of fairs and exhibitions in India and abroad, Buyer-Seller Meets, Contact Promotion Programmes, Product Promotion Programmes, Promotion through Overseas Department Stores, Market Surveys and Information Dissemination.[1]

The Main Activities & Services of ITPO

Organising various trade fairs and exhibitions at its exhibition complex in Pragati Maidan and other centers in India. Facilitating the use of Pragati Maidan for holding of trade fairs and exhibitions by other fair organisers both from India and abroad. Timely and efficient services to overseas buyers in vendor identification, drawing itineraries, fixing appointments and even accompanying them where required. Establishing durable contacts between Indian suppliers and overseas buyers. Assisting Indian companies in product development and adaptation to meet buyers' requirements.

THANKS