Introduction Foreign Trade
Introduction Foreign Trade
Introduction Foreign Trade
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OBJECTIVES OF EXIM POLICY
Main objectives of Exim Policy / Foreign Trade Policy are:-
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HIGHLIGHTS OF FOREIGN TRADE POLICY
1. Strategy:
(a) It is for the first time that a comprehensive Foreign Trade Policy is being
notified. The Foreign Trade Policy takes an integrated view of the overall
development of India's foreign trade.
(b) The objective of the Foreign Trade Policy is two-fold:
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1. Package for Agriculture:
(d) Import of seeds, bulbs, tubers and planting material has been liberalized.
(a) Duty free import of consumables for metals other than gold and platinum
allowed up to 2% of FOB value of exports.
(d) Import of gold of 18 carat and above shall be allowed under the
replenishment scheme.
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Are from Sri Lanka
3. Handlooms & Handicrafts:
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(b) Duty free import of specified items for leather sector increased to 5% of
FOB value of exports.
(c) Machinery and equipment for Effluent Treatment Plants for leather
industry shall be exempt from Customs Duty.
(d) Reduction in the incidence of customs duties on the inputs and on plant
and machinery.
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7. SEZ supplies under DEPB: Material suppliers to the SEZ units receiving
payments in Indian rupees will not be entitled for the DEPB scheme benefit.
Provide the payment for such supplies is made from the foreign currency
account of the SEZ unit.
(b) Vishesh Krishi Upaj Yojana: This scheme has been introduced to boost
exports of fruits, vegetables, flowers, minor forest produce and their value
added products. Export of these products shall qualify for duty free credit
entitlement equivalent to 5% of FOB value of exports. The entitlement is
freely transferable and can be used for import of a variety of inputs and
goods.
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(d) Export Promotional Capital Goods (EPCG): Additional flexibility for
fulfillment of export obligation under EPCG scheme in order to reduce
difficulties of exporters of goods and services. Technological upgradation
under EPCG scheme has been facilitated and incentives. Transfer of capital
goods to group companies and managed hotels now permitted under EPCG.
(f) Duty Entitlement Pass Book (DEPB) Scheme: The DEPB scheme
would be continued until replaced by a new scheme to be drawn up in
consultation with exporters.
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(b) Star Export Houses shall be eligible for a number of privileges including
fast-track clearance procedures, exemption from furnishing of Bank
Guarantee, eligibility for consideration under Target plus Scheme etc.
10. EOUs:
A new scheme to establish Free Trade and Warehousing Zone has been
introduced to create trade-related infrastructure to facilitate the import and
export of goods and services with freedom to carry out trade transactions in
convertible currency. FDI would be permitted up to 100% in the
development and establishment of the zones and their infrastructural
facilities. Units in the FTWZs would qualify for all other benefits as
applicable for SEZ units.
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13. Procedural Simplification & Rationalisation Measures:
(a) All exporters with minimum turnover of Rs.5 crores and good track
record shall be exempt from furnishing Bank Guarantee in any of the
schemes, so as to reduce their transactional costs.
(b) All goods and services exported, including those from DTA units, shall
be exempt from Service Tax.
(d) Time bound introduction of Electronic Data Interface (EDI) for export
transactions.75% of all export transactions to be on EDI within six months.
The Board of Trade shall be revamped and given a clear and dynamic role.
An eminent person or expert on trade policy shall be nominated as President
of the Board of Trade, which shall have a Secretariat and separate Budget
Head, and will be serviced by the Department of Commerce.
■ EU Countries (25)
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■ Rest ol Hie World
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Negatives List of Exporters
Negative list is the list of items which cannot be imported or exported freely
or are banned for imports or exports. Negative list includes the following
three categories of items:-
a) Prohibited items: This means items which are banned for imports and
exports. Such prohibited /banned items cannot be imported or exported.
The negative list in the EXIM Policy has lost its importance in the recent
period as such list is reduced considerably due to liberalization of our
imports and exports. Negative list includes negative list of imports and
exports.
The restricted items of exports are: Total restricted items are 31.
Restricted items of exports includes camels and skins, fodder including
wheat and rice straw, fur of domestic animals and textile items with imprints
of verses of HOLY QURAN.
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CONCLUSION
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Duty Exemption/Remission Schemes of Exim Policy 2004-2009
The Duty Exemption Scheme enables import of inputs required for export
production. It includes the following exemptions-
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BIBLIOGRAPHY
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