Foreign Trade Polic1
Foreign Trade Polic1
Foreign Trade Polic1
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• Foreign Trade Policy Highlights
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• Anti Dumping Duty
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• Custom Duty
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• Trade Regulations
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• Baggage Rules
For the first time, the government terminated the five-year Exim
Policy, 2002-07 and replaced it with Foreign Trade Policy (FTP)
for a term of five-year starting the fiscal year on the 31st August
2004. It takes an integrated view of the overall development of
the country's foreign trade.
Strategy
The objective of Foreign Trade Policy is of two-fold:
i. To make India's percentage share of global merchandiser
trade double by 2009; and
ii. To act as an effective instrument of economic growth by
giving a thrust to employment generation, especially in
semi-urban and rural areas.
The key strategies are of FTP are:
i. Unshackling of controls;
ii. Creating an atmosphere of trust and transparency;
iii. Simplifying the procedures and bringing down transaction
costs;
iv. Adopting the fundamental principle that duties and levies
should not be exported;
v. Identifying and nurturing different special focus areas to
facilitate development of India as a global hub for
manufacturing, trading and services.
Special Focus Initiatives
Those sectors which have significant export prospects abreast of
potential for employment generation in the semi-urban and rural
areas have been identified as the thrust sectors. For these areas,
special sectoral strategies have been prepared.
The capital goods which are imported under EPCG for agriculture
are permitted to be installed anywhere in the agri export zone.
The import of seeds, bulbs, tubers and planting material has been
liberalised.
For specified items for leather sector, duty free import increased
to 5% of FOB value of exports. The machinery and equipment for
effluent treatment plants for the leather industry shall be exempt
from customs duty.
Target Plus :
Target Plus, a new scheme is introduced to accelerate growth of
exports.
Hotels and restaurants may use their duty credit entitlement for
import of food items and alcoholic beverages.
EPCG :
i. Under EPCG scheme, additional flexibility to be given for
fulfillment of export obligation so that the difficulties of
exporters of goods and services are reduced.
ii. The technological upgradation under this scheme has been
facilitated and incentivised.
iii. Transfer of capital goods is now permitted under EPCG to
group companies and managed hotels.
iv. For movable capital goods in service sector, requirement
of installation certificate from Central Excise has been
done away with.
v. The export obligation for specified projects shall be
calculated based on the concessional duty which are
permitted to them. This would rather improve the viability
of such projects.
DFRC :
Fuel imported under DFRC entitlement shall be allowed to be
transferred to the marketing agencies which are authorized by the
Ministry of Petroleum and Natural Gas.
DEPB :
This scheme will continue until replaced by a new scheme to be
drawn up in consultation with exporters.
EOUs
Exemption of EOU from service tax in proportion to their goods
and services exported.
The numbers of returns and forms used for filing has been
reduced. It will continue in consultation with Customs & Excise.
Pragati Maidan
To showcase industrial and trade prowess to its best advantage
and leverage existing facilities, the Pragati Maidan will be
transformed into a world-class complex. It should be state-of-the-
art, environmentally-controlled, visitor friendly exhibition areas
and marts. To accommodate 10,000 delegates, a huge Convention
Centre with flexible hall spaces, auditoria and meeting rooms
with high-tech equipment, as well as multi-level car parking for
9,000 vehicles is to be developed within Pragati Maidan's
envelop.
Legal Aid
Deserving exporters will be provided with financial assistance on
the recommendation of Export Promotion Councils, so that they
can meet the costs of legal expenses connected with trade-related
matters.
Grievance Redressal
A new mechanism for grievance redressal is formulated and put
into place by a Government resolution in order to facilitate
speedy redressal of grievances of trade and industry.
Quality Policy
DGFT shall be a business-driven, transparent, corporate oriented
organization.
Biotechnology Parks
Biotechnology parks is to be set up and to be granted all facilities
of 100% EOUs.