EXPORT-IMPORT POLICY

PRESENTED BY:MANWENDRA SINGH MBA 4TH SEM

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INTRODUCTION
Throughout knowledge & understanding of the regulatory environment Critical appreciation of a countrys trade policy & regulatory framework It facilitates decisions that are crucial to the development of a successful strategy.

 Thus EXIM policy influences the following major decisions: a) Selection of product b) Market selection c) Product modification for customization for target market d) International pricing decisions e) International market promotion decision f) International marketing strategy decisions
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EXIM POLICY OF INDIA

India EXIM Policy - Foreign Trade Policy. Set of guidance and instruction established by the DGFT in matters related to the import and export of goods in India. Formulated under the Import & Export(control) Act, 1947 Now its known as Foreign Trade(Development & Regulation) Act, 1992 Headed by Director General of Foreign Trade
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OBJECTIVES OF EXIM
To establish the framework for globalisation. To promote the productivity competitiveness of Indian industry. To encourage the attainment of high & internationally accepted standards of quality. To augment export by facilitating access to raw materials, intermediate components, consumables and capital goods from the international market. To generate new employment. To provide quality consumer products at reasonable prices.

VOLUMES OF EXIM
EXIM policy is established in 5 volumes: 1) Export-import policy: provisions & schemes related to exports & imports. 2) Handbook of procedures(vol 1): export-import procedures to be followed by parties like exporter, importer, licenser etc. 3) Handbook of procedures(vol 2): input-output norms used for working out the proportion of various inputs used/required in the manufacturing of the resultant products so as to determine the advance license entitlement & DEPB (Duty Exemption Pass Scheme) rates.
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4) ITC (HS) Classification of Export & Import Items: it serves as a comprehensive references manual for finding out exportability or importability of products with references to the current exim policy. 5) Schedule of DEPB Rates (Vol 5): it provides a complete rate structure of DEPB(Duty Exemption Passbook Scheme).

EXPORT PROMOTION SCHEMES & INCENTIVES

DUTY DRAWBACK: sec 74 & 75 of Customs Act Defined as the rebate of duty chargeable on any imported or excisable material used in the manufacture of goods exported from India. EXPORT PROMOTION CAPITAL GOODS(EPCG) Introduced in 1990 Enable the import of capital goods at concessional rate of duty subject to an appropriate export obligation accepted by the exporter.

SCHEMES & INCENTIVES

DUTY EXEMPTION SCHEMES Enable duty- free import of inputs required for export production. Consumables like fuel, oil, energy, catalysts, etc. too are included DUTY REMISSION SCHEMES DEPB-introduced in 1997; grant of credit on post export basis as specified percentage of freight on board value of export made in freely convertible currency Duty free replenishment certificate(DFRC)-introduced on 1 April 2000; to provide the benefits of advance license on post-export basis. 9

SCHEMES & INCENTIVES

ASSISTANCE TO STATES FOR INFRASTRUCTURE DEVELOPMENT FOR EXPORTS & OTHER ALLIED ACTIVITIES(ASIDE) The schemes provide an outlay for the development of export infrastructure, which is distributed among the states according to pre-defined criteria. i.e the schemes proposes to provide funds to state govts/union territories for export promotion 20% of funds remain with central govt. & 80% of the funds will be given to state govts/ union territories.

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SCHEMES & INCENTIVES EXPORT PROMOTION INDUSTRIAL PARK (EPIP) SCHEME EPIP introduced in august 1995 & merged with ASIDE from 1 April 2002. Govt through this scheme provides financial support to create infrastructure for export production. EX: Sitapur (Rajasthan); Bangalore; Chengalpattu(TM); Kundli(Haryana); Medak(AP); Kakkanad(Kerala);etc. CRITICAL INFRASTRUCTURE BALANCE(CIB) SCHEME Introduced in 1996-1997 To balance capital investments for removing bottlenecks from the path of development of infrastructure for export production & easy transport.11

INDIAS FOREIGN TRADE POLICY 2009-14

The Union Commerce Ministry, Government of India announces the integrated FTP in every five year. This is also called EXIM policy. This policy is updated every year with some modifications and new schemes. New schemes come into effect on the first day of financial year i.e. April 1, every year. The Foreign trade Policy which was announced on August 28, 2009 is an integrated policy for the period 2009-14.

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INDIAS FOREIGN TRADE POLICY 2009-14 Objectives

1. To arrest and reverse declining trend of exports which will be reviewed after every two years. 2. To Double India's exports of goods and services by 2014. 3. To double India's share in global merchandise trade by 2020 (long term aim). India's share in Global merchandise exports was 1.45% in 2008.
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INDIAS FOREIGN TRADE POLICY 2009-14

4. Simplification of the application procedure for availing various benefits.

5. To set in motion the strategies and policy measures which catalyze the growth of exports. 6. To encourage exports through a "mix of measures including fiscal incentives, institutional changes, procedural rationalization and efforts for enhance market access across the world and diversification of export markets.
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INDIAS FOREIGN TRADE POLICY 2009-14 Aim in General

Aims at developing export potential, improving export performance, boosting foreign trade and earning valuable foreign exchange(as India's exports have been battered by the global recession). A fall in exports has led to the closure of several small- and medium-scale export-oriented units, resulting in large-scale unemployment.
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INDIAS FOREIGN TRADE POLICY 2009-14

Targets:

Export Target : $ 200 Billion for 2012-13 Export Growth Target: 15 % for next two year and 25 % thereafter.

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THANK YOU
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