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Transcript of EXIM POLICY
- EXIM POLICY PRESENTED TO: Mrs Alka SWAMI PRESENTED BY: Ruchi Sharma
- EXIM POLICY The foreign trade of India is guided by the Export Import policy of govt. of India. Regulated by the foreign trade development and regulatory Act 1992. Exim policy contain various policy decission with respect to import and export from the country. It is prepared and announced by the central government.
- EXIM Policy is the export import policy of the government that is announced every five years. It is also known as the Foreign Trade Policy. This policy consists of general provisions regarding exports and imports, promotional measures, duty exemption schemes, export promotion schemes, special economic zone programs and other details for different sectors. Every year the government announces a supplement to this policy.
- GENERAL OBJECTVE OF EXIM POLICY It aims to developing export potential, improving export performance, encourage foreign trade & creating favourable balance of payment position. To establish the framework for globalization. To promote internationally competitive import subsitution and self reliance To encourage the attainment of high & internationally accepted standards of quality.
- The Foreign Trade Policy for the period 2009-2014 was announced on 27th August 2009 at a time when the world was emerging from the shadow of a challenging economic period, the worst we have seen in the last 7 decades. Economies and markets across the world were in turmoil, causing sharp contraction in international trade, adversely impacting global investment flows, rendering over 50 million people jobless. The world trade witnessed an unprecedented contraction of over 12%. EXIM POLICY- 2009-2014
- OBJECTIVES OF 2009-14 The key objective for the Foreign Trade Policy was to arrest the declining exports and reverse the trend. To double Indias exports of goods and services by 2014. To double Indias share in global merchandise trade by 2020 as long term aim of this policy. Indias share in global merchandise export was 1.45% in 2008. Simplification of the application procedure for availing various benefits.
- To set in motion the strategies and policy measures which catalyse the growth of exports. To incourage exports through a mix of measures including fiscal incentives, institutional charges, procedural rationalisation and efforts for enhance market access around the world and diversification of export markets.
- AIMS IN GENERAL The policy aims at developing export potential , improving export performance, boosting foreign trade and earning valuable foreign exchange.FTP assumes great significance this year as Indais export have battered by the global recession. A fall in exports have led to the closure of several small and medium-scale export oriented units, resulting in large scale unemployment.
- TARGET Export target : $ 200 billions for 2010-2011. Export growth rate :15% for next two years and 25% there after. In an endeavour to make India a diamond international trading hub, it is planned to establish Diamond Bourse(s).
- EPCG SCHEME Obligation under EPCG scheme relaxed. To aid technological up gradation of export sector , EPCG scheme at Zero Duty has been introduced. Export obligation on import of spares , mould etc. under EPCG Scheme has reduced by 50%.
- Announcements for FPS,FMS,MLFPS 26 new market s added in this scheme. Incentives under FMS raised from 2.5% to 3%. Incentives available under Focus Product Scheme(FPS) Raised from 1.25% to 2%. Extra products included in the scope of benefits under FPS.
- ANNOUNCEMENT FOR MARINE SECTOR Fisheries exempted from maintenance of average EO under EPCG Scheme (along with 7 sectors) however Fishing Trawlers, boats, ships, and other similar items shall not be allowed for this exemption. Additional flexibility under Target Plus Scheme / Duty free certificate of Entitlement Scheme for the marine sector.
- GEMS AND JEWELLERY SECTOR Duty Drawbacks is allowed on Gold Jewellery Exports to neutralize duty incidence. Plan to establish Diamond Bourse (s ) with an aim to make India an International Trading Hub announced. Introduction of a new facility to allow import on consignment basis of cut and polished diamonds for the purpose of grading / certification.
- ANNOUNCEMENTS FOR AGRO EXPORTS Introduction to a single window system to facilitate export of perishable agricultural produce with an aim to reduce transaction and handling costing. This system will involve creation of multi-functional nodal agencies .These agencies will be accredited by APEDA.
- ANNOUNCEMENT FOR LEATHER EXPORT On the payment of 50% applicable export duty, Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi finished leather from public bounded warehouse.
- ANNOUNCEMENTS FOR TEA EXPORTS The existing minimum value addition under advance authorisation scheme for export of tea is 100%. To 50%. DTA (domestic tarriff area) sales limit to instant tea by EOU units increased from 30% to 50 %. Export of tea has been included under VKGUY Scheme benefits.
- ANNOUNCEMENT FOR PHARMA EXPORT Export Obligation Period for advance authorization issued increased from existing 6 months to 36 months. Pharma sector included under MLFPS for countries in Africa and Latin America and some countries in Oceania and Far East.
- ANNOUNCEMENT FOR HANDLOOM EXPORTS The claim under Focus Product Scheme, the requirement of Handloom mark was required earlier. This has been removed. ANNOUNCEMENT FOR AUTOMOBILE INDUSTRY Those automobile industrie which have R & D establishment will be allowed free import of reference fuels upto a maximum of 5 kl/annum,which are not manufactured in India. Simplification in EPCG for automobile industry.
- SET UP OF DIRECTORATE OF TRADE REMEDY MEASURE A Directorate of Trade Remedy Measure shall be set up , which will enable support to Indian industry and exporters , especially the Micro Small & medium Enterprises MSMEs in availing their rights through trade remedy instruments. Restricted items can be imported now against transferred DFIAs as the present DFRC scheme. There is provision for state run banks to provide dollar credits.
- EXIM BANK The Export-Import Bank of India The Export-Import Bank of India, also known as Exim Bank of India leading export finance institution in the country. The bank was set up in the year 1982 under the Export-Import Bank of India Act 1981. The bank offers wide-ranging services for enhancing the prospect of Indian project exports. It plays the role of source of financial, promoter ,coordinator & consultation of Indias Foreign Trade.