8831foreign trade policy f - 2004-09

7/28/2019 8831Foreign Trade Policy F - 2004-09

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Presentation

onForeign Trade Policy 2004-09



Objective:-

# Facilitate sustained growth in exports

to attain a share of atleast 1.5% of globalmerchandise trade.

# Present share - 0.67%

# Export target (2006-07)- 85 b $.# Present Annual growth rate(CAGR) -11.9%



New Export Target

# Target- 1.5% of the International Trade

# CAGR Required- 15.18% (in US$ terms)

# Assumption- World Trade Growth @ 4.5%(2003 rate)



Objectives (Contd….)

# Facilitating high share of Indian Goodsand 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



Digital automation target

#All Export transactions would be

through EDI mode by 31st October,

2005;

# Digital Signature and EFT facility

operational



India’s Foreign Trade

Period - $ Growth Rate1999-2000 10.85

2000-2001 21.01

2001-2002 -1.65

2002-2003 20.34

2003-2004 17.26



Incorporating a legal entity Proprietorship&

In India [ROC] Partnership Concern

Trade Licence

[State Departments]

Permanent Acccount Number Bank Certificate

[PAN by Income Tax Dept.] [from the concerned Bank]

Importer-Exporter Code Number[DGFT]

EXPORTS IMPORTS

Nature of RestrictionITC[HS] Classification

Free List items Negative List

Prohibited Restricted Canalized



Export Incentives(DOC)

CENTRAL

DUTY REFUND/

NEUTRALISATION/EXEMPTION SCHEMES

Pre-

export

Post-

export

Market Development

Initiatives

INFRA-

STRUCTURE

Related Sops

MDA Grant MAI Grant

ASIDE

SCHEME

TOWNS OF

EXPORT

EXCELLENCE

Additional incentives

Linked with Exports

Duty exemptionsUnder Customs

Notif. 21/2002

Misc.IncentivesSuch as DFEC,

Target Plus, Addl.

weightage



CENTRAL DUTIES

CUSTOMS DUTY — Basic, Addl(CVD), E.Cess,

Anti-dumping, Safeguard duties etc.EXCISE DUTY--- Basic, Addl etc.

EXPORT CESS

CENTRAL SALES TAXINCOME TAX

SERVICE TAX

OTHERS

ELECTRICITY DUTY, OCTROI, SALES TAX etc.



SCHEMES

# SEZ Scheme

# EOU/EHTP/STP/BTP Schemes

# EPIP Scheme

# Warehousing Scheme

# CCP

# DTA Schemes



DTA SCHEMES

Pre-Export

Post-Export

1. ADVANCE LIC.

2. EPCG

1. DFRC, 2. DEPB, 3.REP

2. DRAWBACK — Phy & D.E.3. TED Refund

4. Target Plus

5. DFEC for Service Sec

6. Vishesh Krishi Upaj Yojana



Physical (out of India/Supply to SEZ)

(Against Indian Rupees or Free foreign Exchange)

EXPORTS

Supply within the country(Deemed)(In Indian Rupees or Free Foreign Exchange — EEFC)

Exporters:-- Physical Vs Merchant



X----------Y--------Z

1. PHYSICAL EXPORT

-- Duty free import of Inputs, Fuel, Oil,Energy, Catalyst etc.

-- +V.A.;AU condition; Norm fixed & No

Norm cases; Imports & Exports valid upto 24months; Further extn allowed

-- Supply to SEZ units also covered;

-- E.O. discharge based on S/Bs & BRC(Irrevocable L/C , Provision of Avalisation,

co-acceptance also available)

2 d L I t d t l



2. dvance L cence Intermed ate upply

-- For supplies to Advance licence for physical

exports; Alternatively direct Physical Exports

also allowed

-- Duty free import of Inputs, Fuel, Oil,Energy,

Catalyst etc.

-- +V.A.;AU condition; Norm fixed & No Norm

cases; Imports & Exports valid upto 24 months;

Further extn allowed

-- E.O. discharge based on S/Bs & Bank certificate(Irrevocable inland L/C , Provision of Avalisation,

co-acceptance also available)



3. Advance Licence (Deemed Export)

-- For supplies within India under various

projects, supplies to EOU/EHTP/STP/BTP

-- Duty free import of Inputs, Fuel, Oil,

Energy, Catalyst etc.-- +V.A.;AU condition; Norm fixed & No Norm

cases; Imports & Exports valid upto 24 months

or co-terminus with the project; Extn allowed

-- E.O. discharge based on S/Bs & Bank certificate(Irrevocable inland L/C, Provision of Avalisation,

co-acceptancealso available)

-- Anti-dumping & Safeguard duty not exempted

except supplies to EOU/EHTP/STP/BTP

EPCG S h



EPCG Scheme--Import of capital goods with AU condition at

concessional rate of 5% duty for pre-production,

Production & Post production purposes related to

export (Both Physical & deemed);Import of Car

-- E.O. 8 times the duty saved in 8 years; 12 Years;

-- E.O. monitoring in two blocks only-- Special Dispensation for licence with duty saved of

Rs 100 crores or above, Agro units, SSI units, BIFR.

E.O. period 12 years and varied /reduced E.O.-- EPCG licence for project import — Reduced E.O.

-- Export of alternate product/services allowed

-- Special package for agro units in the AEZ



DFRC SCHEME

--Post export scheme based onS/B (Bill of Export)

and BRC; Both against Phy. & Deemedexports;

--Min. 25% V.A., SION based, Certain sensitiveitemswith technical specification allowed;

--Freely transferablecertificate; However DFRCwith AU condition also available;24 months valid;

--Fuel allowed to be transferred to marketing

agenciesauthorised by Ministry of P&NG;--Facility of CENVAT credit or drawback

--Only basic customs dutyexemption at the time of

imports



4.DEPB SCHEME

--Post export scheme based on S/B (Bill of Export) and BRC; Freely transferableunless specified;

-- Supplies to SEZ unitsalso elligible

--Based on basic customs dutyon inputs--Filingof application and late cut

--CENVAT credit or drawback available;

--Any itemincluding CG (freely importable) allowedfor import;

--Valid for 24 months;



TARGET PLUS SCHEME

--- For Star Export Houses;-- Duty credit based on Incremental exports(fob value in

free foreign exchange) subject to a minimum exportturnover of Rs 10 crores in the previous year;

-- Entitlement:1. >20% & <25% 5%

>=25% & <100% 10%

>=100% 15%(Based on max. 100%growth)

2. Restrictionson export turnover calculation

3. Importsallowed

-- CENVAT creditor DBK allowed for the CVD

paid/debited

SERVICE EXPORTS



SERVICE EXPORTS -- For 161 Tradable services

-- New Export Promotion Council for Services

-- DFEC for Serve from India Scheme1. Eligibility:

-- Min.FFE of Rs 10 Lakhs in the preceding or current

financial year (Exception Rs 5 Lakhs for individuals)

-- Categories of exports excluded for entitlement

2. Entitlement:Hotels of one star & above 5%

Stand alone Restaurants 20%

All other service providers 10%

3. Imports allowed:-- With AU condition

-- Any CAPITAL GOODS, Office Equipments, Furnitures and

consumables etc

-- No Agricultural Product except food items and beverages for

the Hotels and Restaurants



--A new scheme christened as the ―Vishesh Krishi Upaj Yojana‖ to

boost exports of specified agricultural products.

1. Duty credit entitlementof 5% of FOB value of Exports.

2. Exportsof fruits, vegetables, flowers, minor forest produce and their value added variants

3. Freely transferable

4. Importsof inputs and capital goods permitted.

5.CENVAT credit or DBK allowed for the CVD--Import of capital goods shall be permitted duty free under the

EPCG Scheme

--Units in Agri Export Zones (AEZ) shall be exempt from BG under

the EPCG Scheme-- Import of inputs such as pesticidesshall be permitted under the

Advance Licencefor agro exports.

--Capital goods imported under EPCG permitted to be installedanywhere in the AEZ



STATUS CERTIFICATES

--One star to Five Star Export House

-- Double weightage for certain categories

-- Special Privileges



THANKS

8831foreign trade policy f - 2004-09

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