Exim PolicyExim Policy

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Exim PolicyExim Policy

The foreign trade of India is guided by the Export-Import The foreign trade of India is guided by the Export-Import policy of the Government of India.policy of the Government of India.

Regulated by The Foreign Trade Development and Regulated by The Foreign Trade Development and Regulation Act 1992.Regulation Act 1992.

Exim policy contain various policy decisions with respect Exim policy contain various policy decisions with respect to import and exports from the country.to import and exports from the country.

Exim Policy is prepared and announced by the central Exim Policy is prepared and announced by the central government.government.

Exim Policy of India aims to developing export potential, Exim Policy of India aims to developing export potential, improving export performance, encouraging foreign trade improving export performance, encouraging foreign trade and creating favorable balance of payment position.and creating favorable balance of payment position.

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General Objectives of Exim PolicyGeneral Objectives of Exim Policy

To establish the framework for globalization.To establish the framework for globalization. To promote the productivity competitiveness of Indian To promote the productivity competitiveness of Indian

Industry.Industry. To Encourage the attainment of high and internationally To Encourage the attainment of high and internationally

accepted standards of quality.accepted standards of quality. To augment export by facilitating access to raw To augment export by facilitating access to raw

material,intermediate, components, consumables and material,intermediate, components, consumables and capital goods from the international market.capital goods from the international market.

To promote internationally competitive import To promote internationally competitive import substitution and self-reliance.substitution and self-reliance.

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Exim Policy of India 2004-2009Exim Policy of India 2004-2009

Hon. Shri Kamal Nath minister for commerce and Hon. Shri Kamal Nath minister for commerce and industry has announced on 31industry has announced on 31stst Aug 2004, India’s Aug 2004, India’s first Exim policy.first Exim policy.

The duration of the policy from 1The duration of the policy from 1stst Sept. 2004 to 31 Sept. 2004 to 31stst March 2009.March 2009.

It takes an integrated view of the overall It takes an integrated view of the overall development of India’s foreign trade.development of India’s foreign trade.

Aim of the policy is to double the global Aim of the policy is to double the global merchandise trade within the policy time period of 5 merchandise trade within the policy time period of 5 yearsyears

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Objectives of Exim Policy 2004-2009Objectives of Exim Policy 2004-2009

To double our percentage of share of global To double our percentage of share of global merchandise trade within the five year.merchandise trade within the five year.

To act as an effective instrument of economic growth To act as an effective instrument of economic growth by giving a thrust to employment generation.by giving a thrust to employment generation.

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Highlights of the New Foreign Trade Policy Highlights of the New Foreign Trade Policy 2004-20092004-2009

Special Focus InitiativesSpecial Focus Initiatives:: Semi-urban and Rural Area Semi-urban and Rural Area

AgricultureAgriculture : : Vishesh Krishi Upaj Yojana and Agri Export Vishesh Krishi Upaj Yojana and Agri Export ZonesZones

Handlooms and HandicraftsHandlooms and Handicrafts:: Mark under Market Access Mark under Market Access Initiatives Scheme and Proposed to Start new SEZ.Initiatives Scheme and Proposed to Start new SEZ.

Gems and JewelleryGems and Jewellery:: Import of gold of 18 carat and above Import of gold of 18 carat and above has been permitted under the replenishment schemehas been permitted under the replenishment scheme

Leather and FootwearLeather and Footwear : : Duty free import entitlement of Duty free import entitlement of specified items shall be 5% of FOB value of exports during the specified items shall be 5% of FOB value of exports during the preceding yearpreceding year

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Export Promotion SchemesExport Promotion Schemes– Assistance to States for Infrastructure Development of Assistance to States for Infrastructure Development of

Exports [ASIDE]Exports [ASIDE]

– Market Access Initiative [MAI]Market Access Initiative [MAI]

– Marketing Development Assistance [MDA]Marketing Development Assistance [MDA]

– Towns of Export ExcellenceTowns of Export Excellence

– Target Plus Scheme.Target Plus Scheme.

– Served from India SchemeServed from India Scheme

– Service Export Promotion CouncilService Export Promotion Council

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New Status Holder CategorizationNew Status Holder Categorization

CategoryCategory Total Performance Total Performance (In Rs)(In Rs)

One Star Export HouseOne Star Export House 15 crore15 crore

Two Star Export HouseTwo Star Export House 100 crore100 crore

Three Star Export HouseThree Star Export House 500 crore500 crore

Four Star Export HouseFour Star Export House 1500crore1500crore

Five Star Export HouseFive Star Export House 5000 Crore5000 Crore

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Board of TradeBoard of Trade: The role is to advising government on : The role is to advising government on relevant issues connected with Foreign Trade Policy.relevant issues connected with Foreign Trade Policy.

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Implications of The Foreign Trade 2004-09Implications of The Foreign Trade 2004-09

Implications on Indian Economy:Implications on Indian Economy:– This policy propose to simplify procedures and develop This policy propose to simplify procedures and develop

technology and infrastructure.technology and infrastructure.

Implications on Agriculture:Implications on Agriculture:– Special Agricultural Produce Scheme has been introduced for Special Agricultural Produce Scheme has been introduced for

promoting the export of fruits, vegetables, flowers, and their promoting the export of fruits, vegetables, flowers, and their value added products. value added products.

Implications on Handlooms and Handicraft:Implications on Handlooms and Handicraft:– Establishment of Handicraft SEZ and Handicraft Export Establishment of Handicraft SEZ and Handicraft Export

Promotion Council would promote development of Handloom Promotion Council would promote development of Handloom and Handicraft Industry.and Handicraft Industry.

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Implications on Gem and Jewellery Sector :Implications on Gem and Jewellery Sector :– This is special thrust area in this policy.This is special thrust area in this policy.

– Duty free imports of other inputs would give a further boost Duty free imports of other inputs would give a further boost to this sectorto this sector

Implications on Leather and Footwear Industry :Implications on Leather and Footwear Industry :– Duty free import as a specified percentage of exports.Duty free import as a specified percentage of exports.

– Exemption on customs duty on equipment for effluent Exemption on customs duty on equipment for effluent treatment plants would help promoting export form this treatment plants would help promoting export form this sector.sector.

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Implications on Service Industry :Implications on Service Industry :– An exclusive service promotion council has been set up in An exclusive service promotion council has been set up in

order to map the opportunities for key services in key market.order to map the opportunities for key services in key market.

– Develop strategic market access programmes like brand Develop strategic market access programmes like brand building in co-ordination with sectoral players and recognize building in co-ordination with sectoral players and recognize nodal bodies of the service industry.nodal bodies of the service industry.

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Annual Supplement to Foreign Trade Annual Supplement to Foreign Trade Policy 2004-09Policy 2004-09

Minister for Commerce and Industry, Government of Minister for Commerce and Industry, Government of India has announced Annual Supplement 2005, to the India has announced Annual Supplement 2005, to the Foreign Trade Policy 2004-09 on the 8Foreign Trade Policy 2004-09 on the 8 thth April 2005. April 2005.

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Highlights of the SupplementHighlights of the Supplement

Inter State Trade CouncilInter State Trade Council : To engage the State Government in : To engage the State Government in providing an enabling environment for boosting international providing an enabling environment for boosting international trade, by setting up an Inter State Trade Council.trade, by setting up an Inter State Trade Council.

Removal of Export CessRemoval of Export Cess : Proposed to abolish cess on export of : Proposed to abolish cess on export of all agricultural and plantation commodities levied under various all agricultural and plantation commodities levied under various Commodity Board Acts.Commodity Board Acts.

Export Promotion Capital Goods Scheme (EPCG)Export Promotion Capital Goods Scheme (EPCG) : This : This scheme is extended to Agricultural sector, SSI sector, Retail scheme is extended to Agricultural sector, SSI sector, Retail Sectors in order to promote exports from them.Sectors in order to promote exports from them.

Service ExportService Export : To upgrade infrastructure in the service related : To upgrade infrastructure in the service related companies.companies.

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Agri ExportAgri Export : : Benefits under ‘Vishesh Krishi Upaj Yojana’ Benefits under ‘Vishesh Krishi Upaj Yojana’ have been extended to exports of poultry and dairy products in have been extended to exports of poultry and dairy products in addition to export of flowers, fruits, vegetables and their value addition to export of flowers, fruits, vegetables and their value

added productsadded products.. Package for Marine SectorPackage for Marine Sector : : Duty free import of specified Duty free import of specified

specialized chemicals and flavoring oils as per a defined list shall specialized chemicals and flavoring oils as per a defined list shall be allowed to the extent of 1% of FOB value of preceding be allowed to the extent of 1% of FOB value of preceding financial years export.financial years export.

Advance Licensing SchemeAdvance Licensing Scheme : : The Scope of Advance The Scope of Advance License for annual requirement has been extended to all License for annual requirement has been extended to all

categories of exporters having past export performancecategories of exporters having past export performance. .

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Duty Free Replenishment CertificateDuty Free Replenishment Certificate : : Brass scrap, Brass scrap, Additives, paper board, and dye stuff have been removed from Additives, paper board, and dye stuff have been removed from the list of items prescribed for import under DFRC.the list of items prescribed for import under DFRC.

Procedural SimplificationProcedural Simplification : : Proposed to simplify Proposed to simplify procedures and reduce the documentation requirements so as to procedures and reduce the documentation requirements so as to reduce the transaction cost of the exporters and thereby increase reduce the transaction cost of the exporters and thereby increase their competitiveness.their competitiveness.

EDI Initiatives EDI Initiatives : : DGFT shall introduce an automated DGFT shall introduce an automated electronic system for filing, retrieval and authentication of electronic system for filing, retrieval and authentication of documents based on agreed protocols and message exchange documents based on agreed protocols and message exchange with other authorities such including Customs and banks. with other authorities such including Customs and banks.

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Negative List of Exports 2002-07Negative List of Exports 2002-07

The negative list consists of goods, the import or export of which is The negative list consists of goods, the import or export of which is ether prohibited, restricted through licensing or otherwise to be ether prohibited, restricted through licensing or otherwise to be canalized through a designate government agency.canalized through a designate government agency.The negative list of exports, as per the EXIM Policy 2002-07The negative list of exports, as per the EXIM Policy 2002-07

Prohibited ItemsProhibited Items : Which items completely banned from the exports. : Which items completely banned from the exports. – All forms of wild animals including their parts and products.All forms of wild animals including their parts and products.– Special Chemicals as notified by the DGFT.Special Chemicals as notified by the DGFT.– Exotic birds as notified by the DGFT.Exotic birds as notified by the DGFT.– Beef.Beef.– Sea Shells, as specifiedSea Shells, as specified– Human Skeleton.Human Skeleton.– Peacock TailPeacock Tail– Red sanders wood in any form.Red sanders wood in any form.

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Restricted Items : Restricted Items : which items allowed for exports under which items allowed for exports under special license issued by the DGFT.special license issued by the DGFT.

– Dress materials, ready-made garments, fabrics or textile items Dress materials, ready-made garments, fabrics or textile items with imprints of excerpts or verses of the Holy Quran.with imprints of excerpts or verses of the Holy Quran.

– Horses – Kathiawadi, Marwari, and Manipuri breeds.Horses – Kathiawadi, Marwari, and Manipuri breeds.

– Fresh and frozen silver prom frets of weight less than 300gm.Fresh and frozen silver prom frets of weight less than 300gm.

– Paddy (Rice in husk).Paddy (Rice in husk).

– Seaweeds of all types.Seaweeds of all types.

– Chemical Fertilizer all types.Chemical Fertilizer all types.

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Canalized Items : Canalized Items : can be exported without an export license can be exported without an export license through designated State Trading Enterprise through designated State Trading Enterprise

ItemsItems Canalizing AgencyCanalizing AgencyOnions (Except Bangalore Rose onion Onions (Except Bangalore Rose onion and Krishnapuram Onion) and Krishnapuram Onion)

Export Permitted through Specified Export Permitted through Specified STEsSTEs

Niger SeedsNiger Seeds Tribal Cooperative Marketing Tribal Cooperative Marketing Federation of India (TRIFED) New Federation of India (TRIFED) New DelhiDelhi

National Agricultural Cooperative National Agricultural Cooperative Marketing Federation of Marketing Federation of India(NAFED)India(NAFED)

Gum KarayaGum Karaya Tribal Cooperative Marketing Tribal Cooperative Marketing Federation of India(TRIFED), New Federation of India(TRIFED), New DelhiDelhi

Iron ore, Manganese ore, and Chrome Iron ore, Manganese ore, and Chrome ore.ore.

Metals and Minearals Trading Metals and Minearals Trading Corporation (MMTC).Corporation (MMTC).

Crude OilCrude Oil Indian Oil Corporation LimitedIndian Oil Corporation Limited

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Freely Exportable Items : Freely Exportable Items : can be exported without an export can be exported without an export license from DGFT. However export of such items is subject to license from DGFT. However export of such items is subject to certain procedures or conditions.certain procedures or conditions.

Item DescriptionItem Description Procedures or ConditionsProcedures or Conditions

Military Stores as notified by Military Stores as notified by DGFT DGFT

No objection certificate from the Department No objection certificate from the Department of Deface Production and Suppliesof Deface Production and Supplies

Exotic Birds, such as Bangali Exotic Birds, such as Bangali finches, White finches and finches, White finches and ZebraZebra

Subject to Pre- shipment inspection.Subject to Pre- shipment inspection.

Bones and bone productsBones and bone products Subject to a certificate from chemical and Subject to a certificate from chemical and Allied Products Export Promotion Council Allied Products Export Promotion Council (CAPEXIL)(CAPEXIL)

Basmati RiceBasmati Rice Subject to registration of contracts with Subject to registration of contracts with Agriculture and Processed food Products Agriculture and Processed food Products Export Development Authority.Export Development Authority.