COMMERCIAL POLICY

IntroductionExport import policy of a country is known as

commercial policy of that country.According to prof. Haberler:- “trade policy or commercial

policy refers all those ;measures which regulate external economic relations of a country. The measures of commercial policy include restrictions on import and export, assistance to exporters and importers, difference in freight, changes in the packaging methods of goods etc.

Distinguish between commercial and trade policy

Theoretically trade policy and commercial policy differ from each other. But for all practical purposes. These are treated as synonymous.

Commercial policies includes the matter related to import and export only. Where as the trade policies addition to this includes other problems also concerning international or foreign trade.

Importance of commercial policyEconomic development Earning foreign exchange and developing

industries.Regulate and promote foreign trade.Balance of tradeIncrease export and reduce imports.

Type of commercial policyFree trade policy: free trade is condition of a

international trade when nation do not impose custom duties or other taxes on the imports of goods from other countries.

Protectionist trade policy: the policies of protection refers to government’s such policy by which imports restricted. It is a contrary to the free trade policy.

Export import policy 1992-97

The government of India announced its new EXIM policy on 31st march, 1992. it was declared for the period of five years from 1st April 1992 to 31 march,1997. prior to it EXIM policy was formulated for a period of three year.

To minimizing or remove licensing and other discriminatory controls.

To increase research and development and technical capabilities of India.

Simplification of operational process of exports and imports.

Main objectives of EXIM Policy 1992-97

To increase the export potential of Indian Industries.

To increase the image of Indian goods in Abroad.

To arrange import of raw material, equipments, consumable goods, capital goods required by exporters.

To increase the production of goods acceptable at international level for the purpose of import substitution.

Features of import policy 1992-97

Free importImport of capital goodsImport of machinery and equipments.Imports of gifts.Negative list.More liberalization.

NEGATIVE LISTS.no ITEMS PROVISIONS

1 Oils made from animal fat, animal renette and ivory

Prohibited

2 Electronic goods , telecom items, wrist watches, alcohol, or concentration of alcohol, saffron, cinnamon (daalchini)

Allowed to import with some restrictions

3 Clove, cinnamon, leaves of bay tree(tejpata)

Import allowed with the condition of two times exports equivalent to the import value. Compulsory licensing

4 Sports items , camera etc. Import through licensing for the use of specified consumers . Specific facilities provided to hotels, tourism industry and sports industries

Features of export policy 1992-97

Negative list.Restrictions and control.Deemed exports.Export promotion of capital goods.Quality of goods.Duty exemption scheme.

EXIM policy of India 1992-1997

Main objectivesProviding flexibility to export import schemes.Marching towards trust based system.To check the downfall in the power of export

competitiveness in some areas.To increase productivity and investments.To reduce cost.

THANK YOU

SUBMITTED BY:-NISHANT SAINI MBA-1MANAGEMANT & COMMERCE INSTITUTE OF

GLOBAL SYNERGY, AJMER.