EXIM LAW

UNIT – III

PREPARED BY

Dr. M. VANISHREE

ASSISTANT PROFESSOR

DEPARTMENT OF COMMERCE (INTERNATIONAL

BUSINESS)

GOVERNMENT ARTS COLLEGE (A), COIMBATORE

UNIT-3

FOREIGN TRADE

Status Category

Export Performance

(FOB/FOR (as converted)

Value (in USS

million) during current and

previous two years)

One Star Export House 3

Two Star Export House 25

Three Star Export House 100

Four Star Export House 500

Five Star Export House 2000

PRIVILEGES OF EXPORT AND TRADING

HOUSE STATUS HOLDER

(a) Authorization and Customs Clearances for both

imports and exports on self-declaration basis;

(b) Fixation of Input-Output norms on priority within 60 days

(c) Exemption from compulsory negotiation of documents through banks. Remittance/receipts however, would be received through banking channels

d) Exemption from furnishing of Bank Guarantee (BG) in Schemes under the Foreign Trade Policy (FTP)

Reference: Foreign Trade by Khushpat Jain

(e) Star Export Hoses (SEHs) and above shall he permitted to establish Export Warehouses as per Department of Revenue (DoR) guidelines

( f) A decision on conferring of Accredited clients Status shall he communication by customs within 30 days from receipt of application with customs

(g) 100% retention of foreign exchange in EEFC account

(h) As an option. for Premier Trading House (PTH). the average level of exports performance under Export Promotion Capital Goods (EPCG) Scheme shall be the arithmetic mean of export performance as 5 years, instead of 3 years

(i) Status Holders of specified sectors shall be eligable for Status Holder incentive Scrip

0j Status Holders of Agricultural Sector shall be eligible for Agricultural infrastructure incentive Scrip under Vishesh Krishi Gram Udyog Yojana (VKGUY)

Reference: Foreign Trade by Khushpat Jain

Negative List of Exports

Prohibited items

Restricted Items

Canalized Items

Freely Exportable Items

Reference: Foreign Trade by Khushpat Jain

PROHIBITED ITEMS

All forms of wild animals including their parts and products.

Special chemicals as notified by the DGFT

Exotic birds as notified by the DGFT.

Beef.

Sea shells, as specified.

Human skeleton.

Peacock tail feathers including handicrafts and artices made thereof

Manufactured articles and shavings of Shed Antlers of Chital and Sambhar

All items of plants as specified by the DGFT.

Tallow, fat and oils of any animal origin excluding fish oil

Sandalwood items as notified by the DGFT.

Red sanders wood in any form.

Reference: Foreign Trade by Khushpat Jain

RESTRICTED ITEMS

Restricted items are allowed for exports under special license issued by the Dress materials, ready-made garments, fabrics or textile items with imprints of excerpts or verses of the Holy Quran.

Reference: Foreign Trade by Khushpat Jain

DGFT. Some of restricted export items are:

Horses Kathiawadi, Marwari and Manipuri breeds.

Fresh and frozen silver promfrets of weight less than 300 gms

paddy (Rice in husk).

Seaweeds of all types.

Fodder inducing wheat and rice straw.

Chemical fertilizer of all types.

Whole human blood and all products derived from it.

Silkworm, silkworm seeds and silkworm cocoons.

Deoiled groundnut cakes containing more than 1% oil.

Reference: Foreign Trade by Khushpat Jain

CANALISED ITEMS

Item Description Canalising Agency

Onions (except Bangalore Rose

onion and Krishnapuram onion)

Export Permitted through Specified STEs.

Niger Seeds Tribal Cooperative Marketing Federation of

India (TRIFED)

New Delhi.

National Agricultural Cooperative

Marketing Federation of

India (NAFED).

Gum Karaya Tribal Cooperative Marketing Federation of

India (TRIFED),

New Delhi.

Iron ore, Manganese ore and

Chrome ore

Metals and Minerals Trading Corporation

(MMTC).

FREELY EXPORTABLE ITEMS

Item Description Procedures or Conditions

Military stores as notified

DGFT

No objection certificate from the

Department of Defence

Production and Supplies.

Exotic birds such as Bangali

finches, White finches and

Zebra finches

Subject to Pre-shipment inspection.

Bones and bone products. Subject to a certificate from Chemicals and

Allied Products

Export Promotion Council (CAPEXIL).

Basmati Rice Subject to registration of contracts with the

Agricultural ana

Processed Food Products Export

Development Authority

(APEDA).

NEGATIVE LIST OF IMPORTS

Freely Importable Items

Restricted (Licensed) Items

Canalized Items

Prohibited items

Reference: Foreign Trade by Khushpat Jain

BOARD OF TRADE

Composition

The Government shall nominate an eminent person or expert on trade policy to be President of the Board of Trade. The Government shall also nominate 25 persons, of whom at least 10 will be experts in trade policy

Reference: Foreign Trade by Khushpat Jain

TERMS OF REFERENCE

a) To advise the Government on policy measures for preparation and implementation of both short

and long-term plans for increasing exports in the light of emerging national and international

economic scenarios

(b) To review export performance of various sectors, identify constraints and suggest industry specific

measures to optimize export earnings

(C)) TToo examine the existing institutional framework for imports and exports and suggest practical

measures for further streamlining to achieve the desired objectives

(d) To review the policy instruments and procedures for imports and exports and suggest steps to

rationalize and channelise such schemes for optimum use

(e) To examine issues which are considered relevant for promotion of India's foreign trade, and to

strengthen the international competitiveness of Indian goods and services; and

( To commission studies for furtherance of the above objectives.

Reference: Foreign Trade by Khushpat Jain

OBJECTIVES OF FEMA

Extent of FEMA

Provisions of FEMA

Regulatory Framework

Meaning of Foreign Exchange

Meaning of Foreign Security

Meaning of Authorised Person

Types of Foreign Exchange Transactions

Reference: Foreign Trade by Khushpat Jain

THE FOREIGN EXCHANGE

MANAGEMENT ACT, 1999 Foreign Exchange Regulations Act, 1973

FEMA vs. FERA

Provisions

Features

New Terms

Definition of Authorised Person

Meaning of Term 'Resident‘

Punishment

Quantum of Penalty

Appeal

Right of Assistance during Legal Proceedings

Power of Search and Seize:

Reference: Foreign Trade by Khushpat Jain

THE FOREIGN TRADE (DEVELOPMENT

AND REGULATION) ACT, 1992

Main Provisions of the Act

Development and Regulation

Prohibition and Retriction

Export Import (EXIM) Policy

Director General of Foreign Trade (DGFT

Importer Exporter Code Number (IEC Noexcept under IEC No.

Search, Inspection and Seizure

Penalty for Contravention

Reference: Foreign Trade by Khushpat Jain

REVISION OF THE ACT Inclusion of Technology and Services in Foreign

Trade

Restrictions on Trade in Weapons of Mass Destruction and their Delivery Systems

Imports from Developing Countries:

Protection to Domestic Industry:

Enhanced Penalty for Contravention

Miscellaneous Amendments

Reference: Foreign Trade by Khushpat Jain

FOREIGN EXCHANGE MANAGEMENT (EXPORT OF

GOODS AND SERVICES) REGULATIONS, 2000

Declaration as Regards Export of Goods and Services: Eve

Indication of Importer Exporter Code Number

Submission and Manner of Submitting Declarations

Period within which Export Value of Goods/Software to be Realised

Export on Elongated Credit Terms

Submission of Export Documents

Delay in Receipt of Payment:

Project Exports

Advance Payment against Exports:

Reference: Foreign Trade by Khushpat Jain