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7/29/2019 Final Doc Intrntnl Busins Env (2)
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A
ASSIGNMENT
on
EXIM POLICY (2009-2014)& RECENT DEVELOPMENT BY
GOVERNMENT
For the Subject
INTERNATIONAL BUSINESS ENVIRONMENT
For the partial fullfillment of the award degree of M.B.A
Submitted by: Submitted to :
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1.0 INTRODUCTION
India is looked upon as a country with immense resources available through its length and
breadth. By the time India gained Independence from the Britishers in 1947, the economy was
entirely geared to only trade. There were hardly any manufacturing facilities to suffice the needs
of the growing Indian population. The past couple of decades in the history of Indian Trade have
seen the country struggle to create manufacturing capacities across the board to be self sufficient.
The government has been focusing on the same to enable broad basing the development to move
the economy from an underdeveloped status to being a developed nation.
India today stands at an over a trillion economy. Darjeeling tea, Indian khadi cotton, Bombay
Duck, Kashmiri carpets, Indian spices and dry fruit are just a few of the famous gifts India has
given to the world. The economic levels have improved in the urban and semi-urban areas. With
economic reforms, globalisation of the Indian economy has been the guiding factor in
formulating the trade policies. The reform measures introduced in the subsequent policies have
focused on liberalization, openness and transparency. They have provided an export friendly
environment by simplifying the procedures for trade facilitation. The announcement of a new
Foreign Trade Policy for a five year period, replacing the hitherto nomenclature of EXIM Policy
by Foreign Trade Policy (FTP) is another step in increasing foreign trade. It takes an integrated
view of the overall development of Indias foreign trade and provides a roadmap for the
development of this sector. A vigorous export-led growth strategy of doubling Indias share in
global merchandise trade, with a focus on the sectors having prospects for export expansion and
potential for employment generation, constitute the main plank of the policy. All such measures
are expected to enhance India's international competitiveness and aid in further increasing the
acceptability of Indian exports. The policy sets out the core objectives, identifies key strategies,
spells out focus initiatives, outlines export incentives, and also addresses issues concerning
institutional support including simplification of procedures relating to export activities.
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The key strategies for achieving its objectives include:-
Unshackling of controls and creating an atmosphere of trust and transparency;
Simplifying procedures and bringing down transaction costs;
Neutralizing incidence of all levies on inputs used in export products;
Facilitating development of India as a global hub for manufacturing, trading and services;
Identifying and nurturing special focus areas to generate additional employment
opportunities, particularly in semi-urban and rural areas;
Facilitating technological and infrastructural upgradation of the Indian economy,
especially through import of capital goods and equipment;
Avoiding inverted duty structure and ensuring that domestic sectors are not
disadvantaged in trade agreements;
Upgrading the infrastructure network related to the entire foreign trade chain to
international standards;
Revitalizing the Board of Trade by redefining its role and inducting into it experts on
trade policy; and
Activating Indian Embassies as key players in the export strategy.
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2.0 FOREIGN TRADE POLICY 2009-2014
2.1CONTEXT
The UPA Government has assumed office at a challenging time when the entire world is facing
an unprecedented economic slow-down. The year2009 is witnessing one of the most severe
global recessions in the post-war period. Countries across the world have been affected in
varying degrees and all major economic indicators of industrial production, trade, capital flows,
unemployment, per capita investment and consumption have taken a hit.Though India has not
been affected to the same extent as other economies of the world, yet our exports have suffered a
decline in the last 10 months due to a contraction in demand in the traditional markets of our
exports. After four clear quarters of recession there is some sign of a turnaround and the
emergence of green shoots.Announcing a Foreign Trade Policy in this economic climate is
indeed a daunting task. We cannot remain oblivious to declining demand in the developed world
and we need to set in motion strategies and policy measures which will catalyse the growth of
exports.
2.2 OBJECTIVES
The short term objective of our policy is to arrest and reverse the declining trend of exports andto provide additional support especially to those sectors which have been hit badly by recession
in the developed world. We would like to set a policy objective of achieving an annual export
growth of 15% with an annual export target of US$ 200 billion by March 2011. In the remaining
three years of this Foreign Trade Policy i.e. upto 2014, the country should be able to come back
on the high export growth path of around 25% per annum. By 2014, we expect to double Indias
exports of goods and services. The long term policy objective for the Government is to double
Indias share in global trade by 2020.
2.3 STRATEGIES
In order to meet these objectives, the Government would follow a mix of policy measures
including fiscal incentives, institutional changes, procedural rationalization, enhanced market
access across the world and diversification of export markets. Improvement in infrastructure
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related to exports; bringing down transaction costs, and providing full refund of all indirect taxes
and levies, would be the three pillars, which will support to achieve this target.
We need to encourage value addition in our manufactured exports
to take an initiative to diversify our export markets and offset the inherent disadvantage for our
exporters in emerging markets to deepen our trade engagement with other major economic
groupings in the world. The Government seeks to promote Brand India through six or more
Made in India shows to be organized across the world every year.
In the era of global competitiveness, there is an imperative need for Indian exporters to upgrade
their technology and reduce their costs. The status holders will be permitted to import capital
goods duty free (through Duty Credit Scripts equivalent to 1% of their FOB value of exports in
the previous year), of specified product groups.
For upgradation of export sector infrastructure, Towns of Export Excellence and units located
therein would be granted additional focused support and incentives. The policy is committed to
support the growth of project exports. We would like to encourage production and export of
green products through measures such as phased manufacturing programme for green vehicles,
zero duty EPCG scheme and incentives for exports.
To enable support to Indian industry and exporters, especially the MSMEs, in availing
their rights through trade remedy instruments under the WTO framework, we propose to set up a
Directorate of Trade Remedy Measures. In order to reduce the transaction cost and institutional
bottlenecks, the e-trade project would be implemented in a time bound manner to bring all stake
holders on a common platform. Additional ports/locations would be enabled on the Electronic
Data Interchange over the next few years. An Inter-Ministerial Committee has been established
to serve as a single window mechanism for resolution of trade related grievances.
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3.0 HIGHLIGHTS OF FOREIGN TRADE POLICY 2009-2014
3.1 HIGHER SUPPORT FOR PRODUCT AND MARKET
DIVERSIFICATION
Indias export to developed countries faced a declining trend in this period. To insulate Indian
exports from the decline in demand from developed countries, in this policy focus is on
diversification of Indian exports to other markets, especially those located in Latin America,
Africa, parts of Asia and Oceania.
The main area of changes has been mentioned below.1. Incentive schemes under Chapter 3 have been expanded by way of addition of new products
and markets.
2. 26 new markets have been added under Focus Market Scheme. These include 16 new markets
in Latin America and 10 in Asia-Oceania.
3. The incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to 3%.
4. The incentive available under Focus Product Scheme (FPS) has been raised from 1.25% to2%.
5. A large number of products from various sectors have been included for benefits under FPS.
These include, Engineering products (agricultural machinery, parts of trailers, sewing machines,
hand tools, garden tools, musical instruments, clocks and watches, railway locomotives etc.),
Plastic (value added products), Jute and Sisal products, Technical Textiles, Green Technology
products (wind mills, wind turbines, electric operated vehicles etc.), Project goods, vegetable
textiles and certain Electronic items.
6. Market Linked Focus Product Scheme (MLFPS) has been greatly expanded by inclusion of
new products. Some major products include; Pharmaceuticals, Synthetic textile fabrics, value
added rubber products, value added plastic goods, textile made ups, knitted and crocheted
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fabrics, glass products, certain iron and steel products and certain articles of aluminium among
others. Benefits to these products will be provided, if exports are made to 13 identified markets.
7. MLFPS benefits also extended for export to additional new markets for certain products.
These products include auto components, motor cars, bicycle and its parts, and apparels among
others.
8. A common simplified application form has been introduced for taking benefits under FPS,
FMS, MLFPS and VKGUY.
9. Higher allocation for Market Development Assistance (MDA) and Market Access Initiative
(MAI) schemes is being provided.
3.2 TECHNOLOGICAL UPGRADATION
In the era of global competitiveness, there is a vital need for Indian exporters to upgrade their
technology and reduce their costs. Accordingly, an important element of the Foreign Trade
Policy is to help exporters for technological upgradation. Technological upgradation of exports is
sought to be achieved by promoting imports of capital goods for certain sectors under EPCG at
zero percent duty. Under the present Foreign Trade Policy, Government recognizes exporters
based on their export performance and they are called status holders. For technological
upgradation of the export sector, these status holders will be permitted to import capital goods
(through Duty Credit Scrips equivalent to 1% of their FOB value of exports in the previous year)
of specified product groups duty free. This will help them to upgrade their technology and reduce
cost of production. Jaipur, Srinagar and Anantnag have been recognised as Towns of Export
Excellence for handicrafts; Kanpur, Dewas and Ambur have been recognised as Towns of
Export Excellence for leather products; and Malihabad for horticultural products. The policy is
committed to support the growth of project exports. A high level coordination committee is
being established in the Department of Commerce to facilitate the export of manufactured
goods / project exports creating synergies in the line of credit extended through EXIM Bank for
new and emerging markets.
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(Towns of Export Excellence- Selected towns producing goods of Rs. 1000 crore or more will
be notified as Towns of Exports Excellence on the basis of potential for growth in exports.
However for the Towns of Export Excellence in the Handloom, Handicraft, Agriculture and
Fisheries sector, the threshold limit would be Rs 250 crores.)
A number of initiatives have been taken in this Policy to focus on technological upgradation;
such initiatives include:
1. EPCG Scheme at zero duty has been introduced for certain engineering products,
electronic products, basic chemicals and pharmaceuticals, apparel and textiles, plastics,
handicrafts, chemicals and allied products and leather and leather products.
(Export Promotion Capital Goods Scheme- The scheme allows import of capital goods for pre
production, production and post production at 5% Customs duty subject to an export obligation
equivalent to 8 times of duty saved on capital goods imported under EPCG scheme to be fulfilled
over a period of 8 years reckoned from the date of issuance of licence. Capital goods would be
allowed at 0% duty for exports of agricultural products and their value added variants)
2. The existing 3 % EPCG Scheme has been considerably simplified, to ease its usage by
the exporters.
3. To encourage value added manufacture export, a minimum 15 % value addition on
imported inputs under Advance Authorisation Scheme has been stipulated.(Advance Authorisation Scheme- Advance Authorisation is issued to allow duty free Import
Exports of inputs, which are physically incorporated in the export product (making normal
allowance for wastage). In addition, fuel, oil, energy, catalysts etc. which are consumed/utilised
in the course of their use to obtain the export product, may also be allowed under the scheme)
4. A number of products including automobiles and other engineering products have been
included for incentives under Focus Product, and Market Linked Focus Product Schemes.
5. Steps to encourage Project Exports shall be taken.
3.3 STATUS HOLDERS
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To accelerate exports and encourage technological upgradation, additional Duty Credit Scrips
shall be given to Status Holders @ 1% of the FOB value of past exports. The duty credit scrips
can be used for procurement of capital goods with Actual User condition. This facility shall be
available for sectors of leather (excluding finished leather), textiles and jute, handicrafts,
engineering (excluding Iron & steel & non-ferrous metals in primary and intermediate form,
automobiles & two wheelers, nuclear reactors & parts, and ships, boats and floating structures),
plastics and basic chemicals (excluding pharma products) [subject to exclusions of current
beneficiaries under Technological Upgradation Fund Schemes (TUFS)]. This facility shall be
available upto 31.3.2011.
3.4 MARINE SECTOR
Fisheries have been included in the sectors which are exempted from maintenance of average EO
under EPCG Scheme, subject to the condition that Fishing Trawlers, boats, ships and other
similar items shall not be allowed to be imported under this provision. This would provide a
fillip to the marine sector which has been affected by the present downturn in exports. Additional
flexibility under Target Plus Scheme (TPS) / Duty Free Certificate of Entitlement (DFCE)
Scheme for Status Holders has been given to Marine sector.
3.5 FREE TRADE & WAREHOUSING ZONES
The objective is to create trade-related infrastructure to facilitate the import and export of goods
and services with freedom to carry out trade transactions in free currency. The scheme envisages
creation of world-class infrastructure for warehousing of various products, state-of-the-art
equipment, transportation and handling facilities, commercial office-space, water, power,
communications and connectivity, with one-stop clearance of import and export formality, to
support the integrated Zones as international trading hubs. These Zones would be established in
areas proximate to seaports, airports or dry ports so as to offer easy access by rail and road. The
Free Trade & Warehousing Zones (FTWZ) shall be a special category of Special Economic
Zones with a focus on trading and warehousing.
3.6 TEA SECTOR
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The Minimum value addition under advance authorisation scheme for export of tea has been
reduced from the existing 100% to 50%. Domestic Tariff Area(DTA) sale limit of instant tea by
Export Oriented Units(EOU) units has been increased from the existing 30% to 50%. Export of
tea has been covered under Vishesh Krishi and Gram Udyog Yojana (VKGUY) Scheme benefits.
Under this scheme, exporters are entitled to 5 per cent duty credit scrip on the export value of the
consignment. Duty scrip benefits are granted with an aim to compensate high transport costs.
3.7 PHARMACEUTICAL SECTOR
Export Obligation Period for advance authorizations issued with 6-APA(Additional Personal
Allowance) as input has been increased from the existing 6 months to 36 months, as is available
for other products. Pharma sector extensively covered under Market Linked Focus Product
Scheme (MLFPS) for countries in Africa, Latin America and some countries in Oceania and Far
East.
3.8 HANDLOOM SECTOR
The requirement of Handloom Mark for availing benefits under Focus Prodoct Scheme(FPS)
has been removed to simplify claims under FPS.
3.9 HANDICRAFT
As per the FTP 2004-09, new handicraft SEZ shall be set up which would procure
products from cottage sector and then the finishing will be done for exporting.
Duty free import entitlement of tools, trimmings and embellishments is 5% of Free on
Board (FOB) value of exports during previous financial year. (remains unchanged from
FTP 2004-09)
Handicraft Export Promotion Council is authorized to import trimmings, embellishments
and consumables on behalf of those exporters for whom directly importing may not be
viable. (remains unchanged from FTP 2004-09)
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Specific funds are earmarked under Market Access Initiative (MAI) & Market
Development Assistance (MDA) Schemes for promoting Handicraft exports. (remains
unchanged from FTP 2004-09)
Countervailing Duty is exempted on duty free import of trimmings, embellishments and
consumables.
New towns of export excellence with a reduced threshold limit of Rs 150 crore (Rs 250
cr. in FTP 2004-09) shall be notified.
Machinery and equipment for effluent treatment plants are exempt from customs duty.
All handicrafts exports would be treated as special focus products and entitled to higher
incentives.
3.10 SPORTS GOODS AND TOYS
Newly added into the special focus initiatives.
Duty free import of specified specialized inputs allowed to the extent of 3% of FOB
value of preceding financial years export.
Sports goods and toys shall be treated as a Priority sector under MDA/MAI Scheme.
Specific funds would be earmarked under MAI/ MDA Scheme for promoting exports
from this sector.
Applications relating to Sports Goods and Toys shall be considered fast track clearance
by Director General of Foreign Trade (DGFT).
Sports Goods and Toys are treated as special focus products and entitled to higher
incentives.
3.11 EPCG SCHEME RELAXATIONS, SUPPORT FOR GREEN
PRODUCTS AND PRODUCTS FROM NORTH EAST
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EPCG SCHEME RELAXATIONS
EPCG stands for export promotion capital goods. EPCG scheme allows import of capital goods
for pre production, production and post production at 3% Customs duty (compared to 5%
customs duty in 2004 EXIM policy), subject to an export obligation equivalent to 8 times of duty
saved on capital goods imported under EPCG scheme, to be fulfilled in 8 years reckoned from
Authorisation issue-date.
The main focus is on:
To increase the life of existing plant and machinery, export obligation on import of
spares, moulds etc.
EPCG Scheme has been reduced to 50% of the normal specific export obligation.
The facility of Re-fixation of Annual Average Export Obligation for a particular financial
year in which there is decline in exports from the country, has been extended for the 5
year Policy period 2009-14.
3.12 EXPORT ORIENTED UNIT
The Export Oriented Units (EOUs) scheme, introduced in early 1981, is complementary to the
SEZ scheme. It adopts the same production regime but offers a wide option in locations with
reference to factors like source of raw materials, ports of export, hinterland facilities, availability
of technological skills, existence of an industrial base and the need for a larger area of land for
the project. As on 31st December 2005, 1924 units are in operation under the EOU scheme. The
main objectives of the EOU scheme is to increase exports, earn foreign exchange to the country,
transfer of latest technologies stimulate direct foreign investment and to generate additional
employment.Currently EOU scheme is mentioned in the Chapter 6 of the Foreign Trade Policy
(2009-2014), Volume-I (HOP). The EOUs can export all products except prohibited items of
exports in ITC (HS).
Recent Policy Changes in the EOUs Scheme
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EOUs have been allowed to sell products manufactured by them in DTA upto a limit of
90% instead of existing 75%, without changing the criteria of similar goods, within the
overall entitlement of 50% for DTA sale.
To provide clarity to the customs field formations, DOR shall issue a clarification to
enable procurement of spares beyond 5% by granite sector EOUs.
EOUs will now be allowed to procure finished goods for consolidation along with their
manufactured goods, subject to certain safeguards.
During this period of downturn, Board of Approvals (BOA) to consider, extension of
block period by one year for calculation of Net Foreign Exchange earning of EOUs.
EOUs will now be allowed CENVAT Credit facility for the component of SAD and
Education Cess on DTA sale.
3.13 SUPPORT FOR GREEN PRODUCTS AND PRODUCTS FROM
NORTH EAST
It emphasises on encouraging production and export of green products through measures such as
phased manufacturing programme for green vehicles, zero duty EPCG scheme and incentives for
exports. It focuses on Product Scheme benefit extended for export of green products; and for
exports of some products originating from the North East.
3.14 THRUST TO VALUE ADDED MANUFACTURING
To encourage Value Added Manufactured export, a minimum 15% value addition on
imported inputs under Advance Authorization Scheme has now been prescribed.
Coverage of Project Exports and a large number of manufactured goods under FPS and
MLFPS.
3.15 WAIVER OF INCENTIVES RECOVERY, ON RBI SPECIFIC WRITE
OFF
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In cases, where RBI specifically writes off the export proceeds realization, the incentives under
the FTP shall now not be recovered from the exporters subject to certain conditions.
3.16 SIMPLIFICATION OF PROCEDURES
Foreign trade policy of 2009-2014 simplified some of the complex procedures existed in the
earlier policies they are listed below.To facilitate duty free import of samples by exporters,
number of samples or pieces has been increased from existing 15 to 50. Customs clearance of
such samples shall be based on declarations given by the importers, which specify the limit of
value and quantity of samples.
To allow exemption for up to two stages from payment of excise duty in lieu of refund, in case of
supply to an advance authorization holder (against invalidation letter) by the domestic
intermediate manufacturer. It would allow exemption for supplies made to a manufacturer, if
such manufacturer in turn supplies the products to an ultimate exporter. At present, exemption is
allowed upto one stage only.
Greater flexibility has been permitted to allow conversion of Shipping Bills from one Export
Promotion scheme to other scheme. Customs shall now permit this conversion within three
months, instead of the present limited period of only one month.
To reduce transaction costs, dispatch of imported goods directly from the Port to the site has
been allowed under Advance Authorisation scheme for deemed supplies. At present, the duty
free imported goods could be taken only to the manufacturing unit of the authorisation holder or
its supporting manufacturer.
Disposal of manufacturing wastes / scrap will now be allowed after payment of applicable excise
duty, even before fulfillment of export obligation under Advance Authorisation and EPCG
Scheme.
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Regional Authorities have now been authorised to issue licences for import of sports weapons by
renowned shooters, on the basis of NOC from the Ministry of Sports & Youth Affairs. Now
there will be no need to approach DGFT (Hqrs.) in such cases.
The procedure for issue of Free Sale Certificate has been simplified and the validity of the
Certificate has been increased from 1 year to 2 years. This will solve the problems faced by the
medical devices industry.
Automobile industry, having their own R&D establishment, would be allowed free import of
reference fuels (petrol and diesel), up to a maximum of 5 KL per annum, which are not
manufactured in India.
Acceding to the demand of trade & industry, the application and redemption forms under EPCG
scheme have been simplified.
3.17 EXPORT OF GOODS
This is included only in Foreign Trade Policy 2004-2009 and not in 2009-2014 policy.
New scheme called Target Plus Scheme introduced. Exporters to be entitled to duty free
credit based on incremental exports for 2004-05. For incremental growth of over 20 per cent, 25
per cent and 100 per cent, the duty free credits would be 5 per cent, 10 per cent and 15 per centof Free on Board (FOB) value of incremental exports.
Duty Entitlement Pass Book (DEPB) scheme to be continued until a new scheme is drawn up
in consultation with exporters.
Scheme of categorization of status holders as Star Export Houses rationalized and categories
from One Star Export House to Five Star Export House introduced.
FREEON BOARD (FOB)
When a seller is asked to quote his FOB price, it means that (s)he should give a price that
includes the transportation and loading costs of goods that are to be supplied to the destination
from where the buyer bears the rest of the costs like the unloading costs etc. This simply means
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that the seller assumes the risks of the goods till it is loaded on to the mode of transportation (e.g.
Ship). After the goods have been loaded, from there on the risks are borne by the buyer.
TARGET PLUS SCHEME
Target Plus Scheme has been introduced to accelerate the growth of exports. Status Holders
who have achieved a quantum growth in exports would be entitled to duty free credit based on
incremental exports substantially higher than the general actual export target fixed. (Since the
target fixed for 2004-05 is 16 percent, the lower limit of performance for qualifying for rewards
is pegged at 20 percent for the current year). Government has modified Target Plus Scheme for
exports during 2005-06 by providing duty credit benefits at 5% of incremental exports, removing
petroleum, cereals, ores, sugar and gems & jewellery from purview of the scheme, and by
lowering eligibility criteria to Rs.5 crore from Rs.10 crore. After being in operation for exports
during 2004 05 and 2005-06, Target Plus Scheme has been abolished for exports from 1/4/2006
onwards.
3.18 EXPORT OF SERVICES
This is included only in Foreign Trade Policy 2004-2009 and not in 2009-2014 policy.
Duty Free Credit Entitlement Certificate (DFEC) Scheme for service providers revamped /re-
cast into theServed from India Scheme.
Capital goods including spares, office equipment and professional equipment, office furniture
and consumables for use in main line of business eligible for import against DFEC.
Individual service providers who had foreign exchange earnings of at least INR 5 lakhs in the
preceding financial year and other service providers who had foreign exchange earnings of at
least INR 10 lakhs in the preceding or current financial year, to be eligible for a duty credit
entitlement of 10 per cent of foreign exchange earned by them in the preceding financial year.
Healthcare and Educational Institutions also eligible for duty credit entitlement.
Exclusive Services Export Promotion Council to be set up.
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Government to promote establishment of Common Facility Centres for use by home-based
service providers, particularly in areas like engineering and architectural design, multi- media
operations, software developers etc., in State and District-level towns.
Requirement of installation certificate from Central Excise Office done away with in case of
imports of movable capital goods by service providers under Export Promotion Capital Goods
(EPCG) Scheme.
3.19 COMMON FOR EXPORT OF GOODS AND SERVICES
This is included only in Foreign Trade Policy 2004-2009 and not in 2009-2014 policy.
EPCG license can also be used for import of capital goods for supply to specified notified
projects.
Import of second-hand capital goods to be permitted without any age restrictions. Minimum
depreciated value for plant and machinery to be relocated into India reduced from Rs.50 crores to
Rs.25 crores.
All exporters with minimum turnover of Rs.5 crores and good track record to be exempt from
furnishing bank guarantee in any of the schemes.
All goods and services exported, including those from Domestic Tariff Area (DTA) units, to
be exempt from Service Tax (Notification from FinanceMinistry is awaited).
Export Oriented Units (EOUs) to be exempted from Service Tax in proportion of export of
goods and services (Notification from Finance Ministry isawaited).
EOUs to be permitted to retain 100 per cent of export earnings in Export Earners Foreign
Currency (EEFC) accounts.
Income Tax benefits on plant and machinery to be extended to DTA units, which convert to
EOU.
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Biotechnology Parks to be set up and granted all facilities of 100 per cent EOUs.
Facility of filing digitally signed applications and use of Electronic Fund Transfer Mechanism
for paying application fees made available to exporters.
Validity of all licenses/entitlements issued under various schemes modified to a uniform
period of 24 months.
These are not provided in the foreign trade policy 2009-14.
3.20 GEMS AND JEWELLERY SECTOR
(a) To neutralize duty incidence on gold Jewellery exports, it has now been decided to allowDuty Drawback on such exports.
(b) In an endeavor to make India a diamond international trading hub, it is planned to establish
Diamond Bourse (s).
(c) A new facility to allow import on consignment basis of cut & polished diamonds for the
purpose of grading/ certification purposes has been introduced.
(d) To promote export of Gems & Jewellery products, the 13value limits of personal carriage
have been increased from US$ 2 million to US$ 5 million in case of participation
in overseas exhibitions. The limit in case of personal carriage, as samples, for export promotion
tours, has also been increased from US$ 0.1 million to US$ 1 million.
3.21 AGRICULTURAL SECTOR
Agriculture and industry has shown remarkable resilience and dynamism in contributing to a
healthy growth in exports during the year 2009 2014.
(a) To reduce transaction and handling costs, a single window system to facilitate export of
perishable agricultural produce has been introduced. The system will involve creation of multi-
functional nodal agencies to be accredited by APEDA.
Agricultural sector does not come under the foreign trade policy for 2004 2009.
3.22 DUTY ENTITLEMENT PASS BOOK
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DEPB (Duty Entitlement Pass Book is an export incentive scheme ofIndian Government
provided to Exporters in India. It is a Duty Credit Entitlement issued on Post Export Basis to
neutralise the incidence of Customs duty on the import content of the export product. Under the
DEPB scheme, an exporter may apply for credit, as a specified percentage of FOB value of
exports, made in freely convertible currency.
Notified on 1/4/1997, the DEPB Scheme consisted of:
(a) Post-export DEPB
(b) Pre-export DEPB.
The pre-export DEPB scheme was abolished w.e.f. 1/4/2000. Under the post-export DEPB,
which is issued after exports, the exporter is given a duty entitlement Pass Book Scheme at a pre-
determined credit on the FOB value. The DEPB rates is allows import of any items except the
items which are otherwise restricted for imports. Items such as Gold Nibs, Gold Pen, Gold
watches etc. though covered under the generic description ofwriting instruments, components of
writing instruments and watches are thus not eligible for benefit under the DEPB scheme.
The objective of DEPB is to neutralize the incidence of Customs duty on the import content of
the export product. Under the DEPB, an exporter may apply for credit, as a specified percentage
of FOB value of exports, made in freely convertible currency.
TRANSFERABILITY:
The DEPB and/or the items imported against it are freely transferable. The transfer of DEPB
shall however be for import at the port specified in the DEPB, which shall be the port from
where exports have been made. Imports from a port other than the port of export shall be allowed
under TRA facility as per the terms and conditions of the notification issued by Department of
Revenue.
APPLICABILITY OF DRAWBACK:
Normally, the exports made under the DEPB Scheme shall not be entitled for drawback.
However, the additional customs duty/excise duty paid in cash or through debit under DEPB
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shall be adjusted as CENVAT Credit or Duty Drawback as per rules framed by the Department
of Revenue.
3.23 FLEXIBILITY PROVIDED TO EXPORTERS:
Payment of customs duty for Export Obligation (EO) shortfall under Advance Authorisation /
DFIA / EPCG Authorisation has been allowed by way of debit of Duty Credit scrips. Earlier the
payment was allowed in cash only.Import of restricted items, as replenishment, shall now be
allowed against transferred DFIAs, in line with the erstwhile DFRC scheme.
Time limit of 60 days for re-import of exported gems and jewellery items, for participation in
exhibitions has been extended to 90 days in case of USA.
Transit loss claims received from private approved insurance companies in India will now be
allowed for the purpose of EO fulfillment under Export Promotion schemes. At present, the
facility has been limited to public sector general insurance companies only.
3.24 ELECTRONICS HARDWARE TECHNOLOGY PARK
The Units undertaking to export their entire production of goods and services except permissible
sales in Domestic Tariff Area (DTA) may be set up under the Electronics Hardware
Technology Park(EHTP). An EHTP unit may export all kinds of goods and services except
items that are prohibited in Indian Trade Classification (Harmonised System) Classification for
Export &Import Items.
An EHTP unit may import and or procure, from DTA or bonded warehouses in DTA /
international exhibition held in India, without payment of duty, all types of goods, including
capital goods, required for its activities, provided they are not prohibited items of import in the
ITC (HS). Goods imported by a unit shall be with actual user condition and shall be utilized for
export production. The EHTP units may import / procure from DTA, without payment of duty,
certain specified goods for creating a central facility.
The EHTP unit shall be a positive net Earnings foreign exchange earner except for sector
specific provision of Appendix 14 -I-C of HBP v1, where a higher value addition shall be
required. NFE earnings shall be calculated cumulatively in blocks of five years, starting from
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commencement of production. Whenever a unit is unable to export due to prohibition /
restriction imposed on export of any product mentioned in Letter of Permit, the five year block
period for calculation of NFE earnings may be suitably extended by Board of Approval.
The units manufacturing electronics hardware and software, NFE and DTA sale entitlement shall
be reckoned separately for hardware and software.An EHTP unit may export goods
manufactured / software developed by it through another exporter or any other EHTP unit
subject to conditions
The EHTP units shall be entitled to following:-
(i) Reimbursement of Central Sales Tax (CST) on goods manufactured in India..
(ii) Exemption from payment of Central Excise Duty on goods procured from DTA on goods
manufactured in India.
(iii) CENVAT Credit on service tax paid.
Other entitlements of EHTP units are as under:
(a) Exemption from Income Tax as per Section 10A and 10B of Income Tax Act.
(b) Export proceeds will be realized within 12 months.
(c) Units will be allowed to retain 100% of its export earnings in the Exchange Earners Foreign
Currency account.
(d) Unit will not be required to furnish bank guarantee at the time of import or going for job
work in DTA subject to provisions.
3.25 STABILITY | CONTINUITY OF THE FOREIGN TRADE POLICY
To impart stability to the Policy regime following measures are undertaken.
1. Duty Entitlement Passbook (DEPB) Scheme is extended beyond 31-12-2009 till
31.12.2010.
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2. Interest subvention of 2% for pre-shipment credit for 7 specified sectors has been
extended till 31.3.2010 in the Budget 2009-10.
3. Income Tax exemption to 100% EOUs and to STPI units under Section 10B and 10A of
Income Tax Act has been extended for the financial year 2010-11 in the Budget 2009-10.
4. The adjustment assistance scheme initiated in December, 2008 to provide enhanced
ECGC cover at 95%, to the adversely affected sectors, is continued till March, 2010.
4.0 PROMOTIONAL MEASURES
4.1 ASIDE- Assistance to States for Developing Export for Infrastructure and
Allied Activities .
ASIDE provides assistance to the States Governments for creating appropriate infrastructure for
the development and growth of exports. The Scheme is administered by Department of
Commerce (DoC).It also provides export performance linked financial assistance to them.The
specific purposes for which funds allocated under the Scheme can be sanctioned and utilized are
as follows:
Creation of new Export Promotion Industrial Parks/ Zones (SEZs/Agri Business Zones)
and augmenting facilities in the existing ones.
Setting up of electronics and other related infrastructure in export conclave.
Equity participation in infrastructure projects including the setting up of SEZs.
Development of complementary infrastructure such as, roads connecting the production
centres with the ports, setting up of Inland Container Depots and Container Freight
Stations.
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Stabilizing power supply through additional transformers and islanding of export
production centre etc.
Development of minor ports and jetties to serve export purpose.
Assistance for setting up Common Effluent Treatment facilities and
Any other activity as may be notified by DoC.
4.2 MARKET ACCESS INITIATIVE
Under MAI scheme, Financial assistance is provided (MAI) for export promotion activities on
focus country, focus product basis. Financial assistance is available for Export Promotion
Councils (EPCs), Industry and Trade Associations (ITAs), Agencies of State Government,
Indian Commercial Missions (ICMs) abroad and other national level institutions/eligible entities
as may be notified.
A whole range of activities can be funded under MAI scheme. These include, amongst others,
Market studies/surveys,
Setting up of showroom / warehouse,
Participation in international trade fairs,
Displays in International departmental stores,
Publicity campaigns,
Brand promotion,
Reimbursement of registration charges for pharmaceuticals and expenses for carrying out
clinical trials etc., in fulfillment of statutory requirements in
the buyer country,
Testing charges for engineering products abroad,
Assistance for contesting Anti Dumping litigations etc
Each of these export promotion activities can receive financial assistance from Government
ranging from 25% to 100% of total cost depending upon activity and implementing agency.
4.3 MARKET DEVELOPMENT ASSISTANCE (MDA)
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Under MDA Scheme, financial assistance is provided for a range of export promotion activities
implemented by EPCs and Trade Promotion Organizations on the basis of approved annual
action plans. The scheme is administered by DOC. Assistance includes, amongst others,
participation in:
Trade Fairs and Buyer Seller meets abroad or in India, and
Export promotions seminars. Financial assistance with travel grant is available to
exporters traveling to focus areas, viz., Latin America, Africa, CIS region, ASEAN
countries, Australia and New Zealand. In other areas, financial assistance without travel
grant is available.
MDA assistance is available for exports having an annual export turnover as prescribed
in MDA guidelines.
4.4 MEETING EXPENSES FOR STATUTORY COMPLIANCES IN
BUYER COUNTRY FOR TRADE RELATED MATTERS
DOC provides for reimbursement of charges/expenses for fulfilling statutory requirements in the
buyer country, including registration charges for product registration for pharmaceuticals, bio-
technology and agro-chemicals products on recommendation of EPCs.
4. 5 TOWNS OF EXPORT EXCELLENCE
Selected towns producing goods of Rs. 7 0 Crore or more will be notified as TEE based on
potential for growth in exports. However for TEE in Handloom, Handicraft,
Agriculture and Fisheries sector, threshold limit would be
Rs 150 Crores.
Recognized associations of units will be provided financial assistance under MAI
scheme, on priority basis, for export promotion projects for marketing, capacity building
and technological services.
Common Service Providers in these areas shall be entitled for EPCG scheme.
The projects received from TEEs shall be accorded priority by SLEPC for financial
assistance under ASIDE.
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4.6.BRAND PROMOTION AND QUALITY
DOC provides funds for capacity building for up-gradation of quality to national level
Institutions and EPCs to organize training programmes for the skill improvement of the exporters
for quality up-gradation, reduction in rejection, product improvement etc. as provided under the
Market Access Initiative (MAI) Scheme of DOC.
4.7 TEST HOUSES
Central Government will assist in modernization and upgradation of test houses and laboratories
to bring them at par with international standards.
5.0 OBJECTIVES OF FOREIGN TRADE POLICY ( an analysis)
The foreign trade policy announced by the UPA Government in 2004 had set two
objectives, namely, (i) to double our percentage share of global merchandize
trade within 5 years and (ii) use trade expansion as an effective instrument
of economic growth and employment generation.
To arrest and reverse the declining trend of exports is the main aim of the policy. This
aim will be reviewed after 2 yrs.
To double Indias export of goods and services by 2014.
To double Indias share in global merchandise trade 2020 as a long term aim of this
policy. Indias share in global merchandise export was 1.45% in 2008.
Simplifications of the application procedure for availing various benefits.
To set in motion the strategies and policy measures which catalyse the growth of exports.
To encourage exports through a mix of measures including fiscal incentives,
institutional changes, procedural rationalization and efforts for enhance market access
across the world and diversification of export markets.
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The short term objective of our policy is to arrest and reverse the declining trend of exports and
to provide additional support especially to those sectors which have been hit badly by recession
in the developed world. We would like to set a policy objective of achieving an annual export
growth of 15% with an annual export target of US$ 200 billion by March 2011. In the remaining
three years of this Foreign Trade Policy i.e. upto 2014, the country should be able to come back
on the high export growth path of around 25% per annum. By 2014, we expect to double Indias
exports of goods and services. The long term policy objective for the Government is to double
Indias share in global trade by 2020.
In order to meet these objectives, the Government would follow a mix of policy measures
including fiscal incentives, institutional changes, procedural rationalization, enhanced market
access across the world and diversification of export markets. Improvement in infrastructure
related to exports; bringing down transaction costs, and providing full refund of all indirect taxes
and levies, would be the three pillars, which will support us to achieve this target. Endeavour
will be made to see that the Goods and Services Tax rebates all indirect taxes and levies on
exports.
AIM OF FOREIGN TRADE POLICY
Developing export potential, improving export performance, boosting foreign trade and
earning valuable foreign exchange. A fall in exports has led to the closure of several small-and-medium scale export oriented
units, resulting in large-scale unemployment.
The Government seeks to promote Brand India through six or more Made in India shows to be
organized across the world every year.
In the era of global competitiveness, there is an imperative need for Indian exporters to upgrade
their technology and reduce their costs. Accordingly, an important element of the Foreign Trade
Policy is to help exporters for technological upgradation. Technological upgradation of exports is
sought to be achieved by promoting imports of capital goods for certain sectors under EPCG at
zero percent duty.
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For upgradation of export sector infrastructure, Towns of Export Excellence and units located
therein would be granted additional focused support and incentives.
5.1 SPECIAL FOCUS INITIATIVE
With a view to increase our percentage share of global trade and expanding employment
opportunities, certain special focus initiatives have been identified/continued for Market
Diversification, Technological Upgradation, Support to status holders, Agriculture,
Handlooms, Handicraft, Gems & Jewellery, Leather, Marine, Electronics and IT
Hardware manufacturing Industries, Green products, Exports of products from North-
East, Sports Goods and Toys sectors.
Government of India shall make concerted efforts to promote exports in these sectors by
specific sectoral strategies that shall be notified from time to time.
(i) Market Diversification
Weaker demand in developed economies, triggered by falling asset prices and increased
economic uncertainty has pulled down the growth of Indias exports to developed countries.
There are no clear signals as to when the markets in developed countries would revive. In this
Policy focus is on diversification of Indian exports to other markets, specially those located in
Latin America, Africa, parts of Asia and Ocenia. To achieve diversification of Indian exports,
following initiatives have been taken under this Policy :
26 new countries have been included within the ambit of Focus Market Scheme.
The incentives provided under Focus Market Scheme have been increased from 2.5% to
3%.
There has been a significant increase in the outlay under Market Linked Focus Product
Scheme by inclusion of more markets and products. This ensures support for exports to
all countries in Africa and Latin America.
(ii) Technological Upgradation
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To usher in the next phase of export growth, India needs to move up in the value chain of export
goods. This objective is sought to be achieved by encouraging technological upgradation of our
export sector. A number of initiatives have been taken in this Policy to focus on technological
upgradation; such initiatives include:
EPCG Scheme at zero duty has been introduced for certain engineering products,
electronic products, basic chemicals and pharmaceuticals, apparel and textiles, plastics,
handicrafts, chemicals and allied products and leather and leather products.
The existing 3 % EPCG Scheme has been considerably simplified, to ease its usage by
the exporters.
To encourage value added manufacture export, a minimum 15 % value addition on
imported inputs under Advance Authorisation Scheme has been stipulated.
A number of products including automobiles and other engineering products have been
included for incentives under Focus Product, and Market Linked Focus Product Schemes.
Steps to encourage Project Exports shall be taken.
(iii) Support to status holders
The Government recognized Status Holders contribute approx. 60% of Indias goods exports.
To encourage the status holders and for Technological upgradation of export production,
additional duty credit scrip @ 1 % of the FOB of past export shall be granted for specified
product groups including leather, specific sub sectors in engineering, textiles, plastics,
handicrafts and jute. This duty credit scrip can be used for import of capital goods by these status
holders. The imported capital goods shall be subject to actual user condition.
(iv) Agriculture and Village Industry
Vishesh Krishi and Gram Udyog Yojana to promote Agricultural Produce and their value
added products, Forest Based Products, and Minor Forest Produce and their value added
variants.
Capital goods imported under EPCG will be permitted to be installed anywhere in AEZ.
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Import of restricted items, such as panels, are allowed under various export promotion
schemes.
Import of inputs such as pesticides are permitted under Advance Authorisation for agro
exports.
New towns of export excellence with a threshold limit of Rs150 crore shall be notified.
Certain specified flowers, fruits and vegetables are entitled to a special duty credit scrip,
in addition to the normal benefit under VKGUY.
(v) Handlooms
Specific funds are earmarked under MAI / MDA Scheme for promoting handloom
exports.
Duty free import entitlement of specified trimmings and embellishments is 5 % of FOB
value of exports during previous financial year.
Duty free import entitlement of hand knotted carpet samples is 1 % of FOB value of
exports during previous financial year.
Duty free import of old pieces of hand knotted carpets on consignment basis for re-export
after repair is permitted.
New towns of export excellence with a threshold limit of Rs 150 crore shall be notified.
Machinery and equipment for effluent treatment plants is exempt from customs duty.
(vi) Handicrafts
Duty free import entitlement of tools, trimmings and embellishments is 5 %of FOB value
of exports during previous financial year. Entitlement is broad banded, and shall extend
also to merchant exporters tied up with supporting manufacturers.
Handicraft EPC is authorized to import trimmings, embellishments and consumables on
behalf of those exporters for whom directly importing may not be viable.
Specific funds are earmarked under MAI & MDA Schemes for promoting Handicraft
exports.
CVD is exempted on duty free import of trimmings, embellishments and consumables.
New towns of export excellence with a reduced threshold limit of Rs 150 crore shall be
notified.
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Machinery and equipment for effluent treatment plants are exempt from customs duty.
All handicraft exports would be treated as special Focus products and entitled to higher
incentives.
(vii) Gems & Jewellery
Import of gold of 8 k and above is allowed under replenishment scheme subject to import
being accompanied by an Assay Certificate specifying purity, weight and alloy content.
Duty Free Import Entitlement (based on FOB value of exports during previous financial
year) of Consumables and Tools, for:
1. Jewellery made out of:
Precious metals (other than Gold & Platinum) 2%
Gold and Platinum 1%
Rhodium finished Silver 3%
2. Cut and Polished Diamonds 1%
Duty free import entitlement of commercial samples shall be Rs. 300,000.
Duty free re-import entitlement for rejected jewellery shall be 2% of FOB value of
exports.
Import of Diamonds on consignment basis for Certification/ Grading & re-export by the
authorized offices/agencies of Gemological Institute of America (GIA) in India or other
approved agencies will be permitted.
Personal carriage of Gems & Jewellery products in case of holding / participating in
overseas exhibitions increased to US$ 5 million and to US$ 1 million in case of export
promotion tours.
Extension in number of days for re-import of unsold items in case of participation in an
exhibition in USA increased to 90 days.
In an endeavour to make India a diamond international trading hub, it is planned to
establish Diamond Bourse (s).
(viii) Leather and Footwear
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Duty free import entitlement of specified items is 3% of FOB value of exports of leather
garments during preceding financial year.
Duty free entitlement for import of trimmings, embellishments and footwear components
for footwear (leather as well as synthetic), gloves, travel bags and handbags is 3 % of
FOB value of exports of previous financial year. Such entitlement shall also cover
packing material, such as printed and nonprinted shoeboxes, small cartons made of wood,
tin or plastic materials for packing footwear.
Machinery and equipment for Effluent Treatment Plants shall be exempt from basic
customs duty.
Re-export of unsuitable imported materials such as raw hides & skins and wet blue
leathers is permitted.
CVD is exempted on lining and interlining material and raw, tanned and dressed fur skins
falling.
Re-export of unsold hides, skins and semi finished leather shall be allowed from Public
Bonded warehouse at 50% of the applicable export duty.
(ix) Electronics and IT Hardware Manufacturing Industries
Expeditious clearance of approvals required from DGFT shall be ensured.
Exporters /Associations would be entitled to utilize MAI & MDA Schemes for promoting
Electronics and IT Hardware Manufacturing industry exports.
(x) Green products and technologies
India aims to become a hub for production and export of green products and
technologies. To achieve this objective, special initiative will be taken to promote
development and manufacture of such products and technologies for exports. To begin
with, focus would be on items relating to transportation, solar and wind power generationand other products as may be notified which will be incentivized under Reward Schemes.
(xi) Sports Goods and Toys
Duty free import of specified specialised inputs allowed to the extent of 3 % of FOB
value of preceding financial years export.
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Sports goods and toys shall be treated as a Priority sector under MDA / MAI Scheme.
Specific funds would be earmarked under MAI /MDA Scheme for promoting exports
from this sector.
Applications relating to Sports Goods and Toys shall be considered for fast track
clearance by DGFT.
Sports Goods and Toys are treated as special focus products and entitled to higher
incentives.
(xii) Marine Sector
(a) Imports for technological upgradation under EPCG in fisheries sector (except fishing
trawlers, ships, boats and other similar items) exempted from maintaining average export
obligation.
(b) Duty free import of specified specialised inputs / chemicals and flavouring oils is allowed to
the extent of 1% of FOB value of preceding financial years export.
(c) To allow import of monofilament longline system for tuna fishing at a concessional rate of
duty and Bait Fish for tuna fishing at Nil duty.
(d) A self removal procedure for clearance of seafood waste is applicable subject to prescribed
wastage norms.
(e) Marine products are considered for VKGUY scheme.
EXPORT AND TRADING HOUSES
Eligibility for Export and Trading HousesStatus
Merchant as well as Manufacturer Exporters, ServiceProviders, Export Oriented
Units (EOUs) and Units located in Special Economic Zones (SEZs), Agri Export Zones
(AEZs), Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs)
and Bio-Technology Parks (BTPs) shall be eligible for status.
Status CategoryApplicant shall be categorized depending on his total FOB (FOR - for deemed exports)
export performance during current plus previous three years (taken together) upon exceeding
limit below. For Export House (EH) Status, export performance is necessary in at least two out
of four years (i.e., current plus previous three years).
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Status Category Export Performance
FOB/FOR Value (in crores)
Export House (EH ) 20
Star Export House (SEH) 100Trading House (TH) 500
Star Trading House (STH) 2500
Premier Trading House
(PTH)
7500
EXTENSION OF ECGC :
The adjustment assistance scheme initiated in December 2008, to provide
enhanced ECGC cover at 95%, to the adversely affected sectors, iscontinued till March 2010.
EXTENSION OF INCOME TAX EXEMPTION TO EOU
AND STPI :
Income tax exemption to 100% EOU and to STPI units under section 10B
and 10A of Income tax Act, has been already extended for the financial year
2010-11 in the budget 2009-10.
EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME:
Obligation under EPCG Scheme.
To aid technological upgradation of export sector, EPCG Scheme at zero duty has been
introduced.
Export obligation on import of spare parts, moulds etc under EPCG Scheme has been
reduced by 50%.
PCG Scheme
for various
categories
Eligibility Export obligation
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EPCG for
Projects
This scheme
covers
manufacturer
exporter, merchant
exporter and
service provider
Export obligation for such EPCG
Authorizations would be
eight times (6 times for zero duty EPCG
scheme) of duty
saved. Duty saved would be difference
between the
effective duty under aforesaid Customs
Notification and
concessional duty under the EPCG
Scheme.
EPCG for agro
units
It covers units
located in AEZarea, units related
to export of
agricultural
products.
Under this scheme agro unit are allowed
to import capital goods at 0% duty forexport of agricultural products and their
value added products.
But for some capital goods agro units
have to pay 5% custom duty and export
obligation under this scheme is the
export of good equal to 6 times duty
saved over a period of 8 yrs.
EPCG for
Retail Sector
It covers
manufactures
exporter with or
without supporting
manufacturer,
vendors, merchant
exporters and
service providers
Export obligation is the export of goods,
equal to 8 times duty saved to be fulfilled
by the retailers during the period of 8yrs
from the date of issue of license.
EPCG FOR
SMALL
SACLE
INDUSTRIES
It covers SSI who
are engaged in
export of goods
and services.
Import of capital goods at 3 % Customs
duty shall be
allowed, subject to fulfillment of export
obligation
equivalent to 6 times of duty saved on
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capital goods, in
8years.
Schemes for Export Oriented Units
EOUs have been allowed to sell products manufactured by them DTA upto a limit of
90% instead of existing 75%, without changing the criteria of similar goods, within the
overall entitlement of 50% for DTA sale. (This means that instead of 75% these units can
sell upto 90% of their products in the domestic markets.)
EOU allowed to procure finished for consolidation along with their manufactured goods,
subject to certain safeguards.
Extension of block period by one year for calculation of Net Foreign Exchange earning of
EOUs kept under consideration.
EOU allowed CENVAT credit facility.
DUTY ENTITLEMENT PASSBOOK (DEPB) SCHEME
Objective of DEPB is to neutralise incidence of customs Passbook (DEPB) duty on import
content of export product. Component Scheme of customs duty on fuel (appearing as
consumable in the SION) shall also be factored in the DEPB rate. Component of Special
Additional Duty shall also be allowed under DEPB (as brand rate) in case of non-availment of
CENVAT credit. Neutralisation shall be provided by way of grant of duty credit against export
product.
An exporter may apply for credit, at specified percentage of FOB value of exports, made in
freely convertible currency. Credit may be utilized for payment of Customs Duty on freely
importable items and/or restricted items. DEPB Scrips can also be utilized for payment of duty
against imports under EPCG Scheme. Prohibited items of exports mentioned in ITC(HS) Book
shall not be entitled for DEPB credit except for the exports effected under transitional facility.
DEPB holder shall have option to pay additional customs duty in cash as well.
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Transferability -DEPB and / or items imported against it are freely transferable. Transfer of
DEPB shall however be for import at specified port, which shall be the port from where exports
have been made. Imports from a port other than the port of export shall be allowed under TRA
facility as per terms and conditions of DoR notification.
CONCLUSION
This years Foreign Trade Policy comes at a challenging time as the entire world is facing an
unprecedented economic slowdown. These are difficult times and we have set an ambitious goal
for ourselves. But if the industry and government work in tandem we will be able to ensure that
the Indian exports become globally competitive and we are able to achieve a target which we
have set for ourselves.
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6.0 REFERENCES
1. http://pib.nic.in/archieve/ForeignTradePolicy/ForeignTradePolicy.pdf
2. http://www.eximpolicy.com/
3. http://exim.indiamart.com/foreign-trade-policy/ftp-04-05-highlights.html
4. http://www.infodriveindia.com/Exim/DGFT/Exim-Policy/2009-2014/default.aspx
5. http://www.wooltexpro.com/docs/Highlights_Foreign_Trade_Policy_2009-2014.pdf
http://pib.nic.in/archieve/ForeignTradePolicy/ForeignTradePolicy.pdfhttp://www.eximpolicy.com/http://exim.indiamart.com/foreign-trade-policy/ftp-04-05-highlights.htmlhttp://www.infodriveindia.com/Exim/DGFT/Exim-Policy/2009-2014/default.aspxhttp://www.wooltexpro.com/docs/Highlights_Foreign_Trade_Policy_2009-2014.pdfhttp://pib.nic.in/archieve/ForeignTradePolicy/ForeignTradePolicy.pdfhttp://www.eximpolicy.com/http://exim.indiamart.com/foreign-trade-policy/ftp-04-05-highlights.htmlhttp://www.infodriveindia.com/Exim/DGFT/Exim-Policy/2009-2014/default.aspxhttp://www.wooltexpro.com/docs/Highlights_Foreign_Trade_Policy_2009-2014.pdf