highlights of exim policy and export houses

8/7/2019 highlights of exim policy and export houses

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Exim Policy 09-14y 100% export oriented units for one additional year till 31st March 2011.y DEPB Scheme upto 30 June 2011.y 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.y Incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to 3%.y Incentive available under Focus Product Scheme (FPS) has been raised from 1.25% to 2%.y 26 new markets have been added under Focus Market Scheme. These include 16 new markets

in Latin America and 10 in Asia-Oceania.

y 153 ITC(HS) Codes at 4 digit level Product classified for Market Linked Focus Product Scheme(MLFPS)

y Income Tax exemption to 100% EOUs and to STPI units under Section 10B and 10A of IncomeTax Act, has been extended for the financial year 2010-11 in the Budget 2009-10.

y In Tea Sector Minimum value addition under advance authorization scheme for export of teahas been reduced from the existing 100% to 50%.

y Time limit of 60 days for re-import of exported gems and jewellery items, for participation inexhibitions has been extended to 90 days in case of USA.y Duty Free Import of samples by exporters, number of samples/pieces has been increased from

the existing 15 to 50.

y A common simplified application form has been introduced for taking benefits under FPS, FMS,MLFPS and VKGUY.

y Higher allocation for Market Development Assistance (MDA) and Market Access Initiative (MAI)schemes is being provided.

y Jaipur, Srinagar and Anantnag have been recognised as Towns of Export Excellence forhandicrafts; Kanpur, Dewas and Ambur have been recognised as Towns of Export Excellence

for leather products; and Malihabad for horticultural products.

y To promote export of Gems & Jewellery products, the value limits of personal carriage havebeen 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.


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Incentives to trading HousesResponding to the demand of the status holders, Shri Kamal Nath, Minister of Commerce & Industry,

has re-christened them as Export House (earlier known as One Star Export House), Star Export House

(earlier known as Two Star Export House), Trading House (earlier known as Three Star Export House),

Star Trading House (earlier known as Four Star Export House), and Premier Trading House (earlier known

as Five Star Export House).

Backgrounder on Status Holders / Star Export HousesMerchant as well as Manufacturer Exporters, Service Providers, Export Oriented Units (EOUs) and Units

located in SEZs, Agri Export Zones (AEZs), Electronic Hardware Technology Parks (EHTP), Software

Technology Parks (STPs), and Bio Technology Parks (BTPs), are eligible for applying for status as Star

Export Houses. Under this scheme, the applicants are granted the status depending on the total FOB /

FOR export performance during the current plus previous three years as follows:

Status Category Export Performance FOB / FOR Value

(R

upees in Crores)Export House(EH) 20

Star Export House(SEH) 100

Trading House(TH) 500

Star Trading House(STH) 2500

Premier Trading House(PTH) 10000

CRITERION OF RECOGNISITION

y Export Performance Levely For being a status holder exporter, an applicant is required to achieve the following prescribed

export

y Performance (including deemed exports) exceeding the level given below, level during thecurrent licensing year plus the preceding three years (taken together).

BENEFITS TO EXPORTERS

y Exemption from furnishing of bank gurantee in schemesy 100% retention of foreign exchange in EEFC accounty 2 star export houses and above shall be permitted to establish export warehousesy Authorization/Licence/certification and custom clearances for both exports and imports on self

declaration basis.

Example: Export House status holders: Krishna International, Navneet ImpexIndore

Star Export House: Neo Corporation International Limited - Indore

Star Trading Houses: NALCO, Bhubaneswar-751061, Orissa.

Premier Trading Houses: Adani Enterprises Ltd. Ahmedabad


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What is pull marketing? Pull marketing is where you develop advertising and promotional strategies

that are meant to entice the prospect to buy your product or service. Some classic examples are "half

off!" or "bring in this coupon to save 25%" or "buy one get one free", etc.

With pull marketing, you are trying to create a sense of increased, time limited value so that the

customer will come into your store to buy.

A good example of a pull is the heavy advertising and promotion of vodaphones 3 G services

mainly on television.

Whatis push marketing? Push marketing is where you develop advertising and promotional strategies

geared toward your marketing and distribution channels to entice them in promoting your product. As

consumers, you rarely see this type of marketing when it is directed to the distributors. It might include

wholesale discounts, kickbacks, bonuses, and other types of support. It's all designed to have the retailer

promote your product to the end users over a different product.

A good example of "push" selling is mobile phones, where the major handset manufacturers such as

Nokia promote their products via retailers such as Carphone Warehouse. Personal selling and trade

promotions are often the most effective promotional tools for companies such as Nokia - for example

offering subsidies on the handsets to encourage retailers to sell higher volumes.

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highlights of exim policy and export houses