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    EXIM Policy of India

    Ranjan Singh (MT14IND018)

    Saransh Agrawal(MT14IND022)

    Mechanical Engineering Department

     Visvesvaraya National Institute of Technology,Nagpur

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    Contents

    hat is EXIM policy! "rief history a#out EXIM $#%ectives of EXIM policy Documents in Indian EXIM Policy

    Indian imports and e&ports Comparison of Post and Pre '()s imports and e&ports EXIM policy *(('+*(- .ighlights of EXIM Policy *(/+*(*(

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    hat is EXIM policy!  0lso 1no2s as 3oreign Trade Policy

    The foreign trade of India is guided #y the E&port+Importpolicy of India

    The Ministry of Commerce and Industry, 4overnment of India,pronounces the Indian EXIM policy or E&port+Import policy ofIndia5

    It contains policies in the sphere of 3oreign trade i5e5 2ithrespect to import 6 e&port from the country and moreespecially e&port promotion measures, policies and procedurerelated to it5

    E&port means selling a#road and import as #ringing into

    India, any goods and services5 The 4overnment of India advises the E&im Policy of India for

    a phase of 7ve years under 8ection / of the 3oreign TradeDevelopment and 9egulation 0ct, ''*5

    The E&im Policy is rene2ed every year on the :st of March

    and the revisions, improvements and ne2 proposals #ecomee;ective from st 0 ril of ever ear5

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    "rief .istory a#out EXIM

    In the year '5

    The committee 2as after2ard permitted #y the4overnment of India5 Mr5 V5 P5 8ingh, the then Commerce

    Minister and pronounced the ne2 E&im Policy of India onthe *th of 0pril, '?/5

    Primarily the E&port+Import Policy of India 2as launchedfor the period of three years 2ith main intention to #oostthe e&port #usiness in India5

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    $#%ectives of EXIM Policy

    To esta#lish the frame2or1 for glo#alisation5 To promote the productivity, competitiveness

    of Indian industry5 To encourage the attainment of high 6

    internationally accepted standards of @uality5 To increase e&port #y facilitating access to ra2 materials,

    intermediate components, consuma#les and capital goodsfrom the international mar1et

    To generate ne2 employment5

    To provide @uality consumer products at reasona#le prices5

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    Indian top Imports and

    E&ports  0gricultural products  0utomo#iles Chemicals 3ood and #everage products Industrial goods Pharmaceuticals and

      #iotechnology Defense products, etc5

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    India)s 3oreign Trade

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    India)s share in 4lo#al Trade

     0ccording to the T$, in merchandise trade, India 2as the'th largest e&porter in the 2orld 2ith a share of 5B percentand the *th largest importer 2ith a share of *5/ percent in*(:5

    In commercial services, India 2as the

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    Comparison of Pre '()s 6Post '()s E&im Policy Year Imp

    or(!r")

    #$pors

    (!r")

    %alan!e o&ra'e(!r")

    Remars

    '-?+/

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    Comparison of Pre '()s 6Post '()s E&im Policy

     Year Impors

    (!r")

    #$pors

    (!r")

    Tra'ealan

    !e(!r")

    Remars

    '

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    Comparison of Pre '()s 6Post '()s E&im Policy

     Year Impors

    (!r")

    #$por s

    (!r")

    Tra'ealan

    !e(!r")

    Remars

    1992-01 140740 118252 -22488

    In ''*+(,slo2 do2n in e&portsdue to+

    •Depressed nature of 2orldmar1ets5

    •8aturation of developed countries

    •Increased protectionism #yindustrialied countries in area of

    te&tile and clothing5

    •Increasing competition fromChina 6 Tai2an5

    •In *(((+( e&port 2as largely dueto rupee depreciation along 2ith

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    Comparison of Pre '()s 6Post '()s E&im Policy

     Year Impor s (*S+mn)

    #$por s (*S+mn)

    Tra'eal"(*S+mn)

    Remars

    *((*+(:

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    E&port Import Policy, *(('+-

    ,egal -ramewor  .eneral /roisions regar'ing Impor an' #$por Spe!ial -o!s Iniiaies /romoional Measres D #$empion 3 Remission S!hemes #$por /romoion apial .oo's S!heme #$por 5riene' *nis (#5*s) e! Spe!ial #!onomi! 6ones Deeme' #$pors

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     0ims is 4eneral

    The policy aims at developing e&port potential, improving e&port performance, #oosting foreign trade and earning valua#le foreigne&change5 3TP assumes great signi7cance this year as IndiaGse&ports have #een #attered #y the glo#al recession

     0 fall in e&ports has led to the closure of several small+ and

    medium+scale e&port+oriented units, resulting in large+scaleunemployment5

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    Targets

    E&port Target H *(( "illion for *((+

    E&port 4ro2th TargetH / J for ne&t

    t2o year and */ J thereafter5

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    Fegal 3rame2or1  The 3oreign Trade Policy =3TP> *(('+- operated 2ith

    e;ect from *Bth 0ugust *((' till :st March *(-  0n annual supplement is issued and forms part of the 3TP5 The Central 4overnment can ma1e any amendment in the

    3TP #y issuing a noti7cation in the pu#lic interest

     0uthoriations issued #efore commencement of 3TP shallcontinue to #e valid for the purpose and duration for 2hichsuch authoriation 2as issued

    In case an e&port or import 2hich is permitted freelyunder 3TP, is su#se@uently su#%ected to any restriction orregulation, such e&port or import 2ill ordinarily #epermitted not 2ithstanding such restriction or regulation5

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    4eneral Provisions #$pors an' Impors &ree nless reglae'

    omplian!e o& Impors wih Domesi! ,aws The norms applica#le to domestically produced goods shall apply to

    imports, unless speci7cally e&empted

    Inerpreaion o& /oli!  The decision of D43T shall #e 7nal and #inding on all matters relating

    to interpretation of policy

    /ro!e're D43T may, specify procedure to #e follo2ed #y an e&porter or importer

    or #y any licensing regional authority or #y any other authority

    #$empion &rom /oli! 3 /ro!e're D43T may e&empt any person or class or category of persons from any

    provision of 3TP or any procedure and may, 2hile granting such

    e&emption, impose some conditions

    /rin!iples o& Resri!ion Protection of pu#lic morals Protection of human, animal or plant life or health Protection of patents, trademar1s and copyrights, and the prevention of

    deceptive practices

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    4eneral Provisions Prevention of use of prison la#our

    Protection of national treasures of artistic, historic or archaeological value Conservation of e&hausti#le natural resources Protection of trade of 7ssiona#le material or material from 2hich they

    are derivedK and Prevention of tra;ic in arms, ammunition and implements of 2ar

    #$por3Impor o& Resri!e' .oo's3Seri!es L9estricted) goods services may #e e&ported or imported only in

    accordance 2ith an 0uthoriation Permission Ficense

    Terms an' on'iions o& a li!ense 3 eri7!ae 3/ermission 3 AhoriaionEvery 0uthoriation shall #e valid for prescri#ed period of validity and

    shall contain such terms and conditions as may #e speci7ed #y 9egional 0uthority =90>, 2hich may includeH=a> Description, @uantity and value of goodsK

    =#> 0ctual ser conditionK

    =c> E&port o#ligationK

    =d> Minimum value addition to #e achievedK and

    =e> Minimum e&port import price

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    4eneral Provisions

    Imporer9#$porer o'e (I#) Nmer is man'aor nlessspe!i7!all e$empe'

    Transi -a!ili shall #e regulated in accordance 2ith #ilateraltreaties #et2een India and those countries

     A!al *ser on'iion

    Capital goods, ra2 materials, intermediates, components,consuma#les, spares, parts, accessories, instruments andother goods, 2hich are importa#le 2ithout any restriction, may#e imported #y any person5 .o2ever, if such imports re@uirean 0uthoriation, actual user alone may import such goodsunless actual user condition is speci7cally dispensed 2ith #y

    D43T Se!on' :an' .oo's

    Import of second hand goods, e&cept second hand capitalgoods, shall #e restricted for imports and may #e importedonly in accordance 2ith the provisions of 3TP, ITC=IndianTrade Classi7cation> =.8>, ."P v=.and#oo1 of Procedures>,

    Pu#lic notice or an 0uthoriation in this regard5 Import of re+manufactured oods shall #e allo2ed onl a ainst a license

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    4eneral Provisions

    learan!e o& .oo's &rom soms 4oods already imported shipped arrived, in advance, #ut not

    cleared from Customs may also #e cleared against an 0uthoriation issued su#se@uently

    /riae 3 /li! %on'e' ;arehoses &or Impors

    Private Pu#lic #onded 2arehouses may #e set up inDT0=Domestic Tari; 0rea>5 0ny person may import goods,e&cept prohi#ited items, arms and ammunition, haardous2aste and chemicals and 2arehouse them in such #onded2arehouses5 8uch goods may #e cleared for homeconsumption 2henever re@uired5 Customs duty as applica#le

    shall #e paid at the time of clearance5 -ree #$pors

     0ll goods may #e e&ported 2ithout any restriction e&cept tothe e&tent that such e&ports are regulated #y ITC =.8> or anyother provision of 3TP or any other la2 for the time #eing inforce5 D43T may ho2ever, specify through a pu#lic notice such

    terms and conditions according to 2hich any goods, notincluded in ITC .8 ma #e e& orted 2ithout an 0uthoriation

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    8pecial 3ocus Initiatives

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    8pecial 3ocus Initiatives

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    8pecial 3ocus Initiatives

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    Promotional Measures

     Assisan!e o Saes &or Deeloping #$por In&rasr!rean' Allie' A!iiies (ASID#) The o#%ective of scheme is to esta#lish a mechanism for involving the

    8tate governments to participate in funding of infrastructure critical forgrowth of exports by providing export performance linked financial assistance to them

    Mare A!!ess Iniiaie (MAI) Financial assistance is provided for export promotion activities on focus country, focus

     product basis. The Government may provide financial assistance ranging from 25 to

    !"" of total cost. # whole range of activities can be funded under $#% scheme. These

    include&

    !' $arket survey(studies

    2' )etting up of showroom houses*' +articipation in international trade fairs

    ' -rand promotion

    5' +ublicity campaigns, etc.

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    Promotional Measures Mare Deelopmen Assisan!e (MDA)

    3inancial assistance is provided for a range of e&portpromotion activities implemented #y EPCs and TradePromotion $rganiations #y 2ay of participation inTrade 3airs, "uyer 8eller meets, E&port promotionseminars etc5

    %ran' /romoion an' @ali  The primary o#%ective is to promote and create

    international a2areness of the Made in India la#el inmar1ets overseas

    Tes :oses Central 4overnment 2ill assist in moderniation and up

    gradation of test houses and la#oratories to #ring themat par 2ith international standards

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    Promotional Measures #$por an' Tra'ing :oses< Sas aegor 

    Sere' -rom In'ia S!heme (S-IS)

    -o!s Mare S!heme (-MS)

    -o!s /ro'! S!heme (-/S)

    Mare ,ine' -o!s /ro'!s S!rip (M,-/S)

    Sas :ol'ers In!enie S!rip (S:IS)

    In!remenal #$pors In!eniiaion S!heme

     =ishesh rishi An' .ram *'og Yojana (=.*Y)

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    Duty E&emption9emission8chemesThe s!hemes iniiae' he .oernmen n'er his

    !aegor are as &ollows<

    #$por /romoion apial .oo's S!heme (#/.)

     A'an!e Ahoriaion S!heme

    D -ree Impor Ahoriaion S!heme (D-IA)

    D #nilemen /assoo (D#/%) S!heme

    D Drawa! (D%) S!heme

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    E&port Promotion Capital4oods 8cheme =EPC4>

    This s!heme has een 'is!sse' in -oreign Tra'e /oli! n'er&ollowing hea'ings<

    6ero ' #/. S!heme

    on!essional BC ' #/. S!heme

    #/. &or proje!s

    #/. &or Reail Se!or 

    #/. Ahoriaion &or Annal Reiremen

    #$por 5ligaion

    /roisions &or %I-R *nis

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    E&port Promotion Capital4oods 8cheme =EPC4>

    #/. &or agro nis

    In'igenos Sor!ing o& !apial goo's an' ene7s o'omesi! spplier 

    -i$aion o& #$por 5ligaion

    Te!hnologi!al *p gra'aion o& e$ising #/.ma!hiner 

    In!enies &or -as Tra! ompanies

    #/. &or .reen Te!hnolog /ro'!s 9re'!e' #5

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    E&port Promotion Capital 4oods =EPC4> 8cheme alsocovers a service provider 2ho is designated certi7ed as aCommon 8ervice Provider =C8P> #y the D43T

    E&ports #y sers of the common service, to #e countedto2ards ful7llment of E$ of the C8P

     0 (( J "an1 4uarantee e@uivalent to the portion of dutyforegone #y users of C8P apportioned in terms of@uantum of e&port o#ligation is to #e discharged5

     0s regards details of users, the C8P is re@uired to informto the concerned 9egional 0uthority prior to e&ports, andthe @uantum of "an1 4uarantee shall #e e@uivalent to dutyforegone amount and "4 can #e given #y C8P or any oneof the users or a com#ination thereof, at the option of C8P5

    EPC4 scheme O Eligi#ilityCriteria

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    EPC4 schemeOProcurementsallo2ed Seri!e < I in!l'es all he ra'ale seri!es !oere' n'er

    .eneral Agreemen on Tra'e in Seri!es an' earning &ree&oreign e$!hange (Re&er Appen'i$ 10 F,is o& seri!esG o&-T/)

    Impors allowe' n'er he #/. s!heme

    Capital goods for pre production, production and postproduction activities

    8pares =including refur#ished reconditioned spares>, tools, %igs,7&tures, dies, moulds and components used for assem#ly ormanufacture of capital goods

    8econd hand capital goods also allo2ed

    Resri!e' impors

    Import of motor cars, sports utility vehicles allo2ed only tohotels, travel agents, tour operators, golf resorts etc

    Import of restricted items under the ITC+.8 allo2ed only su#%ectto approval from E3C at .ead@uarters5

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    EPC4 schemeOProcurementsallo2ed Domesi! pro!remens also allowe'

    EPC4 license holder re@uired to 7le a re@uest 2ith the9egional 0uthority for invalidation of direct imports andallo2ing domestic procurements

    Domestic supplier entitled to Ldeemed e&ports) #ene7t Deemed e&ports #ene7t include refund of terminal e&cise

    duty

    .o2ever, for E$ computation, duty saved 2ould #enotional customs duty on 3$9 

    Impors sje! o A!al ser !on'iion

     4oods can #e imported only #y the actual user

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    Post E&port EPC4 8cheme  E&porters if they choose to, may import Capital 4oods on

    payment of duty in cash and su#se@uently receive dutycredit scrip on completion of e&port o#ligation5

    Thus there 2ould #e no duty remission duty e&emption atthe time of import of the Capital 4ood =C4>5

     0pplicant 2ill have to inform the 9egional $;ice of D43T=90> a#out the import of C4 and #ased on 2hich 90 2ill 7&e&port o#ligation5

    8ince the duties have #een paid upfront at the time ofimport of C4, the E$ 2ould #e ?/ J of normal E$5

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    E&port $f Products 3romNorth East To promote manufacturing activity and employment in the

    North Eastern 9egion of the country, e&port o#ligationunder the EPC4 8cheme shall #e */J of the normal e&porto#ligation5

      .o2ever, e&port of speci7ed products through noti7ed

    Fand Customs 8tations of North Eastern 9egion shall #eprovided additional incentive to the e&tent of J of 3$" value of e&ports5

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    8pecial Economic ones=8E>This haper is goerne' he Spe!ial #!onomi! 6one A!E

    200H"

    The main oje!ies o& he S#6 A! are<

    4eneration of additional economic activity

    Promotion of e&ports of goods and services

    Promotion of investment from domestic and foreign sources

    Creation of employment opportunities

    Development of infrastructure facilities

    The S#6 Rles proi'e &or<

    8impli7ed procedures for development, operation, and maintenance of

    the 8pecial Economic ones and for setting up units and conducting

    #usiness in 8Es

    8ingle 2indo2 clearance for setting up a unit in a 8pecial Economic

    one

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    8pecial Economic ones=8E> 8ingle indo2 clearance on matters relating to Central as 2ell

    as 8tate 4overnments

    The in!enies an' &a!iliies oere' o he nis in S#6s &orara!ing inesmens ino he S#6sE in!l'ing &oreigninesmen are<

    Duty free importdomestic procurement of goods fordevelopment, operation and maintenance of 8E units

    ((J Income Ta& e&emption on e&port income for 8E units

    under 8ection (00 of the Income Ta& 0ct for 7rst / years,

    /(J for ne&t / years thereafter and /(J of the ploughed #ac1

    e&port pro7t for ne&t / years

    E&ternal commercial #orro2ing #y 8E units upto 8 /((

    million in a year 2ithout any maturity restriction through

    recognied #an1ing channels

    E&emption from Central 8ales Ta&

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    8pecial Economic ones=8E> E&emption from 8ervice Ta& 8ingle 2indo2 clearance for Central and 8tate level

    approvals

    E&emption from 8tate sales ta& and other levies as

    e&tended #y the respective 8tate 4overnments

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    .ighlights of EXIM Policy*(/+*(*( 1s April 201H o B1s Mar!h 2020"  =isionE Mission an' oje!ies<

    • The vision is to ma1e India a signi7cant partnerin 2orld trade #y *(*(5

    • 4overnment aims to increase India)s e&ports ofmerchandise and services from 8D -

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    The Mega Agreemens< Impli!aions &orIn'ia

    • Trans Paci7c Partnership,

    • Trans+0tlantic Trade and Investment Partnershipand

    • 9egional Comprehensive Economic Partnership=9CEP>

    These 2ill add a completely ne2 dimension to the

    glo#al trading system5

    M S

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    Mare Sraeg  India)s future #ilateralregional trade engagements 2ill

    #e 2ith countries that are not only promising mar1ets #utalso ma%or suppliers5

      Employment+generating sectors such as te&tiles,agriculture, leather and gems 6 %e2ellery 2ill continue toreceive ma%or attention for promoting e&ports to the 8mar1et5

    India 2ill focus trade promotion activities on ne2

    products 2ith higher value addition particularly in thecategories of defence e@uipment, medical e@uipment,construction material, processed foods, as also services5

    India is negotiating Comprehensive EconomicCooperationPartnership 0greements 2ith 0ustralia and

    Ne2 ealand5  0nother focus area is 8outh+East 0sia5 Trade

    integration 2ith the CFMV =Cam#odia, Fao PD9,Myanmar and Vietnam>, to ena#le the Indian privatesector to set up manufacturing hu#s in this region

    / '

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    /ro'! sraeg The focus 2ill #e on promoting e&ports of

    high value products 2ith a strong domestic

    manufacturing #ase, including engineeringgoods, electronics, drugs and pharmaceuticals5

    4overnment aims to encourage and promote hi+tech products and, as a 7rst step, certain

    products have #een identi7ed for a specialfocus for the duration of the policy5 The potential of the M8ME sector, the pro#lems

    it faces and its re@uirements have #een 1ept in vie2 2hile framing the 3TP5

    Th S i S

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    The Seri!es Se!or  E;orts 2ill #e made to gain e;ective mar1et access

    a#road through comprehensive economic partnershipagreements 2ith important mar1ets5

     0 4lo#al E&hi#ition on 8ervices 2ill #e held annually,2hich 2ill provide a forum for sho2casing India)sstrengths in the 8ervices sector5

    Insiional Me!hanisms &or Tra'e /romoion< The schemes for trade promotion under the Department of

    Commerce, namely, the Mar1et 0ccess Initiative =M0I>8cheme and the Mar1et Development 0ssistance8cheme

    The present allocation for the M0I scheme is inade@uateKe;orts 2ill #e made to augment resources for the scheme5

     0 ma%or convention+cum e&hi#ition centre 2ill #edeveloped at Pragati Maidan in Delhi5

      Pro%ect e&ports 2ill #e encouraged through speciallines of credit o;ered #y the Ministry of E&ternal 0;airsand the "uyersQ Credit 8cheme of the Department of

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    Ruestions

    5 rite the full form of these terms related toEXIM policyH 3M8, ITC, 3$", 3$9, 8E5

    *5 hat is EXIM policy!

    :5 $#%ectives of EXIM policy!

    -5 Comparison #et2een pre and post '()s EXIMpolicy of India!

    /5 Discuss in short a#out EXIM policy *(/+*(*(5

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