8831Foreign Trade Policy F - 2004-09
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Transcript of 8831Foreign Trade Policy F - 2004-09
7/28/2019 8831Foreign Trade Policy F - 2004-09
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Presentation
onForeign Trade Policy 2004-09
7/28/2019 8831Foreign Trade Policy F - 2004-09
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Objective:-
# Facilitate sustained growth in exports
to attain a share of atleast 1.5% of globalmerchandise trade.
# Present share - 0.67%
# Export target (2006-07)- 85 b $.# Present Annual growth rate(CAGR) -11.9%
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New Export Target
# Target- 1.5% of the International Trade
# CAGR Required- 15.18% (in US$ terms)
# Assumption- World Trade Growth @ 4.5%(2003 rate)
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Objectives (Contd….)
# Facilitating high share of Indian Goodsand Services in the International market
# Act as Instrument of Economic Growth,Employment Generation and Poverty
Alleviation
# Reflect the priorities for development of
the Indian Economy
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STRATEGY TO ACHIEVE THE
OBJECTIVES
# Bring down transaction cost –
Simplified procedure,Unshackling of controls, built-in transparency &
mutual trust;
# India to be a Global hub for Manufacturing, Trading
& Services;
# Special Focus area Initiatives;
# Facilitating Technological & Infra-structural upgradation;
# Neutralising incidence of all levies & duties on inputs —
Duties & Levies should not be exported.
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Thrust Sectors
# Agricultural
# Handicrafts
# Handlooms# Gems and Jewellery
# Leather
# Textile
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Digital automation target
#All Export transactions would be
through EDI mode by 31st October,
2005;
# Digital Signature and EFT facility
operational
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India’s Foreign Trade
Period - $ Growth Rate1999-2000 10.85
2000-2001 21.01
2001-2002 -1.65
2002-2003 20.34
2003-2004 17.26
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Incorporating a legal entity Proprietorship&
In India [ROC] Partnership Concern
Trade Licence
[State Departments]
Permanent Acccount Number Bank Certificate
[PAN by Income Tax Dept.] [from the concerned Bank]
Importer-Exporter Code Number[DGFT]
EXPORTS IMPORTS
Nature of RestrictionITC[HS] Classification
Free List items Negative List
Prohibited Restricted Canalized
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Export Incentives(DOC)
CENTRAL
DUTY REFUND/
NEUTRALISATION/EXEMPTION SCHEMES
Pre-
export
Post-
export
Market Development
Initiatives
INFRA-
STRUCTURE
Related Sops
MDA Grant MAI Grant
ASIDE
SCHEME
TOWNS OF
EXPORT
EXCELLENCE
Additional incentives
Linked with Exports
Duty exemptionsUnder Customs
Notif. 21/2002
Misc.IncentivesSuch as DFEC,
Target Plus, Addl.
weightage
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CENTRAL DUTIES
CUSTOMS DUTY — Basic, Addl(CVD), E.Cess,
Anti-dumping, Safeguard duties etc.EXCISE DUTY--- Basic, Addl etc.
EXPORT CESS
CENTRAL SALES TAXINCOME TAX
SERVICE TAX
OTHERS
ELECTRICITY DUTY, OCTROI, SALES TAX etc.
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SCHEMES
# SEZ Scheme
# EOU/EHTP/STP/BTP Schemes
# EPIP Scheme
# Warehousing Scheme
# CCP
# DTA Schemes
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DTA SCHEMES
Pre-Export
Post-Export
1. ADVANCE LIC.
2. EPCG
1. DFRC, 2. DEPB, 3.REP
2. DRAWBACK — Phy & D.E.3. TED Refund
4. Target Plus
5. DFEC for Service Sec
6. Vishesh Krishi Upaj Yojana
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Physical (out of India/Supply to SEZ)
(Against Indian Rupees or Free foreign Exchange)
EXPORTS
Supply within the country(Deemed)(In Indian Rupees or Free Foreign Exchange — EEFC)
Exporters:-- Physical Vs Merchant
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X----------Y--------Z
1. PHYSICAL EXPORT
-- Duty free import of Inputs, Fuel, Oil,Energy, Catalyst etc.
-- +V.A.;AU condition; Norm fixed & No
Norm cases; Imports & Exports valid upto 24months; Further extn allowed
-- Supply to SEZ units also covered;
-- E.O. discharge based on S/Bs & BRC(Irrevocable L/C , Provision of Avalisation,
co-acceptance also available)
2 d L I t d t l
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2. dvance L cence Intermed ate upply
-- For supplies to Advance licence for physical
exports; Alternatively direct Physical Exports
also allowed
-- Duty free import of Inputs, Fuel, Oil,Energy,
Catalyst etc.
-- +V.A.;AU condition; Norm fixed & No Norm
cases; Imports & Exports valid upto 24 months;
Further extn allowed
-- E.O. discharge based on S/Bs & Bank certificate(Irrevocable inland L/C , Provision of Avalisation,
co-acceptance also available)
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3. Advance Licence (Deemed Export)
-- For supplies within India under various
projects, supplies to EOU/EHTP/STP/BTP
-- Duty free import of Inputs, Fuel, Oil,
Energy, Catalyst etc.-- +V.A.;AU condition; Norm fixed & No Norm
cases; Imports & Exports valid upto 24 months
or co-terminus with the project; Extn allowed
-- E.O. discharge based on S/Bs & Bank certificate(Irrevocable inland L/C, Provision of Avalisation,
co-acceptancealso available)
-- Anti-dumping & Safeguard duty not exempted
except supplies to EOU/EHTP/STP/BTP
EPCG S h
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EPCG Scheme--Import of capital goods with AU condition at
concessional rate of 5% duty for pre-production,
Production & Post production purposes related to
export (Both Physical & deemed);Import of Car
-- E.O. 8 times the duty saved in 8 years; 12 Years;
-- E.O. monitoring in two blocks only-- Special Dispensation for licence with duty saved of
Rs 100 crores or above, Agro units, SSI units, BIFR.
E.O. period 12 years and varied /reduced E.O.-- EPCG licence for project import — Reduced E.O.
-- Export of alternate product/services allowed
-- Special package for agro units in the AEZ
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DFRC SCHEME
--Post export scheme based onS/B (Bill of Export)
and BRC; Both against Phy. & Deemedexports;
--Min. 25% V.A., SION based, Certain sensitiveitemswith technical specification allowed;
--Freely transferablecertificate; However DFRCwith AU condition also available;24 months valid;
--Fuel allowed to be transferred to marketing
agenciesauthorised by Ministry of P&NG;--Facility of CENVAT credit or drawback
--Only basic customs dutyexemption at the time of
imports
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4.DEPB SCHEME
--Post export scheme based on S/B (Bill of Export) and BRC; Freely transferableunless specified;
-- Supplies to SEZ unitsalso elligible
--Based on basic customs dutyon inputs--Filingof application and late cut
--CENVAT credit or drawback available;
--Any itemincluding CG (freely importable) allowedfor import;
--Valid for 24 months;
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TARGET PLUS SCHEME
--- For Star Export Houses;-- Duty credit based on Incremental exports(fob value in
free foreign exchange) subject to a minimum exportturnover of Rs 10 crores in the previous year;
-- Entitlement:1. >20% & <25% 5%
>=25% & <100% 10%
>=100% 15%(Based on max. 100%growth)
2. Restrictionson export turnover calculation
3. Importsallowed
-- CENVAT creditor DBK allowed for the CVD
paid/debited
SERVICE EXPORTS
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SERVICE EXPORTS -- For 161 Tradable services
-- New Export Promotion Council for Services
-- DFEC for Serve from India Scheme1. Eligibility:
-- Min.FFE of Rs 10 Lakhs in the preceding or current
financial year (Exception Rs 5 Lakhs for individuals)
-- Categories of exports excluded for entitlement
2. Entitlement:Hotels of one star & above 5%
Stand alone Restaurants 20%
All other service providers 10%
3. Imports allowed:-- With AU condition
-- Any CAPITAL GOODS, Office Equipments, Furnitures and
consumables etc
-- No Agricultural Product except food items and beverages for
the Hotels and Restaurants
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--A new scheme christened as the ―Vishesh Krishi Upaj Yojana‖ to
boost exports of specified agricultural products.
1. Duty credit entitlementof 5% of FOB value of Exports.
2. Exportsof fruits, vegetables, flowers, minor forest produce and their value added variants
3. Freely transferable
4. Importsof inputs and capital goods permitted.
5.CENVAT credit or DBK allowed for the CVD--Import of capital goods shall be permitted duty free under the
EPCG Scheme
--Units in Agri Export Zones (AEZ) shall be exempt from BG under
the EPCG Scheme-- Import of inputs such as pesticidesshall be permitted under the
Advance Licencefor agro exports.
--Capital goods imported under EPCG permitted to be installedanywhere in the AEZ
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STATUS CERTIFICATES
--One star to Five Star Export House
-- Double weightage for certain categories
-- Special Privileges
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THANKS