Import - Export

Policy of India

Why do we need export

Export means trade across the political
boundaries of different nation. No Nation is
self sufficient and had all the goods that it
needs. This happens because of climatic
variation & unequal distribution of natural
resources. As a result, countries all over the
world have become interdependent, which
necessitated foreign trade. A developing
country like India with its fast growing
agricultural production to keep pace with the
population to keep pace with the population
growth and growing Industrial infrastructure

 needs high-import and this can be sustained only

with fast export growth. To meet the oil import
bill, export is unavoidable. Thus, it is evident that
export promotion continues to be a major thrust
area for the government. Several measures have
been under taken in the past for improving export
performance of the country. In India, Govt. has
come out from time to time with various policies
on foreign trade to promote export thereby
increasing the Foreign Exchange Reserve.
These policies are termed as Exim Policy

What is Exim Policy?

It contains policies in the sphere of Foreign
trade i.e. with respect to import & export
from the country and more especially
export promotion measures, policies and
procedure related there to.
Export means selling abroad and import as
bringing into India, any goods and services

Objective of Exim Policy

Accelerating the countrys transition to a globally
oriented vibrant economy with a view to derive
maximum benefits from expanding global market
opportunities;
Stimulating sustained economic growth
Enhancing the technological strength and
efficiency
Encouraging the attainment of internationally
accepted standards of quality
Providing consumers with good quality products
and services at reasonable prices.

EXPORT PROMOTION MEASURES

Policy measures
Institutional set up.
Import Facilitation for Export Production.
Cash subsidies.
Fiscal Incentives.
Foreign Exchange Facilities.
Export incentives
Export production units

Import Facilitation for Export

Production
Export Promotion Capital Goods Scheme
Special Import Licences
Duty Free Licences under Duty Exemption Scheme

Duty free licences are issued as :

(1) Advance licence

(2) Advance Intermediate licence.

(3) Special Imprest licence.

(4) Licence for jobbing, repairing etc. for reexport.

(5) Licence under export production programme.

(6) Advance Release Order.

(7) Back to Back Inland Letter of Credit.

Export Incentives

Duty Exemption
Duty Drawback Scheme
DFRC (Duty free replenishment certificate)
DEPB( Duty entitlement pass book)
Deemed Exports

Export Production Units

Export Oriented Unit (EOU)

Special Economic Zones (SEZ)
Software Technology Parks (STP)
Electronic Hardware Technology Parks (EHTP)

Cash subsidies

Marketing development assistance

Air freight subsidy
Spices export promotion scheme
Jute externel marketing assistance
Financial assistance scheme agriculture
&meat exports
Financial assistance to marine products
exports

Fiscal incentives
Exemption from payment of central excise duty &
simplified procedure for clearance.
Exemption from sales tax
Exemptions & deductions under income tax
act,1961.
Duty draw back Scheme (DDS)
Cash Compensatory Support ( CCS )
International Price Reimbursement Scheme
(IPRS)

Import control regime

1956-57, restrictions on imports started as lot of imports
were there as such gov even had to import foodgrains for
self fulfillment
Imports were classified into
Banned items ,Canalised items ,Restricted items, OGL
In 1966 ruppee was devalued by 36.5% By devaluation

gov expressed the hope that the devaluation would

lead to expansion in export earnings as indian goods
will become cheaper in internatinal market on the
other hands import would decline as price of
imported goods would increase.

 Because of a rigid itemization of permissible

imports, an element of inflexibility in the pattern of
utilization of imports was introduced. The
transferability of licenses among same and
different industries was not permissible. This gave
rise to an expanding black market in import
licenses. Therefore, the import allocation system
was so designed as to eliminate the possibility of
all competition, either domestic or foreign. The
Govt of India has liberalized the import regime
from time to time. At present, practically all
controls on import have been lifted. Under the new
EXIM policy 2002-07.