Description
EXPORT IMPORT : PROCEDURES AND DOCUMENTATION
2014
FOREIGN TRADE POLICY 2009-14
. SYBMS 1/16/2014
FOREIGN TRADE POLICY 2009-14
EXPORT IMPORT
PROCEDURES AND DOCUMENTATION
Presented To Prof.
1
FOREIGN TRADE POLICY 2009-14
FOREIGN TRADE POLICY 2009-14
2013-2014 SYBMS
PRESENTED TO: PROF. DATE: 7TH JANUARY, 2013 SIGNATURE:
2
FOREIGN TRADE POLICY 2009-14
CONTENTS
TOPIC PAGE NO. 5
INTRODUCTION
OBJECTIVES OF FOREIGN TRADE POLICY 2009-14 HIGHLIGHTS OF SPECIAL INITIATIVES OF FOREIGN TRADE POLICY 2009-14 BIBLIOGRAPHY
6
8
16
ACKNOWLEDGEMENT
16
3
FOREIGN TRADE POLICY 2009-14
INTRODUCTION
What is Foreign Trade Policy? The Union Commerce Ministry, Government of India announces the integrated Foreign Trade Policy FTP in every five year. This is also called EXIM policy. This policy is updated every year with some modifications and new schemes. New schemes come into effect on the first day of financial year i.e. April 1, every year. The Foreign Trade Policy which was announced on August 28, 2009 is an integrated policy for the period 2009-14. Export-Import (EXIM) Policy frames rules and regulations for exports and imports of a country. This policy is also known as Foreign Trade Policy. It provides policy and strategy of the government to be followed for promoting exports and regulating imports. This policy is periodically reviewed to incorporate necessary changes as per changing domestic and international environment. In this policy, approach of government towards various types of exports and imports is conveyed to different exporters and importers. Export refers to selling goods and services to other countries, while import means buying goods and services from other countries. Now in the era of globalization, no economy in the world can remain cut-off from rest of the world. Export and import play a significant role in the economic development of all the developed and developing economies. With the growth of international organisations like WTO, UNCTAD, ASEAN, etc., world trade is growing at a very fast rate.
4
FOREIGN TRADE POLICY 2009-14
OBJECTIVES OF FOREIGN TRADE POLICY 2009-14
The new Foreign Trade Policy (FTP) takes an integrated view of the overall development of India’s foreign trade and goes beyond the traditional focus on pure exports. This would be clear from the following statement in the policy document, “Trade is not an end in itself, but a means to economic growth and national development. The primary purpose is not the mere earning of foreign exchange, but the stimulation of greater economic activity.” The main objectives of the Foreign Trade Policy, 2009-14 are : 1. To increase exports. 2. To provide additional support, mainly to those sectors which have been hit by recession in the developed world. 3. To double India’s export of goods and services by 2014 and 4. To double India’s share in global trade by 2020. Aim in General : The policy aims at developing export potential, improving export performance, boosting foreign trade and earning valuable foreign exchange. The Foreign Trade Policy assumes great significance this year as India's exports have been battered by the global recession. A fall in exports has led to the closure of several small- and medium-scale export-oriented units, resulting in large-scale unemployment.
5
FOREIGN TRADE POLICY 2009-14
Government control import of non-essential items through the EXIM Policy. At the same time, all-out efforts are made to promote exports. Thus, there are two aspects of EXIM Policy; the import policy which is concerned with regulation and management of imports and the export policy which is concerned with exports not only promotion but also regulation. The main objective of the Government's EXIM Policy is to promote exports to the maximum extent. Exports should be promoted in such a manner that the economy of the country is not affected by unregulated exportable items specially needed within the country. Export control is, therefore, exercised in respect of a limited number of items whose supply position demands that their exports should be regulated in the larger interests of the country. In other words, the main objectives of the EXIM Policy are: ? To accelerate the economy from low level of economic activities to high level of economic activities by making it a globally oriented vibrant economy and to derive maximum benefits from expanding global market opportunities. ? To stimulate sustained economic growth by providing access to essential raw materials, intermediates, components,' consumables and capital goods required for augmenting production. ? To enhance the technological strength and efficiency of Indian agriculture, industry and services, thereby, improving their competitiveness. ? To generate new employment. ? Opportunities and encourage the attainment of internationally accepted standards of quality. ? To provide quality consumer products at reasonable prices.
6
FOREIGN TRADE POLICY 2009-14
HIGHLIGHTS OF SPECIAL INITIATIVES OF FOREIGN TRADE POLICY 2009-14
The new Foreign Trade Policy aims to provide boost to export growth. The highlights or features of the special initiatives of foreign trade policy 2009-14 are as follows : 1. Higher Support for Market Development : ? 26 new markets have been added under focus market scheme. These include 16 new markets in Latin America and 10 in AsiaOceania. ? The incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to 3%. 2. Product Diversification : ? Market linked focus product scheme (MLFPS) has been greatly expanded by including 153 new products. Some major products included are: ? Pharmaceuticals. ? Synthetic textile fabrics. ? Textile made-ups. ? Knitted and Crocheted Fabrics. ? Value Added Plastic Goods. ? Value Added Rubber Products. ? Glass Products. ? Certain Iron and Steel Products. ? Certain articles of Aluminium, etc.
7
FOREIGN TRADE POLICY 2009-14
? Benefits of these products will be provided, if exports are made to 13 identified markets which are Algeria, Egypt, Kenya, Nigeria, South Africa, Tanzania, Brazil, Mexico, Ukraine, Vietnam, Cambodia, Australia and New Zealand. ? Benefits of MLFPS scheme are also given for export to additional new markets for certain products. These products include auto components, motor cars, bicycle and its parts, and apparels, etc. ? Allocations (facilities) under Market Development Assistance (MDA) and Market Access Initiative (MAI) schemes have been increased. ? The incentive available under Focus Product Scheme (FPS) has been raised from 1.25% to 2%. ? A common simplified application form has been introduced for taking benefits under Focus Product Scheme (FPS), Focus Market Scheme (FMS), Market Linked Focus Product Scheme (MLFPS) and Vishesh Krishi and Gramin Udyog Yojna (VKGUY). 3. Technological Upgradation : ? To help in technological upgradation of export sector, EPCG Scheme at Zero Duty has been introduced. This scheme is available for : ? Engineering & Electronic Products. ? Basic Chemicals & Pharmaceuticals. ? Handicrafts. ? Apparels & Textiles. ? Chemicals & Related Products. ? Leather & Leather Products.
8
FOREIGN TRADE POLICY 2009-14
4. New Towns of Export Excellence : ? The following cities have been recognized as towns of export excellence : ? Handicrafts : Jaipur, Srinagar and Anantnag. ? Leather Products : Kanpur, Dewas and Ambur. ? Horticultural Products: Malihabad. 5. Status Holders : ? To increase 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 obtaining capital goods with actual user condition. The 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). 6. Marine sector : ? Fisheries have been included in the sectors which are exempted from maintenance of average Export Obligation (EO) under EPCG Scheme, on the condition that fishing trawlers, boats, ships and other similar items shall not be allowed to be imported.
9
FOREIGN TRADE POLICY 2009-14
? This will help in providing encouragement to the marine sector which has been affected by the present downturn in exports. 7. Gems & Jewellery Sector : ? To neutralize duty incidence on Gold Jewellery exports, it has now been decided to allow Duty Drawback on such exports. ? In an endeavour to make India a diamond International trading hub, it is planned to establish “Diamond Bourses”. ? A new facility to allow import on consignment basis of cut & polished diamonds for the purpose of grading/certification purposes has been introduced. ? To promote export of Gems & Jewellery products, the value 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. 8. Agriculture Sector : ? To reduce transaction and handling costs, a single window system to facilitate export of perishable agricultural produce has been introduced. ? The system will create multi-functional agencies to be accredited by Agricultural Products Exports Development Authority (APEDA). 9. Leather Sector : ? Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi-finished leather from public bonded ware houses, subject to payment of 50% of the applicable export duty.
10
FOREIGN TRADE POLICY 2009-14
? Focus Product Scheme (FPS) rate has been increased to 2% for the leather sector. 10. Tea : ? Domestic Tariff Area (DTA) sale limit of instant tea by EOU units has been increased from the existing 30% to 50%. ? Export of tea has been covered under Vishesh Krishi and Gramin Udyog Yojna (VKGUY) scheme benefits. ? Minimum value addition under advance authorisation scheme for export of tea has been reduced from the existing 100% to 50%. 11. Pharmaceutical Sector : ? Export Obligation Period for advance authorizations issued has been increased from the existing 6 months to 36 months, as is available for other products. ? Pharma sector has been extensively covered under market linked focus product scheme (MLFPS) for countries in Africa and Latin America; some countries in Oceania and Far East. 12. Handloom Sector : ? To simplify claims under Focus Product Scheme (FPS), requirement of ‘Handloom Mark’ for availing benefits under FPS has been removed. ? Export Oriented Units (EOUs) have been allowed to sell products manufactured by them in Domestic Trade Area (DTA) upto a limit of 90% instead of existing 75%.
11
FOREIGN TRADE POLICY 2009-14
13. Encouragement to Value Added Manufacturing : ? To encourage Value Added Manufactured export, a minimum 15% value addition on imported inputs under Advance Authorisation Scheme has now been prescribed. ? Project Exports and a large number of manufactured goods have been covered under Focus Product Scheme (FPS) and Market Linked Focus Product Scheme (MLFPS). 14. Duty Entitlement Passbook (DEPB) : ? DEPB rate shall also include factoring of custom duty component on fuel where fuel is allowed as a consumable in standard inputoutput norms. 15. Flexibility provided to exporters : ? Payment of customs duty for Export Obligation (EO) shortfall has been allowed by way of debit of Duty Credit scrips. ? Earlier the payment was allowed in cash only. ? Time limit of 60 days for re-import of exported gems and jewellery items, for participation in exhibitions has been increased 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 Export Obligation (EO) fulfillment under Export Promotion Schemes. At present, the facility has been limited to public sector general insurance companies only.
12
FOREIGN TRADE POLICY 2009-14
16. Simplification of Procedures : ? To provide duty free import of samples by exporters, number of samples/pieces has been increased from the existing 15 to 50. ? Exemption is allowed upto two stages from payment of excise duty. It would allow exemption for supplies made to a manufacturer, if such manufacturer in turn supplies the products to an ultimate exporter. At present, the exemption is allowed upto one stage only. ? Greater flexibility has been allowed conversion of shipping bills from one export promotion scheme to other scheme. ? To reduce transaction costs, dispatch of imported goods directly from the port to the site has been allowed for deemed exports. ? Disposal of manufacturing wastes / scrap will now be allowed after payment of applicable excise duty. ? Regional Authorities have now been allowed to issue licences for import of sports weapons. ? For solving 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. ? Automobile industry, having their own Research & Development (R&D) facilities, will be allowed free import of reference fuels (petrol and diesel), upto a maximum of 5 KL per annum. 17. Reduction of Transaction Costs : ? No fee shall be charged for grant of incentives of Foreign Trade Policy (FTP). For all licence applications, maximum applicable fee is being reduced to Rs. 1,00,000 from the existing Rs. 1,50,000 for manual applications and Rs. 50,000 from Rs.75,000 for EDI applications.
13
FOREIGN TRADE POLICY 2009-14
? For future electronic data interchange (EDI) initiatives, Export Promotion Councils/ Commodity Boards have been advised to issue Registration Cum Membership Code (RCMC) through a web based online system. ? For EDI ports, double verification of shipping bills by customs will be removed. ? In cases, where the earlier authorization (licence/permission) has been cancelled and a new authorization has been issued in place of earlier authorization, application fee paid already for the cancelled authorisation, fee paid for the cancelled authorisation will be adjusted against the application fee for new authorisation by payment of minimum fee of Rs. 200. ? An Inter Ministerial Committee will be formed to resolve problems of exporters. ? Standard Input Output Norms (SION) has been updated. 18. Directorate of Trade Remedy Measures : ? A Directorate of Trade Remedy Measures shall be set up to provide support to Indian Industry and exporters in getting their rights through trade remedy measures.
Conclusion India needs to try diversifying its exports. Although India has made major strides in diversifying its exports but a lot needs to be done not only to diversify the export basket but also have a perceptible share in the top items of the world trade. Thus, in conclusion, we can say that India is trying to be more liberal in its foreign trade policy.
14
FOREIGN TRADE POLICY 2009-14
BIBLIOGRAPHY
Information has been collected from the following sources : ? www.wikipedia.com ? www.google.com ? www.yahoosearch.in
ACKNOWLEDGEMENT
A special thanks of gratitude to Prof. who gave us the wonderful opportunity to do this project which helped us in doing a lot of research and we came to know about so many new things. Our apologies for any shortcomings or flaws in the project.
THANK YOU
15
doc_272274407.docx
EXPORT IMPORT : PROCEDURES AND DOCUMENTATION
2014
FOREIGN TRADE POLICY 2009-14
. SYBMS 1/16/2014
FOREIGN TRADE POLICY 2009-14
EXPORT IMPORT
PROCEDURES AND DOCUMENTATION
Presented To Prof.
1
FOREIGN TRADE POLICY 2009-14
FOREIGN TRADE POLICY 2009-14
2013-2014 SYBMS
PRESENTED TO: PROF. DATE: 7TH JANUARY, 2013 SIGNATURE:
2
FOREIGN TRADE POLICY 2009-14
CONTENTS
TOPIC PAGE NO. 5
INTRODUCTION
OBJECTIVES OF FOREIGN TRADE POLICY 2009-14 HIGHLIGHTS OF SPECIAL INITIATIVES OF FOREIGN TRADE POLICY 2009-14 BIBLIOGRAPHY
6
8
16
ACKNOWLEDGEMENT
16
3
FOREIGN TRADE POLICY 2009-14
INTRODUCTION
What is Foreign Trade Policy? The Union Commerce Ministry, Government of India announces the integrated Foreign Trade Policy FTP in every five year. This is also called EXIM policy. This policy is updated every year with some modifications and new schemes. New schemes come into effect on the first day of financial year i.e. April 1, every year. The Foreign Trade Policy which was announced on August 28, 2009 is an integrated policy for the period 2009-14. Export-Import (EXIM) Policy frames rules and regulations for exports and imports of a country. This policy is also known as Foreign Trade Policy. It provides policy and strategy of the government to be followed for promoting exports and regulating imports. This policy is periodically reviewed to incorporate necessary changes as per changing domestic and international environment. In this policy, approach of government towards various types of exports and imports is conveyed to different exporters and importers. Export refers to selling goods and services to other countries, while import means buying goods and services from other countries. Now in the era of globalization, no economy in the world can remain cut-off from rest of the world. Export and import play a significant role in the economic development of all the developed and developing economies. With the growth of international organisations like WTO, UNCTAD, ASEAN, etc., world trade is growing at a very fast rate.
4
FOREIGN TRADE POLICY 2009-14
OBJECTIVES OF FOREIGN TRADE POLICY 2009-14
The new Foreign Trade Policy (FTP) takes an integrated view of the overall development of India’s foreign trade and goes beyond the traditional focus on pure exports. This would be clear from the following statement in the policy document, “Trade is not an end in itself, but a means to economic growth and national development. The primary purpose is not the mere earning of foreign exchange, but the stimulation of greater economic activity.” The main objectives of the Foreign Trade Policy, 2009-14 are : 1. To increase exports. 2. To provide additional support, mainly to those sectors which have been hit by recession in the developed world. 3. To double India’s export of goods and services by 2014 and 4. To double India’s share in global trade by 2020. Aim in General : The policy aims at developing export potential, improving export performance, boosting foreign trade and earning valuable foreign exchange. The Foreign Trade Policy assumes great significance this year as India's exports have been battered by the global recession. A fall in exports has led to the closure of several small- and medium-scale export-oriented units, resulting in large-scale unemployment.
5
FOREIGN TRADE POLICY 2009-14
Government control import of non-essential items through the EXIM Policy. At the same time, all-out efforts are made to promote exports. Thus, there are two aspects of EXIM Policy; the import policy which is concerned with regulation and management of imports and the export policy which is concerned with exports not only promotion but also regulation. The main objective of the Government's EXIM Policy is to promote exports to the maximum extent. Exports should be promoted in such a manner that the economy of the country is not affected by unregulated exportable items specially needed within the country. Export control is, therefore, exercised in respect of a limited number of items whose supply position demands that their exports should be regulated in the larger interests of the country. In other words, the main objectives of the EXIM Policy are: ? To accelerate the economy from low level of economic activities to high level of economic activities by making it a globally oriented vibrant economy and to derive maximum benefits from expanding global market opportunities. ? To stimulate sustained economic growth by providing access to essential raw materials, intermediates, components,' consumables and capital goods required for augmenting production. ? To enhance the technological strength and efficiency of Indian agriculture, industry and services, thereby, improving their competitiveness. ? To generate new employment. ? Opportunities and encourage the attainment of internationally accepted standards of quality. ? To provide quality consumer products at reasonable prices.
6
FOREIGN TRADE POLICY 2009-14
HIGHLIGHTS OF SPECIAL INITIATIVES OF FOREIGN TRADE POLICY 2009-14
The new Foreign Trade Policy aims to provide boost to export growth. The highlights or features of the special initiatives of foreign trade policy 2009-14 are as follows : 1. Higher Support for Market Development : ? 26 new markets have been added under focus market scheme. These include 16 new markets in Latin America and 10 in AsiaOceania. ? The incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to 3%. 2. Product Diversification : ? Market linked focus product scheme (MLFPS) has been greatly expanded by including 153 new products. Some major products included are: ? Pharmaceuticals. ? Synthetic textile fabrics. ? Textile made-ups. ? Knitted and Crocheted Fabrics. ? Value Added Plastic Goods. ? Value Added Rubber Products. ? Glass Products. ? Certain Iron and Steel Products. ? Certain articles of Aluminium, etc.
7
FOREIGN TRADE POLICY 2009-14
? Benefits of these products will be provided, if exports are made to 13 identified markets which are Algeria, Egypt, Kenya, Nigeria, South Africa, Tanzania, Brazil, Mexico, Ukraine, Vietnam, Cambodia, Australia and New Zealand. ? Benefits of MLFPS scheme are also given for export to additional new markets for certain products. These products include auto components, motor cars, bicycle and its parts, and apparels, etc. ? Allocations (facilities) under Market Development Assistance (MDA) and Market Access Initiative (MAI) schemes have been increased. ? The incentive available under Focus Product Scheme (FPS) has been raised from 1.25% to 2%. ? A common simplified application form has been introduced for taking benefits under Focus Product Scheme (FPS), Focus Market Scheme (FMS), Market Linked Focus Product Scheme (MLFPS) and Vishesh Krishi and Gramin Udyog Yojna (VKGUY). 3. Technological Upgradation : ? To help in technological upgradation of export sector, EPCG Scheme at Zero Duty has been introduced. This scheme is available for : ? Engineering & Electronic Products. ? Basic Chemicals & Pharmaceuticals. ? Handicrafts. ? Apparels & Textiles. ? Chemicals & Related Products. ? Leather & Leather Products.
8
FOREIGN TRADE POLICY 2009-14
4. New Towns of Export Excellence : ? The following cities have been recognized as towns of export excellence : ? Handicrafts : Jaipur, Srinagar and Anantnag. ? Leather Products : Kanpur, Dewas and Ambur. ? Horticultural Products: Malihabad. 5. Status Holders : ? To increase 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 obtaining capital goods with actual user condition. The 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). 6. Marine sector : ? Fisheries have been included in the sectors which are exempted from maintenance of average Export Obligation (EO) under EPCG Scheme, on the condition that fishing trawlers, boats, ships and other similar items shall not be allowed to be imported.
9
FOREIGN TRADE POLICY 2009-14
? This will help in providing encouragement to the marine sector which has been affected by the present downturn in exports. 7. Gems & Jewellery Sector : ? To neutralize duty incidence on Gold Jewellery exports, it has now been decided to allow Duty Drawback on such exports. ? In an endeavour to make India a diamond International trading hub, it is planned to establish “Diamond Bourses”. ? A new facility to allow import on consignment basis of cut & polished diamonds for the purpose of grading/certification purposes has been introduced. ? To promote export of Gems & Jewellery products, the value 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. 8. Agriculture Sector : ? To reduce transaction and handling costs, a single window system to facilitate export of perishable agricultural produce has been introduced. ? The system will create multi-functional agencies to be accredited by Agricultural Products Exports Development Authority (APEDA). 9. Leather Sector : ? Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi-finished leather from public bonded ware houses, subject to payment of 50% of the applicable export duty.
10
FOREIGN TRADE POLICY 2009-14
? Focus Product Scheme (FPS) rate has been increased to 2% for the leather sector. 10. Tea : ? Domestic Tariff Area (DTA) sale limit of instant tea by EOU units has been increased from the existing 30% to 50%. ? Export of tea has been covered under Vishesh Krishi and Gramin Udyog Yojna (VKGUY) scheme benefits. ? Minimum value addition under advance authorisation scheme for export of tea has been reduced from the existing 100% to 50%. 11. Pharmaceutical Sector : ? Export Obligation Period for advance authorizations issued has been increased from the existing 6 months to 36 months, as is available for other products. ? Pharma sector has been extensively covered under market linked focus product scheme (MLFPS) for countries in Africa and Latin America; some countries in Oceania and Far East. 12. Handloom Sector : ? To simplify claims under Focus Product Scheme (FPS), requirement of ‘Handloom Mark’ for availing benefits under FPS has been removed. ? Export Oriented Units (EOUs) have been allowed to sell products manufactured by them in Domestic Trade Area (DTA) upto a limit of 90% instead of existing 75%.
11
FOREIGN TRADE POLICY 2009-14
13. Encouragement to Value Added Manufacturing : ? To encourage Value Added Manufactured export, a minimum 15% value addition on imported inputs under Advance Authorisation Scheme has now been prescribed. ? Project Exports and a large number of manufactured goods have been covered under Focus Product Scheme (FPS) and Market Linked Focus Product Scheme (MLFPS). 14. Duty Entitlement Passbook (DEPB) : ? DEPB rate shall also include factoring of custom duty component on fuel where fuel is allowed as a consumable in standard inputoutput norms. 15. Flexibility provided to exporters : ? Payment of customs duty for Export Obligation (EO) shortfall has been allowed by way of debit of Duty Credit scrips. ? Earlier the payment was allowed in cash only. ? Time limit of 60 days for re-import of exported gems and jewellery items, for participation in exhibitions has been increased 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 Export Obligation (EO) fulfillment under Export Promotion Schemes. At present, the facility has been limited to public sector general insurance companies only.
12
FOREIGN TRADE POLICY 2009-14
16. Simplification of Procedures : ? To provide duty free import of samples by exporters, number of samples/pieces has been increased from the existing 15 to 50. ? Exemption is allowed upto two stages from payment of excise duty. It would allow exemption for supplies made to a manufacturer, if such manufacturer in turn supplies the products to an ultimate exporter. At present, the exemption is allowed upto one stage only. ? Greater flexibility has been allowed conversion of shipping bills from one export promotion scheme to other scheme. ? To reduce transaction costs, dispatch of imported goods directly from the port to the site has been allowed for deemed exports. ? Disposal of manufacturing wastes / scrap will now be allowed after payment of applicable excise duty. ? Regional Authorities have now been allowed to issue licences for import of sports weapons. ? For solving 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. ? Automobile industry, having their own Research & Development (R&D) facilities, will be allowed free import of reference fuels (petrol and diesel), upto a maximum of 5 KL per annum. 17. Reduction of Transaction Costs : ? No fee shall be charged for grant of incentives of Foreign Trade Policy (FTP). For all licence applications, maximum applicable fee is being reduced to Rs. 1,00,000 from the existing Rs. 1,50,000 for manual applications and Rs. 50,000 from Rs.75,000 for EDI applications.
13
FOREIGN TRADE POLICY 2009-14
? For future electronic data interchange (EDI) initiatives, Export Promotion Councils/ Commodity Boards have been advised to issue Registration Cum Membership Code (RCMC) through a web based online system. ? For EDI ports, double verification of shipping bills by customs will be removed. ? In cases, where the earlier authorization (licence/permission) has been cancelled and a new authorization has been issued in place of earlier authorization, application fee paid already for the cancelled authorisation, fee paid for the cancelled authorisation will be adjusted against the application fee for new authorisation by payment of minimum fee of Rs. 200. ? An Inter Ministerial Committee will be formed to resolve problems of exporters. ? Standard Input Output Norms (SION) has been updated. 18. Directorate of Trade Remedy Measures : ? A Directorate of Trade Remedy Measures shall be set up to provide support to Indian Industry and exporters in getting their rights through trade remedy measures.
Conclusion India needs to try diversifying its exports. Although India has made major strides in diversifying its exports but a lot needs to be done not only to diversify the export basket but also have a perceptible share in the top items of the world trade. Thus, in conclusion, we can say that India is trying to be more liberal in its foreign trade policy.
14
FOREIGN TRADE POLICY 2009-14
BIBLIOGRAPHY
Information has been collected from the following sources : ? www.wikipedia.com ? www.google.com ? www.yahoosearch.in
ACKNOWLEDGEMENT
A special thanks of gratitude to Prof. who gave us the wonderful opportunity to do this project which helped us in doing a lot of research and we came to know about so many new things. Our apologies for any shortcomings or flaws in the project.
THANK YOU
15
doc_272274407.docx