EXIM POLICY

 The foreign trade of India is guided by the Export-Import policy of the Government of India.
 Regulated by The Foreign Trade Development and Regulation Act 1992.
 Exim policy contain various policy decisions with respect to import and exports from the country.
 Exim Policy is prepared and announced by the central government.
 Exim Policy of India aims to developing export potential, improving export performance, encouraging foreign trade and creating favorable balance of payment position.

General Objectives of Exim Policy

 To establish the framework for globalization.
 To promote the productivity competitiveness of Indian Industry.
 To Encourage the attainment of high and internationally accepted standards of quality.
 To augment export by facilitating access to raw material,intermediate, components, consumables and capital goods from the international market.
 To promote internationally competitive import substitution and self-reliance.

Highlights of the New Foreign Trade Policy

1.Special Focus Initiatives: Semi-urban and Rural Area
2.Agriculture : Vishesh Krishi Upaj Yojana and Agri Export Zones
3.Handlooms and Handicrafts: Mark under Market Access Initiatives Scheme and Proposed to Start new SEZ.
4.Gems and Jewellery: Import of gold of 18 carat and above has been permitted under the replenishment scheme
5.Leather and Footwear : Duty free import entitlement of specified items shall be 5% of FOB value of exports during the preceding year

Export Promotion Schemes

1.Assistance to States for Infrastructure Development of Exports [ASIDE]
2.Market Access Initiative [MAI]
3.Marketing Development Assistance [MDA]
4.Towns of Export Excellence
5.Target Plus Scheme
6.Served from India Scheme
7.Service Export Promotion Council
8.New Status Holder Categorization
9.Board of Trade: The role is to advising government on relevant issues connected with Foreign Trade Policy.

Implications of The Foreign Trade

Implications on Indian Economy:
This policy propose to simplify procedures and develop technology and infrastructure.

Implications on Agriculture:
Special Agricultural Produce Scheme has been introduced for promoting the export of fruits, vegetables, flowers, and their value added products.

Implications on Handlooms and Handicraft:
Establishment of Handicraft SEZ and Handicraft Export Promotion Council would promote development of Handloom and Handicraft Industry.

Implications on Gem and Jewellery Sector :
1.This is special thrust area in this policy.
2.Duty free imports of other inputs would give a further boost to this sector.

Implications on Leather and Footwear Industry :
1.Duty free import as a specified percentage of exports.
2.Exemption on customs duty on equipment for effluent treatment plants would help promoting export form this sector.

Implications on Service Industry :
1.An exclusive service promotion council has been set up in order to map the opportunities for key services in key market.
2.Develop strategic market access programmes like brand building in co-ordination with sectoral players and recognize nodal bodies of the service industry.

Annual Supplement to Foreign Trade Policy

Highlights of the Supplement:

1.Inter State Trade Council : To engage the State Government in providing an enabling environment for boosting international trade, by setting up an Inter State Trade Council.
2.Removal of Export Cess : Proposed to abolish cess on export of all agricultural and plantation commodities levied under various Commodity Board Acts.
3.Export Promotion Capital Goods Scheme (EPCG) : This scheme is extended to Agricultural sector, SSI sector, Retail Sectors in order to promote exports from them.
4.Service Export : To upgrade infrastructure in the service related companies.
5.Agri Export : Benefits under ‘Vishesh Krishi Upaj Yojana’ have been extended to exports of poultry and dairy products in addition to export of flowers, fruits, vegetables and their value added products.
6.Package for Marine Sector : Duty free import of specified specialized chemicals and flavoring oils as per a defined list shall be allowed to the extent of 1% of FOB value of preceding financial years export.
7.Advance Licensing Scheme : The Scope of Advance License for annual requirement has been extended to all categories of exporters having past export performance.
8.Duty Free Replenishment Certificate : Brass scrap, Additives, paper board, and dye stuff have been removed from the list of items prescribed for import under DFRC.
9.Procedural Simplification : Proposed to simplify procedures and reduce the documentation requirements so as to reduce the transaction cost of the exporters and thereby increase their competitiveness.
10.EDI Initiatives : DGFT shall introduce an automated electronic system for filing, retrieval and authentication of documents based on agreed protocols and message exchange with other authorities such including Customs and banks.