Introduction:

The ministry Of commerce and Industry announces Expert and Import Policy every 5 years. In India current Policy duration is 200-20014. Exim Policy stands for Export and Import policy. It is updated on 31st March and in that modification, improvements, new schemes are effective from 1st April of every year. In India Exim Policy quite strict for vehicle. India have heavy custom duty on Automobile. In India vehicle should not manufacturing or assembles.

Imports Regarding New Vehicle :

Guidelines: (1) A new imported vehicle : Vehicle has not been manufactured or assembled in India. They has not been sold, leased or loaned prior to importation into India. Also Vehicle has not been registered for use in any country. (2) Conditions: The new vehicle shall Vehicle have a speedometer indicating the speed in km / h. They have right hand steering, and controls. They have photometry of the headlamps to suit keep-left traffic and they have been imported from the country of manufacture. They also conform to the provisions of the control motor vehicle Act.

Testing of Imported Vehicles

In Indian research centers in different place . They are situated in Ahmednagar (Ministry of Defence or the Automotive Research Association of India), Pune or the Central Farm and Machinery Training and Testing Institute, Budni, Madhya Pradesh, or the notified testing ageny which are authorized by the Indian Government.

Banned Vehicles
The policy totally bens for car whose engine capacity ranges from 1000 to 2500cc. for the two- wheelers like scooter over 50 cc to 500 cc. And for Motorcycle only 250 cc not in excess of 800cc.

 OTHER INFORMATION FOR THE IMPORT OF MOTOR CARS

Documents required at the time of clearance : i. Affidavit duly notarized. ii. Purchase invoices, value evidence

iii. Bill of Lading iv Foreign registration of vehicle duly translated in English and attested . by the Indian Embassy or High Commission if the original is not in English. v. Insurance policies

vi. Passport(s) vii . vii i. O.G.L. Declaration

Bankers certificate of conversion of foreign exchange for duty payment.

Import Procedures
(A)

Outline of Import Clearance

The person have to take permission from the Government side and also declare them for imports goods. .They take permission regarding lodging and insurance. Because the necessary examination and payment of Customs duty and excise tax are there so they have to checked them. The basic procedure for submitting declaration documents to Customs is explained below. More than 90 % of import procedures is currently computerized.

(B)

Import Declaration (Customs Law)

1. they

Completion and Submission of Import Declarations Declaration describing the quantity and value of goods. also required particulars.

2.

Declaration Declaration made by buyer who purchase vehicle.. Usually, a customs broker files the declaration as a proxy for importers. 3. Documents to Be Submitted An import (Customs duty payment) declaration form (Customs form C5020) must be prepared . (C)

Prohibited Articles
The Cannabis and Handguns are prohibited by law.

(D)

Verification of Other Laws and Regulations

Japan have rules and regulation we have to follow them. Some Imported goods may have a negative effect on Japan industry likes economy, and hygiene, or on public safety and morals. Such goods like import restrictions as provided by various domestic laws and regulations.

A GUIDE ON DOCUMENTATION
(I) (1) Purchasing Procedures

IMPORT

PROCEDURE

AND

In India currency is Rupees. so the currency is fully convertible in other country. When Indian suppliers sell their products to importers country , Indian excise duty must be paid and included in the sale price by the supplier. The rate of excise duty varies widely from product to product. Sometime if payment is made in hard currency, the goods are exempted from payment of excise duty in India, i. e. the supplier does not have to charge it. Purchased from Other Countries: All 13 commercial banks deal in foreign exchange transactions. The policy of liberalization allows open imports without a licenses. The purchase of vehicle advance payments for goods and separate payments for freight are not allowed. Only the opening an L/C through an authorized bank can payment be made in hard currency.

(1) (2)

(3)

There is no restriction on the release of foreign currency for importing any type and quantity of goods. But we have to obtain foreign currency from the commercial bank the importer has to open a documentary credit (L/C) by fulfilling the requirements of the bank.

Procedures for Opening and Paying L/C in a Commercial Bank.

(1) (2)

An importer has first to open an account with a commercial bank. It is customary for a bank to sanction total amount of credit limit. Because the importer on different headings/transactions like loan, overdraft and L/C payments on an annual basis. For other type of customers or importers requiring only casual transactions. Depending upon the credit limit of the customers account sanctioned by the bank , the importer is generally required to deposit an amount ranging from 10 to 100 percent of the L/C value at the bank. The negotiated with the importer, the bank contacts its corresponding bank which are from exporters side for that opening L/C based on sight payment or deferred payment terms.

(4)

(5)

(6)

Under the widely used 'Sight L/C', full payment is made the exporter by the correspondent bank at the time of submission of shipment for vehicle. Documents as specified in L/C. Another type of L/C payment is called Time L/C'. In that payment is deferred for a certain period of time as specified in the L/C. The correspondent bank is required to release payment to the exporter only after 30 days or 60 days or 90 days from the date of receiving shipment documents. This L/C is also named as 30/60/90 days Sight L/C. After the completion of all process and check by the correspondent bank, the importer collects the documents from his bank and confirms that the documents are complete and free of any discrepancies.. In such case the

(7)

(8)

importer obtains the bank's endorsement on the documents or a delivery order to the concerned agencies at the time of releasing the documents from the bank.

(II.) Import Licensing, Permits and Pre Shipment Inspection (PSI).

(1) (2) Except for prohibited and quantitatively restricted items, no licenses is required for imports.

Restrictions on old vehicles, including three wheelers and two stroke motorcycles, in terms of the permissible level of smoke emission are also in application. In most cases, a test certificate issued by the manufacturer/producer/certifying authority at the place of origin is required for customs clearance purposes. (3) The Department of Agriculture has combine plant Quantine section (PQS) at Harihar Bhawan premises in Kolkatta,Biratnagar,Jaleshkar,Birgunj,Bhairahwa,Nepalgunj & Tribhuvan Internation Airport. The above permits & issue Phytosanutary Certificate is issued abroad at the origin of product & customs clearance. (4) There is no legally systematic of Pre-shipment inspection as like Wood,Pharmaceutical & industrial Chemicals may need Pre-shipment quality inspection certtificate to maintain standard in market.

(iii) PRICEDURE AT THE SEAPORT OF ENTRY.

(5) Mostly imports is done through by calcutta port arrival or Halida port. The port is about 120 kms Southwest of Calcutta. The clearance of the customs processing of document completed at Custom House, calcutta. In detail the cargo clearancce,house processing,transit route,broder entry point,it prescribe by bileteral Treaty of transit & Memorandum. The bilateral Treaty of transit is renawed in 5th January, 1999 for seven years. (6) The system insure import goods against the payment & los & pilferage of transmit cargo Duty insurance. Duty insurance (7) There are 3 types of Duty insurance policy undser Treaty of Transit by the means & ownership transport. Mode of Transport Insured value

(1) Rail Custom Duty (2) Road truck belonging to NTWCL/NTC. Custom duty + undertaken payment by NTWCL the siffferance of MV.(GIF + customs duty) (3) Goods by road other than 2 above. MV-CIF. MV CIF - Market value of the goods in India.(Calcutta 25% of CIF) - Cost Insurance & Freight.

(8) The custom of duty is 0.33% of insured val;ue as premium + 5% of the premium awned as Service tax + INRI as Stamp duty. (9) Duty insurance requiredignore on goods imported by Public Sector agencied in Nepal & undertaken by NTWCL. NTWCL charges for Cement & Fertilizers, & 0.15% for others. It has also,provision for making Indian Railway, as import in the event of loss. (10) It is assigned to the Commissssioner of customs , & if the goods not reach to Nepal than the goods is payable cincluded. (11) Under 1999 the Treaty of transit Duty Insurance only the goods which is specified as sensitive bt the government of India as in HMG/Nepal & also given the option of bank Guarantee instead of subject to the customs of Commisssioner. as other than sensitive it requires as fernosh a legally blinding,calcutta,Commisssioner of customs,undertyaken amount equal to difference between the MV od goods in India & GIF value paid ,if the goods in not reached to nepal. (12) The satisfaction of Commissioner of Customs is only issued by the calcutta oif the Nation Insurance Company Limited(NICL),Calcutta. (13) The importer has to send all the legal original document along with the letter od authority to the Agent who licenssed by the Indian Customs for Cargo clearance. And the sign on the letter of authority is only cerfified by the importer's bank that issued L/C & also requires endorse B/L in the CA nomination name. (14) The document processing is only proceed after the filling of an import gneral manifest (IGM) by the ship agent because of the ship's rotation number & Manifest number . Normally IGM is filled before the arrival of vessel.

(15) The document procedure receive by the CA obtain "Delivery Order" after the B/L is confirmed shipping line. If any payment through shipping line the CA pays the penalty. CA has obtain the document of duty insurance from NICL for private sector. CA requir six copies of CTD & Nepal section files with the following... (1) CTD (Red colour for Private imports & Green for Government imports) (2) Delivery Order (3) Letter of authority of CA original (4) Invoice original (5) Import licensed, if requires. (16) For moving Cargo with additoin procedure needs to be finish CA has submit a cash deposit or bank gurantee to the to the value of container to shipping line. Some of shipping line also claimed for any damage / loss. Permission of the customs is also for shipping line & duty insurance & insured value of INR 100000 fot GJEU,for Crgo Government INR 30000 per TEU & for NTWCL INR 60000 per FEU instead of duty insurance submit customs of calcutta. (17) The Traety of Transit 1999 clearly specified that only 4 documents,B/L,Invoice, Packing list & L/C copy authorised by the Royal Nepalese.Issue bank requores sumission along with CTD of customs & no other additional document except necessary of clearance. (18) Document filed at Calcutta customs,CTD stamped is the receipt of document. Assisistant Commissioner of Customs (AC) heads the section of Nepal & also deals in Bhutanese Cargo. The clearance of document is from 2 to 4 days. The approval & AC puts their sign including origin certificate recognized by the Post customs before return from CA. The customs requires 3 copies of invoice,5th & 6th copies od CTD, & 1 copy of other documents. (18) EO & appraiser examine seal number & condition of OTL of container. If the goods damage to 5% of total package are checked by CTD. Treaty of Transit contain a special provision of the movement for contain Cargo seal with OTL. In case OTL number in CTD. After checked the appraiser & EO "Pass Out" to bank of CTD. PO work in the office time & EO works before & after office time & both have perform the same work. After booking of Port workers & Mobile Crane od private sector & lock key of noncontainer Cargo it allow to loading on toa flat truck from container truck as in the presence of EO & PO. The completed than PO make necessary procedure uth the bank og CTD, The Port customs did not write anything except Marketing, Circle of OTL number in B/L or DO & on the invoice value. The fourth copy ;so known as queen copy of CTD & DO & 1 photocopy of invoice. (20) After loading completed PO issue a temporary permit called Transit Pass to

CA eith along 2nd & 3rd copies of CTD object raised by the Raxaul Border Customs, TP is almost abandoned except bulk Cargo, requires number of days from clear. (21) The Port is open but the Customs closed on some holidays. CA has to bank customs to work overtime by paying INR 600per 8 hours-shift. No other fee pay to the respect of Transit goods which allow Nepal & Bhutan Transit Cargo in 3 gays local Cargo comparison.

INDIAS FOREIGN TRADE POLICY 2009-2014

What is Foreign Trade Policy?

In every five year the Union Commerce Ministry, Government of India Announces the Integrated Foreign Trade Policy. Its also called exportImport policy. This policy modifies & updated every year. Any new Schemes implement on the first day of financial year. On August 28, 2009 announced The foreign trade policy for the time Period 2009-2014.

Objectives of Foreign Trade Policy 2009-14:

The main aim of this policy is reverse declining trend of exports. To increase or double India's exports of goods and services by 2014. The long term aim of this policy is to double indias share in global merchandise trade by 2020. Simplification of procedure for application for gating various benefits To set the strategies and policy for the measures the growth of exports Through a "mix of measures including fiscal incentives, institutional Changes, procedural Rationalisation and efforts for enhance market access across the world and Diversifications of export markets etc are to encourage exports.

Targets: Target Export for 2010-11 : $ 200 Billion Target Export Growth 15 % for next two year and 25 % thereafter.

 EPCG Scheme: Obligation under EPCG scheme relaxed. In export sector aid technological up gradation & introduced this new Scheme at Zero Duty. Under EPCG Scheme Export obligation on import of spares & moulds etc has been reduced by 50%.

 Announcements for FPS, FMS, MLFPS: 1. Fps added 26 new markets in this scheme. 2. FMS(Focus Market Scheme) raised Incentives from 2.5 % to 3 %. 3. Under Focus Product Scheme (FPS) Incentive raised from 1.25% to 2%. 4. Extra products included under FPS 5. Market Linked Focus Product Scheme (MLFPS) expanded of new Products like pharmaceuticals, textile fabrics, rubber products, glass Products, auto components, motor cars, bicycle and its parts etc. 6. Under FPS benefit extended for export of green product and some products From the north east. Towns of Export Excellence (TEE) : The following cities have been recognized as towns of export excellence 1. Handicrafts : Jaipur, Srinagar and Anantnag 2. Leather Products : Kanpur, Dewas and Ambur 3. Horticultural Products : Malihabad

Extension of Income Tax Exemption to EOU and STPI :

Under Income tax Act: Income tax exemption to 100% EOUs and to STPI units.

Extension of ECGC :
In December, 2008 the adjustment assistance scheme provide enhanced ECGC cover 95%, to the adversely affected sectors, and this is continue Till the march,2010. Announcements For Marine sector : 1. Under EO & EPCG Scheme Fishing Trawlers, boats, ships and other similar items shall not be allowed for this exemption. 2. Provide additional flexibility Scheme for the marine sector under Target plus Scheme / Duty Free Certificate of Entitlement (DFCE).

 Announcements for Gems & Jewellery Sector: 1. On Gold Jewellery exports Duty Drawback is allowed. 2. Planning to establish "Diamond Bourse with an aim to make India and International trading hub announced. 3. The limit in case of personal carriage has also been increased from US$ 0.1 million to US$ 1 million for export promotion tours. 4. Extended time limit of 60 days to 90 days for re-import of exported gems and jewellery Items, for participation in exhibitions in case of USA.

Announcements for Leather Exports :

In leather sector is allowed re-export of unsold imported new materials and semi finished Leather of payment of 50% applicable in export duty.

Announcements for Tea Exports:

1. Under advance authorisation scheme for export of tea is 100 %. It has been reduced from the existing 100% to 50%. 2. Domestic Tariffs Area (DTA) increase sale limit of instant tea from 30% to 50% by EOU.

Announcements for pharma exports:

The advance authorization issued for pharma exports obligation period increased from existing 6 months to 36 months. EOUs (export oriented units) have been allowed to sell products that instead of 75% these units can sell up to 90% of their products in the domestic markets. Under the EOUs scheme also to procure finished goods for consolidation with their manufactured goods. EOUs also allowanced CENVAT credit facility for the education cess on DTA(Domestic Tariff Area) sale.

 Under the Advance Authorization Scheme for value added manufacturing(VAM) export minimum 15% value addition on imported goods(inputs).

DEPB (Duty Entitlement Passbook) also Advance Authorization include factoring of custom duty on fuel payment of customs duty of export obligation under Advance Authorization/ DFIA or EPCG Authorisation was allowed in cash only but now these payment can be done in the way of debit of duty credit scrips.

Another facility duty of samples products, that is free import of samples by exporter.

Most benefit that greater flexibility has been permitted to allow 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 under Advance Authorization scheme for deemed supplies.

Free the sale certificate has been simplified and the validity of the certificate has been increased from 1year to 2year of medical devices industry.

Reduction in Transaction cost:

Maximum applicable fee for 18 Authorisations/licences application has been reduced Rs.100000 from the existing Rs.150000 (for manual applications) and Rs.50000 from the existing Rs.75000 (for Electronic Data Interchange applications).

 Making payment of applicable excise duty disposal of mfg. scrap will be allowed and under advance authorization consider fulfillment of export obligation and EPCG (Export Promotion Capital Goods)scheme.

Licenses for the import of sports weapon will be issued now by regional authorities provided a NOC(No Objection certificate) is issued by ministry of sports and youth affairs.

Medical device industry- the validity of the certificate has been increased from 1year to 2years.

For the Automobile Industry their R&D establishment will be allowed free import of reference fuels(petrol and diesel).

Exports promotion councils and Commodity Boards have been advised to issue RCMC(Registration Cum-Memberships Certificate) through a web based online system.

In cases of old authorization has been cancelled and a new authorization has been issued in lieu of the earlier authorization and for the new authorization application fee to payment of minimum fee Rs. 200.

Now, Restricted items can be imported now against transferred DFIA(Duty Free Import Authorization) as the present DFRC (Duty Free Replenishment Card) scheme.

Now, Dollar Credits is a provision for state-run banks.