EXIM policy and Promotional

measures
Foreign trade policy
 EXIM policy introduced for a period of
5 yrs.
 EXIM policy renamed as FTP in 2004.
 Provides list of initiatives and
procedural guidelines to importers
and exporters.
Main objectives of India’s FTP
 Strengthen base for export production
 Special emphasis on exports
 To simplify procedures for import licensing and
export promotion
 To facilitate technological upgradation
 To promote import substitution and self reliance
 Employment generation
 To provide export incentives to exporters
 To provide continuity and stability to FTP.
 To encourage high standards of quality.
 To establish framework for globalisation.
Highlights of FTP 2009-14
 Focus product scheme:
- Includes engineering products, value added
products of jute and plastic, green technology
products, vegetables, etc.
- Incentives increased from 1.25% to 2% of
FOB value of exports.
 Focus market scheme:

- 26 new markets are added.

- 16 countries from Latin America and 10 from
Asia-Oceanic.
- Incentives increased from 2.5% to 3% of FOB
value of exports.
 Green products from North east:
- FPS extended to export of green products and
other export items from NE region.
- To generate employment opportunities in NE.
 Agriculture sector:

- Focus on export of agricultural items.

- Reduction in transaction and handling costs.
 Technological upgradation:

- EPCG scheme at zero duty is introduced.

- Available to apparels, basic chemicals,
engineering, electronics, etc.
 Gems & Jewellery sector:
- DBK allowed on export of gems and jewellery.
- Reduces impact of duty.
 Automobile sector:

- Free import of reference fuels like petrol and

diesel upto a maximum of 5KL per annum.
 Tea sector:

- DTA (domestic tariff area) sale limit of instant

tea by EOUs increased from 30% to 50%.
 Leather sector:
- FPS also extended to leather products where
incentives are upto 2% of FOB value of
exports.
- Also allowed to re-export unsold imported raw
hides and skins.
 EPCG scheme:

- Export obligation reduced to 50% of normal

export obligation.
- This would enable Indian firms to import
quality spares to increase life of existing plant.
Negative list of exports
 Contains those export items which
are either banned or cannot be freely
exported.
 3 parts:
- Prohibited items
- Restricted items
- Canalised items
 Prohibited items:
- Banned from exporting
- Includes all forms of wild animals,
exotic birds, all items of plants,
humans skeletons, chemicals as
notified by DGFT, sandalwood items.
 Restricted items:
- Allowed to export only with special
licensing by DGFT.
- at present, 31 items including
cattle, camel, chemical fertilisers, fur
of domestic animals, hides and skins.
 Canalised items:
- To be exported only through designated
canalised agencies.
Petroleum products – IOC
Mica waste and scrap – MMTC (Metals &
Minerals Trading Corp) and MITCO
Mineral ores – Indian rare earth ltd, Kerala
minerals and metals ltd, MMTC & MOIL
Nigar seeds – NAFED, TRIFED
DGFT
 Director General of Foreign Trade
 32 regional offices
 Assists ministry of commerce in
formulation and implementation of
FTP.
Role of DGFT
 Implementation of FTP
 Granting of IEC
 Regulates transit of goods
 Resolving of export related problems
 Interaction with trade and industry
 Coordination with other offices
 Trade facilitator
 Publications
 Forthcoming e-governance initiatives
FTP 2015-20
 Announced on 1st April, 2015.
 Aims to nearly double India’s exports to US
$900 billion by 2020.

Highlights :
 Merchandise exports from India scheme (MEIS)

- Notified goods exported to notified markets

would get incentives from 2%-5% of FOB value
of exports.
- Benefits to be provided as duty-credit scrips.
- Scrips can be used for payment of customs
duty, excise duty and service tax.
 Services export from India Scheme (SEIS)
- Shall apply to service providers loacted in
India.
- Rate of reward based on net foreign exchange
earned.
- In form of duty credit scrip that is freely
transferable and usable for all types of goods.
- SEIS scrip of 3%-5% of net foreign exchange
earned.