Scribd Logo
Upload

Welcome to Scribd!

  • 19 views

    Ab - As 1

    Uploaded by

    Mohd Sajid

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Ab - As 1

    Uploaded by

    Mohd Sajid
    19 views7 pages

    Original Title

    ab -as 1

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    19 views7 pages

    Ab - As 1

    Uploaded by

    Mohd Sajid

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 7

    ASSIGMENT 1

    NAME : MOHD SAJID

    ENR NO : 1900101207

    GROUP :B

    SUBMITTED TO : DR AYESHA BADRUDDIN

    DATE : 23/03/24

    YEAR/SEM : 2ND YR
    EXPORT AND IMPORT POLICY
    What is EXIM Policy?
    The EXIM (Export-Import) Policy contains guidelines governing the imports and
    exports of products and services in and out of India. EXIM Policy’s primary
    objective is to regulate and develop foreign trade by facilitating imports into
    and exports from India.

    The Foreign Trade Development and Regulation Act, 1992, provides for the
    Indian government to announce the EXIM Policy every five years. Each EXIM
    Policy announced by the Indian Government is valid for five years, and they can
    amend, enhance or add new provisions to the policy every year on 31 March,
    taking effect from 1 April.

    The Ministry of Finance, in collaboration with the DGFT, its network of regional
    offices and the Union Minister of Commerce and Industry, announces
    amendments or changes to the EXIM Policy of India.

    In 2004, the EXIM Policy was renamed the Foreign Trade Policy to provide a
    comprehensive approach to foreign trade in India. The Ministry of Commerce
    announced the recent FTP, which came into effect on 1 April 2023. FTP 2023-
    2028 seeks to make India an export hub and to integrate India further into
    global value chains. It creates an enabling ecosystem for exporters, which aligns
    with India’s vision of becoming ‘Atmanirbhar’.

    Objectives of EXIM Policy


    • To increase growth in exports and imports in India.
    • To stimulate long-term economic growth by expanding access to
    components, intermediates, essential raw materials, consumables and
    capital goods.
    • To improve agriculture service and industry competitiveness, create new
    employment opportunities and encourage attaining internationally
    accepted quality standards.
    • To supply high-quality goods and services at an affordable cost.
    • To encourage economic expansion by providing access to necessary raw
    materials, capital goods, installations, consumables, intermediate
    products and essential elements for expanding production and providing
    services.
    • To improve the technological productivity and potency of Indian
    agriculture, services and companies, thus enhancing competitive power
    while creating employment possibilities, and to accomplish globally
    acknowledged quality norms.
    • To supply consumers with fine-condition services and goods at globally
    competitive rates.
    •
    Features of EXIM Policy

    The features of EXIM Policy 2023, effective from 1 April 2023 to 31 March 2028,
    are as follows:

    Process Re-Engineering and Automation

    The FTP emphasises export development and promotion based on technology


    interface and principles of collaboration, moving away from an incentive
    regime to a facilitating regime. The ongoing schemes like EPCG, Advance
    Authorisation, etc., under the FTP 2015-20 will be continued considering their
    effectiveness along with technology enablement and substantial process re-
    engineering for facilitating the exporters.

    Towns of Export Excellence

    Four new towns, i.e. Mirzapur, Faridabad, Varanasi, and Moradabad, are
    designated as Towns of Export Excellence (TEE) along with the existing 39
    towns. The TEEs have priority access to export promotion funds under the MAI
    (Market Access Initiative) scheme. They can avail of the Common Service
    Provider (CSP) benefits under the EPCG scheme for export fulfilment, which
    boosts the exports of handicrafts, handlooms, and carpets.

    Recognition of Exporters

    Exporter firms that are recognised based on export performance can be


    partners in capacity-building initiatives on a best-endeavor basis. Two-star and
    above status holders are encouraged to give trade-related training to interested
    individuals based on a model curriculum.

    Promoting Export From the Districts


    The FTP aims to build partnerships with State Governments and take forward
    the DEH (Districts as Export Hubs) initiative for promoting district-level exports
    and accelerating the development of the grassroots trade ecosystem.

    Streamlining SCOMET Policy

    There is a broader outreach and understanding of the SCOMET (Special


    Chemicals, Organisms, Materials, Equipment and Technologies) among
    stakeholders. The FTP is being made more robust to implement international
    agreements and treaties entered into by India. A robust export control system
    would provide access to dual-use high-end technologies and goods to Indian
    exporters while facilitating exports of controlled technologies or items under
    SCOMET from India.

    Facilitating e-Commerce Exports

    FTP outlines the roadmap for establishing e-commerce hubs and related
    matters, such as bookkeeping, returns policy, payment reconciliation and
    export entitlements.

    Rationalisation of the Export Promotion of Capital Goods (EPCG) Scheme

    The EPCG scheme, which allows capital goods imports at zero customs duty for
    export productions, are being further rationalised. PM MITRA (Prime Minister
    Mega Integrated Textile Region and Apparel Parks) scheme is added as an
    additional scheme to claim benefits under the CSP (Common Service Provider)
    scheme of EPCG.

    Dairy Sector Exempted From Maintaining Average Export Obligation

    Dairy sectors are exempted from maintaining the average export obligation to
    support them in upgrading technology. Vertical farming equipment, Battery
    Electric Vehicles (BEV) of all types, rainwater harvesting systems and rainwater
    filters, wastewater treatment and recycling, and green hydrogen are added to
    green technology products and are eligible for reduced export obligation
    requirements under the EPCG scheme.

    Facilitation Under the Advance Authorisation Scheme


    The advance authorisation scheme provides duty-free raw material imports for
    manufacturing export items and is similar to the EOU and SEZ schemes. The
    FTP contains certain facilitation provisions under the Advance Authorisation
    scheme based on interactions with industry and Export Promotion Councils.

    Merchanting Trade

    Under the FTP, merchanting trade of prohibited and restricted items is possible.
    Merchanting trade involves the shipment of goods from a foreign country to
    another foreign country without touching Indian ports by involving an Indian
    intermediary. However, it will be subject to compliance with the RBI guidelines
    and will not be applicable for items or goods classified in the SCOMET and
    CITES list. This will allow Indian entrepreneurs to convert places like GIFT City
    into major merchanting hubs, like certain places in Singapore, Dubai and Hong
    Kong.

    Amnesty Scheme

    The government introduced a special one-time Amnesty scheme under the FTP
    2023 to address export obligation defaults. This scheme provides relief to
    exporters who are not able to meet their obligations under the EPCG and
    Advance Authorisation scheme and are burdened by interest costs and high
    duty associated with pending cases. The interest payable is capped at 100% of
    the exempted duties.

    Importance of EXIM Policy


    It emphasises trade facilitation through digitisation and technology, promotes
    e-commerce, and facilitates exports through various measures and schemes.
    It plays a significant role in accelerating the economic flow of trade activities
    from a country to India by making the Indian economy globally oriented.
    It plays a critical role in expanding global market opportunities.
    It helps to increase the gross domestic product of India.
    It facilitates the flow of the economy from a country to India and increases
    foreign exchange in India.
    It aids in facilitating liberalisation and free trade and improves the overall
    market for domestic consumers.
    SPECIAL ECONOMIC ZONE

    What Is a Special Economic Zone (SEZ)?


    A special economic zone (SEZ) is an area in a country that is designed to generate
    positive economic growth. An SEZ is normally subject to different and more
    favorable economic regulations compared to other regions in the same country,
    including tax incentives and the opportunity to pay lower tariffs. SEZ economic
    regulations tend to be conducive to—and attract—foreign direct investment (FDI).
    FDI refers to any investment made by a firm or individual in one country into
    business interests located in another country.

    KEY TAKEAWAYS

    • A special economic zone is an area in a country that is subject to different


    economic regulations than other regions within the same country.
    • The economic regulations of special economic zones (SEZs) tend to be
    conducive to—and attract—foreign direct investment.
    • Special economic zones are typically created in order to facilitate rapid
    economic growth by leveraging tax incentives to attract foreign investment
    and spark technological advancement.
    • While many countries have set up special economic zones. China has been
    the most successful in using SEZs to attract foreign capital.
    Understanding How Special Economic Zones (SEZs)
    Special economic zones are special areas designated within a country that have
    different business and trade regulations. They are normally established to facilitate
    rapid economic growth and development in certain geographic regions.

    Economic growth may come locally, regionally, and/or internationally. The growth
    that results from special economic zones is accomplished by leveraging tax
    incentives as a way of attracting foreign dollars through FDI and technological
    advancement.

    SEZs may increase export levels for the implementing country and other countries
    that supply it with intermediate products. However, there is a risk that countries may
    abuse the system and use it to retain protectionist barriers in the form of taxes and
    fees. SEZs can also create a high level of bureaucracy due to their regulatory
    requirements. This can have the effect of funneling money away from the system,
    making it less efficient.

    Types of SEZs include free-trade zones, industrial parks, and specialized zones.
    We go into more detail about these and other types of SEZs below.

    While there are benefits for businesses, individuals, or entities operating within
    an SEZ, the macroeconomic and socioeconomic benefits for a country using
    an SEZ strategy are subject to debate.
    History of Special Economic Zones (SEZs)
    The first SEZs appeared in the late 1950s in industrialized countries. They were
    designed to attract foreign investment from multinational corporations. The first was
    at Shannon Airport in Clare, Ireland.1 In the 1970s, SEZs were also established in
    Latin American and East Asian countries. The most successful SEZs to date have
    been in China.

    There were more than 7,000 SEZs as of 2022, according to the United Nations
    Conference on Trade and Development.2 They are found in every part of the
    world—notably in developing and transitional economies that use them as a tool for
    industrialization.3

    Types of Special Economic Zones (SEZs)


    As noted above, there are a number of different types of special economic zones.
    The following are some of the most common categories.

    • Free-Trade Zone: Free-trade zones are specially secured areas that are
    designated for the processing of imported and exported goods. Also called
    commercial-free or foreign-trade zones, these areas involve special customs
    procedures and duty-free treatment.
    • Export Processing Zone: These zones are generally meant for commercial
    and industrial exports. The goal is to encourage economic growth through
    foreign investment. Export processing zones offer certain benefits, such as
    tax and import duty exemptions, and little to no barriers.
    • Industrial Park: As the name suggests, industrial areas or parks are
    designed to be used for industrial instead of commercial or residential
    purposes. Tax-related incentives are common benefits for those that use
    these special zones.
    • Specialized Zone: Some of the most common uses for these areas include
    technology hubs, airport-based zones, and logistics parks.

    Example of Special Economic Zones (SEZs)


    While many countries have set up SEZs, China has been the most successful in
    using SEZs to attract foreign capital. The first four SEZs in China were created in
    1979 in the Southeastern coastal region: Shenzhen, Zhuhai, and Shantou in
    Guangdong province, and Xiamen in Fujian province.

    You might also like