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Presentation on Foreign Trade Policy 2004-09. Objective:- # Facilitate sustained growth in exports to attain a share of atleast 1.5% of global merchandise.

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Presentation on theme: "Presentation on Foreign Trade Policy 2004-09. Objective:- # Facilitate sustained growth in exports to attain a share of atleast 1.5% of global merchandise."— Presentation transcript:

1 Presentation on Foreign Trade Policy

2 Objective:- # Facilitate sustained growth in exports to attain a share of atleast 1.5% of global merchandise trade. # Present share % # Export target ( )- 85 b $. # Present Annual growth rate(CAGR) -11.9%

3 New Export Target # Target- 1.5% of the International Trade # CAGR Required % (in US$ terms) # Assumption- World Trade 4.5% (2003 rate)

4 Objectives (Contd….) # Facilitating high share of Indian Goods and Services in the International market # Act as Instrument of Economic Growth, Employment Generation and Poverty Alleviation # Reflect the priorities for development of the Indian Economy

5 STRATEGY TO ACHIEVE THE OBJECTIVES # Bring down transaction cost– Simplified procedure, Unshackling of controls, built-in transparency & mutual trust; # India to be a Global hub for Manufacturing, Trading & Services; # Special Focus area Initiatives; # Facilitating Technological & Infra-structural upgradation; # Neutralising incidence of all levies & duties on inputs Duties & Levies should not be exported.

6 Thrust Sectors # Agricultural # Handicrafts # Handlooms # Gems and Jewellery # Leather # Textile

7 Digital automation target # All Export transactions would be through EDI mode by 31 st October, 2005; # Digital Signature and EFT facility operational

8 Indias Foreign Trade Period - $ Growth Rate

9 Incorporating a legal entityProprietorship& In India [ROC]Partnership Concern Trade Licence [State Departments] Permanent Acccount Number Bank Certificate [PAN by Income Tax Dept.][from the concerned Bank] Importer-Exporter Code Number[DGFT] EXPORTSIMPORTS Nature of Restriction ITC[HS] Classification Free Listitems Negative List Prohibited Restricted Canalized

10 Export Incentives (DOC) CENTRAL DUTY REFUND/ NEUTRALISATION/ EXEMPTION SCHEMES Pre- export Post- export Market Development Initiatives INFRA- STRUCTURE Related Sops MDA GrantMAI Grant ASIDE SCHEME TOWNS OF EXPORT EXCELLENCE Additional incentives Linked with Exports Duty exemptions Under Customs Notif. 21/2002 Misc.Incentives Such as DFEC, Target Plus, Addl. weightage

11 CENTRAL DUTIES CUSTOMS DUTYBasic, Addl(CVD), E.Cess, Anti-dumping, Safeguard duties etc. EXCISE DUTY--- Basic, Addl etc. EXPORT CESS CENTRAL SALES TAX INCOME TAX SERVICE TAX OTHERS ELECTRICITY DUTY, OCTROI, SALES TAX etc.

12 SCHEMES # SEZ Scheme # EOU/EHTP/STP/BTP Schemes # EPIP Scheme # Warehousing Scheme # CCP # DTA Schemes

13 DTA SCHEMES Pre-Export Post-Export 1.ADVANCE LIC. 2.EPCG 1.DFRC, 2. DEPB, 3.REP 2.DRAWBACKPhy & D.E. 3.TED Refund 4.Target Plus 5.DFEC for Service Sec 6.Vishesh Krishi Upaj Yojana

14 Physical (out of India/Supply to SEZ) ( Against Indian Rupees or Free foreign Exchange) EXPORTS Supply within the country(Deemed) (In Indian Rupees or Free Foreign ExchangeEEFC) Exporters:-- Physical Vs Merchant

15 ADVANCE LICENCE SCHEME X Y Z 1. PHYSICAL EXPORT -- Duty free import of Inputs, Fuel, Oil, Energy, Catalyst etc. -- +V.A.;AU condition; Norm fixed & No Norm cases; Imports & Exports valid upto 24 months; Further extn allowed -- Supply to SEZ units also covered; -- E.O. discharge based on S/Bs & BRC (Irrevocable L/C, Provision of Avalisation, co-acceptance also available)

16 2. Advance Licence (Intermediate Supply) -- For supplies to Advance licence for physical exports; Alternatively direct Physical Exports also allowed -- Duty free import of Inputs, Fuel, Oil,Energy, Catalyst etc. -- +V.A.;AU condition; Norm fixed & No Norm cases; Imports & Exports valid upto 24 months; Further extn allowed -- E.O. discharge based on S/Bs & Bank certificate (Irrevocable inland L/C, Provision of Avalisation, co-acceptance also available)

17 3. Advance Licence (Deemed Export) -- For supplies within India under various projects, supplies to EOU/EHTP/STP/BTP -- Duty free import of Inputs, Fuel, Oil, Energy, Catalyst etc. -- +V.A.;AU condition; Norm fixed & No Norm cases; Imports & Exports valid upto 24 months or co-terminus with the project; Extn allowed -- E.O. discharge based on S/Bs & Bank certificate (Irrevocable inland L/C, Provision of Avalisation, co-acceptance also available) -- Anti-dumping & Safeguard duty not exempted except supplies to EOU/EHTP/STP/BTP

18 EPCG Scheme -- Import of capital goods with AU condition at concessional rate of 5% duty for pre-production, Production & Post production purposes related to export (Both Physical & deemed);Import of Car -- E.O. 8 times the duty saved in 8 years; 12 Years; -- E.O. monitoring in two blocks only -- Special Dispensation for licence with duty saved of Rs 100 crores or above, Agro units, SSI units, BIFR. E.O. period 12 years and varied /reduced E.O. -- EPCG licence for project importReduced E.O. -- Export of alternate product/services allowed -- Special package for agro units in the AEZ

19 DFRC SCHEME --Post export scheme based on S/B (Bill of Export) and BRC; Both against Phy. & Deemed exports; --Min. 25% V.A., SION based, Certain sensitive items with technical specification allowed; --Freely transferable certificate; However DFRC with AU condition also available;24 months valid; --Fuel allowed to be transferred to marketing agencies authorised by Ministry of P&NG; --Facility of CENVAT credit or drawback --Only basic customs duty exemption at the time of imports

20 4.DEPB SCHEME --Post export scheme based on S/B (Bill of Export) and BRC; Freely transferable unless specified; -- Supplies to SEZ units also elligible --Based on basic customs duty on inputs --Filing of application and late cut --CENVAT credit or drawback available; --Any item including CG (freely importable) allowed for import; --Valid for 24 months;

21 TARGET PLUS SCHEME -- - For Star Export Houses; -- Duty credit based on Incremental exports(fob value in free foreign exchange) subject to a minimum export turnover of Rs 10 crores in the previous year; -- Entitlement: 1. >20% & =25% & =100% 15%(Based on max. 100%growth) 2. Restrictions on export turnover calculation 3. Imports allowed -- CENVAT credit or DBK allowed for the CVD paid/debited

22 SERVICE EXPORTS -- For 161 Tradable services -- New Export Promotion Council for Services -- DFEC for Serve from India Scheme 1. Eligibility: -- Min.FFE of Rs 10 Lakhs in the preceding or current financial year (Exception Rs 5 Lakhs for individuals) -- Categories of exports excluded for entitlement 2. Entitlement: Hotels of one star & above 5% Stand alone Restaurants 20% All other service providers 10% 3. Imports allowed: -- With AU condition -- Any CAPITAL GOODS, Office Equipments, Furnitures and consumables etc -- No Agricultural Product except food items and beverages for the Hotels and Restaurants

23 VISHESH KRISHI UPAJ YOJANA -- A new scheme christened as the Vishesh Krishi Upaj Yojana to boost exports of specified agricultural products. 1. Duty credit entitlement of 5% of FOB value of Exports. 2. Exports of fruits, vegetables, flowers, minor forest produce and their value added variants 3. Freely transferable 4. Imports of inputs and capital goods permitted. 5.CENVAT credit or DBK allowed for the CVD -- Import of capital goods shall be permitted duty free under the EPCG Scheme --Units in Agri Export Zones (AEZ) shall be exempt from BG under the EPCG Scheme -- Import of inputs such as pesticides shall be permitted under the Advance Licence for agro exports. --Capital goods imported under EPCG permitted to be installed anywhere in the AEZ

24 STATUS CERTIFICATES --One star to Five Star Export House -- Double weightage for certain categories -- Special Privileges

25 THANKS


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