8831Foreign_Trade_Policy_F_-_2004-09

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Presentation

onForeign Trade Policy 2004-09



Objective:-

# Facilitate sustained growth in exports

to attain a share of atleast 1.5% of globalmerchandise trade.

# Present share - 0.67%

# Export target (2006-07)- 85 b $.# Present Annual growth rate(CAGR) -11.9%



New Export Target

# Target- 1.5% of the International Trade

# CAGR Required- 15.18% (in US$ terms)

# Assumption- World Trade Growth @ 4.5%(2003 rate)



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







Digital automation target

#All Export transactions would be

through EDI mode by 31st October,

2005;

# Digital Signature and EFT facility

operational



India¶s Foreign Trade

Period - $ Growth Rate

1999-2000 10.85

2000-2001 21.01

2001-2002 -1.65

2002-2003 20.34

2003-2004 17.26



Incorporating a legal entity Proprietorship&

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]

EXPORTS IMPORTS

Nature of RestrictionITC[HS] Classification

Free List items Negative List

Prohibited Restricted Canalized



Export Incentives(DOC)

CENTRAL

DUTY REFUND/

NEUTRALISATION/EXEMPTION SCHEMES

Pre-

export

Post-

export

Market Development

Initiatives

INFRA-

STRUCTURE

Related Sops

MDA Grant MAI Grant

ASIDE

SCHEME

TOWNS OF

EXPORT

EXCELLENCE

Additional incentives

Linked with Exports

Duty exemptions

Under Customs

Notif. 21/2002

Misc.IncentivesSuch as DFEC,

Target Plus, Addl.

weightage



CENTRAL DUTIES

CUSTOMS DUTY²Basic, Addl(CVD), E.Cess,

Anti-dumping, Safeguard duties etc.

EXCISE DUTY--- Basic, Addl etc.

EXPORT CESS

CENTRAL SALES TAX

INCOME TAX

SERVICE TAX

OTHER S

ELECTRICITY DUTY, OCTROI, SALES TAX etc.



SCHEMES

# SEZ Scheme

# EOU/EHTP/STP/BTP Schemes

# EPIP Scheme

# Warehousing Scheme

# CCP

# DTA Schemes



DTA SCHEMES

Pre-Export

Post-Export

1. ADVANCE LIC.

2. EPCG

1. DFRC, 2. DEPB, 3.REP

2. DRAWBACK²Phy & D.E.3. TED Refund

4. Target Plus

5. DFEC for Service Sec

6. Vishesh Krishi Upaj Yojana



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 Exchange²EEFC)

Exporters:-- Physical Vs Merchant



X----------Y--------Z

1. PHYS

ICAL 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)



2. Advance Licence (Intermediate Supply)

-- For supplies to Advance licence for physical

exports; Alternatively direct Physical Exportsalso 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,




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,


-- Anti-dumping & Safeguard duty not exempted

except supplies to EOU/EHTP/STP/BTP



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 import²Reduced E.O.

-- Export of alternate product/services allowed

-- Special package for agro units in the AEZ



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



4.DEPB SCHEME

--Post export scheme based on S/B ( Bill of Export)

and BRC ; Freely transferable unless specified;

-- Supplies to S EZ units also elligible

--Based on basic customs duty on inputs

--Filing of application and late cut

--C ENV AT credit or drawback available;

-- Any item including CG (freely importable) allowedfor import;

--Valid for 24 months;



TARGET PLUS SCHEME

--- For S tar 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% 5%

>=25% & <100% 10%

>=100% 15%(Based on max. 100%growth)

2. Restrictions on export turnover calculation

3. Imports allowed

-- C ENV AT credit or D BK allowed for the CVD

paid/

debited



SERVICE EXPORTS-- For 161 Tradable services

-- New Export Promotion Council for Services

-- DFEC for S erve from India S cheme1. Eligibility:

-- M in.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



--A new scheme christened as the ³Vishesh K rishi U paj 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

EP CG S cheme

--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.

--C apital goods imported under EPCG permitted to be installed

anywhere in the AEZ



STATUS CERTIFICATES

--One star to Five Star Export House

-- Double weightage for certain categories

-- Special Privileges



THANKS

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