B.Com Ist Year Export Import Policy Of India Long Short Question Answer

(7) Export Promotion Capital Goods (EPCG) Scheme: This scheme is of two types:

(i) Zero Duty EPCG Scheme : It allows import of capital goods at vero per cent custom duty subject to an export obligation equivalent to siz times of duty saved on capital goods imported under this scheme. This export obligation is to be fulfilled in siz years. This scheme is applicable on engineering goods, electronie products, chemicals, textiles, handicrafts, sports goods, marine products, paper, ceramic products, toys and leather goods.

(ii) 3% Duty EPCG Scheme: It allows import of capital goods at 3% custom duty subject to an export obligation equivalent to eight times of duty saved on capital goods imported under this scheme. This export obligation is to be fulfilled in eight years. This scheme is applicable on those capital goods which do not fall under zero duty EPCG Scheme.

(8) Export Oriented Units (EOUS), Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-Technology Parks (BTPs) : The units which sundertake to export their entire production may be set up in EOUs, EHTPs, STPs and BTTs. Trading units are not covered under this scheme. These units can import all types of goods including capital goods required for their activities without payment of any custom duty. The units set up as EOUs or set up in any of above parks are entitled to following concessions:

(i) Reimbursement of Central Sales Tex (CST).

(ii) Exenption from payment of excise duty.

(iii)Refund of Service Taxpaid,

(iV) Exemption from Income Tax till 31^st March, 2012.

(v)Exemption from industrial licensing for manufacture of items reserved for small scale industries.

(vi) Export proceeds for such units can be realised within 12 months; whereas, for other units, this time period is 6 months.

(vii) These units are not required to furnish bank guarantee for

imports provided their annual turnover is Rs. 5 crore or more.

(9) More Facilities to Special Economic Zones (SEZs) : The special economic zones set up to boost exports from these areas will be further strengthened. In these zones infrastructure of international quality will be set up. Units set up in SEZs will continue to get income tax concessions, exemption from custom and excise duties, etc.

(10) Strengthening Free Trade and Warehousing Zones (FTWZs): This scheme is aimed at making India a global trading centre. In this scheme, 100% FDI (Foreign Direct Investment) is allowed for setting up these warehousing zones. Each zone will have a minimum outlay of Rs. 100 crore and built-up area of 5 lakh square metres. In these zones, there is freedom to carry-out import and export transactions.

EVALUATION OF NEW FOREIGN TRADE POLICY, 2009-14 NOTES

Following are the main achievements of this policy:

(1) Comprehensive: This EXIM policy is very comprehensive in nature. It covers almost every sector of the economy viz. agriculture, handicraft, service sector, marine sector, special economic zones, etc.

(2) Increase in Foreign Trade : This policy has been successful in reversing the declining trend of foreign trade. In 2010-11, exports growth in terms of US dollars was 29.5%, while imports growth in 2010-11 was 19%. These growth rates are faster than target growth rate of 15%.

(3) Increasing Share in Merchandise Export Trade : India’s ranking in world merchandise export trade which was 27th in 2008, improved to 21st in 2009.

(4) Increasing Export of Services : India’s service sector witnessed export growth rate of 27.4% in 2010-11. India’s rank in export of service in the world is 11th in 2009.

(5) Strengthening Special Economic Zones : The performance of business units set up in SEZs has been commendable. Exports from SEZ units were Rs. 2,20,711 crore 11, 2009-10. The exports from these SEZ units in first nine months of 2010-11 were Rs. 2,23,132 crore.

(6) Diversification of Exports: New EXIM policy has laid stress on Focus Product Scheme and Focus Market Scheme. It has helped to diversify exports to many nations of the world. It has reduced dependence of exports on a few nations. Similarly, composition of exports has also widened and diversified. It has helped to increase exports significantly.

(7) Stress on Developing Export Infrastructure : This policy has laid stress on developing export infrastructure like ports, container freight system, dedicated railway freight corridors, roads, etc. It will have long-run impact on exports.

(8) Procedural Simplification: The new EXIM policy has simplified the documents, forms allowed online submission and verification of documents. It has facilitated exporters and importers.

(9) Towns of Export Excellence : The export targets for getting the status of Towns of Export Excellence has been lowered in this policy. As a result, more towns are getting concessions and facilities for exports. At present, 24 towns are designated as Towns of Export Excellence.

(10) Benefit to Micro and Small Enterprises: This EXIM policy has improved market access for products of micro and small enterprises. Business centres set up by government conduct market surveys in foreign markets, participate in international trade fairs, undertake quality accredition of products of MSEs. It has widened the market for products of micro and small enterprises.