Professional Documents
Culture Documents
2009–10
FOREWORD
Last year has been a challenging year for the global economy. While India hasn’t witnessed the
kind of major mayhem witnessed in some major developed economies, it has certainly been impacted
adversely. The Indian economy, by virtue of its strong macroeconomic fundamentals, has been one of
the most resilient and fastest growing emerging economies of the world. Despite the financial crisis that
have had negative consequences for most of other nations, India continued to grow at an impressive
rate of 6.7% in the fiscal year 2008–09, albeit at a slower pace when compared to the earlier years. In the
current financial year, it is expected that the Indian Economy will regain its growth momentum to grow
at its recent trend growth rate of around 7.2% because of the stable policy environment and internal
growth stimuli notwithstanding the global factors like credit conditions, slackening of demand, lower
export and slow down in developed economies. Overall, the Indian Economy is slated to be one of the
few economies of the world with positive growth acceleration during the current year.
In the last five years, our exports witnessed robust growth to reach a level of around US$ 185
billion in 2008–09 from US$ 63 billion in 2003–04. Our share of global merchandise trade was 0.83%
in 2003; it rose to 1.45% in 2008 as per WTO estimates. Our share of global commercial services export
was 1.4% in 2003; it rose to 2.8% in 2008. India’s total share in goods and services trade was 0.92%
in 2003; it increased to 1.64% in 2008. Despite the fact that India has not been affected to the same
extent as other economies of the world, yet our exports declined since October 2008 significantly due
to less demand in the markets like US, Europe, Japan, etc. owing to global economic slowdown and
the reduced international prices of commodities. As a result, India’s exports in dollar terms declined
during 2008–09 with a growth rate of 13.6% as compared to 29% during 2007–08. To counter the
negative fall out of the global slowdown on the Indian economy, the Government/RBI responded
by providing carefully designed and calibrated stimulus packages in the form of fiscal, monitory
and export promotion measures from time to time, to provide support, particularly to employment
intensive sectors.
In this background and the challenging period lying ahead, Government has announced the
new Foreign Trade Policy, 2009–14. The short term objective of the policy is to arrest and reverse
the declining trend of exports and to provide additional support to those sectors which have been
hit badly by recession. Government has set an annual export target of US$ 200 billion by March 2011
and doubling India’s exports of goods and services by 2014. The long term policy objective
is to double India’s share in global trade by 2020. In order to meet the objectives stated above, the
major thrust areas of strategy spelt out in FTP (2009–14) is a mix of policy measures including fiscal
incentives, institutional changes, procedural rationalization, enhanced market access across the world
and diversification of export markets. Under the new Foreign Trade Policy, 27 new markets under the
Focus Market Scheme and 15 markets under the Market Linked Focus Product Scheme have been
covered. For technological upgradation of the export sector, a new scheme namely zero duty Export
Promotion Capital Goods (EPCG) has been introduced. The incentives available to exporters under the
DEPB scheme, interest subvention for pre-shipment credit and the income-tax exemptions for EOU
and STPIs have also been extended.
Impact of the stimulus packages coupled with steps taken in new FTP 2009-14 is already becoming
visible and decline in exports which continued till October 2009 have been reversed since then and
during November and December 2009, the exports grew by impressive 18.2% and 9.3% respectively
in dollar term. IMF, however, in the latest forecast in January 2010 has revised significantly the global
outlook for 2010 from the earlier projected 3.1% to 3.9%. Advance economies of the US and EU will,
however, remain sluggish primarily on account of higher unemployment level, growing fiscal deficit
and continued credit crisis. Challenges, therefore, will continue in 2010 and market diversification
remains the only viable option.
This publication gives a brief description of the policy initiatives aimed at enhancing India's
international trade. It also includes a chapter on trade statistics, explaining the patterns of trade. I
hope, the information contained in this Annual Report would be useful in understanding the Foreign
Trade Policy initiatives.
I compliment the dedicated services of the officers and staff of DGFT, in bringing out this report.
(R.S.GUJRAL)
Director General of Foreign Trade
CONTENTS
1.1 For India to become a major player in world trade, an 1.3 The short term objective of Foreign Trade Policy,
all encompassing, comprehensive vision is required 2009–14 is to arrest and reverse the declining trend of
for the overall development of the country’s foreign exports and to provide additional support especially to
trade. Trade is not an end in itself, but a means to those sectors which have been hit badly by recession
economic growth and national development. The in the developed world. Government has set a policy
primary purpose is not the mere earning of foreign objective of achieving an annual export growth of
exchange, but the stimulation of greater economic 15% with an annual export target of US$ 200 billion
activity. While increase in exports is of vital importance, by March, 2011. In the remaining three years of this
there is also need to facilitate those imports which are Foreign Trade Policy i.e. upto 2014, the country should
required to stimulate our economy. Coherence and be able to come back on the high export growth path
consistency among trade and other economic policies of around 25% per annum. By 2014, it is expected that
is important for maximizing the contribution of such India’s exports of goods and services will be doubled.
policies to development. Thus, while incorporating The long term policy objective for the Government is
the existing practice of enunciating a stable 5 year to double India’s share in global trade by 2020.
Policy, it is necessary to go much beyond and take
an integrated approach to the developmental 1.4 In the last five years, our exports witnessed robust
requirements of India’s foreign trade. growth to reach a level of around US$ 185 billion in
2008–09 from US$ 63 billion in 2003–04. Our share of
1.2 From the year 2008, particularly in the year 2009 world global merchandise trade was 0.83% in 2003; it rose
faced an unprecedented economic slow-down and to 1.45% in 2008 as per WTO estimates. Our share of
witnessing one of the most severe global recessions in global commercial services export was 1.4% in 2003;
the post-war period. Countries across the world have it rose to 2.8% in 2008. India’s total share in goods
been affected in varying degrees. Major economic and services trade was 0.92% in 2003; it increased to
indicators of industrial production, trade, capital 1.64% in 2008. On the employment front, studies have
flows, unemployment, per capita investment and suggested that nearly 14 million jobs were created
consumption have taken a hit. The WTO estimates directly or indirectly as a result of augmented exports
projected a grim forecast that global trade is likely to in the last five years.
decline by 9% in volume terms and the IMF estimates
projected a decline of over 11% for 2009. The 1.5 Though India has not been affected to the same
recessionary trend has huge social implications as extent as other economies of the world during this
well. This is the context and background of the current phase, yet our exports have suffered a decline since
Foreign Trade Policy, 2009–14, which was announced October 2008 significantly on account of shrinkage
on 27th August,2009. of demand in the traditional markets of our exports
Union Commerce & Industry Minister Mr. Anand Sharma (left) addressing a press conference after announcemnet of new Foreign Trade Policy
2009–2010. Mr. Jyothiraditya Madhavrao Scindia, Minister of State for Commerce is sitting to his left
iii. 1837 new products added under MLFPS at 12. To aid technological upgradation of our export
8 digit level, eligible for benefits @ 2% of sector, EPCG Scheme at Zero Duty has been
FOB value of exports to specified markets; introduced for certain sectors. The scheme shall
Major Sectors include machine tools, earth be in operation till 31.3.2011;
moving equipments, transmission towers, 13. To accelerate exports and encourage
electrical & power equipments, steel technological upgradation, additional Duty
tubes, pipes and galvanized sheets, Credit Scrips shall be given to Status Holders @
compressors, Iron and Steel Structures, 1% of the FOB value of past exports of certain
Auto components, Three wheelers and sectors for procurement of capital goods. This
cotton woven fabrics (Chemicals have been facility shall be available upto 31.3.2011.
included for providing benefit for a limited 14. Facility of non recovery of incentives granted
period of 6 months). to exporters, subject to RBI specifically writing
iv. Two new major markets, viz., China and off the export proceed realization alongwith a
Japan, have been added under MLFPS; certificate from Indian Missions abroad;
v. Sesame seeds and minor coconut products 15. A number of measures taken to reduce transaction
added under Vishesh Krishi and Gram Udyog cost for the exporters such as abolition of
Yojana (VKGUY); application fee on all incentive schemes;
application fee reduced for duty neutralization
vi. Timor Leste added under Focus market schemes; target to implement e-Trade Project in
Scheme (FMS). a time bound manner to bring all stakeholders
6. Adequate funds provided to ensure full refund including Customs, DGFT, Banks, Ports, Airlines
of pending claims of CST/Terminal Excise duty etc. on a common platform; Duty Neutralisation
/Duty drawback on deemed exports; Schemes such as Advance authorisation and
The Chief Guest, the Hon’ble Commerce & Industry Minister Mr. Anand Sharma addressing the meeting (4th from right). On his right are Mr. A
Sakthivel, President, FIEO; Mr. Ajay Mittal, Development Commissioner, MEPZ Special Economic Zone and Mr. Ajay Sahai, Director General, FIEO. On
Mr. Sharma’s left, are Mr. Amitabh Jain, Addl. DGFT; Mr. M Rafeeque Ahmed, Past President, FIEO; and Mr. G V Nayak, Chief Commissioner of Customs,
Chennai.
The Hon’ble Commerce & Industry Minister (right) addressing the meet. On his right is FIEO President.
18. Additional funds provided to the Ministry of 25. A Committee under the Chairmanship of Finance
Textiles to clear the backlog claims of textile units Secretary has been constituted to resolve all
under Technology Upgradation Fund (TUF); problems related to Non-availability of Dollar
Credit to exporters by the concerned Banks;
19. Additional resources made available under MDA
and MAI Schemes; 26. To enable support to Indian industry and
exporters, especially the MSMEs, in availing
20. Additional items allowed within the existing
their rights through trade remedy instruments, a
duty free imports entitlement for the following
Directorate of Trade Remedy Measures proposed
employment oriented sectors:
to be set up;
i. 5 additional items for sports goods sector;
27. Excise duty reduced across the board by 4 per
ii. Additional items for leather garments and
cent, for all products except petroleum products
footwear and textile items.
and those products where current rate was less
21. Fringe Benefit Tax (FBT) abolished; than 4%. Excise Duty was further reduced by
22. Section 10A and 10B (Sunset clauses for STPI and another 2% on certain products like Leather etc.;
EOUs schemes respectively), extended for the 28. The guarantee cover under Credit Guarantee
financial year 2010–2011. Anomaly removed in Scheme for Micro and Small Enterprises on loans
Section 10AA relating to taxation benefit of ‘unit doubled to Rs. 1 Crore, with a guarantee cover
vis-à-vis assessee’; of 50%. The guarantee cover extended by Credit
23. Some pending issues relating to Service Tax Guarantee Fund Trust increased to 85% for credit
refund on exports—resolved. Some of these are: facility upto Rs. 5 lakh. The lock-in period for such
i. Exemption from Service tax on services collateral-free loans reduced.
linked to exports: 29. Adjustment Assistance Scheme, initiated in
(a) On service related to transport of December ’08 to provide enhanced ECGC cover
export goods by road form any CFS or at 95% to the badly hit sectors, continued till
ICD to the port or Airport and on service March, 2010;
related to transport of export goods by 30. To protect the domestic manufacturing industry
road directly from their place of removal, from dumped/cheap imports, in particular, from
to an ICD, a CFS, a port or airport; China, import restrictions imposed on some items
(b) Services provided by Foreign Agent like auto forged components, HR coil, Carbon
Commission service. Black, Polyester Filament Yarn (PFY) and Radial
Tyres (Bus & Trucks); subsequently withdrawn for
ii. Procedure for refund of service tax simplified
PFY, HR Coils and Carbon black.
by allowing refund on self certification,
in case refund claim does not exceed 31. Mega Handloom clusters in West Bengal and
0.25% of FOB value of exports; and Tamil Nadu and Powerloom cluster in Rajasthan
certification by Chartered Accountant in and New Mega clusters for carpets in Srinagar
case of others; and Mirzapur approved;
AT BANGALORE: Mr. A. Sakthivel, President, FIEO delivering the welcome address at Bangalore. On the dais, from left, Mr. Ajay
Sahai, Director General, FIEO; Mr. Amitabh Jain, Addl. DGFT; Mrs Lalitha John, Chief Commissioner of Customs, Bangalore; Mr.
K R Girish, President, Bangalore Chamber of Commerce & Industry; Mr. R.S.Gujral, DGFT; Dr Rahul Khullar, Commerce Secretary;
Mr. J Crasta, President, FKCCI; and Mr. Francis Antony, Regional Jt. DGFT, Bangalore.
AT CHENNAI: Dr. Rahul Khullar, Secretary, Ministry of Commerce addressing the participants. On the dais from left, Mr.
Ajay Sahai, Director General, FIEO; Mr. Amitabh Jain, Addl. Director General of Foreign Trade; Mr. Ajay Mittal, Development
Commissioner, MEPZ Special Economic Zone; Mr. Mahesh Desai, National Vice- Chairman, EEPC India; Mr. R.S. Gujral, Director
General of Foreign Trade; Mr. A. Sakthivel, President, FIEO; Mr. M. Rafeeque Ahmed, Past President FIEO; Mr. G.V. Nayak, Chief
Commissioner of Customs; and Mr. M. Saikumar, Additional Export Commissioner & Zonal Jt.DGFT.
1.10.1 Higher Support for Market and Product i. EPCG Scheme at Zero Duty has been
Diversification introduced for certain sectors like engineering
& electronic products, basic chemicals &
i. Incentive schemes under Chapter 3 have been
pharmaceuticals, apparels & textiles, plastics,
expanded by way of addition of new products
handicrafts, chemicals & allied products
and markets.
and leather & leather products (subject
27 new markets have been added under to exclusions as provided in HBP Vol. 1).
Focus Market Scheme. These include 16 The scheme shall be in operation till
new markets in Latin America and 11 in 31.3.2011.
Asia-Oceania.
ii. Jaipur, Srinagar and Anantnag recognised as
A large number of products from various ‘Towns of Export Excellence’ for handicrafts;
sectors including Engineering products, Kanpur, Dewas and Ambur recognised
value added Plastic products, Jute and for leather products; and Malihabad for
Sisal products, Technical Textiles, Green horticultural products.
Technology products, Project goods,
vegetable textiles, Electronic items etc. 1.10.3 Support for Green Products and Products from
have been included for benefits under FPS. North East
ii. The incentive available under Focus Market i. Focus Product Scheme benefit extended for
Scheme (FMS) has been raised from 2.5% export of ‘green products’; and for exports of
to 3%. some products originating from the North East.
iii. The incentive available under Focus Product 1.10.4 Status Holders
Scheme (FPS) has been raised from 1.25%
i. To accelerate exports and encourage
to 2%.
technological upgradation, additional Duty
iv. Market Linked Focus Product Scheme (MLFPS) Credit Scrips shall be given to Status Holders @
has been greatly expanded by inclusion of 1% of the FOB value of past exports for certain
products classified under more than 3600 specified sectors. This facility shall be available
ITC(HS) Codes at 8 digit level. Benefits to these for export upto 31.3.2011.
Dr. Rahul Khullar, Commerce Secretary (3rd from right) answering the questions raised by the exporters. On
his left are Mr. A. Sakthivel, President, FIEO; and Mr. M. Rafeeque Ahmed, Past President FIEO. On his right
are Mr. R.S. Gujral, DGFT; Mr. Mahesh Desai, National Vice- Chairman, EEPC; Mr. Ajay Mittal, Development
Commissioner, MEPZ Special Economic Zone; and Mr. Amitabh Jain, Addl.DGFT.
Sitting on the dais, the chief guest Mr. R.S. Gujral, DGFT(4th from left). On his right are Mr. J K Jain, Chairman, FIEO(NR); Mr
Amitabh Jain, Addl. DGFT; and Mr. Ajay Sahai, Director General, FIEO. On his left are Mr. R C Ralhan, Regional Chariman, EEPC
India; with other dignitaries.
iii. Three months time period allowed for iv. An Inter Ministerial Committee formed to
conversion of Shipping Bills from one Export redress/resolve problems/issues of exporters.
Mr. Ramesh Kumar Agarwal, Chairman, FIEO (ER) addressing the meeting. From right Mr. G Mohanty, President, Sea Food Exporters Association; Mr. P
Mallick, Director, Export Promotion & Marketing, Govt of Orissa, Mr. R S Gujral, DGFT, Mr. Saurav Garg, Industry Secretary, Govt of Orissa, Mr. Niranjan
Mohanty, President, Utkal Chamber of Commerce & Industry, Govt of Orissa; and Mrs. Debdatta Nandwani, DDG, FIEO (ER)
Mr. Jyotiraditya Scindia, Minister of State for Commerce & Industry, Chief Guest delivering the key note address. Thers on the dias are from left, Mr. Ajay
Sahai, Director General, FIEO; Mr. Ganesh Kumar Gupta, Immediate Past President, FIEO; Mr. S. K. Saraf, Vice President, FIEO; Mr. A. Sakthivel, President,
FIEO; Mr. Milind Deora, ember of Parliament; Mr. U. Venkatraman, Executive Director, MCXSX; and Mr. Suresh Kotak, Chairman, Kotak & Co.
Higher Incentive for Status holders is available in 1.17 Market Linked Focus Products [MLFPS]
the form of duty credit scrip equal to 10% of FOB
value of agricultural exports, limited to Rs. 100 To give significant boost to market penetration
Crore per annum, for products covered under ITC of specific product in specified markets, a variant
HS Chapters 1 to 24, to permit import of Capital under Focus Product Scheme called Market
Goods/equipments like Cold Storage Units; Pre- Linked Focus Products has been introduced from
cooling Units and Reefer Van/Containers etc. 1.4.2008. Export of products/sectors of high
export intensity/employment potential (which
1.15 Focus Market Scheme [FMS] are not covered under the FPS List) would be
incentivised at 2% of FOB value of exports (in
For offsetting high freight cost and other free foreign exchange) under FPS when exported
externalities to select international markets with a to the Linked Markets (countries), which are not
view to enhance India’s export competitiveness in covered in the present FMS List, as notified in
these countries, “Focus Market Scheme” has been Appendix 37D of HBPv1, for exports made from
launched w.e.f. 1.4.2006. Exporters of all products to 27.8.2009 onwards.
Mr. R S Gujral, DGFT addressing the participants. Others on the dais are from left, Mr. Ajay Sahai, Director General, FIEO; Mr. G K Gupta, mmediate
Past President, FIEO; Mr. B K Sinha, Commissioner Exports, JNPT; Mr. S K Saraf, Vice President, FIEO; and Mr. R Tiwari, Commissioner Imports, Mumbai
Custom House.
From left Mr. A N Mishra,Jt. DGFT, Ahmedabad; Mr. Raju Ahuja, Commissioner of Service Tax, Ahmedabad; Mr. Ajit Kumar, Chief Commissioner of
Central Excise, Ahmedabad; Mr. S K Saraf, Vice President, FIEO; Ms. Lipika Majumdar Roychoudhary, Commissioner of Customs, Ahmedabad; and Mr.
Deepak Chiripal, Director, Chiripal Group of Industries
x. Import of motor car, sports utility vehicles/all 1.20.2 Export Obligation (EO) Conditions under EPCG
purpose vehicles is allowed only to hotels, Scheme
travel agents, tour operators or tour transport
i. EO to be fulfilled by export of goods
operators and companies owning/operating
manufactured/service rendered by applicant.
golf resorts whose total foreign exchange
earning from their respective sectors in the ii. Upto 50% of EO may be fulfilled by exports
current and preceding three licensing years is of other goods manufactured or services
Rs. 1.5 Crore or more. provided by the same firm/ company/ group
companies.
xi. Vehicles imported under EPCG Scheme are
to be so registered that the vehicles are used iii. Exports shall be physical exports. Certain
for tourist purpose only. Parts of cars, such deemed exports will also be counted towards
as chassis, cannot be imported under EPCG fulfillment of EO.
Scheme. iv. The export obligation under the Scheme shall
xii. EPCG Authorization can also be issued for be over and above, the average level of exports
import of capital goods under Scheme for achieved by the EPCG authorisation holder in
the preceding three licensing years for the
Project Imports notified by the Central Board
same and similar products within the overall
of Excise and Customs under S. No.441 of
export obligation period including extended
Customs Exemption Notification No.21/2002
period, other than the categories exempted
dated 01.03.2002. Export obligation for such
for this purpose.
EPCG authorizations would be eight times of
duty saved. Duty saved would be the difference v. No average EO condition for certain sectors
between the effective duty under aforesaid like handicraft, handlooms, cottage, tiny sector,
Customs Notification and concessional duty agriculture, aqua-culture, animal husbandry,
under the EPCG Scheme. floriculture, horticulture, pisciculture, poultry
and sericulture.
xiii. The scope of the EPCG scheme has been
extended to Common Service Providers (CSP) vi. Extension in EO period may be granted for a
who are designated/certified as a Common period of 2 years +2 years subject to certain
service Providers by the DGFT, Department of conditions specified in Para 5.1 of HBP.
Commerce or State Infrastructural Corporation vii. For BIFR units, EO period may be extended as
in a Town of Export Excellence. per BIFR package or 12 years, if not specified by
xiv. A person holding an EPCG licence may BIFR. Import of Capital Goods shall be subject
source the capital goods from a domestic to Actual User Condition till EO is completed.
manufacturer instead of importing them. viii. Capital Goods imported (excepting tools) for
The domestic manufacturer supplying CG to manufacturing of export products relating to
EPCG authorisation holder shall be eligible for handicraft, handlooms, cottage, tiny sector,
deemed export benefits under Para 8.3 of the agriculture, aqua-culture, animal husbandry,
Policy. floriculture, horticulture, pisciculture, poultry
xv. EPCG licence may be issued for retail sector for and sericulture are not transferable for a period
import of capital goods required by the retailer of five years from date of import even if EO is
to create modern infrastructure in the retail fulfilled. However, transfer of capital goods is
sector. allowed within group companies within five
4. Import of Electrical Energy made restricted. 1.28.2 All India Scenario: To understand the performances
(Notification No. 7, dated 8.9.2009) of export promotion schemes, Directorate General
of Foreign Trade (DGFT) brings out annually a
5. Import of the items Carbon black, Polysters and
publication viz; ’Abstract of approvals’ depicting
Flat-rolled products of iron or non-alloy steel
trends on authorisation issued under various export
made free. (Notification No. 8, dated 9.9.2009
promotion and duty neutralization schemes under
and Notification No. 23, dated 8.1.2010)
Foreign Trade Policy by different Port Offices.
6. Import of wild animals (including their parts
and products) in respect of those species listed 1.28.3 During the period April-December,2009, a total of
in CITES made subject to the provisions of 1,48,183 import authorizations valuing Rs. 1,01,032
CITES. (Notification No. 13, dated 14.10.2009) Crore(CIF) were issued. Of these 83,787 authorisations
valuing Rs. 5,881 Crore as duty credit were issued under
7. The prohibition on import of milk and milk
DEPB scheme and the remaining 64,396 authorisations
products from China extended for a period
valuing Rs. 95,151 Crore as CIF were issued under
of six months with effect from 24.12.2009.
schemes other than DEPB.
(Notification No. 22, dated 23.12.2009)
8. Import of toys made free subject to certificate 1.28.4 During the same period of last year, a total of 1,40,052
of conformance of prescribed standards. import authorizations valuing Rs. 1,20,745 Crore
(Notification No. 27, dated 27.1.2010) (CIF) were issued, of which 82,391 authorisations
valuing Rs. 5,558 Crore as duty credit were issued
9. Import of new vehicles permitted through the
under DEPB Scheme and the remaining 57,661
Customs port at Mumbai Air Cargo Complex,
authorisations valuing Rs. 1,15,187 Crore as CIF were
Chennai Airport and ICD Talegaon, Pune.
issued under schemes other than DEPB.
(Notification No. 30, dated 10.2.2010)
This represents an increase of 6 per cent in numbers
1.28 Trends of authorisations issued under Export and decline of 16 per cent in the value during April-
Promotion & Duty Neutralization Schemes of December, 2009 over the same period of last year.
Foreign Trade Policy during the period.April- (Ref. Appendix-I)
December 2009
1.29 Office-wise licensing activities
1.28.1 In order to promote exports, various exports
promotion schemes such as Duty Exemption/ Office-wise licensing statistics for the period April-
Remission Schemes, Export Promotion Capital Goods December,2009 reveal that ten major offices namely
ii. Duty Entitlement Pass Book Scheme (DEPB): DEPB Concessional 3 % Duty EPCG Scheme : Concessional
is towards neutralization of basic customs duty on 3% duty EPCG scheme allows import of capital goods
the inputs. DEPB is a transferable instrument and easy for pre-production, production and post-production
to operate which makes it more popular among the at 3%customs duty, subject to an export obligation
exporters, which is evident from the fact that about equivalent to 8 times of duty saved on capital goods
57 per cent of total authorisation issued are from this imported under EPCG scheme to be fulfilled over a
category. period of 8 years reckoned from the date of issuance
During the period, 2,448 authorisations having CIF Under the scheme, 21,343 authorisations
value of Rs. 6,577 Crore and FOB value of Rs. 8,229 having CIF value of Rs. 2,178 Crore were issued
Crore were issued under the Scheme. during the reference period, whereas 14,187
authorisations having CIF value of Rs. 1,740 Crore
v. Served from India Scheme (SFIS): The objective of
were issued during the corresponding period of
the scheme is to accelerate the growth in export of
last year.
services so as to create a powerful and unique ‘served
from India’ brand, instantly recognized and respected x. Focus Market Scheme (FMS): The objective of
world over. This is also one of the sub-categories of the scheme is to offset high freight cost and other
Duty Remission Scheme. externalities to select international markets with a
view to enhance India’s export competitiveness in
During the period under reference, 862 authorisations
these countries.
valuing Rs. 999 Crore were issued under this scheme.
vi. Diamond, Gem & Jewellery Export Promotion During April- December, 09, 4468 authorisations
Scheme: Exporters of gems and jewellery can having CIF value of Rs. 337 Crore were issued under
import/procure duty free inputs required for the scheme, whereas during the same period of last
manufacturing of gems and jewellery items under year 2913 authorisations having Rs. 238 Crore CIF
this scheme. value were issued.
During the period, only 35 authorisation valuing xi. Focus Product Scheme (FPS): Objective of the
Rs. 8 Crore and export obligation of Rs. 86 Crore were scheme is to incentivise export of such products
issued. When compared with the previous year, there which have high export intensity/employment
is a decline of 20 per cent in numbers and 19 per cent potential, so as to offset infrastructure inefficiences
in value . and other associated costs involved in marketing of
these products.
vii. Negative list of Import items: During the reference
period, 1,226 authorisations for negative lists of import During April–December, 09, 7083 authorisations
items valuing Rs. 13,265 Crore were issued, which having CIF value of Rs. 311 Crore were issued under
represents an increase of 76 per cent in numbers and the scheme, whereas during the same period of last
216 per cent in terms of value respectively over the year 4982 authorisations having Rs. 163 Crore CIF
corresponding period of last year. value were issued. (Ref. Appendix-I)
Advance authorisation 15122 10.8% 87204 108915 13547 9.1% 53802 101781 -10.4% -38.3% -6.6%
DEPB-Post Export 82391 58.8% 5558 121141 83787 56.5% 5881 119817 1.7% 5.8% -1.1%
DFRC for Deemed Export 8 0.0% 4 6 7 0.0% 2 3 -12.5% -42.0% -48.3%
Served from India scheme 605 0.4% 589 0 862 0.6% 999 0 42.5% 69.6%
DFCE for Status Holder 68 0.0% 217 0 47 0.0% 41 0 -30.9% -80.9%
Duty Free Import Authorisation 3062 2.2% 7137 9892 2448 1.7% 6577 8229 -20.1% -7.9% -16.8%
(DFIA)
Duty Free Replenishment 65 0.0% 22 33 32 0.0% 315 395 -50.8% 1329.5% 1113.9%
Certificate
Import licence for negative list 696 0.5% 4203 0 1226 0.8% 13265 0 76.1% 215.6%
of import items
Target Plus Scheme 341 0.2% 212 0 160 0.1% 74 0 -53.1% -65.1%
Focus Market Scheme 2913 2.1% 238 11495 4468 3.0% 337 14184 53.4% 41.8% 23.4%
Focus Product Scheme 4982 3.6% 163 12847 7083 4.8% 311 17872 42.2% 91.0% 39.1%
Vishesh Krishi and Gram Udyog 14187 10.1% 1740 48865 21343 14.4% 2178 130567 50.4% 25.2% 167.2%
Yojana
EPCG Concessional Duty 03% 15568 11.1% 13449 109784 11744 7.9% 8761 73175 -24.6% -34.9% -33.3%
Appendix-II
NUMBER AND VALUE OF VARIOUS CATEGORIES OF AUTHORISATIONS ISSUED DURING APRIL–MARCH 2009 AND
ITS COMPARISION WITH AUTHORISATIONS ISSUED DURING APRIL–MARCH 2008
2007–2008 2008–2009 Growth April–March 2009 over April–March
2008
April 2007 to March 2008 April 2008 to March 2009
Category Number Share to CIF/Duty FOB Number Share to CIF/Duty FOB (Rs Number CIF/Duty FOB (Rs
the total credit (Rs Crore) the total credit (Rs Crore) credit (Rs Crore)
number (Rs Crore) number Crore) Crore)
Advance authorisation 24375 15.6% 136015 161706 19146 10.1% 104333 132997 -21.5% -23.3% -17.8%
DEPB-Post Export 92920 59.4% 5499 129464 112764 59.3% 7713 168745 21.4% 40.3% 30.3%
DFRC for Deemed Export 74 0.0% 70 113 9 0.0% 4 6 -87.8% -94.0% -94.5%
Served from India scheme 1041 0.7% 1233 0 785 0.4% 736 0 -24.6% -40.3%
DFCE for Status Holder 204 0.1% 686 0 97 0.1% 256 0 -52.5% -62.7%
Duty Free Import Authori- 4345 2.8% 9145 11817 3815 2.0% 8779 11856 -12.2% -4.0% 0.3%
sation (DFIA)
Duty Free Replenishment 760 0.5% 266 401 67 0.0% 26 38 -91.2% -90.1% -90.4%
Certificate
Import licence for negative 839 0.5% 5259 0 1154 0.6% 7853 0 37.5% 49.3%
list of import items
Target Plus Scheme 1274 0.8% 1009 0 472 0.2% 335 0 -63.0% -66.8%
Focus Market Scheme 786 0.5% 55 2738 4285 2.3% 347 17696 445.2% 528.8% 546.2%
Focus Product Scheme 1221 0.8% 49 4970 6354 3.3% 215 16774 420.4% 338.2% 237.5%
Vishesh Krishiand Gram 8778 5.6% 549 12518 21339 11.2% 2676 73887 143.1% 387.2% 490.3%
Udyog Yojana
EPCG Concessional Duty 19684 12.6% 16225 136922 19931 10.5% 17038 138441 1.3% 5.0% 1.1%
03%
Gem & Jewellery 72 0.0% 18 114 54 0.0% 11 227 -25.0% -40.6% 99.5%
TOTAL 156373 100% 176081 460762 190272 100% 150324 560667 21.7% -14.6% 21.7%
29
Authorisations issued
FOB Rs.(Crore) of Authorisations issued during April 2007 – March 2008
30
Type of Licence CASHEW CELLULOS- CHEMICAL CINEMAT- COIR COTTON ELEC- ENGI- FISH AND FOOD Gem & GEM AND HANDI- LEATHER NATURAL NATURAL PLASTICS SPORTS STAINLESS TEXTILES- TOBACCO WOOLEN MISCEL- None TOTAL
KERNALS IC/NON/ AND OGRAPH PRODUCTS TEXTILES TRONICS NEERING FISH PRODUCTS Jewel JEWEL- CRAFTS AND AND SILK STEEL GENERAL AND TEXTILES LANEOUS
MIXED ALLIED FILMS PRODUCTS PRODUCTS LERY LEATHER FABRIC TEXTILES PRODUCTS TOBACCO PRODUCTS
TEXTILES PRODUCTS EXPOSED PRODUCTS PRODUCTS PRODUCTS
Advance Licence/ authorisation 0 0 91739 0 0 0 572 54806 12 1067 0 486 11 172 0 0 7572 1 0 3419 0 0 912 937 161706
DEPB-Post Export 21191 1304 53730 7447 6259 26 420 3080 1 0 13192 22813 1 129464
DFRC for Deemed Export 21 73 4 14 2 113
Served from India scheme 0 0 0
DFCE for Status Holder 0 0 0
Duty Free Import Authorisation 3781 64 3825 1176 664 594 438 999 140 136 11817
(DFIA)
Duty Free Replenishment Certificate 57 4 69 79 15 19 0 23 133 2 401
Import licence for negative list of 0 0 0
import items
Target Plus Scheme 0 0 0
31
Authorisations issued
FOB Rs. (Crore) of Authorisations issued during April 2008 – December 2008
32
Type of Licence CASHEW CEL- CHEMI- CINEMAT- COIR COTTON ELEC- ENGI- FISH FOOD Gem & GEM HANDI- LEATHER NATURAL NATURAL PLAS- SPORTS STAIN- TEX- TOBACCO WOOLEN MISCEL- None TOTAL
KERNALS LULOSIC/ CAL AND OGRAPH PROD- TEXTILES TRONICS NEERING AND PROD- Jewel AND CRAFTS AND AND SILK TICS LESS TILES- AND TEX- LANEOUS
NON/ ALLIED FILMS UCTS PROD- FISH UCTS JEWEL- LEATHER FABRIC TEXTILES STEEL GENERAL TOBACCO TILES PROD-
MIXED PROD- EXPOSED UCTS PROD- LERY PROD- PROD- PROD- PROD- UCTS
TEXTILES UCTS UCTS UCTS UCTS UCTS UCTS
Advance Licence/ authorisation 0 0 44859 0 0 0 791 51492 6 1024 0 141 3 134 0 0 8125 0 0 1995 0 0 332 13 108915
DEPB-Post Export 23075 1090 41874 5411 12040 24 375 3201 0 0 9032 25017 0 121141
DFRC for Deemed Export 0 5 0 6
Served from India scheme 0 0 0
DFCE for Status Holder 0 0
Duty Free Import Authorisation 1893 47 5174 443 702 375 350 749 158 9892
(DFIA)
Duty Free Replenishment 8 2 1 11 2 8 33
Certificate
Import licence for negative list of 0 0 0
import items
Target Plus Scheme 0 0
Focus Market Scheme 52 11443 11495
Focus Product Scheme 109 12738 12847
Vishesh Krishi and Gram Udyog 178 48687 48865
33
Authorisations issued
FOB Rs. (Crore) of Authorisations issued during April 2008 – March 2009
34
Type of Licence CASHEW CEL- CHEMI- CINEMAT- COIR COTTON ELEC- ENGI- FISH FOOD Gem & GEM HANDI- LEATHER NATURAL NATU- PLAS- SPORTS STAIN- TEX- TOBACCO WOOLEN MISCEL- None TOTAL
KER- LULOSIC/ CAL AND OGRAPH PROD- TEXTILES TRONICS NEERING AND PROD- Jewel AND CRAFTS AND AND RAL SILK TICS LESS TILES- AND TEXTILES LANEOUS
NALS NON/ ALLIED FILMS UCTS PROD- FISH UCTS JEWEL- LEATHER FABRIC TEXTILES STEEL GENERAL TOBACCO PROD-
MIXED PROD- EXPOSED UCTS PROD- LERY PROD- PROD- PROD- PROD- UCTS
TEXTILES UCTS UCTS UCTS UCTS UCTS UCTS
Advance Licence/authorisation 0 0 51509 0 0 0 849 65303 14 2380 0 455 10 151 0 0 9442 0 0 2428 0 0 443 13 132997
DEPB-Post Export 31432 1491 57715 7941 17277 28 548 4469 0 0 12858 34986 0 168745
DFRC for Deemed Export 0 5 0 0 6
Served from India scheme 0 0 0
DFCE for Status Holder 0 0
Duty Free Import Authorisation 2651 46 5568 526 1114 420 395 941 195 11856
(DFIA)
Duty Free Replenishment 8 7 1 11 2 8 38
Certificate
Import licence for negative list of 0 0 0
import items
Target Plus Scheme 0 0
35
Authorisations issued
FOB Rs.(Crore) of Authorisations issued during April 2009 – December 2009
36
Type of Licence CASHEW CEL- CHEMI- CIN- COIR COTTON ELEC- ENGI- FISH AND FOOD Gem & GEM AND HANDI- LEATHER NATURAL NATURAL PLASTICS SPORTS STAIN- TEX- TOBACCO WOOLEN MISCEL- None TOTAL
KERNALS LULOSIC/ CAL AND EMATO- PROD- TEXTILES TRONICS NEERING FISH PROD- Jewel JEWEL- CRAFTS AND AND SILK LESS TILES- AND TEXTILES LANEOUS
NON/ ALLIED GRAPH UCTS PROD- PROD- UCTS LERY LEATHER FABRIC TEXTILES STEEL GENERAL TOBACCO PROD-
MIXED PROD- FILMS UCTS UCTS PROD- PROD- PROD- PROD- UCTS
TEXTILES UCTS EXPOSED UCTS UCTS UCTS UCTS
Advance Licence/authorisation 0 0 55994 0 0 0 483 36202 120 1301 0 116 4 91 0 0 5170 0 0 1820 0 0 480 0 101781
DEPB-Post Export 24626 1092 37377 6389 9278 24 676 3343 0 15402 21610 0 119817
DFRC for Deemed Export 3 3
Served from India scheme 0 0 0
DFCE for Status Holder 0 0
Duty Free Import Authorisation 1599 0 3363 640 794 409 334 985 105 8229
(DFIA)
Duty Free Replenishment 1 391 1 2 395
Certificate
Import licence for negative list of 0 0 0
import items
Target Plus Scheme 0 0 0
37
Appendix-VII
38
RA-WISE SUMMARY OF VARIOUS AUTHORISATIONS ISSUED FOR THE PERIOD APRIL 2007– March 2008
CIF/Duty Credit Rs. (Crore) OF VARIOUS AUTHORISATIONS ISSUED DURING APRIL 2007 –March 2008
Type of Licence Advance au- DEPB-Post DFRC for Served from Duty Free Duty Free Re- Import licence EPCG Conces- Replenish- DFCE for sta- Target plus Vishesh Krishi Focus Market Focus Product Total
thorisation Export Deemed Export India scheme Import plenishment for negative sional Duty ment Licence tus Holder scheme and Gram Scheme Scheme
Authorisation Certificate list of import 03% Udyog Yojana
(DFIA) items
39
TOTAL 161705 129463 113 0 11817 401 0 136921 114 0 0 12517 2738 4969 460758
Appendix-VIII
40
RA-WISE SUMMARY OF VARIOUS AUTHORISATIONS ISSUED FOR THE PERIOD APRIL 2008– March 2009
NUMBER OF VARIOUS AUTHORISATIONS ISSUED DURING APRIL 2008 - March 2009
Type of Licence Advance au- DEPB-Post DFRC for Served from Duty Free Duty Free Re- Import licence EPCG Conces- Replenish- DFCE for sta- Target plus Vishesh Krishi Focus Market Focus Product Total
thorisation Export Deemed Export India scheme Import plenishment for negative sional Duty ment Licence tus Holder scheme and Gram Scheme Scheme
Authorisation Certificate list of import 03% Udyog Yojana
(DFIA) items
Kolkata 798 10584 0 9 412 6 24 986 0 1 27 2003 164 882 15896
Mumbai 6462 37494 1 193 1537 30 214 3040 49 35 126 4176 1561 382 55300
Chennai 1107 6047 0 40 63 3 75 1246 2 0 1 886 84 629 10183
New Delhi 2113 15835 0 368 327 2 279 2785 0 0 120 1885 670 941 25325
Kanpur 211 485 0 1 155 0 30 430 0 0 3 84 88 1177 2664
Bangalore 2058 4294 1 21 466 1 52 1050 1 0 2 871 34 38 8889
Ahmedabad 1333 5407 1 30 205 6 29 466 0 25 25 1108 171 0 8806
Hyderabad 986 2784 0 35 133 1 15 826 0 0 5 159 215 9 5168
Cochin 258 2434 0 6 3 6 4 216 0 1 5 1316 25 71 4345
Bhopal 336 1584 0 5 4 0 9 329 0 34 82 897 32 1 3313
Amritsar 51 360 0 0 12 0 1 104 0 0 0 176 5 1 710
41
TOTAL 104332 7712 4 736 8778 26 7853 17037 11 256 335 2676 347 215 150319
Appendix-VIII
42
RA-WISE SUMMARY OF VARIOUS AUTHORISATIONS ISSUED FOR THE PERIOD APRIL 2008– March 2009
FOB VALUE Rs. (Crore) OF VARIOUS AUTHORISATIONS ISSUED DURING April 2008– March 2009
Type of Licence Advance au- DEPB-Post DFRC for Served from Duty Free Duty Free Re- Import licence EPCG Conces- Replenish- DFCE for sta- Target plus Vishesh Krishi Focus Market Focus Product Total
thorisation Export Deemed Export India scheme Import plenishment for negative sional Duty ment Licence tus Holder scheme and Gram Scheme Scheme
Authorisation Certificate list of import 03% Udyog Yojana
(DFIA) items
Kolkata 8785 17917 0 0 2355 11 0 11197 0 0 0 5134 748 2684 48833
Mumbai 45841 48529 0 0 4125 12 0 43589 14 0 0 14367 5009 1251 162737
Chennai 7069 7383 0 0 65 3 0 6374 72 0 0 3482 429 2684 27561
New Delhi 19539 23349 0 0 1349 1 0 40409 0 0 0 8214 5948 2785 101594
Kanpur 802 628 0 0 391 0 0 260 0 0 0 193 128 3763 6164
Bangalore 5249 5988 0 0 618 0 0 3383 50 0 0 2991 133 167 18580
Ahmedabad 3286 7299 0 0 1147 1 0 1429 0 0 0 5527 323 0 19012
Hyderabad 7922 6352 0 0 400 6 0 2946 0 0 0 521 949 22 19117
Cochin 1384 3057 0 0 10 2 0 899 0 0 0 3500 39 128 9019
Bhopal 2727 4053 0 0 3 0 0 1329 0 0 0 9882 76 4 18075
Amritsar 57 746 0 0 48 0 0 98 0 0 0 177 5 3 1134
43
Appendix-IX
44
RA-WISE SUMMARY OF VARIOUS AUTHORISATIONS ISSUED FOR THE PERIOD APRIL 2009– December 2009
CIF/DUTY CREDIT VALUE Rs. (Crore) OF VARIOUS AUTHORISATIONS ISSUED DURING APRIL 2009 – December 2009
Type of Advance DEPB-Post DFRC for Served Duty Free Duty Free Import EPCG Con- Zero Replen- DFCE for Target Vishesh Focus Focus Total
Licence authorisa- Export Deemed from India Import Replen- licence cessional duty EPCG ishment status plus Krishi Market Product
tion Export scheme Authorisa- ishment for nega- Duty 03% Scheme Licence Holder scheme and Gram Scheme Scheme
tion (DFIA) Certificate tive list Udyog
of import Yojana
items
Kolkata 3404 474 0 1 848 0 207 711 1754 0 0 4 169 13 22 7608
Mumbai 19002 1964 2 541 2612 297 3025 2107 1261 7 22 38 545 129 23 31576
Chennai 3788 268 0 35 142 0 292 317 826 0 13 10 68 9 48 5817
New Delhi 3768 739 0 299 1320 0 4288 1572 2003 0 0 9 300 74 61 14433
Kanpur 224 38 0 0 291 0 88 18 58 0 0 0 9 3 32 760
Bangalore 2497 170 0 23 337 0 201 123 207 0 0 0 108 6 5 3677
Ahmedabad 1383 235 0 31 374 0 101 817 162 0 6 8 108 9 3 3239
Hyderabad 5707 220 0 57 155 13 184 271 859 0 0 0 11 10 0 7486
Cochin 412 130 0 2 3 0 33 58 0 0 0 0 114 0 2 754
45
TOTAL 101780 119816 3 0 8229 395 0 73174 9732.19 86 0 0 130567 14184 17872 475839
Chart 1
80000
70000
60000
Number
50000
40000
30000
20000
10000
0
Advance DEPB DFIA VKGUY EPCG
2008–09 2009–10
Chart 2
Comparative Picture of Value of Authorisations Issued during April–December, 2009
Chart – 2
vs. April–December, 2008
100000
90000
80000
70000
60000
Rs. Crore
50000
40000
30000
20000
10000
0
Advance DEPB DFIA VKGUY EPCG
2008–09 2009–10
Others Advance
10% 9%
EPCG
8%
VKGUY
14%
DEPB
DFIA 57%
2%
Chart 4
Percentage Share of Value of Authorisations by Category Issued during
Chart – 4 April–December, 2009
Others
24%
Advance
52%
EPCG
9%
VKGUY
2%
DEPB
DFIA 57%
7%
Ludhiana
5% Pune
4% Coimbatore
3%
Kolkata
10%
Hyderabad
3%
Ahmedabad
6%
Mumbai
40%
Bangalore
5%
New Delhi
17%
Chennai
7%
Chart 6
Hyderabad Kolkata
9% 9%
Ahmedabad
4%
Mumbai
42%
Bangalore
4% Chennai
7%
New Delhi
17%
2.1.10 Europe: A Sluggish Recovery Lies Ahead: Recent 2.1.13 Commonwealth of Independent States: The economic
data from Europe suggest that the pace of decline fallout of the global crisis on the CIS has been intense
is moderating. In the second quarter of 2009, Euro and is weighing heavily on the region’s economic
countries GDP contracted less than previously outlook. A sharp contraction in Russia, on top of the
expected, with France and Germany posting positive effects of the global recession and financial crisis,
growth and the United Kingdom registering a more has led to painful adjustments in lower-income net
moderate decline. Although contraction continues in energy importers in the region. With many of these
much of emerging Europe, Poland recorded positive economies still dependent on Russia for remittances
growth in both the first and second quarters. Even so, and export earnings, the crisis depressed domestic
the rebound in Europe is likely to be slow. Financial demand, upended credit booms, and in some cases
market conditions in the region have improved. shut down access to foreign capital markets. Lower-
income CIS economies have seen a large fall in activity
2.1.11 The output decline across the region was driven by a accompanied by currency devaluations (Armenia,
combination of falling domestic demand—especially Kyrgyz Republic, Tajikistan). Many economies had
investment—and shrinking trade within the tightly previously enjoyed rapid growth based on foreign-
integrated region, with individual economies financed credit booms and buoyant domestic
suffering to varying extents depending largely on demand supported by remittance income.
their precrisis imbalances. Abrupt reversals of asset
price booms, especially in real estate, caused sharp 2.1.14 The crisis is taking a particularly sharp toll in Ukraine,
falls in activity in Ireland, Spain, the United Kingdom, which is a major steel exporter and borrower in
and a number of other economies, including some international markets and now receives IMF support.
Energy exporters in the CIS fared comparatively Europe and the United States. Without this regional
better, with the recovery of energy prices, and growth growth locomotive, the lower-income, non-
slowed only moderately during the first half of 2009. oil-exporting CIS economies (Armenia, Kyrgyz
The path toward recovery will be difficult for most Republic, Moldova, Tajikistan) are expected to
CIS economies. Russia is projected to experience a experience steep growth declines in 2009 followed
deep recession in 2009, with GDP contracting by in 2010 by a modest recovery—growth of less than
7.5 per cent, followed by a tentative recovery 3 per cent. The recession is expected to be very
in 2010, helped by expansionary fiscal policy, deep for Ukraine, which continues to struggle for
improving commodity prices, and recovery in external financing.
2.2.4 Food: In 2008, prices of food increased by 23.3 per 2.2.8 Chemicals: World exports of chemicals shrank by
cent, comparable only to 1974 when both demand 10 per cent in the last quarter of 2008 and 23 per
and supply factors pushed prices up drastically. World cent in the first quarter of 2009. The downturn for
exports of food grew by 21.8 per cent in 2008. While pharmaceutical products was less abrupt than
food exporters benefited – Thailand’s rice exports, for other chemicals. In the last quarter of 2008,
for example, increased 65 per cent and EU exports of pharmaceuticals were one of the rare products with
wheat outside the European Union expanded by 180 a positive, though marginal, growth rate ( 1 per cent).
per cent. Among all chemical products, they experienced
Asia
25%
Chart 8
Chart – 8 Share of Imports from Various Regions in the World – 2008
Asia
24%
Africa
CIS countries
3%
3%
Volume of World Merchandise Trade by Selected Region, 2003 – 2008 and Estimated value
Chart – 9 for 2009, 2010
15
10
10
5
5
0
0
-5
-5
-10
-10
-15 -15
2003 2004 2005 2006 2007 2008 2009 2010 2003 2004 2005 2006 2007 2008 2009 2010
10 15
5 10
0 5
-5 0
-10 -5
-15 -10
-20 -15
2003 2004 2005 2006 2007 2008 2009 2010 2003 2004 2005 2006 2007 2008 2009 2010
10 15
5
10
0
5
-5
0
-10
-15 -5
-20 -10
2003 2004 2005 2006 2007 2008 2009 2010 2003 2004 2005 2006 2007 2008 2009 2010
60000
10
50000
0
40000
(Rs. Crore)
-10
30000
-20
20000
-30
10000
0 -40
ts
s
ry
ts
ry
cs
.
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April-Sept. 09 % Growth
Chart 11
Petroleum Products
14%
Chemicals
9%
Man made textiles Electronics
2% 4% Readymade garments Transport equipments
6% 6%
Metals
3% Machinery
6%
1109
1100
1000
940
906.3
900 745.4
800
(Rs. Hundred Crore)
700
620
525.8
600
534
493
452.6
500
405.7
400
300
216
171.0
165
200
115.8
130
83.7
77.8
69.2
80
49.1
37.8
70
100
69
27.8
43
43
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(Rs. Crore)
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um
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April-Sept. 09 % Growth
UAE
14%
USA
11%
Others
45%
China PRP
5%
Hongkong
5%
Belgium Singapore
2% 4%
Netherland
Saudi Arab Germany 4%
3% 3% UK
4%
200000 0
180000
-10
160000
140000
-20
120000
100000 -30
(Rs. Crore)
80000
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40000
-50
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L
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Chart 16
ec
Pr
sp
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El
an
&
n-
ls
Tr
No
ar
Pe
April-Sept. 09 % Growth
Chart – 16 Percentage share of Imports of Top Ten Commodities during April–September 2009
POL
30%
Others
Transport Equipment 24%
2%
3000
2800
2562
2600
2400
2200
2000
(Rs. Hundred Crore)
1636
1800
1423
1600
1188
1400
1058
1200
1000
816
800
624
577
487
600
438
404
322
294
274
263
400
205
203
181
165
153
132
200
46
38
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Chart 18
Ot
Ot
30
70000
20
60000
10
50000
0
(Rs. Crore)
40000 -10
-20
30000
-30
20000
-40
10000
-50
0 -60
A
LIA
A
A
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IA
ND
AN
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U.
KO
AR
RM
ST
R
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D
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I
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UD
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IT
SW
SA
April-September 09 % Growth
Chart – 19 Percentage share of Import from Top Ten Countries during April – September 2009
CHINA US A
Others 12% 6%
47%
U.A.E.
6%
SAUDI ARABIA
6%
IRAN
5%
KOREA
3%
SWITZERLAND
GERMANY AUSTRALIA 4%
INDONESIA 4% 4%
3%
Chart – 20 India's Export & Import and Trade Balance from 1999–2000 to April–Sept. 2009
1500000
1000000
500000
Rs. Crore
-500000
-1000000
0
)
(P
–0
–0
–0
–0
–0
–0
–0
–0
–0
–0
09
99
00
01
02
03
04
05
06
07
08
20
19
20
20
20
20
20
20
20
20
20
.
pt
Se
r.-
Ap
Exports & Re-exports Imports Trade Balance
Chart 21
Chart – 21 Rate of Growth of Export & Import from 1999–2000 to April–Sept. 2009
40
35
30
Percentage Growth
25
20
15
10
0
00
01
02
03
04
05
06
07
08
09
P)
9(
–
–
99
00
01
02
03
04
05
06
07
08
00
19
20
20
20
20
20
20
20
20
20
.2
pt
Se
r.-
Ap
3.1 Organisational Set – up exports. The DGFT also issues licences to exporters
and monitors their corresponding obligations
Directorate General of Foreign Trade (DGFT) through a net work of 35 regional offices.
Organization, is an attached office of the Ministry of The regional offices are located as given in the
Commerce and Industry and is headed by Director table.
General of Foreign Trade. Right from its inception till
1991, when liberalization in the economic policies All regional offices provide facilitation to exporters
of the Government took place, this organization in regard to developments in International Trade i.e.
has been essentially involved in the regulation WTO agreements, Rules of Origin and anti-dumping
and promotion of foreign trade through means of issues, etc, to help the exporters in their import
facilitation. Keeping in line with liberalization and and export decisions in an internationally dynamic
globalization and the overall objective of increasing environment.
of exports, DGFT is assigned the role of “facilitator”.
The shift was from prohibition and control of 3.2 Staff Strength
imports/exports to promotion and facilitation of
exports/imports. 3.2.1 Staff Strength of the DGFT Organization (including
its different Port Offices) was 1736 as on 31.12.2009.
This Directorate, with headquarters at New Delhi, is On comparing with previous year’s strength of
headed by the Director General of Foreign Trade. It employees, an overall decrease of 1.02 per cent was
is responsible for implementing the Foreign Trade noticed during the period under reference. In Group
Policy with the main objective of promoting India’s A 1.68% and Group B 1.85% increase was registered.
In Group C 3.22% and Group D 1.04% decrease
1 Ahmedabad 2 Amritsar 3 Bangalore
was registered. The following statement shows
4 Bhopal 5 Chennai 6 Chandigarh
strength of employees in DGFT Organization as on
7 Cuttack 8 Coimbatore 9 Dehradun
10 Ernakulam 11 Guwahati 12 Hyderabad
31.12.2009.
13 Jaipur 14 Kanpur 15 Kolkata
S. Group Strength of Strength of %
16 Ludhiana 17 Madurai 18 Moradabad No. Employee as Employee as on change
19 Mumbai 20 New Delhi 21 Nagpur on 1.1.2009 31.12.2009
22 Panipat 23 Panaji 24 Patna 1 A 119 121 1.68
25 Pune 26 Pudducherry 27 Raipur 2 B 270 275 1.85
28 Rajkot 29 Jammu 30 Surat 3 C 1026 993 -3.22
31 Shillong 32 Thiruvananthapuram 33 Varanasi 4 D 360 347 -1.04
34 Vadodara 35 Vishakhapatnam Total 1775 1736 -1.02
4.1 The Enforcement-cum-Adjudication Division at the interests of the person engaged in imports
the Headquarters deals with investigation and or exports.
disposal of trade disputes, adjudication of cases
v. Adjudication of cases of violation of Foreign Trade
of violation of FT(DR) Act, 1992/Foreign Trade
Policy/procedure and imposition of appropriate
Policy and regulation of fraud, complaints and
fiscal penalty;
intelligence related activities taken up by the DGFT
Headquarters. Enforcement–cum-Adjudication vi. To interact and co-ordinate with all the external
powers are also exercised by Regional Offices of investigating agencies.
DGFT in accordance with powers delegated between vii. Centralised work pertaining to DEL.
DGFT Headquarters and Regional Offices through
statutory orders under Foreign Trade (Development viii. To co-ordinate with the ECA Divisions of Zonal/
& Regulation) Act, 1992. Regional offices as well as different Divisions at
the Headquarters.
4.2 Main Items of Work of ECA Division in DGFT HQrs. are
as follows: 4.3 Further, Directorate General of Foreign Trade has
a country-wide network of 35 Regional Offices.
i. Investigation of trade disputes between the
Enforcement–cum- Adjudication work is largely del-
Indian and foreign firms related to unethical
egated to them and being handled by Enforcement/
commercial dealings such as non-supply of
Adjudication Divisions of these offices in regard to the
goods after confirmation of the orders, non-
exporters falling under their jurisdiction.
payment of agreed commission, non-adherence
of delivery schedules etc.
4.4 Zonal/Regional Offices are responsible for the
ii. Appropriate action against erring exporters following ECA work:
who failed to settle the trade disputes amicably
under the existing provisions of Foreign Trade Licensing Divisions
(Development & Regulation) Act, 1992.
i. Initiation of export obligation monitoring action
iii. Investigation into allegation of misuse of export/ as per the guidelines issued from time to time.
import facilities or violations of Foreign Trade Act
or its Rules and Procedure; ii. To put the defaulting applicants in the DEL list
till the default so committed by the firm is not
iv. Suspension/cancellation of I.E. Code of the erring
made good.
exporters/importers for acts of fraud, economic
offences and acts prejudicial to the trade iii. Adjudication of export obligation default
relations of India with any foreign country or to cases.
Enforcement-cum-Adjudication 95
Enforcement Division S.No Designation of Adjudi- Appellate authority
cation Authority
i. To attend to post adjudication activities relating 1. Foreign Trade Addl. Director General of
to recovery, appeal, litigation etc. Development Officer Foreign Trade
2. Asstt. Director General Addl. Director General of
ii. To initiate action for effecting recovery of the of Foreign Trade Foreign Trade
penalty amount/dues. 3 Dy. Director General of Addl. Director General of
Foreign Trade Foreign Trade
iii. To attend to the cases of various offences
4. Jt.. Director General of Addl. Director General of
/violations of provisions of Foreign Trade Foreign Trade Foreign Trade
(Development & Regulation) Act, 1992 and FTP 5. Addl. Director General Addl. Secretary in the
like fraud, mis-declaration, misrepresentation, of Foreign Trade Ministry of Commerce &
Industry (Department of
misuse, criminal acts etc. Commerce) aided by two Joint
Secretaries and Director of the
Department*
4.5 Types of infractions which have generally 6. Development Addl. Secretary in the Ministry
been noticed are Commissioner, Export of Commerce & Industry
Processing Zone (Department of Commerce)
i. Export of sub-standard goods not conforming aided by two Joint Secretaries
to the specification in the export contract and Director of the
Department#
leading to complaints on quality by the foreign
buyers.
In terms of Clause 3 of Section 15 of 1992 Act, the
ii. Breach of contract/conditions of imports/exports Order made in Appeal by the Appellate Authority
agreements; shall be final.
iii. Obtaining licenses by mis-declaration/
mis-representation and /or against forged * Statutory Order. - 1059 (E)
document; # Statutory Order - 193 (E)
Enforcement-cum-Adjudication 97
CHAPTER – 5
Computerisation in
Dgft Organisation