INDIAS FOREIGN TRADE POLICY 2009-14

What is Foreign Trade Policy?

The Union Commerce Ministry, Government of India announces the integrated Foreign Trade Policy FTP in every five year. This is also called EXIM policy. This policy is updated every year with some modifications and new schemes. New schemes come into effect on the first day of financial year i.e. April 1, every year. The Foreign trade Policy which was announced on August 28, 2009 is an integrated policy for the period 2009-14.

INDIAS FOREIGN TRADE POLICY 2009-14

Objectives of Foreign Trade Policy 2009-14

To arrest and reverse declining trend of exports is the main aim of the policy. This aim will be reviewed after two years.

To Double India's exports of goods and services by 2014. To double India's share in global merchandise trade by 2020 as a long term aim of this policy. India's share in Global merchandise exports was 1.45% in 2008.

INDIAS FOREIGN TRADE POLICY 2009-14

Objectives of Foreign Trade Policy 2009-14

Simplification of the application procedure for availing various benefits

To set in motion the strategies and policy measures which catalyze the growth of exports To encourage exports through a "mix of measures including fiscal incentives, institutional changes, procedural rationalization and efforts to enhance market access across the world and diversification of export markets.

INDIAS FOREIGN TRADE POLICY 2009-14 Strategies Stable Policy environment Fiscal Incentives Diversification of Export Markets Procedural Rationalization Institutional Changes

INDIAS FOREIGN TRADE POLICY 2009-14 Components & Schemes

Special Focus Initiatives Import/Export Provisions Promotional Measures Duty Exemption & Remission Schemes EPCG Scheme Export Oriented Units (EOUS), Electronics Hardware Technology Parks (EHTPS), Software Technology Parks (STPS) and BioTechnology Parks (BTPS)

INDIAS FOREIGN TRADE POLICY 2009-14 Components & Schemes

Special Economic Zones (SEZ) Free Trade and Warehousing Zones (FTWZ) Deemed Exports

SPECIAL FOCUS INITIATIVES Support for Market & Product diversification

27 new markets included in the ambit of Focus market scheme (FMS). Incentive available under FMS raised from 2.5% to 3%. Number of countries under FMS are 41. Incentive available under Focus Product Scheme (FPS) raised from 1.25% to 2%. Market Linked Focus Product Scheme (MLFPS) expanded by inclusion of new items to specified countries.

SPECIAL FOCUS INITIATIVES Towns of Export Excellence (TEE)

Firozabad for Glassware. Bhubnaeshwar for Marine products. Agartala for Bamboo & Cane Products. Jaipur, Srinagar & Anantnag for Handicrafts. Kanpur, Dewas & Ambur for Leather Products. Malihabad for Horticultural Products.

SPECIAL FOCUS INITIATIVES Leather Industry

2% bonus benefits under Focus Product Scheme. Re-export of unsold imported raw hides, skins & semi finished leather is allowed from public bonded warehouses without any payment of Export Duty.

SPECIAL FOCUS INITIATIVES Agriculture Industry

Vishesh Krishi & Gram Udyog Yojana (VKGUY) Import of Pesticides permitted under advance authorization for Agro Exports. Introduction of a single window system to facilitate export of perishable agricultural produce with an aim to reduce transaction and handling cost.

SPECIAL FOCUS INITIATIVES Gems & Jewellary

Import of gold of 8 k and above is allowed subject to import being accompanied by an Assay Certificate specifying purity, weight and alloy content. Duty Free Import Entitlement (based on FOB value of exports during previous financial year) of Consumables and Tools, for:
Jewellery made out of:

(a) Precious metals (other than Gold & Platinum) 2% (b) Gold and Platinum 1% (c ) Rhodium finished Silver 3% Cut and Polished Diamonds 1%

EXPORT PROMOTION CAPITAL GOODS SCHEME Zero Duty EPCG Scheme

Allows import of capital goods for pre-production, production and post-production at zero customs duty Subject to an export obligation equivalent to 6 times of the duty saved, to be fulfilled in 6 years reckoned from authorization issue date.

EXPORT PROMOTION CAPITAL GOODS SCHEME Concessional 3% Duty EPCG Scheme

Allows import of capital goods for pre-production, production and post-production at 3% customs duty Subject to an export obligation equivalent to 8 times of the duty saved, to be fulfilled in 8 years reckoned from authorization issue date.