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Export and Import Policy

K.MATHANKUMAR,

Assistant Professor,

PG and Research Department of Commerce,

C.P.A College,

Bodinayakanur.

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INTRODUCTION

  • Trade policy governs exports from and imports into a country.
  • Guided by the Export-Import (EXIM) Policy of the government of India
  • Regulated by the Foreign Trade (Development and Regulation) Act, 1992
  • Export and Import Policy prepared and announced by the Central Government (Ministry of Commerce and Industry) for every 5 years of span.
  • Ministry of Commerce and Industry Central Minister Shri Piyush Goyal, State Minister of Commerce and Industry Shri Hardeep Singh Puri and Shri Som Parkash

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HISTORY

  • Directorate General of Foreign Trade (DGFT) is the main governing body related to Exim Policy.
  • Foreign Trade Act replaced the earlier law known as the “Imports and Exports (Control) Act 1947”.
  • In the year 1962, the Government of India appointed a Special Exim Policy Committee to review the government previous export import policies.
  • The committee was later approved by the Government of India.

announced

  • Mr. V. P. Singh, the then Commerce Minister, the Exim Policy on the 12th of April, 1985.
  • Initially the EXIM Policy was introduced for the period of three years.
  • The main objective to boost the export business in India.

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Cont..

  • Till 1985 annual policies were made but from 1985-92, three years policy was made and then, 5 years policy was made coinciding with 5 years plans 1992 to 2020 except 2009.

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IMPORT/EXPORT

Import/Export means trade across the political boundaries of different nation. No Nation is self sufficient and had all the goods that it needs. This happens because of climatic variation & unequal distribution of natural resources. In India, Govt. has come out from time to time with various policies on foreign trade to promote export thereby increasing the “Foreign Exchange Reserve”.

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These policies are termed as “Exim Policy”

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Meaning of EXIM

Export means selling abroad and import as bringing into India, any goods and services

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TRADE POLICY EVOLUTION

♣Phase I – Import Restriction and Import Substitution (From 1950’s to 1970s),

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♣Phase II – Export Promotion & Import Liberalisation (From 1970s to 1990s), and

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♣Phase III – Outward Orientation – (From 1990 onwards).

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Objectives of EXIM Policy

  • Sustained growth in exports to attain a share of global trade
  • To enhance the technological strength and efficiency of all sectors of the economy
  • To generate new employment.
  • To provide consumers with good quality goods and services at

internationally competitive prices

  • Making a market space for domestic produce
  • To accelerate the economy from low level of economic activities to high level of economic activities.

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Key Strategies to achieve these objectives

  1. Simplifying Procedures
  2. Facilitating development of India
  3. Identifying special focus areas
  4. Facilitating technological upgradation
  5. Upgrading the Infrastructure
  6. Activating Indian Embassies

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  1. Exim Policy 1992-1997
  2. Exim Policy 1997-2002
  3. Exim Policy 2002-2007
  4. Exim Policy 2004-2009
  5. Exim Policy(Interim) 2009-2010
  6. Exim Policy 2010-2015
  7. New Exim Policy 2015-2020

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THE FOREIGN TRADE POLICY 2015-2020

On 1st April 2015, the new Foreign Trade Policy (FTP) for the period 2015-20 was announced which replaces the 2009-14 FTP which expired on 31st March 2014.

India's Foreign Trade Policy also known as Export Import Policy (EXIM) in general, aims at developing export potential, improving export performance, encouraging foreign trade and creating favorable balance of payments position. Foreign Trade Policy is prepared and announced by the Central Government (Ministry of Commerce). Foreign Trade Policy or EXIM Policy is a set of guidelines and instructions established by the DGFT (Directorate General of Foreign Trade) in matters related to the import and export of goods in India.

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FOREIGN TRADE POLICY HIGHLIGHTS 2015- 2020

  • India to be made a significant participant in world trade by 2020
  • Commerce Minister announced two new schemes in Foreign Trade Policy 2015-2020 MEIS & SEIS. namely "Merchandise Exports from India Scheme (MEIS)" and "Services Exports from India Scheme (SEIS)". These schemes (MEIS and SEIS) replace multiple schemes earlier in place.
  • Merchandize exports from India (MEIS) to promote specific services for specific Markets Foreign Trade Policy
  • For services, all schemes have been replaced by a 'Services Export from India Scheme'(SEIS), which will benefit all services exporters in India.

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New Exim Policy 2015-2020

  • DGFT as a facilitator of exports/imports
  • Niryat Bandhu - Hand Holding Scheme for new export / import entrepreneurs
  • Online Complaint Registration and Monitoring System
  • Exporter Importer Profile
  • Reduction in mandatory documents required for Export and Import
  • Electronic Data Interchange (EDI)
  • Message Exchange with Community partners Customs, Banks, Export Promotion Councils (EPCs) are major community partners of DGFT for message exchange.
  • 24 X 7 Customs clearance
  • Single Window in Customs
  • Self-Assessment of Customs Duty
  • Export of perishable agricultural Products
  • Importer-Exporter Code (IEC)

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FOREIGNTRADEASANENGINEOF GROWTH

1.SME Sector

2. GDP Growth

3. Employment

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