COMMERCIAL POLIC

Introduction
Export import policy of a country is known as
commercial policy of that country.
According to prof. Haberler:-
“trade policy or commercial policy
refers all those ;measures which regulate external
economic relations of a country. The measures of
commercial policy include restrictions on import and
export, assistance to exporters and importers,
difference in freight, changes in the packaging
methods of goods etc.
Distinguish between commercial and trade policy

Theoretically trade policy and commercial policy

differ from each other. But for all practical purposes.
These are treated as synonymous.
Commercial policies includes the matter related to
import and export only. Where as the trade policies
addition to this includes other problems also
concerning international or foreign trade.
Importance of commercial policy
Economic development
Earning foreign exchange and developing industries.
Regulate and promote foreign trade.
Balance of trade
Increase export and reduce imports.
Type of commercial policy
Free trade policy: free trade is condition of a
international trade when nation do not impose custom
duties or other taxes on the imports of goods from
other countries.
Protectionist trade policy: the policies of protection
refers to government’s such policy by which imports
restricted. It is a contrary to the free trade policy.
Export import policy 1992-97
 The government of India announced its new EXIM
policy on 31st march, 1992. it was declared for the
period of five years from 1st April 1992 to 31 march,1997.
prior to it EXIM policy was formulated for a period of
three year.
To minimizing or remove licensing and other
discriminatory controls.
To increase research and development and technical
capabilities of India.
Simplification of operational process of exports and
imports.
Main objectives of EXIM Policy 1992-97
To increase the export potential of Indian
Industries.
To increase the image of Indian goods in Abroad.
To arrange import of raw material, equipments,
consumable goods, capital goods required by
exporters.
To increase the production of goods acceptable at
international level for the purpose of import
substitution.
Features of import policy 1992-97

Free import
Import of capital goods
Import of machinery and equipments.
Imports of gifts.
Negative list.
More liberalization.
 NEGATIVE LIST
S.no ITEMS PROVISIONS
1 Oils made from animal fat, animal renette and Prohibited
ivory
2 Electronic goods , telecom items, wrist watches, Allowed to import with some
alcohol, or concentration of alcohol, saffron, restrictions
cinnamon (daalchini)
3 Clove, cinnamon, leaves of bay tree(tejpata) Import allowed with the
condition of two times
exports equivalent to the
import value. Compulsory
licensing

4 Sports items , camera etc. Import through licensing for

the use of specified
consumers . Specific
facilities provided to hotels,
tourism industry and sports
industries
Features of export policy 1992-97

Negative list.
Restrictions and control.
Deemed exports.
Export promotion of capital goods.
Quality of goods.
Duty exemption scheme.
 EXIM policy of India 1992-1997

Main objectives
Providing flexibility to export import schemes.
Marching towards trust based system.
To check the downfall in the power of export
competitiveness in some areas.
To increase productivity and investments.
To reduce cost.
 THANK YOU

SUBMITTED BY:-
NISHANT SAINI
MBA-1
MANAGEMANT & COMMERCE INSTITUTE OF GLOBAL
SYNERGY, AJMER.