Import Policy in India

Presented by

Sunil K. Mishra

CONTENTS

Brief

Import?

Import policies

Advantages and Disadvantages

Case

References

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Brief

Exim policy or Foreign Trade Policy is a set of guidelines and instructions

established by the DGFT in matters related to the import and export of goods in
India.

The Foreign Trade Policy of India is guided by the Export Import in known as in
short EXIM Policy of the Indian Government and is regulated by the Foreign Trade
Development and Regulation Act, 1992.
DGFT (Directorate General of Foreign Trade) is the main governing body in matters
related to Exim Policy. The main objective of the Foreign Trade (Development and
Regulation) Act is to provide the development and regulation of foreign trade by
facilitating imports into, and augmenting exports from India. Foreign Trade Act has
replaced the earlier law known as the imports and Exports (Control) Act 1947.
Source: http://www.exim-policy.com/

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Import???

The term import is derived from the conceptual meaning as to bring in the goods
and services into the port of a country.

The buyer of such goods and services is referred to an "importer

Types:
There are two basic types of import:

Industrial and consumer goods

Intermediate goods and services

Source: http://www.importerspages.com/

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Import Policies
Imports not involving remittance of Foreign Exchange:

Paintings and other display articles required for competitions or exhibitions

Food-stuffs, medicines, clothing and blankets received by any charitable

organization as a gift from any philanthropic organization or person abroad

Import of food parcels (except alcohol and tobacco) by foreign citizens, ordinarily
residing in India, subject to a limit of Rs. 1,00,000/- per year for their own use

Goods received as free gifts by the Indian Red Cross Society from abroad, provided
such goods are exempt from customs duty

Relief supplies and packages received as gifts through a Government agency or any
other approved agency
Source: dgft.gov.in/Exim/2000/NOT/itc(hs)/GeneralNotes.pdf

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 Indian Quality Standards:

Mandatory Indian Standards of Bureau of Indian Standards (BIS):

Quality of the products that are subject to mandatory Indian Standards, as applicable
to domestic goods, shall be required to comply with quality specified for the product
as per same Indian Standards. For compliance of this requirement, all
manufactures/exporters of these products to India, shall be required to obtain BIS
license for using Standards mark on their product.
Air Emission and Noise Standards:
Import of Generator Sets will be subject to the air emission standards & noise
standards of the Environment Protection Rules, 1986 notified vide the following
Notifications:
(i) GSR 448(E) dated 12.7.2004 (ii) GSR 628(E) dated 30.8.2001 (iii) GSR 682(E)
6

dated 5.10.1999
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Source: dgft.gov.in/Exim/2000/NOT/itc(hs)/GeneralNotes.pdf

 Plants, Fruits and Seeds (Regulation of Import into India) Order, 1989:
All primary agricultural products will be subject to a Bio Security & SanitaryPhytosanitary import permit, to be issued by Department of Agriculture and Cooperation, Ministry of Agriculture, as per conditions of Plants, Fruits and Seeds
(Regulation of Import into India) Order, 1989
Food Safety & Standards Act, 2006:
Quality and Packaging requirements:
Import of all such edible/food products including tea, domestic sale and
manufacture of which are governed by Food Safety & Standards Act, 2006
Shelf Life
At the time of importation, the products must have a valid shelf life of not less than
60% of its original shelf life. Shelf life of the product is to be calculated, based on
the declaration given on the label of the product, regarding its date of manufacture
and the due date for expiry. However, this condition of 60% shelf life stipulated
above is not applicable to re-import for export purpose
Source: dgft.gov.in/Exim/2000/NOT/itc(hs)/GeneralNotes.pdf
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 Packaged Products:
All prepackaged commodities, imported into India, shall in particular carry the
following declarations:

Name and address of the importer

Generic or common name of the commodity packed

Net quantity in terms of standard unit of weights and measures

Month and year of packing in which the commodity is manufactured or packed or

imported

Maximum retail sale price(Inc.taxes) at which the commodity in packaged form

may be sold to the ultimate consumer

Meat and Poultry Products:

Beef and Products containing Beef
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 Cigarettes or any other Tobacco product:

Import of cigarette or any other tobacco product shall be subject to the provisions
contained in the Cigarettes and other Tobacco Products (Packaging and Labeling)
Amendment Rules, 2009, as notified by the Ministry of Health & Family Welfare
Multichannel GSM/CDMA receivers, transmitters and trans-receivers:
Multichannel GSM/CDMA receivers, transmitters and trans-receivers capable of
receiving or transmitting or both in two or more frequencies simultaneously, shall
be Restricted for imports
Environmental Related:
Ozone Depleting Substances: Import of products, equipment containing Ozone
Depleting Substances (ODS) will be subject to- no person shall import or cause to
import any product which was made with or contain Ozone Depleting Substances,
unless he obtains an import license issued by the DGFT
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Advantages
Reduce dependence on existing markets
Exploit international trade technology
Extend sales potential of existing products
Maintain cost competitiveness in your domestic market

Source: http://shippingnewsandviews.wordpress.com/

07-May-14

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Disadvantages
Importation of items from other countries can increase the risk of getting them
which is no more common in the warm weather.
it leads to excessive competition
It also increases risks of other diseases from which the country is exporting the
goods.

Source: http://blogs.exportersindia.com

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Case
Govt. modifies policy for import of cars, bikes for race events:
WED, JAN 08 2014
The government has modified the trade policy to facilitate imports
of cars and motorcycles for racing events.
Cars and motorcycles imported for racing events will not be
permitted to ply on public roads, said the notification issued by
Directorate General of Foreign Trade (DGFT) on Jan08,2014.
It said such vehicles should only be used for the purpose for which
they are imported.
Source: http://www.livemint.com/
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 The move assumes significance in view of the problem being faced by the
participants in events like Formula One. Vehicles imported under this provision
will not be registered CMV (Central Motor Vehicle)Act/Rules, nor be
alienated/sold to any individual/organization/institution, etc. anywhere in India.
These vehicles shall not ply on public roads and can only be used within the
enclosed premises with requisite safety precautions and will not be engaged in any
sort of commercial activities, DGFT said

It also said the importer shall be required to execute a bond with customs with
adequate security/surety to re-export the vehicle(s) within 30 days of the
completion of the event
Source: http://www.livemint.com/
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References
[1] Policies regarding import
dgft.gov.in/Exim/2000/NOT/itc(hs)/GeneralNotes.pdf [Retrieved on 03.05.2014]
[2] Brief about EXIM
http://www.exim-policy.com/ [Retrieved on 03.05.2014]
[3] Advantages of import
http://shippingnewsandviews.wordpress.com/2013/02/19/five-major-advantages-ofimport-export-business-and-international-trade/ [Retrieved on 05.05.2014]
[4] Case of import in India
http://www.livemint.com/Politics/joMMHCTHBV5fiG98aXbAIJ/Govt-modifiespolicy-for-import-of-cars-bikes-for-race-even.html [Retrieved on 07.05.2014]
[5] Disadvantages of import
http://blogs.exportersindia.com/2012/01/12/benefits-of-importing-and-exporting/
[Retrieved on 06.05.2014]
[6] http://www.importerspages.com/ [Retrieved on 06.05.2014]
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