Shivalik Institute of Management Education

& Research

Presentation
On
Exim Policy Or

Presented By:
Sourabh, Navneet, Roshan,
Vishal, & Neha
 Introduction
• Exim Policy is a set of guidelines and instructions
established by the DGFT in matters related to the
export import of goods in India.

• The Government of India, Ministry of Commerce and

Industry announces Export Import Policy after every five
years. This is an attempt towards the support of
foreign trade and creation of approving Balance
of Payments.

• The EXIM Policy is updated every year on the 31st of March

and new schemes become effective from 1st April of every
year.
History of export-import policy of India

• In the year 1962, the Government of India

selected a special Exim Policy Committee.

• The committee was afterward permitted by

the Government of India. Mr. V. P. Singh,
elected as Commerce Minister and
pronounced the Exim Policy of India on the
12th of April, 1985.
 Amendments in custom duties laws
Petroleum:
1) Customs duty on crude petroleum is being
hiked from Zero to 5%
2) Customs duty on Petrol and Diesel is being
hiked from 2.5% to 7.5%. 
3) Customs duty on some other specified
petroleum products is being hiked from 5%
to 10%.
 Precious metals
1)  Customs duty on gold bars and gold coins is set to go up
from Rs.200 per 10 gram to Rs.300 per 10 gram.
 
2)  Customs duty on other forms of gold is also being hiked
from Rs.500 per 10 gram to Rs.750 per 10 gram.
 
3)  Customs duty on silver is being increased from Rs.1000
per kg to Rs.1500 per kg.
 
4)  Customs duty on platinum will go up from Rs.200 per 10
gram to Rs.300 per 10 gram
 ACD of 4% ( special CVD)

• ACD of 4% exempted on pre-packaged goods

intended for retail sale.

• goods like ready-made garments, mobile phones

and watches .

• exemption from this duty is also being provided

to Carbon Black Feedstock, waste paper and
paper scrap.
 FOOD & AGRO PROCESSING
• Project imports status is being granted to the
initial setting up or substantial expansion of, a cold
storage, cold room.
• projects would attract concessional rate of basic
customs duty of 5%.
• Project imports status is being granted to
installation of Mechanized Handling Systems &
Pallet Racking Systems.
• Basic customs duty is being reduced from 7.5% to
5% on specified agricultural machinery.
 AGRICULTURE / HORTICULTURE

• Basic customs duty on long pepper is being

reduced from 70% to 30%.
• Basic customs duty on ‘asafoetida’ (heeng)
is being reduced from 30% to 20%.
• Full exemption from basic customs duty is
being provided to bio-polymer/bio-plastics.
 CAPITAL GOODS
• Tunnel Boring machine for hydro-electric
power projects is being fully exempted
from basic customs duty with Nil CVD.

• Concessional rate of customs duty of 5%

presently available till 06.07.2010 on
specified machinery for tea, coffee and
rubber plantation is being extended till
31.03.2011.
 ELECTRICAL ENERGY

• Electrical energy is fully exempt from

customs duty.

• Electrical energy supplied from a Special

Economic Zone to the DTA and non –
processing areas of SEZ would now
attract duty of 16% ad valorem + Nil
Special CVD.
Environment Friendly Items
• Exemption from BCD of batteries and electric
vehicles. Attract CVD of 4% .

• A concessional rate of basic customs duty of 5% is

being provided to machinery items, instruments,
appliances required for initial setting up of solar
power generation projects.

• Ground source heat pump fully exempted from

BCD.
Comparison of Pre 90’s & Post 90’s Exim Policy

Year Import Export Trade

(Cr.) (Cr.) Bal.(Cr.)

1948-51 650 647 -3 Excess of Import due to-

•Pent-up demand of war.
•Shortage of food & raw material due to
partition.
•Import of capital goods due to starting
of hydro-electric & other projects.

1951-56 730 622 -108 Trade deficit was largely due to

programmes of industrialization which
gathered momentum and pushed up the
imports of capital goods.

No improvement in exports.
Year Import Export Trade
(US (US Bal.(US
$million) $million) $million)

2002 –03 65422 52512 -12910 Rise in imports in 2002-03 was broadly
based on oil imports,food &allied
products(edible oil),capital goods.

Exim policy 2003-04gave massive thrust

to exports by
2003-04 80177 64723 -15454 •Duty free import facility for service
sector upto earning 10lakh foreign
exchange.
•Liberalization of Duty Exemption
scheme.
Besides,all these measures trade balance
in 2003-04 are high due to mainly on
imports of POL products more.Currently,
almost two-third of country crude oil
requirements are imported.Besides
import of POL, import of non POL items
shot up by 17% in2002-03 to 26.2%in
2003-04.
 India Ex po rts - Go o ds and S e rv ic e s
Trade Trends .. India's Foreign Trade 350
200 300
150 250
US $ billion

200
100

S$million
150
50 100

U
0 50
96- 97- 98- 99- 00- 01- 02- 03- 04- 05- 0
97 98 99 00 01 02 03 04 05 06 1984 1994 2004-05 2005-06 (A)
(A)
Goods Services Exports Imports Total Trade

In d ia Ca p it a l Go o d Im p o rt s

140.00
U S $ b illio n

120.00
100.00

80.00
60.00

40.00
20.00

0.00
Source: Reserve 96-97
Bank of India97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05

Ca p ita l Go o d s Im p o rts To ta l Im p o rts

• our exports witnessed robust growth to reach a
level of US$ 168 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% in2003.
• 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
• www.articlesbase.com
• www.indiatradepromotion.com/indian-exim-p
olicy.html
• www.internationaltrade.co.uk
• www.Taxguru.com
• www.Financialexpress.com
Thank you