Import trade

By:- Divya (31)

Varsha(16)
Priyanka(39)
Rafat(54)
Deepali(32)
Meaning of import trade

 Imports are necessary in order to

meet the essential requirements of
domestic consumption investments,
production and as inputs for export.
Main items of imports
 Petrol and petroleum products.
 Fertilizers.
 Cereals.
 Edible oil.
 Newsprint.
 Pearl.
 Gold.
 Silver.
Role/Importance of imports in
economic growth.

 Developing economic activity

 Creation of employment
opportunities
 Promoting exports
 Earning foreign exchange
 Large scale production of exportable
goods
Reasons for increase in imports

 Need of materials for manufacturing

purpose
 Rising price of petroleum
 Infrastructural development
activities
 scarcity of certain items
Liberalization of imports

 After adoption of economic reforms

in 1991 the government of India
gradually relaxed all controls on
imports at regular intervals .
4 main objectives of import policy
 Modernizing and upgrading
technology.
 Ensuring easy availability of
imported goods
 Encouraging self reliance and import
substitution
 Organize and simplify procedures
for the issue of import licenses.
Negative list for imports

1.Free importable items

a) Second hand goods

b) Export promotion capital goods

2. Prohibited list
Contd………
3. Restricted list
a) Consumer goods
b) Safety and security items
c) Electronic items
d) Precious ,semi-precious stones
e) Drugs and pharmaceuticals
f) Insecticides and pesticides
g) Seeds, plants and animals
h) Chemical allied items
i) Items covering small scale sector
j) Miscellaneous items
k) Special categories
Contd….
4. Canalised list

Canalising
Canalsing
agencies
agencies

 STC
 MMTC
 MTC
Categories of importers
 Actual user (industrial)
 Actual user (non-industrial)
 Non actual users
Special schemes for importers


Features of DFIA
 Minimum 2o% addition
 Benefit of DFIA
 Credit facility
 Request for transferability of authorization
is entertained
 Goods imported against transferable DFIA
 DFIA holder must maintain proper a/c
 Export obligation
Duty entitlement passbook scheme
(DEPB)
Import duty credit is calculated taking in
account the following :

1.Deemed import content of the said

export product and the import
duties payable on such deemed
import content .
2.Value addition achieved by export
of such product.
Features of DEPB
 Exim policy1997-2002
 Restricted items cannot be imported
DEPB

Pre-export Post-export
basis basis
Contd….
 DEPB is available on post-export
basis.
 Grant of credit under DEPB.
 Valid for 12months.
 Single part of registration.
 Items against DEPB are freely
transferable.
 Grant import duty credit within the
given period.
Export promotion capital goods
scheme
Features of EPCG
 Can buy capital goods
 It is subject to actual user
conditions
 Submit a report of exports every six
months
 Fulfill export obligations
 Submit consolidated statements of
records
contd….
 Submit a certificate from his banker
 Government reserves the right to
initiate action against exporters
 Exporter has to apply to DGFT
(director of foreign trade)
Thank you!