EXIM POLICIES

Export Promotion Schemes under EXIM Policy

 Recent updates and changes in EXIM Policy.
Government has taken the following export promotion initiatives:-

• New Foreign Trade Policy was launched on 31st March, 2023 and it came into
effect from 1st April, 2023.
• Interest Equalization Scheme on pre and post shipment rupee export credit has also
been extended upto 30-06-2024 with additional allocation of Rs. 2500 crores.
• Assistance provided through several schemes to promote exports, namely, Trade
Infrastructure for Export Scheme (TIES) and Market Access Initiatives (MAI)
Scheme.
• Rebate of State and Central Levies and Taxes (RoSCTL) Scheme to promote labour
oriented sector export has been implemented since 07.03.2019.
• Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has been implemented since
01.01.2021. With effect from 15.12.2022, uncovered sectors like pharmaceuticals, organic and inorganic
chemicals and article of iron and steel has been covered under RoDTEP. Similarly, anomalies in 432 tariff
lines have been addressed and the corrected rates have been implemented with effect from 16.01.2023.

• Common Digital Platform for Certificate of Origin has been launched to facilitate trade and increase Free
Trade Agreement (FTA) utilization by exporters.

• Districts as Export Hubs initiative has been launched by identifying products with export potential in each
district, addressing bottlenecks for exporting these products and supporting local exporters/manufacturers to
generate employment in the district.

• Active role of Indian missions abroad towards promoting India’s trade, tourism, technology and investment
goals has been enhanced.

• Regular monitoring of export performance with Commercial Missions abroad, Export Promotion Councils,
Commodity Boards/ Authorities and Industry Associations and taking corrective measures from time to time.
Following measures have been taken by the Government to
maximize the growth of domestic markets and to expand its reach
globally;-

• Pradhan MantriGati Shakti

• National Logistics Policy

• National Industrial Corridor Development Programme

• GIS enabled Land Bank- India Industrial Land Bank (IILB)

• Industrial Park Rating System (IPRS)

• Productivity Linked Incentive (PLI)

• Make In India

• Startup India

• One District One Product

• National Single Window System

Export Processing Zone
• EPZ, is a specific type of economic zone designated by the
government to promote export-oriented businesses. These zones offer
a number of incentives to companies that set up operations within
them, including tax breaks and exemption from certain labour laws.
• Export Processing Zone, shortly known as EPZ is a special economic
zone where Export and Import of goods are allowed without any
restrictions. EPZ offers Export-Import oriented units many facilities
and incentives for promoting exports from country. It was established
in the year 1980 under Export Processing Zones Authority Ordinance,
1980.
Objectives of EPZ
• The main objective of establishing EPZs is to promote export-oriented industrialization
and to provide an environment that is conducive to the establishment and growth of
Export Processing Enterprises.
• The other objectives include creating employment opportunities, generating foreign
exchange earnings, promoting technological up-gradation and improving productivity in
EPZs.
• In addition, EPZs are also seen as a means of achieving balanced regional development
by attracting industries to less developed areas.
• EPZs also play an important role in the economic development of a country by providing
employment opportunities and contributing to foreign exchange earnings.
• They also help to promote technological up-gradation and improve productivity in
Export Processing Enterprises.
• EPZs are seen as a means of achieving balanced regional development by attracting
industries to less developed areas.
What is a Free Trade Agreement (FTA)?
• FTA is an agreement between the countries or regional blocks to
reduce or eliminate trade barriers, through mutual negotiations with a
view to enhancing trade.
• It includes goods, services, investment, intellectual property,
competition, government procurement and other areas.
• This concept of free trade is the opposite of trade protectionism or
economic isolationism.
• FTAs can be categorized as Preferential Trade Agreement,
Comprehensive Economic Cooperation Agreement (CECA), and
Comprehensive Economic Partnership Agreement (CEPA)
What is the Impact of FTA on the Global
Economy?
• By blending local production with foreign trade, FTAs help boost
growth in economies.
• As selected goods are produced by every country at lower costs due to
FTAs, international trade increases production and consumption.
• In addition to facilitating borderless trade, FTAs help diversify supply
chains by making it easier for more businesses to conduct business
across borders.
What is the State of India's Free Trade
Agreements?
• India currently has 12 FTAs and India-UAE CEPA is the latest one.
• After India opted out of the Regional Comprehensive Economic
Partnership (RCEP) in November 2019, the 15-member FTA grouping
that includes Japan, China and Australia, FTAs went into cold storage
for India.
• But now the bilateral free trade agreements of India are being
negotiated with the United Arab Emirates, the United Kingdom,
Australia and Canada.
Important Trade Agreements of India?

• Comprehensive Economic Cooperation and Partnership Agreement

(CECPA)
• South Asian Free Trade Area (SAFTA)
• Asia Pacific Trade Agreement (APTA)
• South Asia Preferential Trading Agreement (SAPTA)
Export Inspection and Quality Control under EXIM

In India, export inspection and quality control are governed by various

agencies and regulations to ensure that exported goods meet the
required standards and comply with international regulations. The key
entities and processes involved in export inspection and quality control
under the EXIM framework in India include:
• In India, export inspection and quality control are governed by various agencies and
regulations to ensure that exported goods meet the required standards and comply with
international regulations. The key entities and processes involved in export inspection and
quality control under the EXIM framework in India include:

1. Export Inspection Council (EIC):

The EIC is the apex body in India that coordinates and oversees export inspection and quality
control activities.
Functions:
• Formulates and implements export inspection and quality control programs.
• Establishes standards for exported goods.
• Accredits and supervises Export Inspection Agencies (EIAs).

2. Export Inspection Agencies (EIAs):

EIAs operate under the guidance of the EIC and are responsible for conducting inspections on
behalf of the government.
Functions:
• Inspects and certifies the quality of export products.
3. Commodity Boards:
Certain commodities have dedicated boards that oversee their export quality. For
example, the Tea Board, Coffee Board, Spices Board, etc., regulate the quality
standards for their respective products.

4. Directorate General of Foreign Trade (DGFT):

The DGFT, under the Ministry of Commerce and Industry, formulates and
implements foreign trade policies, including export control regulations.
Functions
Issues policy guidelines related to export inspection and quality control.

5. Pre-shipment Inspection (PSI)

Some countries may require mandatory pre-shipment inspection for specific goods.
In such cases, inspection is carried out by designated agencies to ensure that the
exported products meet the quality and safety standards.
6. Quality Standards and Certifications
Exporters are often required to adhere to specific quality standards and obtain certifications. For
example, ISO certifications, HACCP (Hazard Analysis and Critical Control Points), and other relevant
quality management systems.

7. Electronic Certification:
The use of technology for electronic certification and documentation has become increasingly common,
streamlining the inspection and certification process.

8. Documentation:
Exporters need to submit various documents related to product specifications, testing results, and
compliance certificates to facilitate the export inspection process.

9. Continuous Monitoring and Surveillance

Continuous monitoring of the quality of exported goods is crucial to maintaining compliance and
addressing any emerging issues promptly.

10. Trade Agreements and Standards:

Compliance with international trade agreements and standards is essential to overcome non-tariff
barriers.
Import Policy under EXIM Policy
1.Classification of Goods:
• Goods are categorized into three broad categories:
• Free: No restrictions on import.
• Restricted: Imports subject to specific conditions and licensing requirements.
• Prohibited: Import is not allowed for certain goods.
2.Licensing and Regulation:
• Open General License (OGL): Many goods fall under OGL, allowing
unrestricted import without the need for individual licenses.
• Restricted Items: Certain items require an import license or specific
permissions before importation.
3.Import Duty and Tariffs:
• Customs Duty: The Import Policy specifies the applicable customs
duty rates for different categories of goods.
• Tariff Classification: Goods are classified under the Harmonized
System of Nomenclature (HSN), determining the tariff rates.
4. Export Promotion Schemes:
• The Import Policy may include provisions related to export promotion
schemes, such as duty drawback, duty-free import authorization, or
other incentives to encourage exports.
5. Non-Tariff Measures:
Apart from customs duties, non-tariff measures may be imposed to
regulate imports, including standards and technical regulations, quality
control requirements, and licensing conditions.
6.Trade Agreements:
• Import policies may be influenced by bilateral and multilateral trade
agreements. Concessions and preferences granted to trading partners
may impact the import regulations.
7.Import Procedures:
• Guidelines for documentation, customs clearance, and procedures for
the release of imported goods are outlined in the Import Policy.
8. Strategic and Sensitive Items:
• Certain goods, often related to national security or strategic interests,
may have additional regulations or restriction
9.Periodic Updates:
The Import Policy is subject to periodic reviews and updates. Changes
may be introduced to align with economic goals, trade dynamics, or
changes in global trade patterns.
10.Compliance and Enforcement:
Importers are required to comply with the regulations outlined in the
Import Policy. Enforcement measures may be taken against violations.
11. Economic Considerations:
The Import Policy may be influenced by economic considerations, such
as the balance of trade, foreign exchange reserves, and economic
stability.
Export Inspection and Quality Control under
EXIM Policy
The Export-Import (EXIM) Policy, also known as the Foreign Trade
Policy (FTP) in some countries, plays a significant role in governing
various aspects of exports and imports.
Export inspection and quality control are crucial components of the
EXIM Policy, ensuring that exported goods meet the required standards
and specifications.
PRE-SHIPMENT INSPECTION
• Is a trade facilitating service employed by the govt, and industry to
speed up systematic clearance of the goods at the loading port which
indirectly helps in the speedy clearance at the unloading port .
• WHY IS IT REQUIRED?
• To avoid unlawful activities in pricing, payment, exchange control,
and to verify the perfect compliance between the contract terms and
delivery terms which includes items like type of goods, quality
standards, price and custom valuation of goods.
GOODS ARE NOT TO BE SHIPPED UNLESS THEY ARE OF QUALITY

• If quality standards are not maintained, exporter's image gets ruined and further
chances of export orders come to a virtual close.
• Normally, quality brings repeat orders to the exporters and so exporters should
not take the slightest chance in respect of goods exported outside the country.
• Even the image of the country would be at stake and so the government has
taken several measures to maintain high standard of quality in respect of exports.
• One of the important measures taken by the government to maintain stringent
quality, export (quality control and inspection) act, 1963 has been passed.
• The act empowers to bring any commodity within its purview. Once notification
is made in respect of any commodity under this act, that commodity can not be
exported unless a certificate of export-worthiness is obtained from the export
inspection council (EIC) or any other approved authority, authorised in this
matter.
• The Indian customs authorities require the inspection certificate issued by the
WHERE IT IS CARRIED OUT?
• IT IS CARRIED OUT AT THE PLACE OF ORIGIN OF THE
GOODS DESTINED FOR THE EXPORTS.
INSPECTION OF GOODS MAY BE
CONDUCTED UNDER
• CONSIGNMENT-WISE INSPECTION
• IN-PROCESS QUALITY CONTROL AND
• SELF-CERTIFICATION
CONSIGNMENT-WISE INSPECTION
• Each consignment, in packed condition, is subjected to detailed inspection by the
export inspection agencies. They conduct the inspection on the basis of statistical
sampling plan.
• If the goods conform to the stipulated quality, they issue the inspection
certificate. The certificate also carries a validity period before which the export
consignment must be shipped.
• In case of consignment-wise inspection, actual export consignment, in packed
condition, is taken for inspection.
• No consignment of any notified commodity is allowed to be exported without
the certificate issued by the recognised inspection agency.
• This system is applicable to all commodities other than those that undergo in-
process quality control.
• Generally, small- scale manufacturers who cannot afford to have their own
facilities and personnel adopt consignment-wise inspection certificate procedure.
IN-PROCESS QUALITY CONTROL
• Certain commodities like paints and allied products, linoleum,
ceramics, printing ink, sanitary wares etc. Come under the purview of
in-process quality control.
• In case of continuous process industries, an option is given to them to
become approved "export-worthy" unit, as they possess the requisite
infrastructure for manufacturing/processing products of standard
quality.
• This status enables them to conduct inspection and give declaration
and based on their declaration, they get inspection certificate.
SELF-CERTIFICATION
• With the experience gained in operating the compulsory quality
control and pre-shipment inspection scheme in India, there has been a
qualitative change in the inspection system also.
• Recently, a self-certification system has been introduced.
• This is based on the concept that the manufacturing unit which has in-
built responsibility for quality control should have the freedom to
certify its own product for export.
WHAT IS ISO 9000 SYSTEM?
• It is a series of international standards for quality system major exporting
nations, which number over 100 uses it.
• For exporting organizations the iso 9000 certification provides them with a
sense of authentication for their quality setup and standards and thus making
it easy to access the world markets.
• Each major industrial country has developed their own equivalent standards
like in India it is is-14000, UK it is BS- 5750, and EU it is EN-29000.
• There are three sub-divisions under this series:
• ISO 9001: for self-certification (SC)
• ISO 9002: For In-process Quality Control (IPQC)
• ISO-9003: For Consignment Wise Inspection. (CWI)