IBO 04 Unit 1

IBO 04
Unit 1
Export Import Trade : Regulatory Framework

> Trade Policy

A country's trade policy includes taxes imposed on import and export, inspection regulations, and tariffs and quotas.

> Basic Objective of India's Trade Policy
1.Export Promotion
2.Import management

Regulatory Framework..
> 4 Laws
1. Foreign Trade Act 1992

→Replaces ( Import and Export Act 1947, Import order1955, Export order 1988)
→Objective
Development & Regulation of Foreign Trade
→ It includes provisions relating to IEC Number, Exim policy, Appointment of Dgft etc

2. Foreign Exchange management Act 1999

→Replaces Fera1947, Fera 1973, Fera 1993

→ objectives
1. Facilitate external trade and payment
2. Orderly development and maintenance of foreign exchange market

3. Customs Act 1962

→ Replaces( Sea customs act, land customs act, aircraft act

→ Provide guideliness and procedure related to all situations emerging from the export import transactions

→ objective
1. Regulate genuine export and import
2. Check smuggling
3. Collect revenue
4. Undertake function behalf of another agencies
5. To gather trade statistics

4. Export Quality control and inspection act 1963

→ Strengthening the export trade through quality control and preshipment inspection

Foreign Trade Policy 2004-09

1. The new Foreign Trade Policy of the Union Government was unveiled by the commerce Minister Shri. Kamal Nath on August 31, 2004.

2. Objectives:

2.1. To double India’s percentage share of global merchandise trade by 2009.

2.2. To act as an effective instrument of economic growth by giving a thrust to employment generation, especially in semi-urban and rural areas.

Importer Exporter Code Number

Definition of IEC Code
IEC Code is unique 10 digit code issued by DGFT – Director General of Foreign Trade , Ministry of Commerce, Government of India to Indian Companies.

Full form of IEC Code

Full From of IEC Code is : “Importer Exporter Code ”. To import or export in India, IEC Code is mandatory. No person or entity shall make any Import or Export without IEC Code Number.

Deemed Exports

Deemed Exports" refers to those transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian rupees or in free foreign exchange.

EPCG Scheme

Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre production, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue- ...

DEPB (Duty Entitlement Pass Book )

DEPB (Duty Entitlement Pass Book ) is an export incentive scheme of Indian Government provided to Exporters in India.

Under the post-export DEPB, which is issued after exports, the exporter is given a duty entitlement Pass Book Scheme at a pre-determined credit on the FOB value. The DEPB rates allows import of any items except the items which are otherwise restricted for imports.