EXIM Policy
EXIM Policy
Goals
To increase India’s exports of merchandise and
services from USD 465.9 billion in 2013-14 to
approximately USD 900 billion by 2019-20 and
To raise India’s share in world exports from 2
percent to 3.5 percent by 2019-20
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Goals and Objectives of the Current
Foreign Trade Policy 2015-2020
Objectives
• To provide a stable and sustainable policy environment for foreign trade in
merchandise and services;
• To link rules, procedures and incentives for exports and imports with other
initiatives such as “Make in India”, “Digital India” and “Skills India” to create an
“Export Promotion Mission” for India
General Provisions
regarding
Imports and exports
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Important Provisions
• Indian Trade Classification of Exports and Imports
• Importer Exporter Code/e-IEC
• Principles of Restrictions
• Export/Import of Restricted Goods
• Export of SCOMET Items
• Export Promotion Councils
• Policy Interpretation and Relaxation
• Self Certification of Originating Goods
• Issue of Identity Cards
• Certificate of Origin
Chapter 2-
• Territorial Jurisdiction of RAs (Appendix 1A)
• Application Fee
• Procedure for issue of Duplicate Copies
• Bank Guarantee/LUT
• Loss of Documents
• Free Sale and Commerce Certificate
• Import of Restricted Items
• Issue of End User Certificates
• Loss of Documents
• Denomination of Export Proceeds
• Realisation of Export Proceeds
First Step-Importer-Exporter Code
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•
ITC (HS) Classification
The Indian Trade Classification (Harmonised System) is a compilation of codes for all
merchandise/goods for export/import.
• Goods are classified based on their group or sub group at 2/4/6/8 digits.
• India maintains national Harmonised System of Goods at 8 digit level which may be
viewed by clicking on ‘Downloads’ at http://dgft.gov.in
• The import/export policies for all goods are indicated against each item in the ITC(HS).
• The first 2 digits represent the chapter heading, the next 2 digits represent the heading
or groupings within the chapter and the third 2 digit represents the subheading. For
the detailed classification in India we use the 8 digit classification.
Classification of Import/Export Items
• Freely Importable/Exportable
• Restricted
• Prohibited
• SCOMET-Special Chemicals, Organisms,
Micro-organisms, Equipment and Technology
which is in line with Important Treaties and
International Conventions, etc .
Principles of Restrictions-2.07 HBP
DGFT may, through a Notification, impose restrictions on export and
import, necessary for:
(a) Protection of public morals;
(b) Protection of human, animal or plant life or health;
(c) Protection of patents, trademarks and copyrights, and the
prevention of deceptive practices;
(d) Prevention of use of prison labour;
(e) Protection of national treasures of artistic, historic or
archaeological value;
(f) Conservation of exhaustible natural resources;
(g) Protection of trade of fissionable material or material from
which they are derived;
(h) Prevention of traffic in arms, ammunition and implements of
war
Export Promotion Schemes
Export
Promotion
Schemes
Duty
Export from Duty Exemption
India Schemes Remissions
Duty Exemption / Remission Schemes
For Inputs
EPCG Scheme
Post Export EPCG Scheme
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Advance Authorization
Scheme for duty free import / procurement of
Inputs that are to be physically incorporated in
the export product (making normal allowance
for wastage)
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Basis of Issuance
(i) All vegetable / edible oils classified under Chapter-15 and all types of oilseeds
classified under
Chapter-12 of ITC (HS) book;
(ii) All types of cereals classified under Chapter–10 of ITC (HS) book;
(iii) All Spices other than light black pepper (light berries) having a basic customs
duty of more
than 30%, classified under Chapter-9 and 12 of ITC (HS) book;
(iv) All types of fruits/ vegetables having a duty of more than 30%, classified under
Chapter-7 and
Chapter-8 of ITC (HS) book;
(v) Horn, hoof and any other organ of animal;
(vi) Honey;
(vii) Rough Marble Blocks/Slabs; and
(viii) Rough Granite.
(ix) Vitamins except for use in pharmaceutical industry.
Ineligible categories of import on Self Declaration basis
Available for items with/without Available only for items with SION
SION
Imports can be made Post Export DFIA issued only on post export
/Pre Export Basis except items basis
with pre import condition
Value Addition is 15% Value Addition is 20%
Transferability of Authorisation Transferability allowed
and Inputs not allowed
Raw Sugar not allowed at present
Chapter 5
Export Promotion Capital Goods
Scheme
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EPCG Scheme
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Restrictions on Imports
• Second hand Capital Goods not permitted
• Capital Goods (including Captive plants and Power
Generator Sets of any kind) for
(i) Export of electrical energy (power)
(ii)Supply of electrical energy (power) under deemed
exports
(iii) Supply of power (energy) in their own unit, and
(iv) Supply/export of electricity transmission services
• Import of Items which are restricted for import allowed
only after approval from EFC at DGFT HQs
EPCG SCHEME-Eligibility
• Manufacturer exporters with or without supporting
manufacturer.
• Merchant exporters tied to supporting manufacturers.
• Service Providers
• An EOU/ a relocated SEZ unit, while converting to a DTA
Unit
• Scheme also covers CSP designated / certified as a CSP
by the DGFT, Department of Commerce or State
Industrial Infrastructural Corporation in a Town of
Export Excellence.
• Import of Capital Goods for Project Imports notified by
the CBEC
Domestic Tariff
Area
SEZ –
Special
Economic
Zone
EOU
EPCG Scheme-Conditions
• Authorisation is valid for import for 18 months
• Basic Customs Duty paid on the Capital goods shall be remitted in the form of
freely transferable duty credit scrips.
• If the export has declared that he shall not avail the Cenvat Credit, the EO shall
be fixed with reference to the BCD paid.
• These Scrips can be used for payment of applicable customs duties for imports
and applicable excise duties for domestic procurement
Chapter 3
Export from India Schemes
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Promotional Measures/ Incentive Schemes
Exports from
India Schemes
Merchandise Service
Exports from Exports from
India Scheme India
(MEIS) Scheme(SEIS)
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Example of Appendix 3B
Example of Appendix 3B
Export of Goods through Courier
and Foreign Post Office
(i) Exports of goods through courier or foreign post office using e-commerce, as
notified in Appendix 3C, of FOB value upto Rs. 25000 per consignment shall be
entitled for rewards under MEIS.
(ii) If the value of exports using e-commerce platform is more than Rs 25000 per
consignment then MEIS reward would be limited to FOB value of Rs.25000 only.
(iii) Such goods can be exported in manual mode through Foreign Post Offices at
New Delhi, Mumbai and Chennai.
(iv) Export of such goods under Courier Regulations shall be allowed manually on
pilot basis through Airports at Delhi, Mumbai and Chennai as per appropriate
amendments in regulations to be made by Department of Revenue. Department
of Revenue shall fast track the implementation of EDI mode at courier terminals.
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Ineligible Categories under MEIS
(i) EOUs / EHTPs / BTPs/ STPs who are availing direct tax benefits / exemption.
(ii) Supplies made from DTA units to SEZ units
(iii) Export of imported goods covered under paragraph 2.46 of FTP;
(iv) Exports through trans-shipment, meaning thereby exports that are originating in third country but trans-
shipped through India;
(v) Deemed Exports;
(vi) SEZ/EOU/EHTP/BPT/FTWZ products exported through DTA units;
(vii) Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS), unless
specifically notified in Appendix 3B.
(viii)Service Export.
(ix) Red sanders and beach sand.
(x) Export products which are subject to Minimum export price or export duty.
(xi) Diamond Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and
other precious and semi-precious stones.
(xii) Ores and concentrates of all types and in all formations.
(xiii) Cereals of all types.
(xiv) Sugar of all types and all forms.
(xv) Crude / petroleum oil and crude / primary and base products of all types and all formulations.
(xvi) Export of milk and milk products.
(xvii) Export of Meat and Meat Products.
(xviii)Products wherein precious metal/diamond are used or Articles which are studded with precious stones.
(xix) Exports made by units in FTWZ.
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Service Exports from India Scheme-
SEIS
• Objective- encourage export of notified services from India
• Services Providers of notified services, located in India shall be rewarded
• Notified services and rates of rewards are listed in Appendix 3D
• Service Provider should have minimum net FFE earnings of US$ 15,000 in
preceding financial year to be eligible
• Individual Service Providers and Sole Proprietorship minimum net FFE
earnings criteria would be US$ 10,000 in preceding financial year.
• Payment in INR on specified services shall be treated as receipt in
deemed FE as per guidelines of RBI( Appendix 3E)
• FFE earned thorough International Credit Cards and Other Instruments
as permitted by RBI
• NFE=Gross FE-Total Expenses/Payment/Remittances of FE by the IEC
Holder in the Financial Year(For service Sector Only)
• Services and Service Providers as listed in Para 3.09 of HBP.Vol.1 shall not
be entitled for benefits under the SEIS scheme
Deemed Exports- Chapter 7
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Deemed Exports
Transactions in which goods supplied do not leave the country and
payment for such supplies is received either in Indian Rupees or in
Free Foreign Exchange.
Benefits available:
Advance Authorization / DFIA;
Deemed Export Duty Drawback
Refund of Terminal Excise Duty if exemption not available
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Deemed Export benefits
Benefits on specified supplies
(i) Deemed export benefits shall be available for supplies of ‘Cement” under Para
7.02 (e) only.
(iii) Deemed export benefit shall be available on supply of “Fuel” provided supplies
are made to:
(a) Project listed for petroleum operations in the Customs Notification No.
12/2012–Cus. dated 17.03.2012 under Sr. No. 356, 358 to 360 and
covered in Para 7.02 (f) of FTP;
(b) EOUs;
(c) Advance Authorization holder / Annual Advance Authorization holder.
Export and Trading Houses
(Status Recognition)
• All Exporters of goods, services and Technology are
eligible
• Should have export performance above the threshold
level
• Recognition granted on the basis of foreign exchange
realised by them in the current and previous two financial
years
• Export performance counted on the basis of FOB value of
export earnings in FFE
• For deemed export FOR Value of exports in INR converted
into US$ at exchange rate notified by CBEC as applicable
on 1st April of each financial year.
• Export performance is necessary in at least two out of
three years
Status Holder Categories
(c) A shipment can get double weightage only once in any one of
above categories.
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Privileges of Status Holders
• Authorisations on self declaration basis
• Norms fixation on priority
• Exemption from compulsory negotiations of documents through banks
• Exemption from furnishing BG in Schemes under FTP
• Two Star and above permitted to establish Export Warehouses
• Three Star and above entitled to get benefit of Accredit Clients Programme (ACP)
website: http://cbec.gov.in
• Preferential treatment and priority in handling of consignments
• Manufacturers and three star and above will be enabled to self-certify their
manufactured goods as originating from India to qualify for Preferential Treatment.
May be extended to remaining SH also.
• Status holders entitled to export freely exportable items on free of cost basis for
export promotion subject to an annual limit of Rs.10 lakh or 2% of average annual
export realisation during preceding three licensing years whichever is
higher.(Ex:Samples)
• Four Star and Above eligible for Nominated Agency Certificate for import of Precious
Metals
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E-Governance
• Online IEC application system
• Facility of Online filing of application for all schemes under FTP
• The e-BRC project-2013 eAsia Award under Trade Facilitation
category by Asia Pacific Council for Trade Facilitation and
Electronic Business in Ho Chi Minh City, Vietnam.
• Online Issuance by of IEC through Digital Signatures
• Online Complaint Registration and Monitoring System
• Exporter Importer Profile Uploading
• Facility to Upload documents by CA/CS/Cost Accountant
• EDI-Online Transmission
• Acceptance of payment through debit / credit card for payment of
application fee under FTP( Trade Notice No. 07/2015 -09.07.2015)
• Mobile Applications for FTP (Trade Notice NO. 6 /2015 Dated
29.6.2015)
E-Governance-Forth Coming initiatives
DGFT is currently working on the following EDI
initiatives:
DGFT initiatives
• Training of new entrepreneurs (IEC Holders) every month in each
Regional Office
• Training/meetings/Seminars at towns of Export
Excellence/Industrial Clusters on specific topic
• Seminars at Industry associations, Universities, Management
Schools etc.
• Capacity building of selected entrepreneurs at the institutions
imparting training in export-import related specialised issues-
Online Certificate Programme on Export and Imports in
associations with IIFT
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DISCLAIMER: THE INFORMATION IN THIS PRESENTATION IS NOT INTENDED TO BE
A LEGAL OR OFFICIAL TEXT. IT HAS BEEN PREPARED KEEPING IN MIND THE
INFORMATION NEEDS OF EXPORTERS/ MANUFACTURERS/ MERCHANT
EXPORTERS. IN CASE OF ANY ERROR/ AMBIGUITY THE BEST SOURCE FOR
CLARIFICATION IS THE DGFT WEBSITE, WHICH IS THE ORIGINAL SOURCE OF THIS
PRESENTATION
Thank You
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