EXIM POLICY

INDEX

Sr. Subject Page No.

No.
Important Abbreviation
Introduction
Research Design
a) Statement of research problem
b) Significance of research problem
c) Justification of research problem
d)Aim and objective of research problem
e)Review Literature
f)Hypothesis
g)Researchable questions
h)Source of Data collection
CHAPTER 1
CHAPTER 2
CHAPTER 3
CHAPTER 4
 Important Abbreviation

AA Advance Authorisation
AANF Appendices and Aayaat Niryaat Form
ACU Asian Clearing Union
AEZ Agri Export Zone
ANF Aayat Niryaat Form
ARE-1 Application for Removal of Excisable Goods for Export
(By Air/ Sea/ Post / Land)
ARE-3 Application for Removal of Excisable Goods from a
factory or a warehouse to another warehouse
ACP Accredited Clients Programme
AEO Authorised Economic Operator
AES Approved Exporter's Scheme
APEDA Agricultural & Processed Food Products Export
Development Authority
ARO Advance Release Order
ASEAN Association of South- East Asian Nations
ASIDE Assistance to States for Infrastructure Development of
Exports
AU Actual User
 BCD Basic Customs Duty
BG Bank Guarantee
BIFR Board of Industrial and Financial Reconstruction
BOA Board of Approval
BOT Board of Trade
BRC Bank Realisation Certificate
BTP Biotechnolog Park
BIS Bureau of Indian Standards
CBEC Central Board of Excise and Customs
CCP Customs Clearance Permit
CEA Central Excise Authority
CEC Chartered Engineer Certificate
CED Central Excise Duty
CENVAT Central Value Added Tax
CETF Common Effluent Treatment Facility
CFCs Common Facility Centres
CG Capital Goods
CIF Cost, Insurance & Freight
CIN Corporate Identification Number
CIS Commonwealth of Independent States
CKD Completely Knocked Down
CoD Cash on Delivery
CoO Certificate of Origin
CQCTD Committee on Quality Complaints and Trade Disputes
CRES Certificate of Registration as Exporter of Spices
CST Central Sales Tax
CENT Company Identification Number
CRES Certification of Registration as Exporter of Spices
CEPA Comprehensive Economic Partnership Agreexnen
CBEC Central Board of Excise and Customs
CSP Common Service Provider
CECA Comprehensive Economic Cooperation Agreement
CVD Counten-ailing Duty
DA Document against Acceptance
DBK Drawback
DC Development Commissioner
DDA Diamond Dollar Accounts
 DEA Department of Economic Affairs
DEL Denied Entity List
EODC Export Obligation Discharge Certificate
EOP Export Obligation Period
EOU Export Oriented Unit
EPC Export Promotion Council
EPCG Export Promotion Capital Goods
EPO Engineering Process Outsourcing
EXIM Export Import
FDI Foreign Direct Investment
FE Foreign Exchange
FEMA Foreign Exchange Management Act
FIE0 Federation of Indian Export Organisation
FIRC Foreign Exchange Inward Remittance Certificate
FOB Free On Board
FOR Freight on Road and Rails
FT (D&R)Act Foreign Trade Development & Regulation) Act,
1992 (22 of 1992)
FTDO Foreign Trade Development Officer
FTP Foreign Trade Policy
FT(R) Rules Foreign Trade (Regulation) Rules
FTWZ Free Trade and Warehousing Zone
FTA Free Trade Agreement
G&J EPC Gems & Jewellery Export Promotion Council
GOI Government of India
GATS General Agreement on Trade in Services
GR Guarantee of Realisation
HACCP Hazard Analysis and Critical Control Process
HBP Handbook of Procedures
HHEC Handicraft & Handlooms Exports Corporation
ICB International Competitive Bidding
ICD Inland Container Depot
ICM Indian Commercial Mission
NFE Net Foreign Exchange
NI Non-Infringing
NCB National Competitive Bidding
NO C No Objection Certificate
 PDS Public Distribution System
PEC Project and Equipment Corporation of India Ltd.
PRC Policy Relaxation Committee
PAN Permanent Account Number
PH Personal Hearing
PTA Preferential Trade .Agreement
PSU Public Sector Undertaking
R&D Research and Development
RA Regional Authority RBI Reserve Bank of India
RCMC Registration-cum-Membership Certificate
REP Replenishment
RPA Rupee Payment Area
S/ B Shipping Bill
SAD Special Additional Duty
SCOMET Special Chemicals, Organisms, Materials, Equipment
and Technology
SEI CMM Software Engineers Institute's Capability Maturity
Model
SEZ Special Economic Zone
SEIS Service Exports from India Scheme
SIA Secretariat for Industrial Assistance
SIIC State Industrial Infrastructure Corporation
TH Trading House
TPO Trade Promotion Organization
SION Standard Input Output Norms
TRA Telegraphic Release Advice
SKD Semi- Knocked Down
TRQ Tariff Rate Quota
TUFS Technology Upgradation Fund Scheme
UAC Units Approval Committee
SLEPC State Level Export Promotion Committee
STC State Trading Corporation
STCL Spices Trading Corporation Limited
UN United Nations
STE State Trading Enterprise
VA Value Addition
STH Star Trading House
 VCO World Customs Organisation
STPI Software Technology Park of India
WHOGNIP World Health Organisation
STR State Trading Regime Good Manufacturing Practices
SUVs Sports Utility Vehicles
TED Terminal Excise Duty
TEE Tosses of Export Excellence
IMSC Inter-Ministerial Standing Committee
IL Industrial Licensing
ISO International Standards Organisation
ITC (HS) Indian Trade Classification (Harmonised System) for
Export & Import Items
KVIC Khadi and Village Industries Commission
LC Letter of Credit
LCS Land Customs Station
LLPIN Limited Liability Partnership Number
LPG Liquefied Petroleum Gas
LoC Line of Credit
LoI Letter of Intent
LoP Letter of Permit
LLIT Legal Undertaking
MAI Market Access Initiative
MDA Market Development Assistance
MEA Ministry of External Affairs
MEIS Merchandise Exports from India Scheme
MRA Mutual Recognition Agreements
MoD Ministry of Defence
MoF Ministry of Finance
MSME Ministry of Micro Small and Medium Enterprises
MSMED Micro Small and Medium Enterprises Development
MSTC Metal Scrap Trade Corporation
NBFC Non- Banking Financial Company
NC Norms Committee

Introduction
International trade is obviously very important for a country. The growth of
international trade can offer new opportunities for importers and exporters. It is
impossible for a country to produce domestically everything for its citizens need
or demand. Without foreign trade, national resources are not put to their best
uses. More exporters are looking for foreign markets to sell their products. Export
market is normally so much larger than the firms domestic market. Most
notably, companies export to increase their revenues. More importers are also
looking for sources of supply to buy products. Companies and distributors seek
out products, services, and components produced in foreign countries.

Exim Policy or Foreign Trade Policy is a set of guidelines and

instructions established by the DGFT in matters related to the
import and export of goods in India.

The Foreign Trade

Policy of India is guided by the Export Import in known as in
short EXIM Policy of the Indian Government and is regulated by
the Foreign Trade Development and Regulation Act, 1992.
DGFT (Directorate General of Foreign Trade) is the main
governing body in matters related to Exim Policy. The main
objective of the Foreign Trade (Development and Regulation) Act
is to provide the development and regulation of foreign trade by
facilitating imports into, and augmenting exports from India.
Foreign Trade Act has replaced the earlier law known as the
imports and Exports (Control) Act 1947.

EXIM Policy

Indian EXIM Policy contains various policy related decisions

taken by the government in the sphere of Foreign Trade, i.e., with
respect to imports and exports from the country and more
especially
export promotion measures, policies and procedures related
thereto. Trade Policy is prepared and announced by the Central
Government (Ministry of Commerce). India's Export Import Policy
also know as Foreign Trade Policy, in general, aims at developing
export potential, improving export performance, encouraging
foreign trade and creating favourable balance of payments
position
RESEARCH DESIGN

a) Statement of research problem

b) Significance of research problem
c) Justification of research problem
d)Aim and objective of research problem
e)Review Literature
f)Hypothesis
g)Researchable questions
h)Source of Data collection

Research Design:-

Research design is the based framework, which

provides guidelines for the research process. It is a map or
blue print according to which the research is to be
conducted. The research design specifies the methods for
data collection and data analysis determine the source of
data. Most specifically it was a kind of Descriptive
Research who take care of who, when, where, what, what,
how and why aspect of the investigation.

Research :Descriptive
Research Method :Observational
Tools used :Internet & Telephone
Data Source :Primary & Secondary
B) Statement of Research Problem

MAJOR PROBLEMS:

o Language Difference

o More Risk

o Government Control

o Difference in laws

o Difficulty in payment

o Custom Duty

o Lack of information

o Evil Effects of foreign Trade

o Economic Dependence

o Disadvantages to Agricultural Countries

o International Jealousy

o One- sided development of the country

o Dumping
* Language Difference:- Each country has its own language.

When a trader of one country deals with trader of another

country then because of different languages, it becomes difficult.

* More Risk:- the quantum of risk is higher in foreign trade than

that in internal business. In foreign trade, goods are transported

from quite long distances and usually through sea ways. Rocks,

waves and climate in sea can damage the goods to a great extent.

While in transit, enemy countries can also attack.

* Government Control:- international business is usually done

under government control. For import & export of products,

various licenses are taken and various information are to be

submitted. Moreover, the whole procedure is quite complex.

* Difference in laws:- the rules related to export-import are

separate in each country. Due to the difference of rules in each

country, there is alway. some doubt in the mind of trader

regarding paym and other terms of business.

* Difficulty in payment:- each country has different currency. So,

businessmen face a lot of problems while paying or receiving

money.
* Custom duty:- to control the export- import of country, the

government uses custom duty. The objective of tax on import is to

increase the price of foreign goods so that it becomes unattractive

for domestic consumers. The objective of tax is to reduce the flow

of foreign goods.

* International Jealousy:- the biggest problem in the international

trade is the jealousy between the trading companies. The

developed countries always exploit the weaker nations and

ultimately they have to bow down before their trading terms and

conditions. o One-sided development of the country:- the

international trade is conducted on the basis of geographical

division of labors and specialization. Therefore, it does not

provide the chance to develop each and every country. Thus, the

development of the country becomes one- sided rather than

multi-sided.

* Aids to problem of foreign trade:

* Trader should know various languages o To protect from risk

marine insurance is a powerful tool o Businessmen should have

the knowledge of changes in exchange rates o Modernization o

Adopt modern technology in agriculture o Standardization of

products and process

EXIM Policy of India:

What is EXIM policy?

Also knows as Foreign Trade Policy.

The foreign trade of India is guided by the Export-Import policy of

India.

The Ministry of Commerce and Industry, Government of India,

pronounces the Indian EXIM policy or Export-Import policy of

India.

It contains policies in the sphere of Foreign trade i.e. with respect

to import & export from the country and more especially export

promotion measures, policies and procedure related to it.

Export means selling abroad and import as bringing into India,

any goods and services.

The Government of India advises the Exim Policy of India for a

phase of five years under Section 5 of the Foreign Trade

Development and Regulation Act, 1992.

The Exim Policy is renewed every year on the 31st of March and

the revisions, improvements and new proposals become effective

from 1st April of every year.

Brief History about EXIM

In the year 1962, the Government of India selected a special

Exim Policy Committee to review the government preceding

policies of export import (Indian Exim policy).

The committee was afterward permitted by the Government of

India. Mr. V. P. Singh, the then Commerce Minister and

pronounced the new Exim Policy of India on the 12th of April,

1985.

Primarily the Export-Import Policy of India was launched for the

period of three years with main intention to boost the export

business in India.

Objectives of EXIM Policy

To establish the framework for globalisation.

To promote the productivity, competitiveness of Indian industry.

To encourage the attainment of high &

internationally accepted standards of quality.

To increase export by facilitating access to raw materials,

intermediate components, consumables and capital goods from

the international market

To generate new employment.

To provide quality consumer products at reasonable prices.

To arrest and reverse declining trend of exports is the main aim

of the policy. This aim will be reviewed after two years.

To Double India's exports of goods and services by 2014.

To double India's share in global merchandise trade by 2020 as a

long term aim of this policy. India's share in Global merchandise

exports was 1.45% in 2008.

. Simplification of the application procedure for

availing various benefits

5. To set in motion the strategies and policy measures

which catalyze the growth of exports

 6. To encourage exports through a "mix of measures

including fiscal incentives, institutional changes,

procedural rationalization and efforts for enhance

market access across the world and diversification of

export markets.

Aim

The policy aims at developing export potential, improving

export performance, boosting foreign trade and earning

valuable foreign exchange. FTP assumes great significance

this year as India's exports have been battered by the global

recession. A fall in exports has led to the closure of several

small- and medium-scale export-oriented units, resulting in

large-scale unemployment

THE FOREIGN TRADE POLICY 2015-2020

On 1st April 2015, the new Foreign Trade Policy (FTP) for

the period 2015-20 was announced which replaces the

2009-14 FTP which expired on 31st March 2014.

India's Foreign Trade Policy also known as Export Import

Policy (EXIM) in general, aims at developing export potential,

 improving export performance, encouraging foreign trade

and creating favorable balance of payments position. Foreign

Trade Policy is prepared and announced by the Central

Government (Ministry of Commerce). Foreign Trade Policy or

EXIM Policy is a set of guidelines and instructions

established by the DGFT (Directorate General of Foreign

Trade) in matters related to the import and export of goods

in India.

highlights of the present Foreign Trade Policy 2015-2020

India to be made a significant participant in world trade by

2020

Commerce Minister announced two new schemes in Foreign

Trade Policy 2015-2020 MEIS & SEIS. namely "Merchandise

Exports from India Scheme (MEIS)" and "Services Exports

from India Scheme (SEIS)". These schemes (MEIS and SEIS)

replace multiple schemes earlier in place.

Merchandize exports from India (MEIS) to promote specific

services for specific Markets Foreign Trade Policy

For services, all schemes have been replaced by a 'Services

Export from India Scheme'(SEIS), which will benefit all

services exporters in India.

FTP would reduce export obligations by 25% and give boost

to domestic manufacturing
 Incentives (MEIS & SEIS) to be available for SEZs also. FTP

benefits from both MEIS & SEIS will be extended to units

located in

e-Commerce of handicrafts, handlooms, books etc., eligible

for benefits of MEIS. e-Commerce exports up to Rs.25000

per consignment will get SFIS benefits.

e-Commerce Exports Eligible For Services Exports From

India Scheme. As part of Digital India vision, mobile apps

would be created to ease filing of taxes and stamp duty,

automatic money transfer using Internet Banking have been

proposed.

Agricultural and village industry products to be supported

across the globe at rates of 3% and 5% under MEIS. Higher

level of support to be provided to processed and packaged

agricultural and food items under MEIS.

Industrial products to be supported in major markets at

rates ranging from 2% to 3%.

Branding campaigns planned to promote exports in sectors

where India has traditional Strength.

Business services, hotel and restaurants to get rewards

scrip under SEIS at 3% and other specified services at 5%.

BALANCE OF
TRADE OF INDIA
OBJECTIVE OF THE STUDY
The main objectives of the research were:
To know about export import process.
 To know what are the documents required

before and after sailing the cargo.

To know different type oZontainer used in shipment.

Extra

ACKNOWLEDGEMENT
 It is the matter of great pleasure and privilege to be able to present this

project report on EXIM.

The compilation of the project is a milestone in the life of the management

student and its execution is inevitable with the co-operation of the project guide. I

wish to record a deep sense of respect and gratitude to my project guide, Prof.

Sabia Shaik for her encouragement to course of my work. It is due to the enduring

effort and guidance of my guide that ultimately made it success.

I also take this opportunity to express my deep regards and gratitude to the

principle Anju A. Sing and would like to thank the head Department Prof. Sabia

Shaik who gave us guidance to take up and pursue the project

I cannot just condone the valuable opportunity give to me by the university

of B.A.M.U for compiling and submitting the project, which i feel is an opportunity

to express my views about EXIM.

I acknowledge my indebtness to various authors for making use of valuable

information liberally.

It is my proud privilege to express my deep sense of appreciation and

gratitude to my parents and friends for their support and co-operation in the

course of the project either directly or indirectly involved in time with their valuable

contribution.