ANANYA GHOSH

NENCY MAKADIA
SALONI ROKADIA

VIDHI ROJIWADIA
JYOTI SONI

CONTENT TO BE COVERED: Commerce

minister
What is EXIM policy
Objective of EXIM policy
EXIM policy 2015-2020
What is EPZ
Benefits received by EPZ
Objective of EPZ
Working of EPZ
Prominent EPZ zone
SEZ
EPZ vs SEZ

EXIM POLICY

Our Commerce minister

Nirmala Sitharaman

WHAT IS EXIM POLICY

The Union
Commerce
Ministry,
Government of
India
announces the
integrated
Foreign Trade
Policy (FTP) in
every five year.
This is also
called EXIM
policy.

This policy is
updated
every year
with some
modification
and new
schemes.

The foreign
trade policy
New schemes
which was
come into
announced
effect on the
on august 28
first day of
2009 is an
financial year
integrated
i.e. April 1,
policy for the
every year.
period 200914.

OBJECTIVE OF EXIM POLICY

There

are two aspects of Exim Policy

1. The import policy which is

concerned with regulation and
management of imports
2. The export policy which is
concerned
with
not
only
promotion but also regulation of
exports

OBJECTIVE OF EXIM POLICY

The main objective of the Government's

EXIM Policy is to promote exports

to the maximum extent.

It should be promoted in such a manner

that the economy of the country is not
affected
by
unregulated
exportable items
specially
needed within the country.

OBJECTIVE OF EXIM POLICY

Explanation :
Export control is, therefore,
exercised in respect of a
limited number of items
whose
supply
position
demands that their exports
should be regulated in the
larger interests of the
country.

KEY OBJECTIVES OF EXIM POLICY

To

accelerate the economy

To accelerate the economy from low
level of economic activities to high
level of economic activities by making
it a globally oriented vibrant economy
and to derive maximum benefits from
expanding
global
market
opportunities.

KEY OBJECTIVES OF EXIM POLICY

To

stimulate
economic growth

sustained

To stimulate sustained economic growth

by providing access to essential raw
materials, intermediates, components,'
consumables
and
capital
goods
required for augmenting production.

KEY OBJECTIVES OF EXIM POLICY

To

enhance the techno local strength

To enhance the techno local strength and
efficiency of Indian agriculture, industry and
services, thereby, improving their
competitiveness.

KEY OBJECTIVES OF EXIM POLICY

To

generate new employment

To generate new employment and

opportunities and encourage the
attainment of internationally accepted
standards of quality.

KEY OBJECTIVES OF EXIM POLICY

To provide quality consumer products
at reasonable prices.

India New Foreign Trade Policy

2015 - 2020.

The Government of India, Ministry of

Commerce and Industry announced
New Foreign Trade Policy on 01st
April 2015 for the period 2015-2020,
earlier this policy known as Export
Import (Exim) Policy.

India New Foreign Trade Policy

2015 - 2020.

The Export Import Policy (EXIM

Policy) or Foreign Trade Policy is
updated every year on the 31st
of March and the modifications,
improvements and new schemes
becomes effective from April
month of each year.

Following are the highlights of the Foreign

Trade Policy 2015-20 announced by Commerce
& Industry Minister Nirmala Sitharaman

Increase exports to $900 billion by 2019-20, from

$466 billion in 2013-14

Raise India's share in world exports from 2% to

3.5%.

Merchandise Export from India Scheme (MEIS) and

Service Exports from India Scheme (SEIS) launched.

Higher level of rewards under MEIS for export items

with High domestic content and value addition.

Following are the highlights of the Foreign

Trade Policy 2015-20 announced by
Commerce & Industry Minister Nirmala
Sitharaman

Export obligation under EPCG (Export Promotion

Capital Goods ) scheme reduced to 75% to
Promote domestic capital goods manufacturing.

FTP to be aligned to Make in India, Digital India

and Skills India initiatives.

Duty credit scripts made freely transferable and

usable, for payment of custom duty, excise duty
and service tax.

Following are the highlights of the Foreign

Trade Policy 2015-20 announced by
Commerce & Industry Minister Nirmala
Sitharaman

Export promotion mission to take on board state

Governments

Unlike annual reviews, FTP will be reviewed after

two-and-Half years.

Higher level of support for export of defence,

farm Produce and eco-friendly products.

What is
EPZ ?

WHAT IS EPZ ?
An

EPZ is an area where

manufacturer are allowed to
import
raw
materials,
machinery,
equipment
for
manufacturing of export goods
without the payment of duty.

EPZ

EPZ enjoys special government support with

regards to fiscal incentives ,tax rebates and
other exclusive benefits.

India was the first country in Asia to

recognise the effectiveness of EPZ model.

Asias first EPZ was set up in Kandala in

1865.

Benefits Of EPZ

Exemption

custom
equipment.

from
payment
of
duty-import
industrial

Exemption

from payments
corporate tax for 5 years.

No

of

requirement of import license.

Private
government.

warehouses

from

Objectives of EPZ

Encourage and generate economic

development.
Encourage foreign direct investment.
Foster
the
establishment
and
development of domestic industries
in the zone.
Upgrade labour and management
skills.
Acquire advanced technology for
increased productivity.
Generating employment opportunity.
To assure good quality products.

Working of EPZ : 3 TIER

TIER 1 : Ministry of commerce

[Drafting
and
Implementing
policy].

TIER 2 : Board of approval

[Examination of approval].

TIER
3
:
Development
of
commission
[Day
to
Day
functioning of zones].

Prominent EPZ zone

Prominent
Indian
processing zone.

export

Kandala Free Trade Zone(KFTZ), Kandla, Guj.

Prominent EPZ zone

Cochin Export Processing Zone(CEPZ), Cochin,

Kerala.

Madras Export Processing Zone(MEPZ), Madras,

Tami Nadu.

Noida Export Processing Zone(NEPZ), Noida,

Uttar Pradesh.

Prominent EPZ zone

Santa Cruz Electronic

Zone(SEEPZ),
S. Cruz, Maharashtra.

Export

Processing

While the SEEPZ is meant exclusively for the

exports of electronics , gems and jewellery.

All other zones are multi product zone.

100% foreign equity is welcome in EOUs and

EPZs.

SEZ

HOW IS SEZ FORMED?

Find out undeveloped

area in your state.
ii. Few amongst that are
selected.
iii. They are declared as
SEZ.
i.

CONSECUTIVE YEARS

2000
2005
2006

ADDED
BENIFITS
This policy gave added benefits

to manufacturer, Quality
infrastructure support , and fiscal
package with minimum regulation.
It provides simplification of
procedures through single window
clearance.

APPROVAL
MECHANISM
i.

ii.

iii.

Submit the proposal to state

Government .
State Government will forward
the proposal within 45 days to
Board of approval.
Board of approval will take the
final decision.

PROVISIONS OF SEZ
Minimum land requirement for
different sectors have been
charged.
SEZ has separate processing
area and non-processing area.
Simple procedure for operation
and maintenance.
Single window clearance.

FISCAL BENEFITS

Duty free import procurement.

100% Income tax exemption on

export income.

Exemption from Central sales

tax, Service tax, State sales tax
and other duties.

EPZ VS SEZ

Epz vs sez
SEZ are much larger in
geographical size than EPZ.

SEZ has much larger scope of

business than EPZ.
SEZ is found in all the countries
but EPZ are generally located in
under developed or developing
countries.

Epz vs sez
Infrastructure of SEZ consist of manufacturing
units, townships, roads, hospitals, schools and
other services but EPZ are confined to
manufacturing establishments.
The benefits of SEZ are more towards the
growth of domestic business where as EPZ
has the main objective of developing exports
business.

Epz vs sez
Tax benefits in SEZ are much more than in

EPZ.
The consumption of raw material that is
imported duty free has to be consumed over a
period of 5 years in SEZ but the time period in
EPZ is only 1 year.
Laws concerning the certification of the
import goods are much more relaxed in SEZ
than in EPZ.

Epz vs sez
Custom department has less interference in
the inspection of the premises in SEZ but
EPZ requires routine customs inspection of
cargo.
FDI investment in manufacturing unite
does not require sanctions from the board
as it is in EPZ.