MODULE III

FOREIGN TRADE POLICIES

EXPORT PROMOTION REMOVAL OF QUANTITATIVE RESTRICTIONS MAKE INDIAN INDUSTRY COMPETITIVE TO MEET GLOBAL REQUIREMENTS.

Quantitative restrictions QR refer to limits set by countries to restrict imports or exports. These are generally in the form of quotas, licensing requirements, canalizing of imports( ie. allowing only a few players or entities to import specific things.)

 2002 FOREIGN TRADE POLICY 2004 UPA GOVT. RENAMED IT AS EXIM POLICY & LAST FOR ANOTHER 5 YEARS. Special emphasis on industrial clusters, agri export zones, gems and jewellery, hardware Govt.s make amendments in the trade policy every year in the last week of march.

Present exim policy 2009-2014

2002

Focus on latin american, african and new soviet republic countries Special focus on leather, textiles, electronics, gems, jewellery. Continuation of all existing exports promotion schemes. Setting up of overseas banking units in SEZ which would lead the SEZ to have access to money at internationally competitive rates

SSI- Special focus on cottage sector handicrafts Agro product exports- no regsn reqd., transport subsidy to agro products, minimum export price on certain agro products Govt. facilitation- same day licensing. Export thrust on 106 items. Setting up of 20 agri export zones in 12 states. IT benefits for firms in SEZs.

Removal of QRs on exports except for a few sensitive items like onion. Threshold for status as Export House at Rs 5 crore (down from 15 Crore) for tiny, cottage, small scale, handloom, farm exports. Permission for exporters to keep 100% export proceeds in Exchange Earners Foreign Currency Account. EEFC a/c

2004-o9

NDA govt was replaced by UPA govt in 2004.

foreign trade policy announced by the UPA Government in 2004 had set two objectives, namely (i) to double our percentage share of global merchandize trade within 5 years and (ii) use trade expansion as an effective instrument of economic

Vishesh Krishi Upaj Yojana- to promote exports of fruits, vegetables, flowers, minor forest produce. Funds for development of Agri Export Zones. Units in AEZ shall exempt from bank guarentee under EPCG scheme. Import of capital goods shall be permitted duty free under EPCG scheme.

Specific funds earmarked under Market Access Initiative Scheme for promoting handloom and handicraft exports. New handicraft SEZ s shall be established which would procure products from cottage sector and do the finishing for exports. Import of gold of 18 carat and above shall be allowed under the replenishment scheme

2009-2014

 WTO estimates project a grim forecast that global trade is likely to decline by 9% in volume terms and the IMF estimates project a decline of over 11%.

 our exports witnessed robust growth to reach a level of US$ 168 billion in 2008-09 from US$ 63 billion in 2003-04 in goods and services trade India s total share
was 0.92% in 2003; it increased to 1.64% in 2008.

The short term objective of our policy is to arrest and reverse the declining trend of exports and to provide additional support especially to those sectors which have been hit badly by recession in the developed world

We would like to set a policy objective of achieving an annual export growth of 15% with an annual export target of US$ 200 billion by March 2011.

to set a policy objective of achieving an annual export growth of 15% with an annual export target of US$ 200 billion by March 2011. In the remaining three years of this Foreign Trade Policy i.e. up to 2014, the country should be able to come back on the high export growth path of around 25% per annum.

By 2014, we expect to double Indias exports of goods and services. The long term policy objective for the Government is to double Indias share in global trade by 2020

we have signed a Comprehensive Economic Partnership Agreement with South Korea which will give enhanced market access to Indian exports.

We have also signed a Trade in Goods Agreement with ASEAN which will come in force from January 01, 2010, and will give enhanced market access to several items of Indian

The Government seeks to promote Brand India through six or more Made in India shows to be organized across the world every year.

Technological up gradation of exports is sought to be achieved by promoting imports of capital goods for certain sectors under EPCG at zero percent duty.

We would like to encourage production and export of green products through measures such as phased manufacturing program me for green vehicles, zero duty EPCG scheme and incentives for exports

IMPORTER EXPORTER CODE NUMBER IEC number No export or import shall be made by any person without any IEC number

Creation of new Export Promotion Industrial Parks/ Zones (SEZs/Agri Business Zones) and augmenting facilities in the existing ones. Setting up of electronics and other related infrastructure in export conclave.

Equity participation in infrastructure projects including the setting up of SEZs. Meeting requirements of capital outlay of EPIPs/EPZs/SEZs

Development of complementary infrastructure suchas, roads connecting the production centres with the ports, setting up of Inland Container Depots and Container Freight Stations. Stabilizing power supply through additional transformers and islanding of export production centre etc.

Development of minor ports and jetties to serve export purpose. Assistance for setting up Common Effluent Treatment facilities

 Services include all 1 61 tradable services covered under General Agreement on Trade in Services (GATS) where payment for such services is received in free foreign exchange.

The following capital goods / equipments shall be permitted for import: Cold storage units (including Controlled Atmosphere(CA) and Modified Atmosphere (MA) Stores); Precooling Units and Mother Storage Units for Onions,etc. Pack Houses (including facilities for handling, grading, sorting and packaging etc.)

Anticipated FE fluctuations
Has limited influence on inflation & output growth.

Unanticipated FE fluctuations.
Devaluation of domestic currency, increase price of foreign good it favors domestic products. Increases domestic economic performance.

 Technology transfer is the process of sharing of skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and facilities among governments and other institutions to ensure that scientific and technological developments are accessible to a wider range of users who can then further develop and exploit the technology into new products, processes, applications, materials or services.

LICENSING JOINT VENTURE AGREEMENTS

TECHNOLOGY TRANSFER activities include processing and evaluating invention disclosures, filing for patents, licensing, protecting intellectual property. The result will be new products, more high quality jobs, an expanded economy.

 JIT, Quality circle, 6 sigma, TQM, TPM, ToC

 IPR May be defined as information with commercial value. IPRs have been characterised as a composite of ideas, inventions and creative expression plus the public willingness to bestow the status of property on them and give their owners the right to exclude others from access to or use of protected subject

IPRs MAY BE LEGALLY PROTECTED BY PATENTS, COPYWRIGHTS, INDUSTRIAL DESIGNS, GEOGRAPHICAL INDICATIONS, AND TRADEMARKS. A Number of countries also have trade secret laws to protect undisclosed information that gives a competitive advantage to its owner.

Trade and merchandise act of 1958 was replaced by a new act , namely the trade marks act,1999 so as to provide for the protection of service marks also.

Patents.
Is a legal protection granted for an invention that is new, non obvious and useful. Patents grant the holder the exclusive right to make use or sell the patented products or process. Patents by providing an opportunity to recoup the cost of invention and to make profit out of the invention, encourage research and development and thereby contribute to the well being of the society.

An invention to be patentable
New Useful to the society. Non obvious to a person possessed of average skill in the art

Patents act effective from 1jan 2005

An invention means a new product or process involving an inventive step and capable of industrial application. Method of agricultre, treatment of human beings, plants and animals, a presentation of information, topography of integrated circuits are not patentable.

Food, pharmaceuticals, chemicals previously patented for 14 years, now 20 years Patent is granted subject to patented product is produced in India and made available sufficiently at reasonable prices within reasonable time.

IPR
Intellectual property (IP) is a number of distinct types of legal monopolies over creations of the mind, both artistic and commercial, and the corresponding fields of law. Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs.

TRADE MARKS,1999
Trade mark means a mark capable of being represented graphically and which is capable of distinguishing the goods or services of one person from those of others and may include shape of goods, their packaging and combination of colors.

Trade mark
Brand-name, term, sign, symbol or design, a combination of one or two.

 The Indian law relating to trademarks has been amended and consolidated and Trade and Merchandise Marks Act,1958 has been replaced by the Trade Marks Act,1999.

objectives
The registration and better protection of trade marks for goods and services. The prevention of the use of fraudulent marks.

Registrar & Trademarks registry

Controller General of Patents, Designs and Trademarks (registrar) Appointed by CG.

Register of Trade marks shall be kept at head office of Trademarks Registry.

 The details to be entered are:

Name Address , descriptions of registered users Conditions, limitations relating to trademarks.

REGISTRATION OF TRADE MARKS

Apply to registrar Application shall be filed in office of Trade Marks Registry. Registrar may accept the application absolutely or subject to such amendments, modifications, conditions or limitations OR refuse the application. Advertised in prescribed manner soliciting objections. If any objection received it will be

 Applicant have to make counter statement. Serve a copy Registrar hear both parties and take final decision. A certificate is issued to applicant with seal of Trade marks Registry. When application for a trademark is not completed within 12

 Duration of registration of a trademark is 10 years which can be renewed.

GROUNDS FOR REFUSAL OF REGISTRATION

Deceive the public Cause confusion Hurt religious susceptibilities of any section Scandalous or obscene matter Similarity with other trademarks.

ASSIGNMENT AND TRANSMISSION

The proprietor of a trademark can assign and to give effectual receipts for any consideration for such assignment. A registered trademark is assignable and transmissible with or without goodwill.

APPELLATE BOARD
INTELLECTUAL PROPERTY APPELLATE BOARD Is constituted under trademarks act.

VOLVO