Categories: ECONOMICS4 UNIT-4

Write a note on EXIM Policy.

Written by

Haseena Banu

2 years ago

Introduction:

Export import policy are better known as EXIM policy is a set of guidelines and instructions related to the import and export of goods. The Government of Indian notifies the EXIM policy for a period of 5 years 1997 to 2002 under section 5 of the foreign trade development and regulations act 1992. The current policy covers the period. The extreme policy is updated every year on the 31st of March and the modification, improvement and new schemes become effective from 1^st April of every year. All types of changes or modifications related to EXIM policy is normally announced by the union minister by commerce and industry who coordinates with the ministry of finance, the directorate general of foreign trade and its network of regional offices.

Exim Policy Initiatives:

Agriculture, handicraft, handloom, gems and jeweler, leather and footwear sectors were identify as thrust sector the threshold limits of designated towns of export excellence was reduced from rupees 1000 crores to 250 crores in this trust sector.
Package of agriculture: a scheme of Vishesh Krishi Upay Yojana was introduced to boost the export of fruits, vegetables, flowers etc. exports of these products would qualify for duty free credit entitlement equivalent to 5% of FOB value of exports.
Handlooms and handicraft: a new handicraft special economic zone would be established duty free inputs and handlooms and handicraft sector were increase to 5% of FOB values of export.
Gems and jeweler: import of gold 18 carat and above would be allowed under the replenishment scheme.
Leather and footwear: duty free imports of specified items for leather sector were increased to 5% for FOB value of exports (free on board)
Export promotion scheme: a new scheme to accelerate growth of export called ‘target plus’ was introduced.
Service export: for service export which earn foreign exchange of rupees 10 lakh would be eligible for duty free credit entitlement of 10% of total foreign exchange earned by them.
Duty free import under export promotion capital goods: capital goods imported under EPCG for agriculture would be permitted to be installed anywhere in agree exports zone.
Export oriented units: they would be exempted from service tax in proportion to their exported boots and services.
Biotechnology Park: they would be granted all facilities of 100% export oriented units.
Import of second hand capital goods: import of second hand capital goods would be permitted without any age restriction.
Free trade and warehousing zone: a new scheme to established free trade and warehousing zone was introduced to create trade related in infrastructure to facilitate the import and export of goods and services with freedom.
Procedural simplification and rationalization measures: all exporters with minimum turnover of rupees 5 crores of good track record would be exempt from furnishing bank guarantee in any of the schemes, so as to reduce transaction cost.

also read: explain the monetary policy of R.B.I ( A Review).

Haseena Banu

Haseena Bano is the Editor at Ecolaw.in, a dedicated platform providing comprehensive resources for BA LLB Economics courses. She also serves as a Professor of Economics at Al-Ameen College of Law, where she brings her academic expertise and passion for teaching to shape the next generation of legal professionals. With a deep understanding of both economics and law, she plays a pivotal role in bridging theoretical concepts with real-world applications.