EXPORT MANAGEMENT UNIT IV

EXPORT POLICY AND PROCEDURES IN INDIA

Export policy and procedures in India are governed by various laws, regulations, and
government agencies. The primary objectives of India's export policy are to promote
trade, boost economic growth, enhance competitiveness, and facilitate the smooth flow
of goods and services across international borders. Here is an overview of the key
aspects of India's export policy and procedures:

1. Directorate General of Foreign Trade (DGFT): The DGFT, under the Ministry of
Commerce and Industry, is the primary regulatory authority responsible for formulating
and implementing India's export-import policies. It issues notifications, trade policies,
and guidelines related to export-import procedures, incentives, and restrictions.
2. Export Promotion Councils (EPCs): EPCs are industry-specific organizations
established to promote and facilitate exports from India. They provide support services
such as market intelligence, trade promotion, product development, quality certification,
and advocacy on behalf of exporters.
3. Export-Import (EXIM) Policy: India's EXIM policy outlines the government's strategies
and measures to regulate exports and imports. It includes provisions related to export
promotion schemes, duty drawback, export financing, trade facilitation, tariff policies,
export incentives, and export control regulations.
4. Export Promotion Schemes: The Indian government offers various export promotion
schemes to incentivize exporters and enhance their competitiveness in global markets.
These schemes include:
 Merchandise Exports from India Scheme (MEIS)
 Services Exports from India Scheme (SEIS)
 Export Promotion Capital Goods (EPCG) Scheme
 Advance Authorization Scheme
 Duty Drawback Scheme
 Export-oriented Units (EOUs) and Special Economic Zones (SEZs)
5. Export Documentation and Procedures: Exporters are required to adhere to specific
documentation and procedures for exporting goods from India. Key documents include:
 Export Declaration Forms (EDF)
 Shipping Bill/ Bill of Export
 Commercial Invoice
 Packing List
 Certificate of Origin
 Export Inspection Certificate (where applicable)

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 Export License (where applicable)

6. Customs Clearance and Compliance: Exporters must comply with customs regulations
and procedures for the clearance of goods at Indian ports of exit. This includes filing
shipping bills, submitting export documents, payment of applicable duties and taxes,
compliance with export control regulations, and adherence to customs documentation
requirements.
7. Quality Standards and Certifications: Exporters must ensure that their products meet
quality standards and certification requirements specified by importing countries.
Compliance with international quality standards, product testing, certification, and
inspection may be necessary to gain access to foreign markets and meet buyer
requirements.
8. Export Financing and Payment Mechanisms: Exporters can avail themselves of various
financing and payment mechanisms to facilitate export transactions. These include
export credit facilities, pre-

EXIM Policy

An EXIM policy is a government plan that helps a country with its international trade.
It includes rules and benefits for things like exporting and importing goods. These
policies are made to make trade easier, boost the economy, and protect a country’s
interests.
The exact rules can be different from one country to another, and they might change
over time to match what’s happening in the world.
EXIM stands for “Export-Import

The EXIM Policy, also called the Foreign Trade Policy (FTP), is managed under the
Foreign Trade Development and Regulation Act of 1992. In India, the Directorate
General of Foreign Trade (DGFT) is in charge of overseeing the EXIM Policy.
THE OBJECTIVES OF EXIM POLICY OF INDIA
The Export-Import (EXIM) Policy of India has several objectives aimed at promoting
and regulating international trade. Here are 20 key objectives:
Promoting Export Growth: To stimulate and increase India’s exports of goods and services.

Enhancing Foreign Exchange Earnings: To earn foreign currency and strengthen India’s balance of
payments.

Diversifying Exports: To expand the range of exportable products and services.

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Facilitating Market Access: To provide easier access to international markets for Indian exporters.

Encouraging High-Value Exports: To focus on high-value and technologically advanced products and
services.
Promoting Trade with Emerging Markets: To boost trade with emerging economies and reduce
dependency on traditional markets.

Supporting Small and Medium Enterprises (SMEs: To assist small and medium-sized enterprises in
becoming competitive exporters.

Strengthening Infrastructure: To improve transportation, logistics, and export-related infrastructure.

Simplifying Trade Procedures: To reduce bureaucracy and streamline export-import processes.

Providing Export Incentives: To offer financial incentives, tax benefits, and subsidies to exporters.

Ensuring Product Quality and Standards: To maintain and enhance the quality of export products.
Promoting Research and Development: To encourage innovation and technological advancement in
exports.

Encouraging Foreign Direct Investment (FDI): To attract foreign investment in export-oriented industries.

Supporting Agri-Exports: To boost agricultural and processed food exports.

Fostering Trade Relations: To strengthen diplomatic and trade ties with other countries.

Promoting E-commerce Exports: To facilitate online trade and e-commerce exports.

Facilitating Import of Essential Goods: To ensure the availability of critical imports for the domestic
market.

Expanding Service Exports: To increase exports in sectors like IT, tourism, and healthcare services.

Achieving Global Competitiveness: To make Indian industries competitive on a global scale and position
India as a significant player in international trade.

KEY FEATURES OF INDIA’S EXIM POLICY 2023-2028

India’s EXIM Policy for the period from April 1, 2023, to March 31, 2028, brings a host
of exciting changes to boost exports and enhance the trade ecosystem.
1. Process Re-Engineering and Automation
The EXIM Policy is like having a tech-savvy assistant to help with exporting goods. It’s
all about simplifying the process and making it more efficient. Think of it as working
together and using smart tools to get things done faster.
This way, it reduces the hassles for exporters and creates a system that’s easy for
everyone to use. It’s like a win-win for trade!

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2. Towns of Export Excellence
In this update, four new towns are welcomed into the existing group of 39 “Towns of
Export Excellence” under the EXIM Policy. These towns are recognized for their
special skills in creating handicrafts, handlooms, and carpets. Being part of this group
comes with great perks.
They get first dibs on funds and support for promoting their exports. It’s like shining
a spotlight on the incredible talent these towns have, giving them extra support to
make their products known worldwide. It’s a way of celebrating and boosting local
skills and creativity.
3. Recognition of Exporters
Recognizing exporters involves categorizing them into different levels based on their
compliance and performance in international trade. Recognized exporter firms
receive privileges, such as streamlined customs procedures, while two-star and
higher status holders, who exhibit exceptional performance, provide trade-related
training.
These training programs are developed using a model curriculum and aim to
enhance the skills and knowledge of other exporters. In addition, recognized
exporters often participate in capacity-building initiatives to further strengthen their
ability to engage in global trade successfully. This multi-tiered approach promotes
growth and competence in the export sector.
4. Promoting Exports from Districts
This policy wants to help small businesses in different areas or districts sell their
products to other countries. It does this by working together with the governments
of those states.
The idea is to make it easier for local businesses to find opportunities to export their
goods and get support to do it. This way, each district can focus on what they are
good at and sell those things to the world, which helps the country make more
money from exports.
5. Streamlining SCOMET Policy
The aim is to make the SCOMET Policy more accessible and improve how we control
the export of special chemicals, organisms, materials, equipment, and technologies.
We want more people to know about SCOMET and understand it better.

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We also want to make the rules for exporting these things stronger. This helps in
ensuring that sensitive items don’t end up in the wrong hands and are used
responsibly. By streamlining this policy, we make it simpler and more effective in
protecting national security.
6. Facilitating e-Commerce Exports
This plan focuses on making it easier for businesses to sell things online to customers
in other countries. It involves creating a clear plan for e-commerce hubs, which are
like online marketplaces. It also covers how businesses should keep track of their
finances, handle returned items, and make sure they get paid correctly.
Plus, it outlines the rules for businesses to sell products abroad. By doing this, it
helps businesses navigate the complexities of online international trade more
smoothly, encouraging e-commerce exports.
7. Rationalization of EPCG Scheme
The plan involves simplifying the EPCG (Export Promotion Capital Goods) scheme,
making it easier for businesses. This scheme allows companies to import machinery
and equipment at a lower duty, which they use for producing goods for export.
The proposed changes will make the scheme more straightforward and practical.
Additionally, the introduction of PM MITRA (Project Management and Information
Tracking Analysis) for the CSP (Common Service Provider) scheme will help
businesses claim benefits more efficiently, encouraging trade facilitation and
smoother operations for companies involved in the CSP scheme.
8. Dairy Sector Exemption
In simple terms, the dairy sector doesn’t have to meet a specific average export
target, which is a requirement for other sectors. This means dairy businesses can
focus on their domestic market without worrying about exporting a certain amount.
Additionally, if a company deals with eco-friendly or “green” technology products,
they will have to export less to meet their obligations. These exemptions and
reduced requirements aim to support the dairy industry and environmentally
friendly technology businesses, making it easier for them to do business.
9. Advance Authorisation Scheme
The Advance Authorisation scheme is like a special permission for businesses. It
allows them to import raw materials for making products without paying taxes on

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them. The new plan aims to make this process even simpler and more helpful for
businesses.
It will provide extra support and easier rules for getting this permission. This way,
companies can bring in the materials they need without extra costs, making it easier
for them to manufacture goods and do business.
10. Merchanting Trade
Merchanting trade means buying and selling goods without actually bringing them
into your own country. The new plan says that Indian entrepreneurs can now engage
in this type of trade even for items that are usually not allowed or have restrictions.
But they must follow the guidelines set by the Reserve Bank of India (RBI). This
decision opens up opportunities for Indian entrepreneurs to do more business
internationally, expanding their options and markets without dealing with the
physical import and export of goods.
11. Amnesty Scheme
The Amnesty scheme is a special opportunity for businesses that have not met their
export obligations as required. This plan offers them a chance to rectify these
defaults in a one-time effort. The scheme limits the amount of interest a business
has to pay to 100% of the exempted duties.
This way, it helps companies correct their past mistakes without facing excessively
high financial penalties, encouraging compliance with export obligations and
supporting businesses to get back on track.