EXIM POLICIES

Export Promotion Schemes under EXIM

Policy
 Recent updates and changes in
EXIM Policy.
Government has taken the following export promotion
initiatives:-

• New Foreign Trade Policy was launched on 31st March,

2023 and it came into effect from 1st April, 2023.
• Interest Equalization Scheme on pre and post shipment
rupee export credit has also been extended upto 30-06-
2024 with additional allocation of Rs. 2500 crores.
• Assistance provided through several schemes to promote
exports, namely, Trade Infrastructure for Export Scheme
(TIES) and Market Access Initiatives (MAI) Scheme.
• Rebate of State and Central Levies and Taxes (RoSCTL)
Scheme to promote labour oriented sector export has
been implemented since 07.03.2019.
• Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has
been implemented since 01.01.2021. With effect from 15.12.2022,
uncovered sectors like pharmaceuticals, organic and inorganic
chemicals and article of iron and steel has been covered under RoDTEP.
Similarly, anomalies in 432 tariff lines have been addressed and the
corrected rates have been implemented with effect from 16.01.2023.

• Common Digital Platform for Certificate of Origin has been launched to

facilitate trade and increase Free Trade Agreement (FTA) utilization
by exporters.

• Districts as Export Hubs initiative has been launched by identifying

products with export potential in each district, addressing
bottlenecks for exporting these products and supporting local
exporters/manufacturers to generate employment in the district.

• Active role of Indian missions abroad towards promoting India’s trade,

tourism, technology and investment goals has been enhanced.

• Regular monitoring of export performance with Commercial Missions

abroad, Export Promotion Councils, Commodity Boards/ Authorities and
Industry Associations and taking corrective measures from time to
time.
Following measures have been
taken by the Government to
maximize the growth of domestic
markets and to expand its reach
globally;-
• Pradhan MantriGati Shakti

• National Logistics Policy

• National Industrial Corridor Development Programme

• GIS enabled Land Bank- India Industrial Land Bank

(IILB)

• Industrial Park Rating System (IPRS)

• Productivity Linked Incentive (PLI)

• Make In India

• Startup India

• One District One Product

• National Single Window System

Export Processing Zone
• EPZ, is a specific type of economic zone
designated by the government to promote export-
oriented businesses. These zones offer a number
of incentives to companies that set up
operations within them, including tax breaks
and exemption from certain labour laws.
• Export Processing Zone, shortly known as EPZ is
a special economic zone where Export and Import
of goods are allowed without any restrictions.
EPZ offers Export-Import oriented units many
facilities and incentives for promoting exports
from country. It was established in the year
1980 under Export Processing Zones Authority
Ordinance, 1980.
Objectives of EPZ
• The main objective of establishing EPZs is to promote
export-oriented industrialization and to provide an
environment that is conducive to the establishment and
growth of Export Processing Enterprises.
• The other objectives include creating employment
opportunities, generating foreign exchange earnings,
promoting technological up-gradation and improving
productivity in EPZs.
• In addition, EPZs are also seen as a means of achieving
balanced regional development by attracting industries to
less developed areas.
• EPZs also play an important role in the economic
development of a country by providing employment
opportunities and contributing to foreign exchange earnings.
• They also help to promote technological up-gradation and
improve productivity in Export Processing Enterprises.
What is a Free Trade Agreement
(FTA)?
• FTA is an agreement between the countries or
regional blocks to reduce or eliminate trade
barriers, through mutual negotiations with a
view to enhancing trade.
• It includes goods, services, investment,
intellectual property, competition, government
procurement and other areas.
• This concept of free trade is the opposite of
trade protectionism or economic isolationism.
• FTAs can be categorized as Preferential Trade
Agreement, Comprehensive Economic Cooperation
Agreement (CECA), and Comprehensive Economic
What is the Impact of FTA on
the Global Economy?
• By blending local production with foreign
trade, FTAs help boost growth in economies.
• As selected goods are produced by every country
at lower costs due to FTAs, international trade
increases production and consumption.
• In addition to facilitating borderless trade,
FTAs help diversify supply chains by making it
easier for more businesses to conduct business
across borders.
What is the State of India's
Free Trade Agreements?
• India currently has 12 FTAs and India-UAE CEPA
is the latest one.
• After India opted out of the Regional
Comprehensive Economic Partnership (RCEP) in
November 2019, the 15-member FTA grouping that
includes Japan, China and Australia, FTAs went
into cold storage for India.
• But now the bilateral free trade agreements of
India are being negotiated with the United Arab
Emirates, the United Kingdom, Australia and
Canada.
Important Trade Agreements of
India?
• Comprehensive Economic Cooperation and
Partnership Agreement (CECPA)
• South Asian Free Trade Area (SAFTA)
• Asia Pacific Trade Agreement (APTA)
• South Asia Preferential Trading Agreement
(SAPTA)
Export Inspection and Quality
Control under EXIM
In India, export inspection and quality control
are governed by various agencies and regulations
to ensure that exported goods meet the required
standards and comply with international
regulations. The key entities and processes
involved in export inspection and quality
control under the EXIM framework in India
include:
• In India, export inspection and quality control are governed
by various agencies and regulations to ensure that exported
goods meet the required standards and comply with
international regulations. The key entities and processes
involved in export inspection and quality control under the
EXIM framework in India include:

1. Export Inspection Council (EIC):

The EIC is the apex body in India that coordinates and
oversees export inspection and quality control activities.
Functions:
• Formulates and implements export inspection and quality
control programs.
• Establishes standards for exported goods.
• Accredits and supervises Export Inspection Agencies (EIAs).

2. Export Inspection Agencies (EIAs):

EIAs operate under the guidance of the EIC and are
responsible for conducting inspections on behalf of the
government.
Functions:
• Inspects and certifies the quality of export products.
3. Commodity Boards:
Certain commodities have dedicated boards that oversee
their export quality. For example, the Tea Board,
Coffee Board, Spices Board, etc., regulate the quality
standards for their respective products.

4. Directorate General of Foreign Trade (DGFT):

The DGFT, under the Ministry of Commerce and Industry,
formulates and implements foreign trade policies,
including export control regulations.
Functions
Issues policy guidelines related to export inspection
and quality control.

5. Pre-shipment Inspection (PSI)

Some countries may require mandatory pre-shipment
inspection for specific goods. In such cases,
6. Quality Standards and Certifications
Exporters are often required to adhere to specific quality
standards and obtain certifications. For example, ISO
certifications, HACCP (Hazard Analysis and Critical Control
Points), and other relevant quality management systems.

7. Electronic Certification:
The use of technology for electronic certification and
documentation has become increasingly common, streamlining the
inspection and certification process.

8. Documentation:
Exporters need to submit various documents related to product
specifications, testing results, and compliance certificates to
facilitate the export inspection process.

9. Continuous Monitoring and Surveillance

Continuous monitoring of the quality of exported goods is crucial
to maintaining compliance and addressing any emerging issues
promptly.

10. Trade Agreements and Standards:

Import Policy under EXIM
Policy
1.Classification of Goods:
• Goods are categorized into three broad categories:
• Free: No restrictions on import.
• Restricted: Imports subject to specific conditions
and licensing requirements.
• Prohibited: Import is not allowed for certain
goods.
2.Licensing and Regulation:
• Open General License (OGL): Many goods fall under
OGL, allowing unrestricted import without the need
for individual licenses.
• Restricted Items: Certain items require an import
license or specific permissions before
importation.
3.Import Duty and Tariffs:
• Customs Duty: The Import Policy specifies the
applicable customs duty rates for different
categories of goods.
• Tariff Classification: Goods are classified
under the Harmonized System of Nomenclature
(HSN), determining the tariff rates.
4. Export Promotion Schemes:
• The Import Policy may include provisions
related to export promotion schemes, such as
duty drawback, duty-free import authorization,
or other incentives to encourage exports.
5. Non-Tariff Measures:
Apart from customs duties, non-tariff measures
6.Trade Agreements:
• Import policies may be influenced by bilateral
and multilateral trade agreements. Concessions
and preferences granted to trading partners may
impact the import regulations.
7.Import Procedures:
• Guidelines for documentation, customs
clearance, and procedures for the release of
imported goods are outlined in the Import
Policy.
8. Strategic and Sensitive Items:
• Certain goods, often related to national
security or strategic interests, may have
additional regulations or restriction
9.Periodic Updates:
The Import Policy is subject to periodic reviews
and updates. Changes may be introduced to align
with economic goals, trade dynamics, or changes
in global trade patterns.
10.Compliance and Enforcement:
Importers are required to comply with the
regulations outlined in the Import Policy.
Enforcement measures may be taken against
violations.
11. Economic Considerations:
The Import Policy may be influenced by economic
considerations, such as the balance of trade,
foreign exchange reserves, and economic
stability.
Export Inspection and Quality
Control under EXIM Policy
The Export-Import (EXIM) Policy, also known as
the Foreign Trade Policy (FTP) in some
countries, plays a significant role in governing
various aspects of exports and imports.
Export inspection and quality control are
crucial components of the EXIM Policy, ensuring
that exported goods meet the required standards
and specifications.
 PRE-SHIPMENT INSPECTION
• Is a trade facilitating service employed by the
govt, and industry to speed up systematic
clearance of the goods at the loading port
which indirectly helps in the speedy clearance
at the unloading port .
• WHY IS IT REQUIRED?
• To avoid unlawful activities in pricing,
payment, exchange control, and to verify the
perfect compliance between the contract terms
and delivery terms which includes items like
type of goods, quality standards, price and
custom valuation of goods.
 GOODS ARE NOT TO BE SHIPPED UNLESS THEY ARE OF
QUALITY
• If quality standards are not maintained, exporter's
image gets ruined and further chances of export orders
come to a virtual close.
• Normally, quality brings repeat orders to the exporters
and so exporters should not take the slightest chance
in respect of goods exported outside the country.
• Even the image of the country would be at stake and so
the government has taken several measures to maintain
high standard of quality in respect of exports.
• One of the important measures taken by the government
to maintain stringent quality, export (quality control
and inspection) act, 1963 has been passed.
• The act empowers to bring any commodity within its
purview. Once notification is made in respect of any
commodity under this act, that commodity can not be
exported unless a certificate of export-worthiness is
obtained from the export inspection council (EIC) or
any other approved authority, authorised in this
matter.
WHERE IT IS CARRIED OUT?
• IT IS CARRIED OUT AT THE PLACE OF ORIGIN OF THE
GOODS DESTINED FOR THE EXPORTS.
INSPECTION OF GOODS MAY BE
CONDUCTED UNDER
• CONSIGNMENT-WISE INSPECTION
• IN-PROCESS QUALITY CONTROL AND
• SELF-CERTIFICATION
CONSIGNMENT-WISE INSPECTION
• Each consignment, in packed condition, is
subjected to detailed inspection by the export
inspection agencies. They conduct the inspection
on the basis of statistical sampling plan.
• If the goods conform to the stipulated quality,
they issue the inspection certificate. The
certificate also carries a validity period before
which the export consignment must be shipped.
• In case of consignment-wise inspection, actual
export consignment, in packed condition, is taken
for inspection.
• No consignment of any notified commodity is
allowed to be exported without the certificate
issued by the recognised inspection agency.
• This system is applicable to all commodities other
than those that undergo in-process quality
control.
• Generally, small- scale manufacturers who cannot
IN-PROCESS QUALITY CONTROL
• Certain commodities like paints and allied
products, linoleum, ceramics, printing ink,
sanitary wares etc. Come under the purview of
in-process quality control.
• In case of continuous process industries, an
option is given to them to become approved
"export-worthy" unit, as they possess the
requisite infrastructure for
manufacturing/processing products of standard
quality.
• This status enables them to conduct inspection
and give declaration and based on their
SELF-CERTIFICATION
• With the experience gained in operating the
compulsory quality control and pre-shipment
inspection scheme in India, there has been a
qualitative change in the inspection system
also.
• Recently, a self-certification system has been
introduced.
• This is based on the concept that the
manufacturing unit which has in-built
responsibility for quality control should have
the freedom to certify its own product for
export.
WHAT IS ISO 9000 SYSTEM?
• It is a series of international standards for
quality system major exporting nations, which
number over 100 uses it.
• For exporting organizations the iso 9000
certification provides them with a sense of
authentication for their quality setup and
standards and thus making it easy to access the
world markets.
• Each major industrial country has developed their
own equivalent standards like in India it is is-
14000, UK it is BS- 5750, and EU it is EN-29000.
• There are three sub-divisions under this series:
• ISO 9001: for self-certification (SC)
• ISO 9002: For In-process Quality Control (IPQC)
• ISO-9003: For Consignment Wise Inspection. (CWI)