CHAPTER - I FOREIGN TRADE POLICY : AN OVERALL...

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1 CHAPTER - I FOREIGN TRADE POLICY : AN OVERALL APPRAISAL 1.1 A comprehensive Foreign Trade Policy (FTP) for 2004-09 was announced on 31 st August, 2004 and its Annual Supplement was released for the year 2007-08 on 19 th April, 2007. Stability of policy regime (2004-09) has yielded very positive results and in the last 3 years, India’s Merchandise exports have almost doubled, and is expected to surpass the objective of FTP of doubling India’s Merchandise Exports by 2009. Another objective of policy is to make exports an effective instrument of economic growth by giving thrust to employment generation particularly in semi urban and rural areas through a number of policy initiatives. These include simplification of procedures, reduction in transaction cost, neutralisation of incidence of levies and duties on inputs used for exports and development of global hubs for manufacturing, trading and services. Keeping in view the interest of domestic entrepreneur, farmers, traders as well as India’s international commitments and bilateral treaties, amendments / changes in policy are made from time to time as and when these become necessary in public interest. Some of the major initiatives under taken recently including measures announced in the Annual Supplement to FTP in April, 2007 are given below: a) Focus Market Scheme: To offset the high freight cost and other disabilities faced in accessing select international markets by the Indian products, a new Scheme named “Focus Market Scheme” have been launched since 1.4.2006, which would allow the exporters to get an incentive in terms of freely transferable duty credit scrip @ 2.5% of the FOB value of exports of such products. The initiative aims at enhancing India’s export competitiveness in those regions. FOREIGN TRADE POLICY : AN OVERALL APPRAISAL

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CHAPTER - I

FOREIGN TRADE POLICY : AN OVERALL APPRAISAL

1.1 A comprehensive Foreign Trade Policy (FTP) for 2004-09 was announced on 31st

August, 2004 and its Annual Supplement was released for the year 2007-08 on 19th

April, 2007. Stability of policy regime (2004-09) has yielded very positive results and

in the last 3 years, India’s Merchandise exports have almost doubled, and is expected

to surpass the objective of FTP of doubling India’s Merchandise Exports by 2009.

Another objective of policy is to make exports an effective instrument of economic

growth by giving thrust to employment generation particularly in semi urban and

rural areas through a number of policy initiatives. These include simplification of

procedures, reduction in transaction cost, neutralisation of incidence of levies and

duties on inputs used for exports and development of global hubs for manufacturing,

trading and services. Keeping in view the interest of domestic entrepreneur, farmers,

traders as well as India’s international commitments and bilateral treaties,

amendments / changes in policy are made from time to time as and when these

become necessary in public interest. Some of the major initiatives under taken recently

including measures announced in the Annual Supplement to FTP in April, 2007 are

given below:

a) Focus Market Scheme: To offset the high freight cost and other disabilities

faced in accessing select international markets by the Indian products, a new

Scheme named “Focus Market Scheme” have been launched since 1.4.2006,

which would allow the exporters to get an incentive in terms of freely transferable

duty credit scrip @ 2.5% of the FOB value of exports of such products. The

initiative aims at enhancing India’s export competitiveness in those regions.

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In order to give further thrust to the Focus market Scheme, 16 new markets

have been added during the year making a total of 57 markets eligible for

availing benefit under this scheme. The short term impact of the scheme is

evident from the increase in volume of exports to the notified countries.

b) Focus Product Scheme: Certain Products originating from rural and semi-

urban areas have high employment potential. However, such products suffer

from high inherent infrastructure bottlenecks and other associated costs involved

in marketing of such products. To offset a portion of this unwarranted cost, a

new scheme namely, “Focus Product Scheme” has been introduced w.e.f.

1.4.2006. The Scheme allows the exporters to get an incentive in terms of

freely incentive in terms of freely transferable duty credit scrip @1.25% of the

FOB value of exports such as value added fish and leather products, stationery

items, fireworks, sports goods, handloom products bearing handloom mark and

handicraft items. Exporters will have the option to avail of the benefits in respect

of the same exported products under only one of the 3 schemes i.e the Focus

Market Scheme, the Focus Product Scheme or the Vishesh Krishi and Gram

Udyog Yojana.

In order to give further thrust to the Focus Product Scheme, 19 additional

products have been added during the year, making a total of 103 products

eligible for availing benefits under this scheme. In addition, two more products

have also been added/notified during the year under High Tech. Products Scheme

which is also a part of Focus Product Scheme. The short term impact of the

scheme is evident from the growth in exports of these notified products.

C) Vishesh Krishi and Gram Udyog Yojana (Special Agriculture and

Village Industry Scheme) : Keeping in view the objective of Foreign Trade

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Policy to promote employment generation in rural and semi urban areas, Vishesh

Krishi Upaj Yojana has been expanded to include export of Gram Udyog products

i.e village and cottage industry products w.e.f. 1.4.2006. Accordingly, the scheme

has been renamed as Vishesh Krishi and Gram Udyog Yojana to provide incentive

to such exports in the form of freely transferable duty credit scrip @ 5% of FOB

value of exports. However, to ensure that the products manufactured/ processed

out of domestic inputs are incentivised more in comparison to the imported

inputs, duty credit has been reduced to 3.5% of the FOB value of exports in

such cases where the exporter has availed the benefits under Chapter 4 of this

Policy for import of Agriculture Inputs (Other than catalysts, consumable and

packing materials) relating to export item under this scheme. The list of Products

eligible for benefits under this scheme is given in Appendix 37A. Under Vishesh

Krishi and Gram Udyog Yojana, Focus Product Scheme, Focus Market Scheme;

the duty credit scrip can be used for import of all freely importable items except

items listed in Appendix 37B.

During the year, 153 additional products have been notified to be eligible for

benefit under this scheme for giving additional thrust to the scheme. The impact

of the new provision can be observed from the increased exports from these

sectors.

d) Service Tax on Exports :

• Exemption from Service Tax on Services (related to exports) rendered abroad.

Government has announced the principle that "exporters should only export

goods and not the taxes and duties thereon". In line with this, services rendered

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abroad and charged on exports from India would be exempted from Service

Tax.

• Exemption / Remission of service Tax on export of goods.

Service tax on services rendered in India and utilized by exporters would be

exempted / remitted.

Though Department of Revenue have issued Notification allowing Refund of

Service Tax on only a few services, remission mechanism for the major services

is being institutionalized by way of working out of modalities by Department of

Revenue (DoR).

1.2 Package for Marine Sector :

1.2.1 The list of specialized inputs used in the marine sector has been expanded to include

additional items of chemicals and additives within the present duty free entitlement

of 1%.

1.2.2 A self-removal procedure for clearance of seafood waste to be applicable subject to

prescribed wastage norms.

1.3 Package for Gems & Jewellery Sector :

1.3.1 To sharpen core strength of promising gems and jewellery sectors and handicraft

sector, duty free access to tools, machinery and equipment has been provided to

give them competitive edge.

1.3.2 Export of rhodium polished silver jewellery to be encouraged further by way of

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enhanced entitlement of duty free consumables to 3%. It will compensate for the

price rise of rhodium, an essential ingredient for polishing.

1.3.3 To reduce transaction cost for diamond sector, testing facility at Dubai added in the

list of certifying agencies.

1.4 Duty Neutralisation Scheme :

Developers and Co-Developer of Special Economic Zone have been notified for benefits

under all duty neutralisation schemes like DEPB, DFIA and Advance Authorisation

Schemes.

1.5 Advance Authorisation Scheme :

1.5.1 This scheme has been one of the most popular and exporter friendly scheme.

Parameters of the scheme such as Export Obligation period etc have been modified

as a matter of procedural simplification resulting into smooth operation of the scheme.

Considerable progress have also been made for electronic transfer of data between

community partners so as to make it a paperless scheme and reduce transaction

time and cost. The procedure for fixation/ratification of adhoc-norms under Advance

Authorisation based on self declaration has been streamlined and simplified to ensure

time bound disposal.

1.6 Duty Free Import Authorisation Scheme (DFIA) :

1.6.1 A new Scheme called DFIA which was introduced w.e.f. 1.5.2006, offers the facility

of duty free imports for exports and allows the facility of transferability of scrip or

the imported inputs once the export obligation is completed. This scheme has

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undergone changes making it more user friendly both in terms of procedural

simplification and reduce interface with the Government authorities.

1.7 Duty Entitlement Pass Book (DEPB) Scheme :

1.7.1 As of now, DEPB Scheme shall continue till 31.3.2008. Additional facility of Brand

Rate for Customs duty on fuel, which remained un-rebated under the Scheme and

the 4% Special Additional Duty introduced under the Scheme. DEPB rates of 9

product sectors were enhanced by 3% and for the rest by 2% w.e.f 1.4.07 so as to

adjust for reduced value addition, Rupee Appreciation etc. Subsequently, w.e.f.

9.10.2007, the enhanced rates for 47 entries were reduced, keeping it still higher

than the rates which were prevalent before 1.4.2007. Formulation of a new scheme

for rebating the State Indirect Taxes on exports is under consideration.

1.8 Export Promotion Capital Goods (EPCG) Scheme :

1.8.1 EPCG Scheme allows import of capital goods for pre production, production and post

production at 5% Customs duty subject to an export obligation equivalent to 8 times

of duty saved on capital goods imported under EPCG scheme to be fulfilled in 8 years

reckoned from Authorisation issue date.

1.8.2 During the year 2007-08 the following steps were taken. “To encourage exports from

tiny and cottage sector export obligation period is raised to 12 years. Simultaneously,

Service Sector is required to maintain the average level of exports to avail new EPCG.

Provision is also made for waiver of export obligation because of Force Majeure or

other unforeseen circumstances / reasons exporter is unable to fulfil export obligation.

Issue of EPCG for import of spares, tools, spare refractory is also allowed for existing

imported plant and machinery (though not imported under EPCG cover).”

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1.9 Deemed Exports :

1.9.1 “Deemed Exports” refers to those transactions in which the goods supplied do not leave

the country and the payment for such supplies is received either in Indian Rupee or in

foreign exchange. Under the categories of deemed exports, supplies of goods manufactured

in India are made to advance authorization holders, and holders of authorization under

EPCG Scheme as also supplies to EOUs, Software/Hardware Technology Parks,

Biotechnology Parks, large projects financed by multilateral/bilateral agencies/funds as

notified by the Department of Economic Affairs, Ministry of Finance under International

Competitive Bidding procedures, supply of goods to any project where Ministry of Finance

permits the import of such goods at zero-customs duty, supply of goods to fertilizer

plants, power projects, refineries and nuclear power projects through competitive bidding,

supply of marine freight containers by 100% EOUs and supply to projects funded by UN

agencies, subject to eligibility criteria laid down in Foreign Trade Policy.

1.9.2 The suppliers under deemed exports are eligible for benefits of Advance Authorization,

Deemed Export Drawback, exemptions from Terminal Excise Duty/ Refund of Terminal

Exciss Duty.

1.9.3 The scheme of deemed exports provides an opportunity to indigenous manufacturers

to supply their goods to projects and schemes at competitive price due to refunds of

TED and Drawback. The scheme is beneficial both to the indigenous manufacturers

as well as the projects and agencies receiving goods manufactured in India. This

results in curtailing the need for direct import and in lesser outgo of foreign exchange

as the projects and agencies can make payment in Indian rupee also.

1.9.4 During the year 2007-08 (upto Jan. 2008), a sum of Rs. 838 crores has been released

to various regional offices of DGFT for settling the Duty Drawback/TED Refund claims.

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1.9.5 The scheme has served the projects and agencies well and it has also helped enhance

the manufacturing capacity of indigenous industry.

1.10 Trade Facilitation Measures :

1.10.1 Duty free import of samples upto Rs. 75,000/- (Previously Rs. 60,000/-) has been

allowed for all exporters.

1.10.2 Requirement of double verification at customs dispensed with under EPCG and

Advance Authorization scheme to reduce transaction time and cost. Now onwards,

if required, random verification will be resorted to.

1.10.3 Application forms have been down-sized thereby reducing transaction time.

1.10.4 The word ‘manufacturing’ is being clearly defined in the new Income Tax Code to

ensure greater predictability and stability in determining direct tax liability of domestic

manufacturers.

1.11 Board of Trade :

1.11.1 Board of Trade has a clear and dynamic role in advising government on issues

connected with foreign trade. The Board has representation from various Export

Promotion Councils and Commodity Boards including leading industrialist as Members.

1.12 Inter State Trade Council :

1.12.1 The Inter-State Trade Council has been set up to ensure a continuous dialogue with

State Government and Union Territories in matters relating to trade facilitation.

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The Council would inter alia advise the Government on measures for providing an

international trade enabling environment in the States and to create framework for

making states partners in India’s export efforts to achieve the objective of boosting

India’s exports. Commerce Secretary convened a preparatory meeting with State

Government officials in this regard during last year and steps are being taken to

convene the meeting during this year.

1.13 EDI Initiatives :

Directorate General of Foreign Trade is also committed to simplify procedures relating

to International Trade and to put in place an exporter friendly regime for obtaining

import authorizations under various Export Promotion Schemes administered by it.

The following EDI initiatives are being taken: -

i. Bring all the community partners dealing with international trade on an EDI

enabled platform to reduce transaction costs.

ii. Extend the online web enabled application procedure for issue of licence/

authorization to all categories of licences/ authorization;

iii. Consolidate the message exchange system with Customs and extend its scope

to cover all shipping Bills relating to different export promotion schemes.

iv. Doing away with the manual double verification of the authorization system by

way of online validation with the Customs Authority, initially at least for the

ports having EDI facility.

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1.14 Amendments/ changes made in item-wise import policy during the year

2007-08 (after 19.4.2007)

(i) Import of reconditioned components of computer classified under Exim Code

No.847330 has been restricted. [Notification No.8 dated 11.6.2007].

(ii) Import of power tillers have been made subject to emission norms notified by

Department of Road Transport and Highways. [Notification No.11 dated 3.7.2007]

(iii) Import of rice in India has been made subject to the condition that the exporter

of rice to India is able to furnish a certificate from the concerned Government

authorities that the exported rice is GM free. [Notification No.13 dated 10.7.2007]

(iv) Import of dolomite and limestone of a size higher than one cubic feet has been

made restricted. [Notification No.17 dated 26.7.2007]

(v) MMTC Limited, TANCEM Limited and M/s. Puducherry Agro Service and

Industries Corporation Limited (PASIC) have been permitted to import cement

without standard mark from such foreign manufacturers who have applied for

registration with Bureau of Indian Standards. [Notification No.23 dated

14.8.2007 read with Notification No.65 dated 26.12.2007]

(vi) Import of wheat has been made free till further orders. [Notification No.35

dated 8.10.2007]

(vii) Import prohibition on processed pig bristles has been removed. [Notification

No.50 dated 14.11.2007]

(viii) Import of 0.177 bore air guns and air pistols has been allowed freely through

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National Rifle Association of India (NRAI) in addition to eligible shooters.

[Notification No.52 dated 21.11.2007]

(ix) The list of items where mandatory BIS standards is required for imports has

been amended. The present list includes 68 items. [Notification No.53 dated

21.11.2007]

(x) Conditions as per Chemical Weapon Convention on import of certain chemicals

have been imposed. [Notification No.59 dated 30.11.2007]

(xi) Conditions for import of new motorcycles with engine capacity of 800 cc and

more have been amended. As per the new conditions, the Type Approval

Certificate issued by an agency from a Member State of EU shall be accepted

for clearance of important consignments.

[ Notification No.62 dated 12.12.2007]

(xii) Import of palm oil has been restricted through all ports in Kerala.

[ Notification No.63 dated 24.12.2007]

(xiii) Import of genetically modified soyabean oil has been permitted as per the

approval granted by Ministry of Environment & Forests. This permission shall

be valid till further orders. [Notification No.69 dated 27.12.2007]

(xiv) Procedure for import of sandalwood has been amended. As per the new

procedure, importer shall be required to submit Certificate of Origin,

phytosanitary certificate and a certificate from the country of export stating

that export of sandalwood is legally permissible in that particular country, at

the time of importation. Earlier, the importers were required to submit these

certificates at the time of making import licence application.

[ Policy Circular No. 23 dated 31.12.2007]

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1.15 Amendments/ changes made in item-wise export policy during the year

2007-08

(i) The prohibition on export of sugar imposed on 04.07.2006 came to an end on

31.03.2007 and sugar exports again became free. However, export of preferential

quota sugar to EU and USA is subject to quantitative ceiling notified by DGFT

as per allocation made by the Directorate of Sugar.

(ii) The export of non-basmati has been prohibited with effect from 10.10.2007.

However, export of non-basmati rice with Minimum Export price of US$ 650

per ton (FOB basis) has been allowed. Export of basmati rice with MEP of US$

900 per ton (FOB basis) is allowed.

(iii) Export of wheat has been prohibited w.e.f. 09.02.2007. Further export of Wheat

Flour (Maida), Samolina(Rava/Sirgi), Wholemeal atta and resultant atta has

been also prohibited w.e.f. 08.10.2007.

(iv) Prohibition on export of pulses which was imposed with effect from 22.06.2006

has been extended till 31.03.2008. However, export of Kabuli Chana was allowed

w.e.f. 07.03.2007.

(v) Revised SCOMET (Special Chemicals, Organisms, Materials, Equipment and

Technologies) List was notified on 07.09.2007.

(vi) Export of Maize and Maize Seeds was canalized with effect from 05.03.2007

for a period of six months. Maize and Maize Seeds ceased to be canalized

items after the expiry of the six months period (i.e. from 05.09.2007.

(vii) Export of Skimmed Milk Powder (SMP) was prohibited with effect from

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09.02.2007 till 30.09.2007. Thereafter, export of Skimmed Milk Powder (SMP)

became free.

(viii) Export of onion was restricted with effect from 04.10.2007 in view of rising

prices. As a result, onion prices came down to reasonable levels, and export of

onion has been canalized again with effect from 14.11.2007.

1.16 Import licence/authorisation Trends during the period April –

December,2007 : In order to promote exports, various exports promotion schemes

such as Duty Exemption / Remission Schemes, Export Promotion Capital Goods

Schemes, etc. are being offered by the Government to the exporters and to be

competitive in the international market, It is equally important to have technologically

developed capital goods, internationally competitive inputs, etc. To ensure that all

these objectives are met within the given time frame, Directorate General of Foreign

Trade (DGFT) issue various types of authorizations under various export promotion

schemes through its 34 regional offices across India. The growth and performances

of various schemes are being described in the ensuing sections in greater detail.

1.16.1 All India Scenario:-

(a) To understand the performances of export promotion schemes, Directorate

General of Foreign Trade (DGFT) brings out annually trends on authorization

issued under various export promotion and duty neutralization schemes under

Foreign Trade Policy by different Port Offices.

(b) During the period April-December,2007, a total of 1,12,386 import authorizations

worth Rs. 1,32,489 crores(CIF) were issued. Of these 66,244 authorisations

worth Rs. 3,749 Crores as duty credit were issued under DEPB scheme and

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the remaining 46,142 authorisations worth Rs. 1,28,740 Crores as CIF were

issued under schemes other than DEPB.

(c) During the same period of last year, a total of 1,37,590 import authorizations

worth Rs. 1,54,952 crores (CIF) were issued, of which 80,901 authorisations

worth Rs. 3,485 Crores as duty credit were issued under DEPB Scheme and

the remaining 56,689 authorisations worth Rs. 1,51,467 Crores as CIF were

issued under schemes other than DEPB.

(d) This represents a decrease of 18 percent in numbers, 14 percent in the value

during April-December, 2007 over the same period of last year. (Ref. Appendix-I)

1.16.2 Office- wise licence/authorisation Scenario:

(a) Office-wise licensing statistics for the period April-December,2007 indicate that

ten major offices namely Mumbai, CLA New Delhi, Chennai, Kolkata,

Ahmedabad, Ludhiana, Bangalore, Coimbatore, Pune and Hyderabad issued

91,207 authorizations worth Rs. 1,08,780 Crores as CIF/duty credit; thereby

accounting for a contribution to the extent of 81 per cent in numbers and 82

per cent in terms of value.

(b) These offices issued a total of 53,905 DEPB authorizations having duty credit

of Rs. 2,888 Crores. In terms of number of DEPB and duty credit, their share

amounted to 81 and 77 per cent respectively during April -December 2007.

(c) Mumbai alone issued 35,881 authorizations with Rs. 72,046 Crores as CIF and

remained at the top of all Port Offices in terms of issuance. Mumbai, also

attained the top position amongst all Port Offices by issuing 22,017 DEPB

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authorisations having duty credit of Rs. 1,303 Crores. CLA, New Delhi by

issuing a total of 15,310 authorisations having duty credit of Rs 14,945 Crores

remained at the second position. (Ref. Appendix-IV)

1.16.3 Category wise licence/authorisation scenario:

i) Advance licence/authorisation: An Advance authorization granted to the

exporter entitles him to import required inputs for export production without

payment of customs duty subject to export obligation to be completed within

prescribed time. This scheme reduces the burden of customs duties on the

inputs and thereby facilitates cost-competitiveness. Advance authorizations

are issued on the basis of the inputs and export items given under SION.

During April-December 2007, Advance authorizations numbering 18,531 and

valuing Rs.1,03,555 Crores (CIF) and Rs. 1,23,160 Crores as Export

Obligation(FOB) were issued by different port offices of DGFT. On comparing

with the previous year’s statistics, there is a negative growth of 6 percent in

number and 16 percent in the CIF value.

ii) Duty Entitlement Pass Book Scheme (DEPB): DEPB is towards

neutralization of basic customs duty on the inputs. DEPB, per se, is duty credit

instrument and therefore allows import of any permissible input irrespective of

the fact whether the same input has been utilized in the export product or not.

DEPB is, therefore, more flexible in nature. DEPB is a transferable instrument

and easy to operate which makes it more popular among the exporters, which

is evident from the fact that about 59 percent of total authorization issued are

from this category.

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During the period April-December,2007 66,244 DEPB authorisations having

duty credit of Rs 3749 Crore were issued which registered a negative growth

of 13 percent in number and an increase of 8 percent in duty credit.

iii) Duty Free Replenishment Certificate (DFRC): DFRC is one of the sub-

categories of Duty Remission Scheme. DFRC offers imports of inputs already

consumed in exports by way of replenishment without payment of basic customs

duty. However, such inputs shall be subject to the payment of additional

customs duty equal to the excise duty at the time of import.

During the period under reference, only 671 authorisations valuing Rs. 233

Crores were issued for which an Export obligation of Rs.351 Crores was fixed.

Whereas, during the same period of last year, 6,303 authorizations having Rs.

3,687 crores as CIF and Rs. 5,318 crores as export obligation were issued. The

decline in issuance as well as in value is due to the fact that the scheme has

been withdrawn w.e.f 1.5.2006 and a new scheme namely; DFIA, has been

launched in its place.

iv) EPCG Authorization: The scheme allows import of capital goods for pre-

production, production and post-production at 5% customs duty subject to an

export obligation equivalent to 8 times of duty saved on capital goods imported

under EPCG scheme to be fulfilled over a period of 8 years reckoned from the

date of issuance of authorization. The main purpose of this scheme is to help

modernization of the industry by offering duty concessions and binding the

exporter to earn foreign exchange by way of fulfillment of export obligation on

the authorization.

During the period, 14,361 EPCG authorizations were issued for a value of Rs.

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11,936 Crores (CIF) and Rs. 1,00,558 Crores as export obligation. A decrease

of 6 per cent in numbers and increase of 10 per cent in terms of value is found

when compared with the corresponding period of last year.

v) Duty free Import Authorisation: This scheme was launched from May,

2006, which offers the facility of duty free imports for exports and allows the

facility of transferability of scrip or the imported inputs once the export obligation

is complete. This has resulted in flexibility to the exporters to use or dispose

off the inputs, thereby getting back the duty component incurred on them. The

scheme has been an instant success amongst the exporters.

During the period, 3,454 authorisations having CIF value of Rs. 7,208 crores

and FOB value of Rs. 9,437 crores were issued under the Scheme.

vi) Served from India Scheme (DFCEC): The objective of the scheme is to

accelerate the growth in export of services so as to create a powerful and

unique ‘served from India’ brand, instantly recognized and respected world

over. This is also one of the sub-categories of Duty Remission Scheme.

During the period under reference, 754 authorisations valuing Rs. 938 Crores

were issued under this scheme.

vii) Diamond, Gem & Jewellery Export Promotion Scheme: Exporters of

gems and jewellery can import/procure duty free inputs required for

manufacturing of gems and jewellery items under this scheme.

During the period, only 46 authorisation worth Rs. 5 Crores and export obliga-

tion to the tune of Rs 93 Crores were issued. When compared with the previ-

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ous year, there is a decline of 33 percent in numbers and 7 percent in value .

viii) Negative list of import items: During the reference period, 586 authorisations

for negative lists of import items worth Rs. 3,507 Crores were issued, which

represents an increase of 11 percent in numbers and 32 percent in terms of

value respectively over the corresponding period of last year.

ix) Target plus scheme: The objective of the scheme is to accelerate growth in

exports by rewarding star export houses who have achieved a quantum growth

in exports, substantially higher than the general annual export target fixed.

During the reference period a total of 932 authorisations having CIF value of

Rs.629 Crores were issued, while during same period of last year,2,136

authorisations having CIF value of Rs. 1,573 were issued.

x) Vishesh Krishi Upaj yojna : The objective of the scheme is to promote

export of fruits, vegetables, flowers, minor forest products, dairy, poultry and

their value added products, by giving incentives to exporters of such products.

Under the scheme, 6,341 authorisations having CIF value of Rs. 361 Crores

were issued during the reference period, whereas 6,670 authorisations having

CIF value of Rs. 473 crores were issued during corresponding period of last

year. (Ref. Appendices-I to IV)

1.16.4 Product wise licence/authorisation scenario :

(a) The product wise trends of import authorizations issued under different Export

FOREIGN TRADE POLICY : AN OVERALL APPRAISAL

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Promotion schemes for the period April-December, 2006 & 2007 are reflected

in Appendices-II & III respectively.

(b) Out of the total 1,12,386 import authorizations, 27,676 authorizations (25

percent share) were pertaining to “Engineering products” followed by “Chemi-

cal & allied products” – 27,041 (24 percent share), “Textiles General”- 12,053

(11 percent share), “Miscellaneous products”-10622(9 percent share) and “Plas-

tics”- 6821(6 percent share).

(c) Out of the total CIF/duty credit of Rs.1,32,489 crores, Rs.67,521 crores was

pertaining to “Chemical & allied products” followed by “Engineering

products”(Rs.41,235 crores), “Plastics”(Rs.4,931 crores) and “Cotton

Textiles”(Rs.4,142 crores).

(d) The export obligation/FOB against all import authorisations was fixed as Rs.

3,35,854 Crores during the period under reference. Of which Rs. 1,24,145 crores

was pertaining to “Engineering products” followed by “Chemical & allied

products”(Rs.99,617 crores), “Cotton Textiles”(Rs.18,162 crores), “Textiles

General”(Rs. 9,993 crores) and “Plastics”(Rs.9,367 crores).

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The following charts depict a true licensing scenario during the

period under reference:

1. Comparative picture of Authorisations issued during April-December, 2006 & April-

December, 2007.

2. Comparative picture of value of Authorisations issued during April-December, 2006

& April-December, 2007.

3. Percentage share of Authorisations issued by category during April-December, 2007.

4. Percentage share of value of Authorisations issued by category during April-Decem-

ber, 2007.

5. Percentage share of Authorisations issued by Top Ten RLAs during April-Decem-

ber,2007.

6. Percentage share of value of Authorisations issued by Major Ten RLAS during April-

December, 2007.

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Appendix-I

NUMBER OF VARIOUS CATEGORY OF AUTHORISATIONS ISSUED DURING APRIL 2007 - DECEMBER 2007AND ITS COMPARISIONS WITH LAST YEAR"

Appendix-II

NUMBER OF VARIOUS CATEGORIES OF AUTHORISATION ISSUED DURING APRIL 2006 - MARCH 2007 ANDITS COMPARISIONS WITH APRIL 2005 - MARCH 2006 "

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FOREIGN TRADE POLICY : AN OVERALL APPRAISAL

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FOREIGN TRADE POLICY : AN OVERALL APPRAISAL

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FOREIGN TRADE POLICY : AN OVERALL APPRAISAL

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RLA WISE SUMMARY OF VARIOUS LICENCE ISSUED FOR THEPERIOD APRIL 2005- March 2006

NUMBER OF VARIOUS LICENCE ISSUED DURING APRIL 2005 - March 2006

Appendix-VII

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RLA WISE SUMMARY OF VARIOUS LICENCE ISSUED FOR THEPERIOD APRIL 2005 - March 2006

CIF/Duty Credit Rs(Crore) OF VARIOUS LICENCE ISSUED DURING APRIL 2005 - March 2006

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RLA WISE SUMMARY OF VARIOUS LICENCE ISSUED FOR THEPERIOD APRIL 2005 - March 2006

FOB Rs(Crore) OF VARIOUS LICENCE ISSUED DURING APRIL 2005 - March 2006

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RLA WISE SUMMARY OF VARIOUS AUTHORISATION ISSUED FOR THEPERIOD April 2006- March 2007

NUMBER OF VARIOUS AUTHORISATION ISSUED DURING April 2006 - March 2007

Appendix-VIII

risation

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RLA WISE SUMMARY OF VARIOUS AUTHORISATION ISSUED FOR THEPERIOD April 2006- March 2007

CIF/Duty Credit Rs(Crore) OF VARIOUS AUTHORISATION ISSUED DURING April 2006 - March 2007

FOREIGN TRADE POLICY : AN OVERALL APPRAISAL

risation

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RLA WISE SUMMARY OF VARIOUS AUTHORISATION ISSUED FOR THEPERIOD April 2006- March 2007

FOB Rs(Crore) OF VARIOUS AUTHORISATION ISSUED DURING April 2006 - March 2007

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RLA WISE SUMMARY OF VARIOUS LICENCE ISSUED FOR THEPERIOD APRIL 2007 - December 2007

NUMBER OF VARIOUS LICENCE ISSUED DURING APRIL 2007 - December 2007

Appendix-IX

FOREIGN TRADE POLICY : AN OVERALL APPRAISAL

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RLA WISE SUMMARY OF VARIOUS LICENCE ISSUED FOR THEPERIOD APRIL 2007 - December 2007

CIF/Duty Credit Rs(Crore) OF VARIOUS LICENCE ISSUED DURING APRIL 2007 - December 2007

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RLA WISE SUMMARY OF VARIOUS LICENCE ISSUED FOR THEPERIOD APRIL 2007- December 2007

FOB Rs (Crore) OF VARIOUS LICENCE ISSUED DURING APRIL 2007 - December 2007

FOREIGN TRADE POLICY : AN OVERALL APPRAISAL

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