WELSPUN GUJARAT STAHL ROHREN LTD. TRAINING PROGRAMME ON FOREIGN TRADE POLICY. SURESH DARAK

FOREIGN TRADE POLICY–( ) A PERSON OR A COMPANY WHO WANTS TO START IMPORT- EXPORT BUSINESS IS GUIDED BY FOREIGN TRADE POLICY, FEMA, CUSTOM AND EXCISE REGULATION. THE RULES ARE AMENDED FROM TIME TO TIME TO KEEP PACE WITH THE ECONOMIC SCENARIO.

FAQ CAN I EXPORT / IMPORT WHATEVER I WANT TO ? WHAT SHOULD BE CURRENCY OF EXPORT/IMPORT? WHERE CAN I EXPORT? WHAT COMPANY NEEDS TO EXPORT/IMPORT ? WHAT ARE EXPORT BENEFIT AVAILABLE TO US.?

WHAT COMPANY NEED TO IMPORT? CAPTAL GOODS RAW MATERIALS SPARES ACCESSORIES COMPONENTS CONSUMABLES SERVICES

DEFINITIONS CAPITAL GOODS:- ANY PLANT MACHINERY, EQUIPMENT OR ACCESSORIES REQUIRED FOR MANUFACTURE OR PRODUCTION, EITHER DIRECTLY OR INDIRECTLY, OF GOODS OR FOR RENDERING SERVICES,INCLUDING THOSE REQUIRED FOR REPLACEMENT,MODERNISATION, TECHNOLOGICAL UPGRADATION OR EXPANSION.. CAPITAL GOODS ALSO INCLUDES PACKAGING MACHINERY AND EQUIPMENT, REFRACTORIES FOR INITIAL LINING, REFRIGERATION EQUIPMENT, POWER GENERATING SETS, MACHINE TOOLS, CATALYSTS FOR INITIAL CHARGE, EQUIPMENT AND INSTRUMENT FOR TESTING, RESEARCH AND DEVELOPMENT, QUALITY AND POLLUTION CONTROL.. CAPITAL GOODS MAY BE FOR USE IN MANUFACTURING, MINING, AGRICULTURE, ANIMAL HUSBANDRY, FLORICULTURE, HORTICULTURE, PICICULTURE,POULTRY, SERICULTURE AND VITICULTURE AS WELL AS FOR USE IN THE SERVICES SECTOR.

DEFINITIONS RAW MATERILAS :- BASIC MATERIALS WHICH ARE NEEDED FOR MANUFACTURE OF GOODS, BUT WHICH ARE STILL IN A RAW,NATURAL,UNREFINED OR UNMANUFACTURED STATE. SPARES : SPARES MEANS A PART OR SUB-ASSEMBLY OR ASSEMBLY FOR SUBSTITUTION,THAT IS READY TO REPLACE AN IDENTICAL OR SIMILAR PART OR SUB-ASSEMBLY.SPARE INCLUDES A COMPONENT OR AN ACCESSORY.

DEFINITIONS ACCESSORIES : ACCESSORY OR ATTACHMENT MEANS A PART,SUB- ASSEMBLY OR ASSEMBLY THAT CONTRIBUTES TO EFFICIENCY OR EFFECTIVENESS OR PIECE OF EQUIPMENT WITHOUT CHANGING ITS BASIC FUNCTIONS. COMPONENTS : MEANS ONE OF THE PART OF SUB-ASSEMBLY OR ASSEMBLY OF WHICH A MNUFACTURED PRODUCT IS MADE UP AND INTO WHICH IT MAY BE RESOLVED. A COMPONENT INCLUDES AN ACCESSORY OR ATTACHMENT TO ANOTHER COMPONENT

CONSUMABLES: MEANS ANY CONSUMPTION OF GOODS WHICH CAN DIRECTLY SATISFY HUMAN NEEDS WITHOUT FURTHER PROCESSING AND INCLUDES CONSUMER DURABLES AND ACCCESSORIES THEREOF. SERVICES: SERVICES INCLUDE ALL TRADABLE SERVICES COVERED UNDER GENERAL AGREEMENT ON TRADE IN SERVICES AND EARING FREE FOREIGN EXCHANGE. DEFINITIONS

EXPORT BENEFITS DUTY EXEMPTION/REMISSION SCHEME ADVANCE LICENCE DEPB DFIA EPCG FMS

ADVANCE LICENCE IS A FACILITY TO IMPORT INPUT USED OR REQUIRED IN MFGR OF EXPORT PRODUCT WITHOUT PAYMENT OF CUSTOM DUTY SUB TO 15% VALUE ADDITION AND ACUTAL USER.

DUTY ENTITLEMENT PASSBOOK SCHEME (DEPB) IT IS A NOTIONAL CREDIT GIVEN AS % OF FOB VALUE OF EXPORT. IT IS NEUTRILISATION OF DUTY INCEDENCE SUFFERED ON DEEMED IMPORT CONTENT OF EXPORT PRODUCT AS PER SION. THIS CREDIT CAN BE UTILISED AGAINST PAYMENT OF DUTY ON IMPORTS OR THIS IS TRANSFERABLE AND CAN BE SOLD IN MARKET.

DUTY FREE IMPORT AUTHORISATION (DFIA) SCHEME THIS IS A FACILITY TO IMPORT INPUTS (WITHOUT PAYMENT OF DUTY) REQUIRED OR USED FOR MANUFACTURING OF EXPORT PRODUCT.SUBJECT TO QUANTITY AS PER SION AND 20% VALUE ADDITION. THE ENTITLEMENT CAN BE SOLD AFTER EXPORT OBLIGATION IS COMPLETED

EXPORT PROMOTION OF CAPITAL GOODS (EPCG) IT ALLOWS TO IMPORT OF CAPITAL GOODS AT CONCESSIONAL RATE FOR PRE-PRODUCTION / PRODUCTION / POST-PRODUCTION STAGE CAPITAL GOODS CAN BE IMPORT AT 0% (FOR SPECIFIC SECOTR) OR 3% DUTY PAYMENT. EXPORT OBLIGATION IS EQUILVENT TO 6 (FOR 0% )/ 8 TIMES (FOR 3%) OF DUTY SAVED ON CAPITAL IMPORTS FOR LICENCE VALUE ABOVE 100 CRORES E.O IS 12 YEARS.

FOCUS MARKET SCHEME (F.M.S) OBJECTIVE : - TO OFFSET THE HIGH COST OF FREIGHT AND ENHANCE OUR EXPORT COMPETITIVENESS TOTAL NO OF COUNTRIS COVERED IN THIS SCHEMS ARE 83 (LATIN AMERICA/ASIA-OCENIA) ENTITLEMENT : - 2.5% OF FOB VALUE OF EXPORT IN EACH LICENSING YEAR STARTING FROM 01/04/2006 TILL 26/08/2009 3% OF FOB VALUE FOR EXPORTS FROM 27/08/2009

THANK YOU

DEEMED EXPORTS THESE REFER TO THOSE TRANSACTIONS IN WHICH GOODS SUPPLIED DO NOT LEAVE THE COUNTRY AND THE PAYMENT FOR SUCH SUPPLIES IS RECEIVED EITHER IN INR / FREE FOREIGN CURRENCY. SUPPLIES OF GOODS :- MANUFATURED IN INDIA COVERED BY TEN CATEGORIES OF SUPPLIES SPECIFIED IN CHAPTER 8 OF EXIM POLICY. THAT DO NOT LEAVE THE COUNTRY I.E.SUPPLIES WITHIN INDIA PAYMENT RECEIVED EITHER IN INR OR IN FREE FOREIGN EXCHANGE. SUPPLY OF GOODS TO AN ULTIMATE MANUFACTURER EXPORTER OR SERVICE PROVIDER AGAINST THEIR DUTY FREE ENTITLEMENT IS DEEMED EXPORTS.