Meaning of terms

Export-selling goods to other countries.Export-selling goods to other countries. Import-buying goods from other countries.Import-buying goods from other countries. Entrepot-means importing goods from other Entrepot-means importing goods from other

countries with the purpose of re-exporting countries with the purpose of re-exporting them after some value addition.them after some value addition.

Factors affecting Exim policy

Provisions of the constitution.Provisions of the constitution. Directive principles of state policy.Directive principles of state policy.

Trade policy before 1985 Restrictive import policy(1951-52).Restrictive import policy(1951-52). Liberalisation measures to build foreign Liberalisation measures to build foreign

reserves,meet shortage of certain goods,to make a reserves,meet shortage of certain goods,to make a mark in foreign market,etc(1951-57)mark in foreign market,etc(1951-57)

Rigorous import policy to reduce foreign Rigorous import policy to reduce foreign debt;vigorous export promotion to bring more debt;vigorous export promotion to bring more foreign currency(1957-1966).foreign currency(1957-1966).

Devaluation of rupee to check imports and boost Devaluation of rupee to check imports and boost exports(1966-76).exports(1966-76).

Policy of import liberalisation to indirectly Policy of import liberalisation to indirectly promote exports(after 1976).promote exports(after 1976).

Need of policy Complete or partial ban on the import of consumer goods.Complete or partial ban on the import of consumer goods. Extensive control of various items of imports.Extensive control of various items of imports. Liberal imports of capital goods for industrialisation.Liberal imports of capital goods for industrialisation. Developing a suitable environment for adopting import substitution.Developing a suitable environment for adopting import substitution. The duty drawback system i.e. reimbursement of tarrif paid on The duty drawback system i.e. reimbursement of tarrif paid on

imported material and excise duties paid on inputs to the exporters.imported material and excise duties paid on inputs to the exporters. Market development assistance I.e providing cash compensatory Market development assistance I.e providing cash compensatory

support to exporters and providing grant in aid to export promotion support to exporters and providing grant in aid to export promotion councils and other organisations for exploring new export markets.councils and other organisations for exploring new export markets.

Fiscal concessions for exports such as exempting export earnings from Fiscal concessions for exports such as exempting export earnings from income tax partially or fully.income tax partially or fully.

Import policy for exports I.e. providing import inputs to export sector Import policy for exports I.e. providing import inputs to export sector at international prices.at international prices.

Developing export processing Zones(EPZ) and 100 percent export-Developing export processing Zones(EPZ) and 100 percent export-oriented units. (EOUs) for providing necessary open environment for oriented units. (EOUs) for providing necessary open environment for export production.export production.

Constituents of import policy

Import restriction.Import restriction. Import substitution.Import substitution.

New Exim policy Introduction of major change in the import licensing system .Introduction of major change in the import licensing system . Strengthened the system of advance license provided to Strengthened the system of advance license provided to

exporters with duty free access to inputs.exporters with duty free access to inputs. Import of capital goods procedure was simplified,duty reduced Import of capital goods procedure was simplified,duty reduced

to 10% from 15%.to 10% from 15%. List of restricted items was reviewed & many items were List of restricted items was reviewed & many items were

shifted to limited permissible limit shifted to limited permissible limit It permitted export houses,trading houses & state trading It permitted export houses,trading houses & state trading

houses to import a wide range of items.houses to import a wide range of items. Export processing zones & 100% export oriented units were Export processing zones & 100% export oriented units were

granted many concessions.granted many concessions. The eligibility for recognition as export/trading house/star The eligibility for recognition as export/trading house/star

trading house & super star trading house from 10 crores,15 trading house & super star trading house from 10 crores,15 crores,250 crores & 750 crores to 20,100,500 & 1500 crores crores,250 crores & 750 crores to 20,100,500 & 1500 crores respectivelyrespectively

Relevant Exim Policy of the current year to be studied.