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INDIAS FOREIGN TRADE POLICY 2009-14

The Union Commerce Ministry,Government of India announcesthe integrated Foreign Trade

Policy FTP in every five year. Thisis also called EXIM policy. Thispolicy is updated every year withsome modifications and newschemes. New schemes comeinto effect on the first day offinancial year i.e. April 1, every

year. The Foreign tradePolicy which was announced onAugust 28, 2009 is an integratedpolicy for the period 2009-14.

What is Foreign Trade Policy?

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To arrest and reverse decliningtrend of exports is the main aimof the policy. This aim will bereviewed after two years.

To Double India's exports ofgoods and services by 2014.

To double India's share in globalmerchandise trade by 2020 as a

long term aim of this policy.India's share in Globalmerchandise exports was 1.45%in 2008.

Objectives of Foreign TradePolicy 2009-14

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Simplification of the applicationprocedure for availing variousbenefits

To set in motion the strategiesand policy measures whichcatalyze the growth of exports

To encourage exports through a"mix of measures including fiscal

incentives, institutional changes,procedural rationalization andefforts to enhance market accessacross the world anddiversification of export markets.

Objectives of Foreign TradePolicy 2009-14

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Stable Policy environment

Fiscal Incentives

Diversification of Export Markets

Procedural Rationalization

Institutional Changes

Strategies

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Special Focus Initiatives

Import/Export Provisions

Promotional Measures

Duty Exemption & Remission Schemes

EPCG Scheme

Export Oriented Units (EOUS), Electronics Hardware Technology

Parks (EHTPS), Software Technology Parks (STPS) and Bio-

Technology Parks (BTPS)

Components & Schemes

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Special Economic Zones (SEZ)

Free Trade and Warehousing Zones (FTWZ)

Deemed Exports

Components & Schemes

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SPECIAL FOCUS INITIATIVES

27 new markets included in the ambit of Focus market scheme

(FMS). Incentive available under FMS raised from 2.5% to 3%.

Number of countries under FMS are 41.

Incentive available under Focus Product Scheme (FPS) raised

from 1.25% to 2%.

Market Linked Focus Product Scheme (MLFPS) expanded by

inclusion of new items to specified countries.

Support for Market & Product diversification

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Firozabad for Glassware.

Bhubnaeshwar for Marine products.

Agartala for Bamboo & Cane Products.

Jaipur, Srinagar & Anantnag for Handicrafts.

Kanpur, Dewas & Ambur for Leather Products.

Malihabad for Horticultural Products.

Towns of Export Excellence (TEE)

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2% bonus benefits under Focus

Product Scheme. Re-export of unsold imported raw

hides, skins & semi finished leather

is allowed from public bonded

warehouses without any paymentof Export Duty.

Leather Industry

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Vishesh Krishi & Gram Udyog Yojana (VKGUY)

Import of Pesticides permitted under advance authorization forAgro Exports.

Introduction of a single window system to facilitate export of

perishable agricultural produce with an aim to reduce transaction

and handling cost.

Agriculture Industry

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Import of gold of 8 k and above is allowed subject to import being

accompanied by an Assay Certificate specifying purity, weight andalloy content.

Duty Free Import Entitlement (based on FOB value of exports

during previous financial year) of Consumables and Tools, for:

Jewellery made out of:(a) Precious metals (other than Gold & Platinum) 2%

(b) Gold and Platinum 1%

(c ) Rhodium finished Silver 3%

Cut and Polished Diamonds1%

Gems & Jewellary

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EXPORT PROMOTION CAPITAL GOODS SCHEME

Allows import of capital goods for pre-production, production and

post-production at zero customs duty Subject to an export obligation equivalent to 6 times of the duty

saved, to be fulfilled in 6 years reckoned from authorization issue

date.

Zero Duty EPCG Scheme

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EXPORT PROMOTION CAPITAL GOODS SCHEME

Allows import of capital goods for pre-production, production and

post-production at 3% customs duty Subject to an export obligation equivalent to 8 times of the duty

saved, to be fulfilled in 8 years reckoned from authorization issue

date.

Concessional 3% Duty EPCG Scheme

Documents

FTP 2009-14