EXIM LAW
UNIT – III
PREPARED BY
Dr. M. VANISHREE
ASSISTANT PROFESSOR
DEPARTMENT OF COMMERCE (INTERNATIONAL
BUSINESS)
GOVERNMENT ARTS COLLEGE (A), COIMBATORE
UNIT-3
FOREIGN TRADE
Status Category
Export Performance
(FOB/FOR (as converted)
Value (in USS
million) during current and
previous two years)
One Star Export House 3
Two Star Export House 25
Three Star Export House 100
Four Star Export House 500
Five Star Export House 2000
PRIVILEGES OF EXPORT AND TRADING
HOUSE STATUS HOLDER
(a) Authorization and Customs Clearances for both
imports and exports on self-declaration basis;
(b) Fixation of Input-Output norms on priority within 60 days
(c) Exemption from compulsory negotiation of documents through banks. Remittance/receipts however, would be received through banking channels
d) Exemption from furnishing of Bank Guarantee (BG) in Schemes under the Foreign Trade Policy (FTP)
Reference: Foreign Trade by Khushpat Jain
(e) Star Export Hoses (SEHs) and above shall he permitted to establish Export Warehouses as per Department of Revenue (DoR) guidelines
( f) A decision on conferring of Accredited clients Status shall he communication by customs within 30 days from receipt of application with customs
(g) 100% retention of foreign exchange in EEFC account
(h) As an option. for Premier Trading House (PTH). the average level of exports performance under Export Promotion Capital Goods (EPCG) Scheme shall be the arithmetic mean of export performance as 5 years, instead of 3 years
(i) Status Holders of specified sectors shall be eligable for Status Holder incentive Scrip
0j Status Holders of Agricultural Sector shall be eligible for Agricultural infrastructure incentive Scrip under Vishesh Krishi Gram Udyog Yojana (VKGUY)
Reference: Foreign Trade by Khushpat Jain
Negative List of Exports
Prohibited items
Restricted Items
Canalized Items
Freely Exportable Items
Reference: Foreign Trade by Khushpat Jain
PROHIBITED ITEMS
All forms of wild animals including their parts and products.
Special chemicals as notified by the DGFT
Exotic birds as notified by the DGFT.
Beef.
Sea shells, as specified.
Human skeleton.
Peacock tail feathers including handicrafts and artices made thereof
Manufactured articles and shavings of Shed Antlers of Chital and Sambhar
All items of plants as specified by the DGFT.
Tallow, fat and oils of any animal origin excluding fish oil
Sandalwood items as notified by the DGFT.
Red sanders wood in any form.
Reference: Foreign Trade by Khushpat Jain
RESTRICTED ITEMS
Restricted items are allowed for exports under special license issued by the Dress materials, ready-made garments, fabrics or textile items with imprints of excerpts or verses of the Holy Quran.
Reference: Foreign Trade by Khushpat Jain
DGFT. Some of restricted export items are:
Horses Kathiawadi, Marwari and Manipuri breeds.
Fresh and frozen silver promfrets of weight less than 300 gms
paddy (Rice in husk).
Seaweeds of all types.
Fodder inducing wheat and rice straw.
Chemical fertilizer of all types.
Whole human blood and all products derived from it.
Silkworm, silkworm seeds and silkworm cocoons.
Deoiled groundnut cakes containing more than 1% oil.
Reference: Foreign Trade by Khushpat Jain
CANALISED ITEMS
Item Description Canalising Agency
Onions (except Bangalore Rose
onion and Krishnapuram onion)
Export Permitted through Specified STEs.
Niger Seeds Tribal Cooperative Marketing Federation of
India (TRIFED)
New Delhi.
National Agricultural Cooperative
Marketing Federation of
India (NAFED).
Gum Karaya Tribal Cooperative Marketing Federation of
India (TRIFED),
New Delhi.
Iron ore, Manganese ore and
Chrome ore
Metals and Minerals Trading Corporation
(MMTC).
FREELY EXPORTABLE ITEMS
Item Description Procedures or Conditions
Military stores as notified
DGFT
No objection certificate from the
Department of Defence
Production and Supplies.
Exotic birds such as Bangali
finches, White finches and
Zebra finches
Subject to Pre-shipment inspection.
Bones and bone products. Subject to a certificate from Chemicals and
Allied Products
Export Promotion Council (CAPEXIL).
Basmati Rice Subject to registration of contracts with the
Agricultural ana
Processed Food Products Export
Development Authority
(APEDA).
NEGATIVE LIST OF IMPORTS
Freely Importable Items
Restricted (Licensed) Items
Canalized Items
Prohibited items
Reference: Foreign Trade by Khushpat Jain
BOARD OF TRADE
Composition
The Government shall nominate an eminent person or expert on trade policy to be President of the Board of Trade. The Government shall also nominate 25 persons, of whom at least 10 will be experts in trade policy
Reference: Foreign Trade by Khushpat Jain
TERMS OF REFERENCE
a) To advise the Government on policy measures for preparation and implementation of both short
and long-term plans for increasing exports in the light of emerging national and international
economic scenarios
(b) To review export performance of various sectors, identify constraints and suggest industry specific
measures to optimize export earnings
(C)) TToo examine the existing institutional framework for imports and exports and suggest practical
measures for further streamlining to achieve the desired objectives
(d) To review the policy instruments and procedures for imports and exports and suggest steps to
rationalize and channelise such schemes for optimum use
(e) To examine issues which are considered relevant for promotion of India's foreign trade, and to
strengthen the international competitiveness of Indian goods and services; and
( To commission studies for furtherance of the above objectives.
Reference: Foreign Trade by Khushpat Jain
OBJECTIVES OF FEMA
Extent of FEMA
Provisions of FEMA
Regulatory Framework
Meaning of Foreign Exchange
Meaning of Foreign Security
Meaning of Authorised Person
Types of Foreign Exchange Transactions
Reference: Foreign Trade by Khushpat Jain
THE FOREIGN EXCHANGE
MANAGEMENT ACT, 1999 Foreign Exchange Regulations Act, 1973
FEMA vs. FERA
Provisions
Features
New Terms
Definition of Authorised Person
Meaning of Term 'Resident‘
Punishment
Quantum of Penalty
Appeal
Right of Assistance during Legal Proceedings
Power of Search and Seize:
Reference: Foreign Trade by Khushpat Jain
THE FOREIGN TRADE (DEVELOPMENT
AND REGULATION) ACT, 1992
Main Provisions of the Act
Development and Regulation
Prohibition and Retriction
Export Import (EXIM) Policy
Director General of Foreign Trade (DGFT
Importer Exporter Code Number (IEC Noexcept under IEC No.
Search, Inspection and Seizure
Penalty for Contravention
Reference: Foreign Trade by Khushpat Jain
REVISION OF THE ACT Inclusion of Technology and Services in Foreign
Trade
Restrictions on Trade in Weapons of Mass Destruction and their Delivery Systems
Imports from Developing Countries:
Protection to Domestic Industry:
Enhanced Penalty for Contravention
Miscellaneous Amendments
Reference: Foreign Trade by Khushpat Jain
FOREIGN EXCHANGE MANAGEMENT (EXPORT OF
GOODS AND SERVICES) REGULATIONS, 2000
Declaration as Regards Export of Goods and Services: Eve
Indication of Importer Exporter Code Number
Submission and Manner of Submitting Declarations
Period within which Export Value of Goods/Software to be Realised
Export on Elongated Credit Terms
Submission of Export Documents
Delay in Receipt of Payment:
Project Exports
Advance Payment against Exports:
Reference: Foreign Trade by Khushpat Jain