14366187-export-promotion

8/7/2019 14366187-Export-Promotion

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Import facilities for exporters:Im

port facilities for exporters:

Advance License / Duty free Replenishment certificateAdvance License / Dut

y free Replenishment certificate

(DFRC):(DFRC): An advance license is issued to allow duty freeAn advance license is issued to allow duty free

import of inputs which are physically incorporated inimport of inputs which are physically incorporated in

the export product .In addition fuel, oil, energy,the export product .In addition fuel, oil, energy,

catalysts which are consumed in the course of their usecatalysts which are consumed in the course of their use

obtain the export product, may also be allowed.obtain the export product, may also be allowed.

Duty entitlement Pass book scheme( DEPBDu

ty entitlement Pass book scheme( DEPB):):Under the DEPB scheme, an exporter may apply forUnder the DEPB scheme, an exporter may apply for

credit as a specified percentage of FOB value ofcredit as a specified percentage of FOB value of

exports, made in freely convertible currency. The creditexports, made in freely convertible currency. The credit

shall be available against such products and at suchshall be available against such products and at suchrates as may be specified by DGFT by way of publicrates as may be specified by DGFT by way of public

notice issued in this behalf for import of raw material ,notice issued in this behalf for import of raw material ,

intermediates, components, parts packaging materials.intermediates, components, parts packaging materials.


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Export Promotion of capital goods Scheme

Export Promotion of capital goods Scheme

(EPCG):(EPCG):EPCG scheme was introduced in order toEPCG scheme was introduced in order to

enable manufacturer exporter to import machinery andenable manufacturer exporter to import machinery and

other capital goods for export production atother capital goods for export production at

concessional or no custom duties at all. Facility isconcessional or no custom duties at all. Facility issubject to export obligation i.e. the exporter is requiredsubject to export obligation i.e. the exporter is required

to guarantees exports of certain minimum value.to guarantees exports of certain minimum value.

The scheme covers the following :The scheme covers the following :

EPCG allows of capital goods for production at 5 %EPCG allows of capital goods for production at 5 %custom duty subject to an export obligation equivalent tcustom duty subject to an export obligation equivalent t

o 8 times of duty saved on capital goods importedo 8 times of duty saved on capital goods imported

under EPCG scheme to be fulfilled over a period of 8under EPCG scheme to be fulfilled over a period of 8

years reckoned from date of issue of licence.years reckoned from date of issue of licence.


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Duty drawback:Duty drawback:

Excise duty refund:Excise duty refund: Excise duty is tax imposed by theExcise duty is tax imposed by the

central government on goods manufactured in India.central government on goods manufactured in India.This duty is collected at source before removal of goodsThis duty is collected at source before removal of goods

from the factory premises. Export goods are totallyfrom the factory premises. Export goods are totally

exempt from central excise duty.exempt from central excise duty.

Octroi exemption: Octroi is paid on manufacturedOctroi exemption: Octroi is paid on manufactured

goods, when they enter the municipal limits of a city orgoods, when they enter the municipal limits of a city or

a town.a town.

Income tax incentivesIncome tax incentives


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Marketing Assistance:Mar

keting Assistance:

Marketing Development assistance:Mar

keting Development assistance: Under MDAUnder MDA

exporters with annual exporter turnover up to 5 croresexporters with annual exporter turnover up to 5 crores

are eligible for financial assistance for a range of exportare eligible for financial assistance for a range of export

promotion activities such as participation activities suchpromotion activities such as participation activities such

participation in trade fairs, buyers and seller meet inparticipation in trade fairs, buyers and seller meet in

India and abroad, export promotion seminars.India and abroad, export promotion seminars.

Marketing Access Initiative :Mar

keting Access Initiative : MAI is intended toMAI is intended to

provided financial assistance for medium term exportprovided financial assistance for medium term exportpromotion efforts with a sharp focus on country andpromotion efforts with a sharp focus on country and

product. Export promotion councils, industry and tradeproduct. Export promotion councils, industry and trade

associations, agencies of state government, Indianassociations, agencies of state government, Indian

mission abroad are eligible for assitance under themission abroad are eligible for assitance under thescheme.scheme.


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Supply of raw materials:

Supply of raw materials:

Industrial Raw Material Assistance centers (IRMAC):Industrial Raw Material Assistance centers (IRMAC):

IRMAC is established by the government of India as aIRMAC is established by the government of India as a

subsidiary of STC. Such centers import raw material insubsidiary of STC. Such centers import raw material in

bulk and supply them to registered exporters againstbulk and supply them to registered exporters against

valid import valid license. This enables exporters to getvalid import valid license. This enables exporters to get

timely supply of raw material at reasonable prices.timely supply of raw material at reasonable prices.

Back to Back letter of credit:Back to Back letter of credit:

Export promotion Councils: Export promotion councilExport promotion Councils: Export promotion council

are non-profit organization registered under theare non-profit organization registered under the

companies Act or societies registration Act as case maycompanies Act or societies registration Act as case may

be. They are supported by financial assistance from thebe. They are supported by financial assistance from the

central government.central government.


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The main role of the EPCs is to project India imageThe main role of the EPCs is to project India image

abroad as reliable supplier of high quality goods andabroad as reliable supplier of high quality goods and

services. In particular EPC encourage and monitor theservices. In particular EPC encourage and monitor the

observance of international standards and specificationobservance of international standards and specification

by exporters. EPC keep abreast of trends andby exporters. EPC keep abreast of trends andopportunities in international market for goods andopportunities in international market for goods and

services and assist their members in taking advantageservices and assist their members in taking advantage

of such International markets for goods and servicesof such International markets for goods and services

and assist their members in taking advantage of suchand assist their members in taking advantage of suchopportunities in order expand and diversify.opportunities in order expand and diversify.


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Functions:Functions: Registration of exporters and registration-cum-Registration of exporters and registration-cum-

Membership certificate (RCMC) under EXIM policy.Membership certificate (RCMC) under EXIM policy. Providing a forum and link between govt and theirProviding a forum and link between govt and their

members for consideration and implementation ofmembers for consideration and implementation ofscheme for export production and marketing.scheme for export production and marketing.

Collection and dissemination of information primarily onCollection and dissemination of information primarily onexport opportunities through various media, includingexport opportunities through various media, including

news papers, bulletins, letters, fax.news papers, bulletins, letters, fax. Sponsoring and inviting business delegations, salesSponsoring and inviting business delegations, salesteam, study teams, for exploring markets forteam, study teams, for exploring markets fordeveloping export.developing export.

Fixation of floor price or minimum export price orFixation of floor price or minimum export price or

recommendation thereof to the government.recommendation thereof to the government.


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Arranging or participating in buyers and sellers meet ,Arranging or participating in buyers and sellers meet ,export of trade fairs and exhibition in India and abroad,export of trade fairs and exhibition in India and abroad,publicity of goods in foreign market.publicity of goods in foreign market.

Recommendation in formulation and implementation ofRecommendation in formulation and implementation of

export assistance schemes such fixation of dutyexport assistance schemes such fixation of dutydrawback.drawback.

Issue pertaining to production and marketing ofIssue pertaining to production and marketing ofproducts.products.

Fixation of export quota.Fixation of export quota. At present there are 21 EPC dealing with variousAt present there are 21 EPC dealing with variouscommodities, such as basic chemicals , and alliedcommodities, such as basic chemicals , and alliedproducts, cotton textiles, handlooms, apparels, cashew,products, cotton textiles, handlooms, apparels, cashew,gem and jewellery, silk, marine product, carpets,gem and jewellery, silk, marine product, carpets,

leather manufactures, gems and jewellery, plastic,leather manufactures, gems and jewellery, plastic,spices, sport goods, eng goods, tobacco, wool,spices, sport goods, eng goods, tobacco, wool,handicraft, electronics and computer software.handicraft, electronics and computer software.

Registration-cum-membership certificate (RCMC):Registration-cum-membership certificate (RCMC):

Any exporter can apply to become member of EPC, andAny exporter can apply to become member of EPC, and


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An exporter should obtain RCMC shall declare main line ofAn exporter should obtain RCMC shall declare main line of

business in the application which shall be made tobusiness in the application which shall be made to

export promotion council. If the export product is notexport promotion council. If the export product is not

covered by any EPC, then the exporter may obtain thecovered by any EPC, then the exporter may obtain the

RCMC from FIEO for eg Services. In case of exporterRCMC from FIEO for eg Services. In case of exporterfor services it can register with FIEO or with Electronicfor services it can register with FIEO or with Electronic

and software export promotion council.and software export promotion council.

There is prescribed form ayaat and niryaat form,There is prescribed form ayaat and niryaat form,

along with certified copy of IEC no, certificate inalong with certified copy of IEC no, certificate insupport of banks financial soundness. The licencesupport of banks financial soundness. The licence

granted shall be valid for 5 years. In order to claimgranted shall be valid for 5 years. In order to claim

export, import benefits RCMC is must. RCMC getsexport, import benefits RCMC is must. RCMC gets

cancelled if there is any violation of terms andcancelled if there is any violation of terms andconditions.conditions.

Commodity BoardsCommodity Boards are boards, which have beenare boards, which have been

specially established by the Government of India forspecially established by the Government of India for

the promotion of some of the traditional commoditiesthe promotion of some of the traditional commodities

of exports having high export potentials. Theseof exports having high export potentials. These


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The functions of Commodity Boards are similar to thatThe functions of Commodity Boards are similar to that

of EPCs.of EPCs.

Difference Between EPCs and CBsDifference Between EPCs and CBs

Commodity Boards look after the export promotion ofCommodity Boards look after the export promotion ofprimary and traditional items of exports while Exportprimary and traditional items of exports while Export

Promotion Councils look after the export promotion ofPromotion Councils look after the export promotion of

non-traditional items like engineering goods,non-traditional items like engineering goods,

computers, chemicals, etc. with promising exportcomputers, chemicals, etc. with promising export

potential.potential.

EPCs are concerned only with the promotion of exportsEPCs are concerned only with the promotion of exports

of their respective products; the scope of Commodityof their respective products; the scope of Commodity

Boards is much broader. The functions of CommodityBoards is much broader. The functions of Commodity

Boards also encompass the development andBoards also encompass the development and

production of the respective commodity and domesticproduction of the respective commodity and domestic

marketing.marketing.


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Operating Commodity BoardsOperating Commodity Boards

At present, there are seven Commodity Boards in India.At present, there are seven Commodity Boards in India.

Coffee Board.Coffee Board. Rubber Board.Rubber Board.

Tobacco Board.Tobacco Board.

Spice Board.Spice Board.

Central Silk Board.Central Silk Board.

Tea Board.Tea Board.

Coir Board.Coir Board.

Functions of Commodity BoardsFunctions of Commodity Boards

Commodity Boards are statutory in character andCommodity Boards are statutory in character and

operate under the administrative control of theoperate under the administrative control of the

"Ministry of Commerce"."Ministry of Commerce".

The major functions of the Commodity Boards are:The major functions of the Commodity Boards are:


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To takes active interest in production, development andTo takes active interest in production, development and

exports of respective commodities.exports of respective commodities.

To introduce new methods of cultivation ofTo introduce new methods of cultivation of

commodities.commodities.

To offer advice to the government on export mattersTo offer advice to the government on export matters

such as fixing quota for exports and significant tradesuch as fixing quota for exports and significant trade

agreements.agreements.

To provide trade information, guidance and variousTo provide trade information, guidance and various

other services to their members and help them in theirother services to their members and help them in their

export promotion efforts.export promotion efforts.

To participate in trade fairs and exhibitions abroad.To participate in trade fairs and exhibitions abroad.

To sponsor trade delegations and conduct marketTo sponsor trade delegations and conduct market

surveys for the benefit of their members.surveys for the benefit of their members.

To arrange pre-shipment inspection for export items.To arrange pre-shipment inspection for export items.


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Indian Trade promotion Organisation ( ITPO) : ITPO wasIndian Trade promotion Organisation ( ITPO) : ITPO was

set up by ministry of commerce, government on 1set up by ministry of commerce, government on 1ststJanuary 1992 with its head quarter at New delhi. It hasJanuary 1992 with its head quarter at New delhi. It has

five regional offices at Mumbai, Banglore, Kolkotta,five regional offices at Mumbai, Banglore, Kolkotta,

Kanpur, Chennai and four offices in germany, Japan,Kanpur, Chennai and four offices in germany, Japan,UAE and USA.UAE and USA.

Functions:Functions:

Organises Trade Fairs and Exhibitions, seminars,Organises Trade Fairs and Exhibitions, seminars,

workshop, seminarworkshop, seminar Assists in Technological, product development, foreignAssists in Technological, product development, foreign

collaboration, joint venture, marketing-tie up.collaboration, joint venture, marketing-tie up.

Helps in establishing overseas contract.Helps in establishing overseas contract.

It organises buyers and sellers meet with view to bringIt organises buyers and sellers meet with view to bring

buyer and seller together. It also invites overseasbuyer and seller together. It also invites overseas

buyers and organises their meeting with Indianbuyers and organises their meeting with Indian

supplier.supplier.


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Indian Institute of Foreign Trade( IIFT)Indian Institute of Foreign Trade( IIFT) was setwas set

up govt of India in 1963.up govt of India in 1963.

Functions:Functions:

Training and imparting education in internationalTraining and imparting education in internationalbusiness. Its specialization in international businessbusiness. Its specialization in international business

and a global out look makes it unique amongand a global out look makes it unique among

management schools in India.management schools in India.

IIFT conducts market studies and surveys in theIIFT conducts market studies and surveys in the

overseas market and tries to find out the demand foroverseas market and tries to find out the demand for

Indian products in overseas market. IT Supplies thisIndian products in overseas market. IT Supplies this

information to the exporters . The exporters can useinformation to the exporters . The exporters can use

information while making export marketing decisions.information while making export marketing decisions.

Organises Seminars and Workshops:Organises Seminars and Workshops: IIFTIIFTorganises seminar, and workshops in a number oforganises seminar, and workshops in a number of

export marketing areas, such . export pricing, exportexport marketing areas, such . export pricing, export

promotion, etc. Exporters can to advantage of suchpromotion, etc. Exporters can to advantage of such

workshops and seminars by taking active part them.workshops and seminars by taking active part them.

T d D l tiT d D l ti IIFT d d l t b d tIIFT d d l t b d t


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Trade Delegations:Trade Delegations: IIFT sends delegates abroad toIIFT sends delegates abroad tostudy overseas markets and also to interact withstudy overseas markets and also to interact withoverseas importer. At the same time, it invitesoverseas importer. At the same time, it invitesdelegates from abroad, who can study Indian marketdelegates from abroad, who can study Indian marketconditions and can also interact with Indian exporters.conditions and can also interact with Indian exporters.

Publications:Publications: A large part of the IIFT's research workA large part of the IIFT's research work- published in the form of study reports, monographs,- published in the form of study reports, monographs,status papers, etc. for wider dissemination among thestatus papers, etc. for wider dissemination among thebusiness community, government departments andbusiness community, government departments and

academic fields.academic fields. The institute publishes:The institute publishes: Foreign Trade Review (FTR), a quarterly journal.Foreign Trade Review (FTR), a quarterly journal. Focus WTO, a bimonthly magazine.Focus WTO, a bimonthly magazine.

Technology Exports, a quarterly newsletter.Technology Exports, a quarterly newsletter.

Research and Consultancy:Research and Consultancy: IIFT has so far broughtIIFT has so far broughtout over 570 research studies and surveys. It alsoout over 570 research studies and surveys. It alsoacts as a consulting house for solving the problems ofacts as a consulting house for solving the problems of

the exporters and importers. IT analyses thethe exporters and importers. IT analyses theinternational business environment and developinternational business environment and develop


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Management Development Programmes:Management Development Programmes:

Combining a unique blend of research andCombining a unique blend of research and

consultancy, IIFT has been a pacesetter addressing toconsultancy, IIFT has been a pacesetter addressing to

the needs of business executives by continuo aligningthe needs of business executives by continuo aligning

the focus of its Management Development Programthe focus of its Management Development Programwith the changing realities. As a result, its intensivewith the changing realities. As a result, its intensive

short duration programmes have received the mostshort duration programmes have received the most

enthusiastic response.enthusiastic response.

Indian Institute of Packaging (IIP):Indian Institute of Packaging (IIP): was set up aswas set up asa national institute jointly by ministry of commerce,a national institute jointly by ministry of commerce,

government of India, Indian packaging industry ingovernment of India, Indian packaging industry in

1956, with its head office in Mumbai and Regional1956, with its head office in Mumbai and Regional

offices at Kolkota and Chennai.offices at Kolkota and Chennai. Functions :Functions :

Training Programmes:Training Programmes: It organises a number ofIt organises a number of

training programmes pertaining to packaging andtraining programmes pertaining to packaging and

also provides suggestions in regard to packaging.also provides suggestions in regard to packaging.

UN C tifi tiUN C tifi ti All d d k dAll d d k d


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UN Certification:UN Certification: All dangerous goods packages needAll dangerous goods packages needa UN certification mark before they can be dispatched.a UN certification mark before they can be dispatched.IIP is the only authorised body in India to give thisIIP is the only authorised body in India to give thiscertification.certification.

Environmental Cell:Environmental Cell: The institute has an environmentThe institute has an environmentcell, which guides exporters as to what type of materialcell, which guides exporters as to what type of materialcan be used or incorporated in the packaging of theircan be used or incorporated in the packaging of theirproducts so as to reduce environmental threats.products so as to reduce environmental threats.

Research and Development:Research and Development: It undertakes researchIt undertakes researchand development programmes for creating andand development programmes for creating andimproving overall infrastructural facilities for achievingimproving overall infrastructural facilities for achieving

packaging improvement so as to prevent losses duringpackaging improvement so as to prevent losses duringtransportation.transportation.

Collection and Dissemination of Information:Collection and Dissemination of Information: ItItcollects information on various packing and packagingcollects information on various packing and packagingstrategies and disseminate them to the exporter forstrategies and disseminate them to the exporter for


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Functions of Indian Council of ArbitrationFunctions of Indian Council of Arbitration


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Functions of Indian Council of ArbitrationFunctions of Indian Council of Arbitration The council provides arbitration facilities for all types ofThe council provides arbitration facilities for all types of

domestic and international commercial disputes.domestic and international commercial disputes. It uses its network of offices for conciliation ofIt uses its network of offices for conciliation of

international trade complaints received from Indian andinternational trade complaints received from Indian andforeign parties, for nonperformance of contracts orforeign parties, for nonperformance of contracts ornon-compliance with arbitration awards.non-compliance with arbitration awards.

It organises arbitration meetings, conferences, trainingIt organises arbitration meetings, conferences, trainingprogrammes, etc., for company executives,programmes, etc., for company executives,businessmen, lawyers, arbitrators, etc., from time tobusinessmen, lawyers, arbitrators, etc., from time totime in different parts of the country.time in different parts of the country.

It conducts research and publishes informativeIt conducts research and publishes informativeliterature on different aspects of commercialliterature on different aspects of commercialarbitration, including a quarterly Arbitration Journal.arbitration, including a quarterly Arbitration Journal.

It provides information and advice to interested partiesIt provides information and advice to interested partiesregarding the drafting of trade contracts, arbitrationregarding the drafting of trade contracts, arbitrationlaws and facilities and dispute settlement procedures inlaws and facilities and dispute settlement procedures inIndia and in other parts of the world.India and in other parts of the world.

It keeps abreast of the latest developments, in the fieldIt keeps abreast of the latest developments, in the fieldof international commercial arbitration and maintainsof international commercial arbitration and maintains

co-operative links with national and internationalco-operative links with national and international

F d ti f I di E t O i ti (FIEO)F d ti f I di E t O i ti (FIEO)


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Federation of Indian Export Organisation (FIEO):Federation of Indian Export Organisation (FIEO):

Federation of Indian Export Organisations (FIEO) is anFederation of Indian Export Organisations (FIEO) is an

apex body of various export promotion organisations. Itapex body of various export promotion organisations. It

was set up in October 1965. It represents the Indianwas set up in October 1965. It represents the Indian

entrepreneurs' spirit of enterprise in the global market.entrepreneurs' spirit of enterprise in the global market.

It has kept pace with the country's evolving economicIt has kept pace with the country's evolving economic

and trade policies and has provided the content,and trade policies and has provided the content,

direction and thrust to India's expanding internationaldirection and thrust to India's expanding international

trade. As the apex body of all Indian export promotiontrade. As the apex body of all Indian export promotionorganisations, FIEO works as a partner of theorganisations, FIEO works as a partner of the

Government of India to promote Indian exports.Government of India to promote Indian exports.

Functions of Federation of Indian ExportFunctions of Federation of Indian Export

OrganisationOrganisation (a)(a) International Linkage:International Linkage:

It has forged strong links with counterpart organisationsIt has forged strong links with counterpart organisations

in several countries as well as international agencies toin several countries as well as international agencies to

enable direct communications and interaction betweenenable direct communications and interaction between

I i i d i h UNCTAD i lIt i i t d ith UNCTAD ti l


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It is registered with UNCTAD as a national non-It is registered with UNCTAD as a national non-

government organisation, and has direct accessgovernment organisation, and has direct access

to information and data originating from UNto information and data originating from UN

bodies and world agencies like the IMF, ADB,bodies and world agencies like the IMF, ADB,ESCAP, World Bank, FAO, UNIDO and others.ESCAP, World Bank, FAO, UNIDO and others.

Dissemination of Information:Dissemination of Information:

It has bilateral arrangements for exchange ofIt has bilateral arrangements for exchange of

information as well as for liaisoning with severalinformation as well as for liaisoning with several

overseas chambers of commerce and trade andoverseas chambers of commerce and trade and

industry associations.industry associations.

Liaisoning with the Government: It sendsLiaisoning with the Government: It sendsrepresentations on policy matters to Centralrepresentations on policy matters to Central

and State (Regional) Governments. It helps inand State (Regional) Governments. It helps in

establishing contacts between the governmentestablishing contacts between the government

and commercial bodies both in India andand commercial bodies both in India and


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P bli it D t tP blicit Department Th P bli it d t t fThe P blicit department of


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Publicity Department:Publicity Department: The Publicity department ofThe Publicity department of

FIEO performs the following functions:FIEO performs the following functions:

Bringing out various special supplements in Indian andBringing out various special supplements in Indian and

overseas dailies in order to project the selected finishedoverseas dailies in order to project the selected finished

products in India and abroad.products in India and abroad.

Creating and telecasting episodes in NEPC channel toCreating and telecasting episodes in NEPC channel to

promote India's prominent brands in various countriespromote India's prominent brands in various countries

covered by the channel.covered by the channel.

It has published Directory of Foreign Buyers andIt has published Directory of Foreign Buyers and

Dictionary of Indian Exporters.Dictionary of Indian Exporters.

It publishes a fortnightly magazine, 'FIFO News', toIt publishes a fortnightly magazine, 'FIFO News', to

cover developments in the field of international tradecover developments in the field of international trade

concerning India.concerning India. Marine Products Exports Development AuthorityMarine Products Exports Development Authority

(MPEDA)(MPEDA)

Marine Products Export Development AuthorityMarine Products Export Development Authority

(MPEDA) was constituted in 1972 under the Marine(MPEDA) was constituted in 1972 under the Marine

Th h d t f MPEDA i l t d t K hi i K lThe headquarter of MPEDA is located at Kochi in Kerala


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The headquarter of MPEDA is located at Kochi in Kerala.The headquarter of MPEDA is located at Kochi in Kerala.

The Authority operates two overseas trade promotionThe Authority operates two overseas trade promotion

offices, one at Tokyo (Japan) and the other at New Yorkoffices, one at Tokyo (Japan) and the other at New York

(USA). The role envisaged for the MPEDA under the(USA). The role envisaged for the MPEDA under the

statue is comprehensive, which covers organisation,statue is comprehensive, which covers organisation,coordination, regulation and growth of the export of seacoordination, regulation and growth of the export of sea

products with special reference to the quality,products with special reference to the quality,

processing, packaging, storage, transport, shipment,processing, packaging, storage, transport, shipment,

marketing extension and training in various aspects ofmarketing extension and training in various aspects ofthe industry.the industry.

14366187-export-promotion

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