ibe final exim sag

8/7/2019 IBE final Exim SAG

1/23

PRESENTED BY:

1. JUHI BHAGYA

2. RAHUL FALIYA

3. SACHIN GOKANI4. ANAM JEENAL

5. KANIL HINSU

6. HEEMA THACKER

PRESENTATION ON EXIM POLICY 2009-2014

March 25, 2011T OLANI I NSTITUTE OF M ANAGEMENT S TUDIES.1


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3/23

CUSTOMS TARIFF ACT(CTA)

An act to co ns olidate a nd ame nd the law relati ng tocu stom s dutie s called the Cu stom s Tariff Act,1975.

A cu stom s tariff i s a tax a ss e ss ed by gover nme nt o n good sthat are moved acro ss an inter natio nal border cro ss ing orport.

While cu stom s tariff s usually fluctuate for every good, mo sttariff s are a ss e ss ed a s a perce nta ge of the good s overalldeclared value.



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CONT.

G ood s that cro ss inter natio nal border s are typically subjectto cu stom s ins pectio ns .

Whe n a good arrive s at a port or border cro ss ing , a cu stom sofficer ge nerally exami ne s it.

He or she the n levie s any applicable cu stom s tariff s. A good

ca nn ot be carried acro ss a port or border cro ss ing until thecu stom s tariff ha s bee n paid.



5/23

EX AMPL E

A) Suppo se there i s an import of ` 50,00,000

B) Add: Ba sic Tax @ 10% of import (10% of A) ` 5,00,000

C) Add: Educatio n ce ss tax @ of 2% (2% of B ) ` 10,000

D) Higher Educatio n ce ss tax @ of 1% (1% of B ) ` 5,000

E) Total ( A+B+C+D) ` 55,15,000

F ) Add: Cu stom Educatio n ce ss tax @ of 2% (2% of E ) ` 1,10, 3 00

G ) Higher cu stom educatio n ce ss @ of 1% (1% of E ) ` 55,150

H) Total (E +F +G ) ` 56,80,450

I) Additio n al Tax @ of 4 % (4 % of H ) ` 2,27,220

J) G ra nd Total (H +I) ` 59,07,670



6/23

EX IM POLICY

The forei gn trade of India i s guided by the Export Import Policyknow n as EXIM Policy.

DGF T (Directorate G e neral of Forei gn Trade ) is the mai n gover n ingbody i n matter s related to Exim Policy.

Forei gn Trade Act ha s replaced the earlier law k now n as the import sand Export s (Con trol ) Act 19 4 7.

Aim s at developi ng export pote n tial, improvi ng export performa nce,e ncoura ging forei gn trade a nd creati ng favourable bala nce of payme n ts po sitio n .



7/23

H IGH LIGH TS OF EX IM

POLICY 2009-14



8/23

E PCG SCH E ME RE LAX ATION:

The EPC G scheme allow s the import of capital good s for pre-productio n , productio n and po st productio n , which shall i ncludespare s, tool s, jigs , fixture s, die s, mold s etc. And al so the capitalgood s required for a ssembly or ma nufacturer of capital good s by theauthorizatio n holder.

G over nme nt allow s it at 3 % Custom s duty subject to a n exportobli gatio n equivale n t to 8 time s of duty saved o n capital good simported.

To increa se the life of exi sting pla nt a nd machi nery; In the EximPolicy 2009-1 4 , the export obli gatio n on import of spare s, mould setc. u nder EPC G Scheme ha s bee n reduced to 50% of the normalspecific export obli gatio n .



9/23

TE CH NOLOGICAL UPGRADATION:

To aid tech nolo gical up gradatio n of our export sector, EPC G Schemeat Zero Duty ha s bee n introduced.

This Scheme will be available for e ng ineeri ng & electro n ic product s,

ba sic chemical s & pharmaceutical s, apparel s & textile s, pla stics,ha ndicraft s, chemical s & allied product s and leather & leatherproduct s.

The scheme shall be i n operatio n till 3 1.3 .2011.



10/23

EX PORT ORI E NT E D UNITS( E OUs):

U n its undertaki ng to export their e n tire productio n of good s andservice s may be set up u nder the Export Orie nted U n it (EOU ) Scheme.Electro n ic Hardware Tech nolo gy Park s (EHTP), Software Tech nolo gyPark s (STP) etc. are i ncluded. Tradi ng un its are not covered u nderthe se scheme s.

Subjected to co nditio ns :

A. Min imum i nve stme n t of R s. 1 croreB. Mu st be i n a cu stom s bo nded factoryC. Legal u ndertaki ng with the Developme nt Commi ss ioner

D. A po sitive net forei gn excha nge ear ner over five year s from thecomme nceme ntE. A proper accou n t of the import s, co ns umptio n and utilizatio n of all

imported material s and export s made by the u n it



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As per the Exim policy 2009-1 4 EOU s will now be allowed to procurefin ished good s for co ns olidatio n alo ng with their ma nufactured good s,subject to certai n s afe guard s

Duri ng thi s period of dow ntur n , Board of Approval s (BOA) to co ns ider,exte ns ion of block period by o ne year for calculatio n of Net Forei gnExcha nge ear n ing of EOU s.

CONTD



12/23

LE ATH E R SE CTOR

Leather sector shall be allowed re-export of u ns old imported raw hide sand skins and semi fi n ished leatherfrom public bo nded ware hou se s,

subject to payme n t of 50% of theapplicable export duty.

Enha nceme n t of F PS rate to 2%, wouldalso sign ifica n tly be nefit the leather

sector.



13/23

TE A

Min imum value additio n underadva nce authori satio n s chemefor export of tea ha s bee nreduced from the exi sting 100%

to 50%..

Export of tea ha s bee n coveredunder VKGUY Scheme be nefit s.



14/23

P H ARMACE UTICAL S E CTOR

Export Obli gatio n Period for adva nce authorizatio ns iss ued with 6 -APA as input ha s bee n increa sed from the exi sting 6 mo n th s to 36mo n th s, a s is available for other product s.



15/23

H ANDLOOM S E CTOR

To simplify claim s under FPS, requireme n t of Handloom Mark foravaili ng be nefit s under FPS ha s bee n removed.



16/23

Objective :-To promote the export of fruit s, ve getable s, flower s

To promote the export of Fore st Ba sed Product s

To promote export s of G ram U dyo g Product s

A ctions :-Capital good s imported u nder EPC G will be permitted to be i ns talled

anywhere i n AEZ.

The Import s of Cold stora ge u n its includi ng Con trolled Atmo sphere (C A)and Modified Atmo sphere (M A) Store s, pre cooli ng U n its and motherstora ge for o n ions etc i s permitted

Import of pe sticide s are permitted.

V ISH E SH KRIS H I AND GRAM UDYOG YOJANA



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The eli gibility for reco gn itio n is:

Statu s Cate gory Export Performa nce Value(Rupee s in Crore s)

Export Hou se (EH) 20

Star Export Hou se (SHE) 100Tradi ng Hou se (TH) 500Star Tradi ng Hou se (STH) 2500Super Star Tradi ng Hou se (SSTH) 7500

EX PORT H OUSE AND TRADING H OUSE

Exemptio n from compul sory negotiatio n of docume nts throu gh ba nks.

100% rete ntio n of forei gn excha nge in EEFC accou nt

Benefit s:



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A) Suppo se there i s an import of ` 50,00,000

B) Add: Ba sic Tax @ 10% of import (10% of A) ` 5,00,000

C) Add: Educatio n ce ss tax @ of 2% (2% of B ) ` 10,000

D) Higher Educatio n ce ss tax @ of 1% (1% of B ) ` 5,000E) Total ( A+B+C+D) ` 55,15,000

F ) Add: Cu stom Educatio n ce ss tax @ of 2% (2% of E ) ` 1,10, 3 00

G ) Higher cu stom educatio n ce ss @ of 1% (1% of E ) ` 55,150

H) Total (E +F +G ) ` 56,80,450I) Additio nal Tax @ of 4 % (4 % of H ) ` 2,27,220

J) G ra nd Total (H +I) ` 59,07,670


DUTY DRAWBACK SC H E ME


19/23

E DI SOFTWAR E :

EDI software i s used by the Cu stom Hou se Agen ts(CHAs) for o n linedocume n tatio n procedure.

1. Adva nce Pro 200 3

2. EDI 1.0

3 . EDI 1.5



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DOCUM E NTS

Pur chase o rd e r: This is ba sically fi nancial docume n t. Cu stom s may wa n tto see the paperwork to make sure everythi ng is valid.

Lette r of c r e d it thi s is used for maki ng payme n ts for imported good s.

Ce r tificates of o r igin : Several cou n trie s have re strictio ns on the lear nimport of good s from certai n other cou n trie s, a nd may apply tariff s .

P acking list :thi s co n tai ns list of all the item s that are i n co n tai ner.



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IN V OICE

Invoice The mo st importa ntdocume nt, make sure that a full summaryof good s is outli ned a nd it s invoiced i nthe curre ncy of sale.



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BILL OF LADING


bill of la d ing :it work s as proof thatthe good s have bee n sen t by thesupplier.


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Tha nk you

ibe final exim sag

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