Import Policy in India

Presented by

Sunil K. Mishra

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CONTENTS

• Brief

• Import?

• Import policies

• Advantages and Disadvantages

• Case

• References

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Brief•  Exim policy or Foreign Trade Policy is a set of guidelines and instructions

established by the DGFT in matters related to the import and export of goods in

India.

• The Foreign Trade Policy of India is guided by the Export Import in known as in

short EXIM Policy of the Indian Government and is regulated by the Foreign Trade

Development and Regulation Act, 1992.

DGFT (Directorate General of Foreign Trade) is the main governing body in

matters related to Exim Policy. The main objective of the Foreign Trade

(Development and Regulation) Act is to provide the development and regulation of

foreign trade by facilitating imports into, and augmenting exports from India.

Foreign Trade Act has replaced the earlier law known as the imports and Exports

(Control) Act 1947.

Source: http://www.exim-policy.com/07-May-14

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Import???

• The term import is derived from the conceptual meaning as to bring in the goods

and services into the port of a country.

• The buyer of such goods and services is referred to an "importer“

Types:

There are two basic types of import:

• Industrial and consumer goods

• Intermediate goods and services

Source: http://www.importerspages.com/

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Import Policies Imports not involving remittance of Foreign Exchange:

• Paintings and other display articles required for competitions or exhibitions

• Food-stuffs, medicines, clothing and blankets received by any charitable

organization as a gift from any philanthropic organization or person abroad

• Import of food parcels (except alcohol and tobacco) by foreign citizens, ordinarily

residing in India, subject to a limit of Rs. 1,00,000/- per year for their own use

• Goods received as free gifts by the Indian Red Cross Society from abroad, provided

such goods are exempt from customs duty

• Relief supplies and packages received as gifts through a Government agency or any

other approved agency

Source: dgft.gov.in/Exim/2000/NOT/itc(hs)/GeneralNotes.pdf

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Indian Quality Standards:

Mandatory Indian Standards of Bureau of Indian Standards (BIS):

Quality of the products that are subject to mandatory Indian Standards, as

applicable to domestic goods, shall be required to comply with quality specified for

the product as per same Indian Standards. For compliance of this requirement, all

manufactures/exporters of these products to India, shall be required to obtain BIS

license for using Standards mark on their product.

Air Emission and Noise Standards:

Import of Generator Sets will be subject to the air emission standards & noise

standards of the Environment Protection Rules, 1986 notified vide the following

Notifications:

(i) GSR 448(E) dated 12.7.2004 (ii) GSR 628(E) dated 30.8.2001 (iii) GSR 682(E)

dated 5.10.1999

Source: dgft.gov.in/Exim/2000/NOT/itc(hs)/GeneralNotes.pdf

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Plants, Fruits and Seeds (Regulation of Import into India) Order, 1989:All primary agricultural products will be subject to a Bio Security & Sanitary-Phytosanitary import permit, to be issued by Department of Agriculture and Co-operation, Ministry of Agriculture, as per conditions of Plants, Fruits and Seeds (Regulation of Import into India) Order, 1989

Food Safety & Standards Act, 2006:Quality and Packaging requirements:Import of all such edible/food products including tea, domestic sale and manufacture of which are governed by Food Safety & Standards Act, 2006

Shelf LifeAt the time of importation, the products must have a valid shelf life of not less than 60% of its original shelf life. Shelf life of the product is to be calculated, based on the declaration given on the label of the product, regarding its date of manufacture and the due date for expiry. However, this condition of 60% shelf life stipulated above is not applicable to re-import for export purpose Source: dgft.gov.in/Exim/2000/NOT/itc(hs)/GeneralNotes.pdf

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Packaged Products:

All prepackaged commodities, imported into India, shall in particular carry the

following declarations:

• Name and address of the importer

• Generic or common name of the commodity packed

• Net quantity in terms of standard unit of weights and measures

• Month and year of packing in which the commodity is manufactured or packed or

imported

• Maximum retail sale price(Inc.taxes) at which the commodity in packaged form

may be sold to the ultimate consumer

Meat and Poultry Products:

Beef and Products containing Beef

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Cigarettes or any other Tobacco product:

Import of cigarette or any other tobacco product shall be subject to the provisions

contained in the Cigarettes and other Tobacco Products (Packaging and Labeling)

Amendment Rules, 2009, as notified by the Ministry of Health & Family Welfare

Multichannel GSM/CDMA receivers, transmitters and trans-receivers:

Multichannel GSM/CDMA receivers, transmitters and trans-receivers capable of

receiving or transmitting or both in two or more frequencies simultaneously, shall

be “Restricted” for imports

Environmental Related:

Ozone Depleting Substances: Import of products, equipment containing Ozone

Depleting Substances (ODS) will be subject to- no person shall import or cause to

import any product which was made with or contain Ozone Depleting Substances,

unless he obtains an import license issued by the DGFT07-May-14

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Advantages

Reduce dependence on existing markets

Exploit international trade technology

Extend sales potential of existing products

Maintain cost competitiveness in your domestic market

Source: http://shippingnewsandviews.wordpress.com/

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Disadvantages

Importation of items from other countries can increase the risk of getting them

which is no more common in the warm weather.

it leads to excessive competition

It also increases risks of other diseases from which the country is exporting the

goods.

Source: http://blogs.exportersindia.com

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Case Govt. modifies policy for import of cars, bikes for race events:

WED, JAN 08 2014

The government has modified the trade policy to facilitate imports of cars and

motorcycles for racing events.

Cars and motorcycles imported for racing events will not be permitted to ply on public roads, said the notification issued by Directorate General of Foreign Trade (DGFT) on Jan08,2014.

It said such vehicles should only be used for the purpose for which they are imported.

Source: http://www.livemint.com/

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The move assumes significance in view of the problem being faced by the

participants in events like Formula One. “Vehicles imported under this provision

will not be registered CMV (Central Motor Vehicle)Act/Rules, nor be

alienated/sold to any individual/organization/institution, etc. anywhere in India.

These vehicles shall not ply on public roads and can only be used within the

enclosed premises with requisite safety precautions and will not be engaged in any

sort of commercial activities,” DGFT said

It also said the importer shall be required to execute a bond with customs with

adequate security/surety to re-export the vehicle(s) within 30 days of the

completion of the event

Source: http://www.livemint.com/07-May-14

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References[1] Policies regarding import

dgft.gov.in/Exim/2000/NOT/itc(hs)/GeneralNotes.pdf [Retrieved on 03.05.2014]

[2] Brief about EXIM

http://www.exim-policy.com/ [Retrieved on 03.05.2014]

[3] Advantages of import

http://shippingnewsandviews.wordpress.com/2013/02/19/five-major-advantages-of-import-export-business-and-international-trade/ [Retrieved on 05.05.2014]

[4] Case of import in India

http://www.livemint.com/Politics/joMMHCTHBV5fiG98aXbAIJ/Govt-modifies-policy-for-import-of-cars-bikes-for-race-even.html [Retrieved on 07.05.2014]

[5] Disadvantages of import

http://blogs.exportersindia.com/2012/01/12/benefits-of-importing-and-exporting/ [Retrieved on 06.05.2014]

[6] http://www.importerspages.com/ [Retrieved on 06.05.2014]

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