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Indian Economy

Notes Exporters shall now have the flexibility to get a high value EPCG authorisation by filing
their EPCG application on Annual basis.

Facility of a data preparation module for Advance Authorization and Export Promotion
Capital Good (EPCG) has been provided on an offline mode.
Finished Leather export shall be entitled for Duty Credit Scrip @ 2% under FPS.
Readymade Garment sector granted enhanced support under MLFPS for a period of further
6 months.
Tea and CSNL Cardinol included for benefits under VKGUY @ 5% of FOB value of exports.
Zero duty EPCG scheme, introduced in August 2009 and valid for only two years up to
31.3.2011, has been extended by one more year till 31.3.2012.
Export Import Policy or better known as EXIM Policy or foreign trade policy is a set of guiding
principle and orders related to the import and export of goods.

Objectives of Exim Policy

To simplify continual growth in exports from India and import in India.

To encourage continuous economic development by providing access to crucial raw
materials, intermediates, constituents, consumables and capital goods arrangement
compulsory for enhancing production and providing services.
To increase the technological power and competence of Industry Agriculture industry and
services, thus refining their modest asset while making new employment openings, and
to inspire the attainment of globally accepted standards of quality.
To deliver customers with excellent goods and facilities at globally modest rates.
Canalisation is a chief feature of Exim Policy under which certain goods can be imported
only by chosen agencies.

Example: An item like gold, in bulk, can be imported only by indicated banks like SBI
and some foreign banks or designated agencies.
The Government of India informs the Exim Policy for duration of five years (1997-2002) under
Section 5 of the Foreign Trade (Development and Regulation) Act, 1992. The current policy
covers the period 2002-2007. The Export Import Policy is reorganised every year on the 31st of
March and the modifications, developments and new schemes became effective from 1st April
of every year.

All kinds of changes or alterations related to the Exim Policy is usually broadcasted by the
Union Minister of Commerce and Industry who co-ordinates with the Ministry of Finance, the
Directorate General of Foreign Trade and its network of daft regional offices.

Case Study The Shrimp Export Industry in Bangladesh

y the end of the 1970s, the Bangladesh seafood processing industry had expanded
rapidly. But sanitary facilities, technology adaptation, and adequate training did
Bnot keep pace. Shrimp exports suffered in the late 1970s, and the U. S. Food and
Drug Administration placed seafood imports from Bangladesh under automatic detention.
Contd...

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