Page 254 - DMGT401Business Environment

Unit 11: EXIM Policy

Liberalized Exchanged Rate Systems (LERS): It is a system under which 40% of the foreign Notes
exchange receipts were to be exchanged through RBI at the official exchange rate and rest is
allowed to be converted at market exchange rate.
Open General License (OGL): Items included in the list of OGL can be imported easily without
much government restriction.

11.5 Self Assessment

Fill in the blanks:
1. The .............................. for small-scale industrial units making the same products as the
priority industries was also substantially liberalized.

2. A scheme for the supply of steel at international prices to exporters of engineering goods
was announced. Imports of some raw materials were placed under an ..............................
3. In the field of .............................., the Reserve Bank of India introduced a scheme under
which preferential rates of discount were provided for refinancing of pre-shipment credits
granted by the commercial bank to certain categories of exporters at concessional rates.
4. The travel tax had become redundant with the introduction of partial convertibility of
rupee and ................................ under which foreign exchange for travel had to be obtained
at the market rate.
5. The policy aims at enabling the industry to enhance its .............................. in the global
markets and to achieve its full potential in the areas of its strength.

6. Under the .............................., the goods cleared from the Zone will be treated as imported
goods.
7. It is expected that the states will identify .............................. for end-to-end development
from a geographically contiguous area.
8. The standard definition applied by .............................. states that an Export Processing Zone
(EPZ) is an industrial area that constitutes an enclave with regard to customs' tariffs and
the commercial code in force in the host country.

9. .............................. is a specifically delineated duty free enclave and shall be deemed to be
foreign territory for the purposes of trade operations and duties and tariffs.
10. EXIM policy of …………………..freed the trade account transactions from the control of
exchanges.
11. Special centres established by the government for promotion of farming exports are
.....................................................

11.6 Review Questions

1. Critically analyse the EXIM policy of 1992-1997 and 1997-2002.
2. "Special Economic Zone is a specifically delineated duty free enclave". Explain the statement.
How does SEZ generate additional economic activity?

3. What do you understand by the new Trade Policy of 1991?
4. What do you know about the EXIM Policy 2002-07?
5. Discuss the key features of current Exim Policy.

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