Page 255 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes Merchandise Exports

Merchandise exports cross 100 billion dollars in 2005-06.
25% growth rate registered in 2005-06.
Merchandise exports jumped by 60% from 63 billion dollars to 101 billion dollars within
two years.
New Initiatives

Product Market Focus- To focus not only on neutralizing duties and levies but also provide
additional stimulus to export of products having large employment potential and for greater
penetration in strategic markets:

Product Focus
It proposes additional duty credit facility @ 2.5% of FOB value of export turnover of notified
products, such as value added fish and leather products, stationery, fireworks, sports goods,
handloom products, bearing handloom marks and handicraft items. The scheme is to offset
inherent infrastructure bottlenecks in rural and semi-urban areas.

Market Focus

Duty credit facility @ 2.5% of the FOB value of export of all products to notified countries. This
scheme aims at offsetting the high freight cost and other disabilities faced in accessing select
international markets.

Expanding Vishesh Krishi Upaj Yojana

Duty free scrip @ 5% of FOB value of exports under VKUY to incentivise the export of Gram
Udyog products.
The scheme is renamed as Vishesh Krishi and Gram Udyog Yojana.

Additional benefit on use of domestic farm produce in agricultural exports.
This will promote in indigenous procurement of inputs for agricultural exports and help
the farming community.

India as a Gem & Jewellery Hub

Measures for facilitating export of value added products catering to changing needs of the
market, facilitating easier product movement across the borders and allowing import of precious
metal scrap for refining.
Export of jewellery on consignment basis allowed.

Re-import of rejected jewellery allowed.
Import of precious metal scrap/used jewellery for melting and re-export permitted.

Exporters will be allowed to export stones for treatment abroad and subsequent re-import
without payment of customs duty.

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