EXPORT & IMPORT POLICY & DOCUMENTATION

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EXPORT-IMPORT POLICY &
DOCUMENTATION

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UNIT – I
IMPORT-EXPORT MANAGEMENT OVERVIEW
 Import – purchase goods or procure services from outside the
boundaries of one nation.
 Export – selling goods or provide services to outside the
boundaries of one nation.
 Entreport – purchasing goods or services from one country for the
purpose of selling to another country after some processing on
goods i.e., import for the motive of export. Also known as re-
export.
 Foreign trade – buying & selling of goods or services outside the
national boundaries i.e. in all over world.
 Trade Policy – it is law related to the exchange of goods or
services involved in international trade including taxes, subsidies,
and import/export regulations. It defines as standards, goals, rules
and regulations that pertain to trade relations b/w countries.
 Counters Trade - Countertrade is a reciprocal form of
international trade in which goods or services are exchanged for
other goods or services rather than for hard currency. This type of
international trade is more common in lesser-developed countries
with limited foreign exchange or credit facilities. Countertrade can
be classified into different categories: barter, counter purchase,
offset, switch trading and buy back.
Simplification of documentation –
 DGFT (Directorate General of Foreign Trade) has introduced a single
application form for foreign trade called “Aayaat Niryaat Form”.
 Pages of form also reduced from 120 to 50 pages.

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 And it also available online i.e. form will be filled online.
 A single common application form called “Aayaat Niryaat Form”
is being introduced, reducing the documentation requirements by
more than 60%.
Reduction of documents to five for customs purposes –
 With introduction of new form, the DGFT also reduced the other
documents for custom purpose i.e., only 5
 It includes –
1. Commercial invoice
2. Packing list
3. Self-declaration form
4. ARE-1 (Application of removal of excisable goods)
5. Application for export promotion scheme.
The Promise and Pitfalls of Exporting –
Promise –
 Size of market increases
 Many new firms establishes
 Large firms get opportunities and also small firms try to enlarge
them.
 Get good returns
Pitfalls –
 Poor market analysis
 Varied complexities
 Lack of financing
 Lack of distribution programme

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 Lack of export knowledge etc…..
Improving Export Performance –
 Acquire more knowledge of foreign market opportunities.
 Adopt a successful export strategy
 Consult with export expertise
 Companies take assistance from export management companies
etc…..

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UNIT – 2
INTERNATIONAL MARKETING ENVIRONMENT &
TRADE BARRIERS
International environment –
The International Environment is multidimensional including the political
risks, cultural differences, exchange risks, legal & taxation issues.
Therefore International Environment comprises the political, economic,
regulatory, tax, social & cultural, legal, & technological environments.
International marketing environment consists of global forces such as
economic, social, cultural, legal, geographical and ecological forces that
affect the international marketing decisions.
It consists of internal & external forces of environment.
Components of International environment –
There are two main components of international environment –
a. Internal Factors – those factors which are controllable
It includes –
 Owners
 Board of directors
 Competitors
 Customers
 Shareholders
 Employees
b. External factors – those factors which are uncontrollable

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 Political
 Legal
 Social
 Cultural
 Technological
 Ecological
 Geographical
 Natural
 Economical
 International factors such as tax rate, exchange rate etc….
Trade Barriers –
Trade barriers are the artificial restrictions imposed by the governments
on free flow of goods and services between countries. Tariffs, quotas,
taxes, duties, foreign exchange restrictions, trade agreements, trading
blocs are the techniques used for restricting free movement of goods from
one country to the other.
Trade barriers are the government restrictions on international trade.
Trade barriers can be broadly classified into two categories
Tariff barriers or fiscal controls.
Non-tariff barriers or quantitative restrictions
Objectives of trade barriers -
 To Protect Home Industries from Foreign Competition
 To Promote New Industries and Research and Development
 To Conserve Foreign Exchange Reserves
 To Maintain Favorable Balance Of Payments
 To Protect National Economy from Dumping

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 To Curb (restrictions) Conspicuous (gold, diamond) Consumption
 To Make Economy Self-reliant
 To Mobilize Public Revenue
 To Counteract (curb) Trade Barriers Imposed By Other Countries
Meaning of tariff trade barriers –
Tariff derived from a French word meaning rate, price, or list of charges
is a customs duty or tax on products that move across borders.
Types of tarrif trade barriers –
a. Import duty – imposed by importing country to raise revenue and
protect domestic industries.
b. Export duty – imposed by exporting country to raise revenue and
protect domestic industries.
c. Transit duty – levied on commodities that originates in one
country, cross another and are consigned to another. Levied on
commodities passing through a customs area en route to another
country.
d. Specific duty – based on physical characteristics of goods i.e. on
the basis of weight, volume of product.
e. Ad valorem duty – imposed according to the value of
commodities traded b/w countries.
f. Compound duty – combination of specific and ad valorem duty
on a single product i.e. partly based on value and partly based on
quantity of goods.
Meaning of non-tarrif trade barriers –
Those barriers which are other than tarrif barriers.
Types of non-tarrif trade barriers –

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a. Quotas – numerical limit on the quantity of goods that can be
imported or exported during a specified time period.
b. VER (voluntary export restraint) – quota on exports fixed by
exporting country on the request of the importing country.
c. Subsidies – payment made by govt. to domestic producer so that
they can compete against foreign goods.
Other barriers –
a. Admisnistrative dealing – regulatory controls and bureaucratic
rules & regulation which affect the flow of imports. It can be dealy
at custom offices, safety inspection, environment regulatory
inspection etc..
b. Local content requirement – legal regulation which states that a
specified amount of commodity must be supplied in the domestic
market by the producer.
c. Currency control – impose restrictions on currency convertibility
by govt.
d. Embargo – complete ban on certain commodities.
e. Product testing & standardization – goods must as per standard.
GOVERNMENT PARTICIPATION IN TRADE
 Role in administration
 Role of storer (warehouser)
 Active role in reselling
 Govt. approval is required in procurement/production in
international market.
 Control of subsidies
 Impose restriction through taxation policies
 Impose restriction due to compliance with GATT.

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 Impose Restriction due to Multilateral trade negotiations
 Control through business rules.
Difference b/w Specific & Ad Valorem Duty –
S.no. Basis Specific Duty Ad Valorem Duty
1. Meaning
Imposed on each unit of a
commodity imported or
exported.
imposed on the total value
of commodity imported or
exported.
2.
CONVENIENCE
It is easy to calculate and
administer as it can simply
be calculated by
multiplying the rate of duty
with number of units
imported or exported.
It is difficult to calculate as
it requires a proper
assessment of the value of
goods imported or exported.
3.
NATURE OF
GOODS
It is levied on such goods
whose quantification in
terms of number of units is
possible. For example,
number of T. V. sets and
meters of cloth.
It is levied on such goods
whose quantification in
terms of number of units is
not possible. For example,'
rare Pantene‟s and statues.
4. Advantages
Specific duty is not very
popular as most of the
countries use advalorem
duties
Generally most of the
countries charge duties on
the basis of value of goods
imported or exported, i.e.,
advalorem duties
5. MAIN In this case value of In this case physical units of
commodity are not taken

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CONSIDERATIONS commodity is not taken
into consideration. For
example, Rs.5 on each
meter of cloth imported or
Rs.500 on each T.V. set
imported.
into consideration. For
example, 5% of F.O.B.
value of cloth imported or
10% of C.I.F. value of T.V.
sets imported.

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UNIT – 3
EXPORT-IMPORT FINANCING, PROCEDURE, PRIMARY
CONSIDERATION
14 steps step for conducting export transaction –
The entire 14-step process for conducting an export transaction is
summarized. Take for example an Indian importer and US exporter.
Step1: The Indian importer places an order with the US exporter and
asks the American if he would be willing to ship under a letter of credit.
{A letter issued by a bank to another bank (especially one in a different country) to
serve as a guarantee for payments made to a specified person under specified
conditions}
Step 2: the US exporter agrees to ship under a letter of credit and
specifies relevant information such as price and delivery terms.
Step 3: the Indian importer applies to State bank of India for a letter of
credit to be issued in favour of the US exporter from the merchandise the
importer wishes to buy.
Step 4: the state bank of India issues a letter of credit in the Indian
importer‟s favour and sends it to the US exporter‟s bank, the bank of
New York.
Step 5: the bank of New York advices the US exporter of the opening of
a letter of credit in his favour.
Step 6: the US exporter ships the goods to the Indian importer on a
common carrier. An official of the carrier gives the exporter a bill of
lading (Loading).

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Step 7: the US exporter presents a 90 day-time draft (bill of exchange)
drawn on the State Bank of India, in accordance with its letter of credit
and the bill of lading to the bank of New York. The US exporter endorses
the bill of lading so title of goods is transferred to the Bank of New York.
Step 8: the bank of New York sends the draft and the bill of lading to
the State Bank of India. The State Bank of India accepts the draft,
taking possession of the documents and promising to pay the now
accepted draft in 90 days.
Step 9: State Bank of India returns the accepted draft to the bank of
New York.
Step 10: the bank of New York tells the US exporter that it has received
the accepted bank draft, which is payable in 90 days.
Step 11: the exporter sells the draft to the bank of New York at a
discount from its face value and receives the discounted cash value of
the daft in return.
Step 12: State Bank of India notifies the Indian importer of the arrival of
the documents. He agrees to pay the State Bank of India in 90 days. State
Bank of India releases the documents so the importer can take
possessions of the shipment.
Step 13: in 90 days, the State Bank of India receives the importer’s
payment, so it has funds to pay the maturing draft.
Step 14: in 90 days the holder of the matured acceptance ie, bank of New
York presents it to the State Bank of India for payment. The State Bank
of India pays.

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Export Assistance
Exporters in the India can draw upon two types of government-backed
assistance to help finance their exports; the Export-Import bank and
Export Credit Guarantee Corporation (ECGC)
The Export-Import Bank (EXIM BANK) is a public sector financial
institution established in January 1, 1982. it was established by an act of
parliament for the purpose of financing, facilitating, and promoting
foreign trade in India.
Export Credit Guarantee Corporation (ECGC): this institution covers
the exporter against various risks. It also provides guarantees to the
financing banks to enable them to provide adequate finances to exporters.
Export Import Primary Consideration –
 Products
 Volume
 Country Market and Product Competitiveness Research
 Identification of Customers: End Users, Distributors, and Sales
Agents
 Compliance with Foreign Law
Modes of entering international business:-
1. Exporting
2. Importing
3. Joint venture
4. Outsourcing
5. Franchising
6. Turnkey project - It is a contract under which a firm agrees to fully
design, construct and equip a manufacturing/ business/ service

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facility and turns the project over to the purchaser when it is ready
for operation for remuneration.
7. Foreign direct investment
8. Merge & acquisitions
9. Lisencing
10.Contract manufacturing
11.Strategic alliances
12.Online mode. Etc…….

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UNIT – 4
EXPORT-IMPORT DOCUMENTATION
Various document required for exporting the document -
I. Prinicipal Documents –
1. Commercial Invoice - A commercial invoice is a bill for the
goods from the seller to the buyer.
2. Packing List – it includes date of packaging, details of goods
concerned with invoice number, details of shipping, bill of lading
etc.
3. Bill of Lading – it includes whole details of goods carried in
ship.
4. Certificate of inspection
5. Certificate of origin – for calculation of import duty. Issued by
Trade of commerce to the exporter.

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6. Bill of Exchange – for payment
7. Shipment advice
8. Insurance cetificate
II. Auxiliary documents –
1. Proforma Invoice – contains an offer made by the exporter.
2. Intimation for inspection – made by exporter to export inspection
agency that the goods are ready to inspect
3. Shipping instructions – by exporter to shipping agent regards the
goods be exported
4. Insurance Declaration – declaration regarding the quality,
quantity, price etc. of goods to insurance company
5. Application for certificate of origin – filled by exporter to give
details about the goods which is submitted to chamber of
commerce for obtaining certificate of origin.
6. Mate receipt – when the goods have been loaded on the ship, the
captain will issue a reccipt to the exporter or forwarding agent.
Various document required for importing the document –
1. Delivery order
2. Port trust dues receipt
3. Bill of entry

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UNIT – 5
PROCESSING OF AN EXPORT ORDER
These are listed as follows:
I. Having an Export Order:
Processing of an export order starts with the receipt of an export
order. An export order, simply stated, means that there should be
an agreement in the form of a document, between the exporter and
importer before the exporter actually starts producing or procuring
goods for shipment. Generally an export order may take the form
of proforma invoice or purchase order or letter of credit.
II. Examination and Confirmation of Order:
Having received an export order, the exporter should examine it
with reference to the terms and conditions of the contract. In fact,
this is the most crucial stage as all subsequent actions and reactions
depend on the terms and conditions of the export order.
The examination of an export order, therefore, includes items like
product description, terms of payment, terms of shipment,
inspection and insurance requirement, documents realizing
payment and the last date of negotiation of documents with the
bank. Having being satisfied with these, the export order is
confirmed by the exporter.
III. Manufacturing or Procuring Goods:
The Reserve Bank of India (RBI), under the export credit (interest
subsidy) scheme, extends pre-shipment credit to exporter to finance
working capital needs for purchase of raw materials, processing
them and converting them into finished goods for the purpose of

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exports. The exporter approaches the bank on the basis of laid
down procedures for the pre-shipment credit. Having received
credit, the exporter starts to manufacture / procure and pack the
goods for shipment overseas.
IV. Clearance from Central Excise: (12% excise duty fixed)
As soon as goods have been manufactured/ procured, the process
for obtaining clearance from central excise duty starts. The Central
Excise and Sale Act of India and the related rules provide the
refund of excise duty paid. There are two alternative schemes
whereby 100 per cent rebate on duty is given to export products on
the submission of the proof of shipment.
The first scheme is to make payment of the excise duty at the time
of removing the export consignment from the factory and file a
claim for rebate of duty after exportation of goods. The second
scheme is to remove goods from factory/warehouse without
payment but under an appropriate bond with the excise authorities.
The exporter needs to apply on a form known as AR4 or AR4A to
the Central Excise Range Superintendent for obtaining excise
clearance.
Form A is filed when goods are to be cleared after examination by
the excise inspector. In all other cases, form AR4A is filed.
V. Pre-Shipment Inspection:
There are number of-goods whose export requires quality
certification as per the Government of India‟s notification.
Consequently, the Indian custom authorities will require the
submission of an inspection certificate issued by the competent and

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designated authority before permitting the shipment of goods takes
place.
Inspection of export goods may be conducted under:
 Consignment-wise Inspection
 In-process Quality Control, and
 Self-Certification.
Following documents required at the time of inspection –
 A copy of the commercial invoice
 Crossed cheque of demand draft as inspection fee
 A copy of export contract
 Importer's technical specifications and/or approved sample.
The Inspection Certificate is issued in triplicate. The original copy is
for the customs verification. The second copy of the certificate is sent
to the importer and the third copy remains with the exporter for his
reference purpose.
VI. Appointment of Clearing and Forwarding Agents:
On completion of the process of obtaining the Inspection
Certificate from the custom agencies, the exporter appoints
clearing and forwarding agents who perform a number of functions
on behalf of the exporter.
The main functions performed by these agents include packing,
marking and labeling of consignment, arrangement for transport to
the port arrangement for shipment overseas, customs clearance of
cargo, procurement of transport and other documents.
In order to facilitate the exporter in discharging his duties, the
following documents are submitted to the agent:
 Commercial invoice in 8-10 copies

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 Customs Declaration Form in triplicate
 Packing list
 Letter of Credit (original)
 Inspection Certificate (original)
 G.R. Form (in original and duplicate) {Guaranteed
Remittance}
 AR4/ AR4A (in original and duplicate) {application for
removal of excisable goods}
 GP-l/GP-2 (original)
 Railway Receipt/Lorry Way Bill, as the case may be
VII. Goods to Port of Shipment:
After the excise clearance and pre-shipment inspection formalities
are completed, the goods to be exported are packed, marked and
labeled. Proper marking, labeling and packing help quick and safe
transportation of goods. The export department takes steps to
reserve space on the ship through which goods are to be sent to the
importer.
The shipping space can be reserved either through the clearing and
forwarding agent or freight broker who works on behalf of the
shipping company or directly from the shipping company. Once
the space is reserved, the shipping company issues a document
known as Shipping Order. This order serves as a proof of space
reservation.
If goods are sent through a road carrier to the port, no specific
formality is involved. In case, the goods are sent by rail to the port
of shipment, allotment of wagon needs to be obtained from the
Railway Board.

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The following documents are submitted to the booking railway
yard/station:
 Forwarding Note (A Railway Document)
 Shipping Order
 Wagon Registration Fee Receipt
Once wagons have been allotted, goods are loaded, for which railways
will issue Railway Receipt (RR). Then, this receipt and other documents
are sent to the clearing and forwarding agent at the port town. At the
same time, the production/export department takes insurance policy in
duplicate for risk coverage (internal as well as overseas) for the goods to
be exported.
VIII. Port Formalities and Customs Clearance:
Having received the documents from the export department, the
clearing and forwarding agent takes delivery of the cargo from the
railway station or the road transport company and stores it in the
warehouse. He also obtains customs clearance and permission from
the port authorities to bring the cargo into the shipment shed.
The custom department grants permission for export at the office
of the customs and physical verification of goods in the shipment
shed. The clearance for export is given on the Shipping Bill.
The clearing and forwarding agent is required to submit the
following documents with the Customs House for obtaining
customs clearance and permission:
 Shipping Bill
 Contract Form
 Letter of Credit, if applicable
 Commercial Invoice
 GR Form

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 Inspection Certificate
 AR4/AR4A Form
 Packing List, if needed
After receiving documents from the export department, the clearing and
forwarding agent presents the Port Trust Document to the Shed
Superintendent of the port. He obtains carting order bringing the cargo
to the transit shed for physical examination by the Dock Appraiser.
The Dock Appraiser is presented the following documents to facilitate
him in physical examination of export goods:
 Shipping Bill
 Packing List
 AR4/ AR4A Form and Gate Pass
 GR Form (duplicate)
 Inspection Certificate (original)
The Dock Appraiser, after making examination, makes „Let Export‟
endorsement on the duplicate copy of the Shipping Bill and hands over it
to the Forwarding Agent. All these documents are presented to the
Preventive Officer who puts an endorsement „Let Ship‟ on the duplicate
copy of the Shipping Bill. The preventive officer supervises the loading
of cargo on board the vessel.
After the goods are loaded on board the vessel, the captain of the ship
issues a receipt known as ‘Mate’s Receipt’ to the Shed Superintendent of
the port concern. The forwarding, agent after paying port charges, takes
the delivery of the „Mate Receipt‟. He submits to Shipping Company and
requests it to issue the Bill of Lading.

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IX. Dispatch of Documents by Forwarding Agent to the Exporter:
After obtaining the Bill of Lading from the Shipping Company, the
clearing and forwarding agent dispatches all the documents to his /
her exporter.
These documents include:
 Commercial Invoice (attested by the customs)
 Export Promotion Copy
 Drawback Copy
 Clean on Board Bill of Lading
 Letter of Credit
 AR4/ AR4A and Gate Pass
 GR Form (in duplicate)
X. Certificate of Origin:
On receipt of above documents from the forwarding agent, the
exporter now applies to the Chamber of Commerce for a
Certificate of Origin and obtains it. If the goods are exported to
countries offering GSP concessions, the exporter needs to procure
the GSP Certificate of Origin from the concerned authority like
Export Inspection Agency.
XI. Dispatch of Shipment Advice to the Importer:
At last, the exporter sends „Shipment Advice’ to the importer
intimating the date of shipment of the consignment by a named
vessel and its expected time of arrival at the destination port of the
importer.
The following documents are also sent to the importer to facilitate
him for taking delivery of the consignment:
 Bill of Lading (non-negotiable copy)

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 Packing List
 Customs Invoice
XII. Submission of Documents to Bank:
At the end of the process, the exporter presents the following
documents to his bank for realization of his amount due to the
importer:
 Certificate of Origin
 Packing List
 Letter of Credit
 Marine Insurance Policy
 GR Form
 Bill of Lading
 Bill of Exchange
 Bank Certification
 Commercial Invoice (additional copy for bank
certification)
XIII. Claiming Export Incentives:
On completion of the processing of an export order at the three
levels of shipment i.e., pre-shipment, shipment and post-shipment,
the exporter claims for export incentives admissible to him / her.

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Claiming export incentives –
A. Excise Rebate
After completing the post- shipment formalities, the clearing and
forwarding agent will file the following documents with the Maritime
Central Excise Collector or Jurisdictional Assistant Collector of Central
Excise for claiming the refund of excise duty or for obtaining release
from bond, as the case may be.
 AR4/ AR5 Form (Duplicate copy), which has been certified by the
customs preventive officer
 Non-negotiable copy of the Bill of Lading and shipping Bill
certified by the customs preventive officer
 Additional documents to be submitted for claiming refund excise
duty are – Application for Refund in Form C and Pre-receipt
B. Duty Drawback
For claiming Duty Drawback, the exporter‟s agent will submit the
customs attested copy of the Drawback Shipping Bill, along with the
following documents, with the Drawback Department of the Customs
House
 Drawback Claim pro forma (prescribed application form in five
copies)
 Bank or Customs Certified copy of Commercial Invoice
 Non-negotiable copy of Bill of Lading
 Any other specifically prescribed document

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Unit – 6
MARINE INSURANCE
Marine insurance covers the loss or damage of ships, cargo, terminals,
and any transport by which the property is transferred, acquired, or held
between the points of origin and the final destination.
Some types of damage are –
(a) Sinking of ship.
(b) Damage to the ship and cargo due to dashing of the waves.
(c) Dashing of the ships on the rocks.
(d) Fire or explosion on the ship.
(e) Spoilage of cargo due to sea water.
(f) Destruction of the ship and cargo by the crew or captain of the ship,
piracy and such other risks.
Section 3 of the Marine Insurance Act, 1963 defines a contract of marine
insurance as an insurance cover for marine cargo, air cargo and post
parcels. Thus, marine insurance is used to cover transportation by any of
the following modes of transit singly or jointly:
i. Sea, air or land.
ii. Inland water voyages.
iii. Rail/road.
iv. Air.
v. Post.

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Principles of Marine Insurance –
Principle of Utmost good faith – trust b/w both parties (i.e. insured
& insurance company)
Principle of insurable interest – insured must have financial inetrest
in the subject matter.
Principle of indemnity – guarantee to put the insured at the samee
position as before the loss occurred.
Principle of causa proxima – nearest or closest caause should be
taken into consideration
Content of insurance policy –
According to section 25 of the Act, a marine insurance policy must
specify:
i. The name insured, or of some person who effects the insurance
on behalf of the insured.
ii. The subject matter insured and the risk insured against losses.
iii. The voyage or period of time or both, as the case may, covered
by the insurance,
iv. The sum or sums insured.
v. The name or names of the insurer or insurers.
WHO CAN INSURE?
The shippers/exporters have an insurable interest by virtue of their
ownership of goods and they can insure. Similarly the buyer to whom the
goods are sent can also insure by virtue of his acquiring an interest in the
goods at a later date. In practice insurance is effected either by
shippers/exporters or buyer depending upon their contract of sale of

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goods. There are mainly three types of sales of goods in the overseas
trade as follows:
1. CIF (Cost, Insurance and Freight)
2. CFR(Cost and Freight)
3. FOB(Free on board)
FEATURES OF MARINE INSURANCE POLICY –
Freely transferable as goods pass through various hands before
delivery
Assignment is done by endrosment and delivery
Insurable inetrest of claimat must exist at the time of loss of cargo
Value of insurance agreed b/w insured & insurer
Contract of commercial indemnity not pure indemnity
Duration includes period of transit + time of discharge + time of
arrival
TYPES OF MARINE INSURANCE POLICIES
a. Voyage (journey) policy – covers risk from port of departure up to
port of destination.
b. Time policy – issued for a particular period i.e. 1 year irrespective
of voyage.
c. Mixed policy – Voyage + Time policy
d. Valued policy – value of policy decided at the time of contract
e. Unvalued policy – vice versa of valued policy
f. Floating policy – when a person ships good regularly in a particular
geographical area, he will have to purchase a marine insurance
g. Hull insurance – insurance against loss caused by damage of
waterborne craft or aircraft to the owner.

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h. Cargo insurance – insurance of cargo
i. Freight insurance – to transfer goods from one port to another, the
amount paid to the owner of the ship called freight.
INSURANCE CLAIM –
When there is a loss, the insured is to proceed to claim the loss recovery
from the insurer. The cardinal principle about insurance claims is that the
insured has to fulfil the clearly defined responsibilities.lf he does not
fulfill these responsibilities, the insurer can refuse to pay.
PROCEDURE FOR OBTAINING MARINE INSURANCE POLICY
–
Select the insurance company
Decide the appropriate type of policy
Application to insurance company
Payment of premium
Issue of the Insurance Policy
Processing of the Policy
Procedure for Filing Marine Insurance Claim –
Intimation of Loss
The claim on carriers, customs and –bailees should be filed within
the prescribed time limit under registered post with an
acknowledgement due.
Appointment of the Surveyor
Landing Remarks: - The insured should also obtain landing
remarks from the Port Authorities.
Submission of Claim :-" The insured should submit the following
documents to finalise claim properly :-

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 Original policy.
 Original invoice and packing list.
The following documents, inter alia, are required to be submitted by the exporter to
the insurance company:
 Claim bill in duplicate.
 Original Insurance policy duly discharged.
 Original Invoice.
 Copy of Bill of Lading.
 Copy of packing list showing weight specification.
 Ship Survey Report.
 Insurance Survey Report.
 Port Trust Landing Remark Certificate.
 Copy of claim lodged with carriers, customs and bailee.
 Reply received from carriers or Port Trust Authorities and/or correspondence
exchanged.
 Any other documents required by the Insurance Company.
Finalization of the Claim
Claim Documents –
To claim under a Marine Cargo Insurance Policy, the following are the
basic documents required:
 Insurance Policy / Certificate
The document issued by the Insurance Company to evidence that
the cargo has been insured. It provides details of the policy
number, voyage, cargo details and insurance conditions.
As this document conveys rights to make a claim, we will require
the original.

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 Commercial Invoice
The invoice accompanying the consignment, issued by the seller of
the goods. This will be used to establish purchase price of goods
and to confirm the terms of sale to ensure that an insurable interest
does apply.
 Packing List
Provides a breakdown of the consignment showing the number of
units shipped in each package along with their weights.
 Bill of Lading
Document of title issued by the shipping line to evidence shipment
of the consignment. Also provides evidence of the contract of
carriage and if possible the original should be provided with the
conditions printed on the reverse side. If the entire shipment is lost
all original Bills of Lading must be presented.
 Air Waybill Same role as the Bill of Lading but issued by the
airline.
 Consignment Note
Issued if the goods are carried by road. The consignment note can
be signed on delivery and claused to show any damage or shortage
in the same way as a road haulier''s Delivery Receipt.
 Delivery Receipts
The document signed by the receiver on delivery by the road
haulier. As previously mentioned this should be claused to provide
evidence of shortage or damage to goods.
 Additional Documents
Depending on the circumstances of the claim we may request other
documentation such as;
 Vessel''s Outurn Report

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 Container Damage Report
 Tally Sheets
 Written confirmation of Non Delivery from carrier
 Police Statement (in the event of a theft) etc…..
A NOTE ON ISO 9000 –
 The International Standards Organisation (ISO) is a non-
governmental organisation established in 1947.
 The objectives of ISO are : (a) To promote the development of
standardisation, and related activities in the world with a view to
facilitating the international exchange of goods and services, and
(b) To develop cooperation in the sphere of intellectual, scientific,
technologically and economic activity.
 The ISO-9000 Series of Standards evolved by the International
Standards Organisation has been accepted worldwide as the norm
assuring high quality of goods.
 OBJECTIVES OF ISO-9000 -
(a) Increased customer confidence in the company.
(b) A shift from a system of inspection, to one of quality
management.
(c) Removing the need for multiple assessments of suppliers.
(d) Gaining management commitment.
(e) Linking quality to cost-effectiveness.
(f) Giving customers what they need.
METHODS OF IMPLEMENTATION OF ISO-9000
(a) Management education.
(b) Writing a quality policy.
(c) Writing a quality manual.
(d) Nominating a quality representative.

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(e) Identifying responsibilities.
(f) Identifying business procedures.
(g) Listing down procedures.
(h) Writing work instructions.
The ISO-9000 Series is a set of five individual, but related, international
standards on quality management and quality assurance.
ISO9000 - It contains basic definitions, concepts and guidelines for
the series.
ISO9001 - It covers design, development, production, installation
and servicing
ISO- 9002 - It covers production and installation system.
ISO9003 - It covers only final product inspection and test.
ISO9004 - It provides guidelines for internal use by a producer
developing its own

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Unit – 7
Export Assitance in India
The Export-Import policy 1992-97 brought about many fundamental
changes in India's external trade policy. It gradually laid the foundation of
globalisation of Indian economy by initiating liberalization and making
Indian industries to face competition from foreign MNCs. Until 1992,
Indian markets were highly protected and the Indian government used to
give many incentives to the Indian exporters. But many of these
incentives were withdrawn by the 1992-97 and subsequent policies.
IMPORTANCE OF EXPORT ASSISTANCE :-
 At initial level, export promotion was not so important in
development of India.
 Because of the large size of the domestic market in India, 'import
substitution' rather than the' export promotion' was considered as a
more useful strategy for India's economic development process.
 Similarly during the period of the First Three Five year plans over
1950-51 to 1965-66 Indian economy was in a formative stage.
Consequently India‟s capacity to export manufactures or industrial
products was extremely limited.
 But in the second-half of 1960s, a number of industries especially
in the engineering, chemicals, leather, marine and other sectors
have reached a stage from where they were looking for an opening
in international market.

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 Government of India had therefore, considered it as appropriate to
lay emphasis on the need for export promotion so as to enable the
country to meet the need of imports.
 The process of globalization and liberalization has further
enhanced the need of strengthening the support of export-import
trade business of the country.
 Export promotion policy in India has three main segments. They
are as follows:
i. Policies for increasing Investment and production in export
sector.
ii. Price-support measures for rendering exports more
competitive.
iii. Measures for strengthening marketing effort by the export
sector.
EXPORT PROMOTION MEASURES IN INDIA :-
There are export promotion measures in India are –
A. Import facilities for exporter –
 Duty free replenishment certificate (DFRC) –
It is issued to a merchant exporter or manufacturer exporter
for the duty free import of inputs such as raw material,
components, intermediates, consumables, spare parts
including packing materials to be used for export production.
 Duty entitlement passbook scheme (DEPS) –
It is issued after export, at a predetrmined credit on the Free
on Board (FOB) value to the exporter.
 Export promotion Capital goods scheme (EPCG) –

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It is issued to exporter for import machinery and other
capital goods for export production at concessional or no
customs duties at all.
B. Duty Exemption Schemes –
 Duty Drawback (DD) –
Duty drawback is the refund of the custom duty, central
excise paid by the exporter on imported raw materials,
components etc….
 Excise Duty refund –
Excise duty is a tax imposed by the central government on
goods manufactured in India. Two ways :- Export under
rebate and export under bond.
 Octroi Exemption –
Octroi is a duty paid on manufactured goods, when they
enter the municipal limits of a city or a town. However,
export goods are exempted from octroi.
C. Fiscal incentives –
 Exemption from income tax –
In order to enable exporters to plough back their earnings
and promote exports, the Government of India has given tax
exemption to exporters on export earnings under section 80
HHC provision of the Income Tax Act.
 Exemption from GST –
Export of goods & services is considered as a zero-rated
supply. GST will not be levied on export of any kind of
goods or services.

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D. Marketing Assistance –
 Market Development Assistance (MDA) –
The government of India has set up a separate fund under the
head Marketing Development Assistance (MDA) for
developing marketing abilities of Indian exporters. It is
granted by the Ministry of Commerce for export market
development and research abroad. The amount granted under
MDA varies from 25% to 60% of the actual expenditure
incurred.
 Market Access Initiative (MAI) –
Under this scheme, financial assistance is available to the
export promotion councils, industry and trade associations
and other eligible entities on the basis of the competitive
merits of proposals received in this regard for undertaking
marketing studies, setting up of common showrooms,
warehousing facility, participation in sales promotion
campaigns, publicity campaigns, international trade fairs,
seminars, buyers-sellers meet, etc.
E. Supply of raw material –
 Industrial Raw Material Assistance Centres (IRMAC)
Scheme –
IRMAC is established by the government of India as,
subsidiary of STC (State Trading Corporation). Such centres
import raw materials in bulk and supply them to the
registered exporters against a valid import licence. This
enables exporters to get timely supply of raw materials at
reasonable prices, I~MAC has been further simplified- by
removing the actual user clause.

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 Back to-Back Inland Letter of Credit –
The facility of Back-to-Back Inland letter of credit was
announced by the EXIM policy 1992-97 and came into
effect from 1st April 1995. Back-to-back L/C is one, which
can be opened In favour of local suppliers of raw materials
or goods so as to enable exporters to got raw materials or
goods for export on credit basis. It is a kind of preshipment
finance procured by the exporter for the processing of export
order.
F. Institutional measures –
The Government of India (GOI) has established a number of
organisations to promote and expand export trade. These organisations
are –
a. Indian Institute of Foreign Trade (IIFT) to provide training
facilities.
b. Indian Institute of Packaging (IIP) to upgrade packaging standards.
c. Export Promotion Councils (EPCs) to undertake export promotion
activities.
d. Export Inspection Council (EIC) to upgrade quality standards.
e. Export Credit Guarantee Corporation (ECGC) to protect exporters
against payment rises.
f. Indian Council of Arbitration (ICA) to settle and solve disputes
between importers and exporters.
g. Apart from the above institutions, there are a number of other
organisations such as Federation of Indian Export Organisation
(FlEO), EXIM Bank, etc.

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EXPANSION OF PRODUCTION BASE FOR EXPORTS :-
Different ways –
1. Relaxation in Industrial Licensing Policy/MRTP/FERA/Foreign
Collaborations –
 Industrial liscensing policy means remove restrictions on
investment and exxpansion etc….
 MRTP – Monopoloies and restrictive trade practices means
remove monopolies give chances to all industries to
develop..
 FERA – Foreign Exchange Regulation Act, 1973 emphasis
on regulation of currencies which is replaced later by FEMA
(Foregin Exchnage Management Act, 1999)..
 Foreign Collaboration – Collab with foreign companies….
2. Liberal import of capital goods –
i.e/ import of capital goods like machinery, fixtures etc…free of
custom duty.
3. Export Processing Zones (EPZ), Export-Oriented Units (EOU),
Special Economic Zones (SEZs), Electronic Hardware Technology
Parks (EHTP) and Software Technology Park Units (STP) –
 EPZ – areas within developing counries get incentives and
barrier-free enviornment to promote economic by attracting
foreign investment
 EOU – to boost exports, increase foreign earnings and
created employment in India.

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 SEZ – is an area in which the business and trade laws
different from rest of the country. At this area, businesses
gets special rebates.
 EHTP – area for manufacturing of electronic hardware
equipmnets components etc… and get rebate (100%) in
production.
 STP – area for manufacturing of computer software etc…
and get rebate (100%) in production.
4. Assured supply of raw material imports –
As regards making available the supplies of imported raw materials
to the export sector, the import policy provides the scheme of Duty
exemption and Duty Remission. The duty exemption scheme
enables import of inputs required for export production. The duty
remmission scheme enables post export replenishment/remission of
duty on inputs used in the export product.
Under duty exemption scheme, an advance licence is issued to
allow import of inputs which are physically incorporated in the
export product. Duty Remission Scheme consists of Duty Free
Entitlement Certificate and Duty Entitlement Passbook Scheme.
5. Eligibility for export/trading/star trading/super star trading houses
–
 Export houses – defined as expoter companies holding
export houses certificate. It includes small scale industries,
tiny sectors, cottage sectors etc….

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 Trading houses – is an exporter, importer and also a trader
that purchases and sells products for other businesses. It
provide services for businesses.
 Star trading houses – manufacturing companies or industrial
houses with annual turnover of 300 cr. – 1000 cr. Shall be
recognised as star trading or super star trading houses.
 The objective of this scheme is to recognise them as the
respective houses “with a view to building marketing
infrastructure and expertise required for export promotion”.
 The export performance criteria may be based on either
f.o.b. value of exports or net foreign exchange earnings.
 F.O.B. Criteria: The manufacturing or merchandising units, who
have achieved the following targets can be accorded the status of
above mentioned Export Houses. Deemed exports are not counted
for this purpose.
 Net Foreign Exchange Earnings: Exporters have an option for
obtaining the status of Export and other Houses based on the
following Net Foreign Exchange Earnings.
Category
Average FOB
value during
the preceding
three licensing
years, in
rupees
FOB value
during the
preceding
licensing year,
in rupees
Average NFE
earning made
during the
preceding three
licensing years,
in rupees
NFE earned
during the
preceding
licensing year,
in rupees
Export houses 15 cr. 22 cr. 12 cr. 18 cr.
Trading houses 75 cr. 112 cr. 62 cr. 90 cr.
Star trading houses 375 cr. 560 cr. 312 cr. 450 cr.

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Super star trading
houses
1125 cr. 1680 cr. 937 cr. 1350 cr.
6. Export of services for recognition of export houses -
Category
Average free
foreign
exchange
earnings
during the
preceding
three licensing
year, in rupees
Free Foreign
exchange
earnings during
the preceding
licensing year,
in rupees
Average NFE
earning made
during the
preceding three
licensing years,
in rupees
NFE earned
during the
preceding
licensing year,
in rupees
Service Export
houses
4 cr. 6 cr. 3 cr. 5 cr.
International
service Export
houses
20 cr. 30 cr. 15 cr. 25 cr.
International Star
service export
houses
100 cr. 159 cr. 75 cr. 125 cr.
International Super
star service export
houses
300 cr. 450 cr. 225 cr. 375 cr.

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RENDERING EXPORT PRICE – COMPETITIVE –
a. Fiscal incentives -
Fiscal incentives for export promotion include :-
ⱺ duty drawback
ⱺ central excise rebate
ⱺ Income tax exemption, on export profits
ⱺ Exemption from GST
The major exemptions are as follows:
 Part of the profits derived from export of specified goods or
merchandise is deducted for the computation of income tax.
 Specified amount of profits of companies engage in the business of
hotel or of a tour operator or a travel agent is deducted.
 There is a partial tax relief on export of computer software and for
import of system. The benefit can also be claimed by a supporting
software developer from 1-4-1999..
 The profits from export or transfer of film VT software, TV news
software, telecast rights are partially deducted.
 50% of the profits from project exports is deducted in computing
taxable income of the Indian company or resident tax payer.
 10 years tax holidays is granted to units in FTZ/EPZ and 100%
EOU ending with 2010 - 2011.
 There is a tax rebate on remuneration received on services rendered
outside India and other rebate as specified in the policy.
b. Financial incentives -

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The major scheme of financial incentives include interest subsidy,
financial assistance scheme for agricultural, horticultural and meat
exports.
 Interest Subsidy: Export sector in India has also been given
interest subsidy under which the working capital is made
available by the banks to the export sector at a concessional
or subsidised rates of interest.
 Financial Assistance Scheme for Agricultural, Horticultural
and Meat Exports: In order to promote the exports of
agricultural, horticultural and meat products, agricultural and
processed food products Export Development Authority
(APEDA) Provides financial assistance for the following
purposes:
 Feasibility studies, surveys, consultancy and data base
up gradation
 Development of infrastructure
 Export promotion and market development
 Packaging development
 Quality control
 Up gradation of meat plants
 Organisation building and Human Resource
Development
 Air freight assistance for export of horticultural
products export by air
 Generation of relevant research and development
through research institutions.

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Thus, export incentives in the form of tax - concessions or fiscal
incentives, as well as financial incentives, play a major role in
rendering Indian exports, competitive in the international market.
STRENGTHENING EXPORT MARKETING EFFORT -
The third pre- requisite of export promotion is the marketing effort. It
may be noted that 'export' is primarily a 'sale' transaction. Production can
be converted into 'sale' only through the marketing effort. In other words
'marketing effort' provides the necessary link or channel between
production and sales.
In other words; an effort has been made to provide the necessary infra
structure for servicing the export sector, particularly to improve the
export marketing effort. With this object in view, Government of India
have established a number of specialized institutions for providing
necessary services and assistance to individual corporate units from the
export sector. Institutions established for strengthening export marketing
effort include Export Promotion Council, Commodity Boards, Special
Authorities and Industry Associations.
The primary function of these institutions is to provide the exporter with
export marketing guidance and advice as well as complete information
and details covering almost all the critical elements involved in export
marketing effort at the individual corporate unit level on a continuous
basis. In addition, separate institutions have also been established for
providing technical and specialized services to the export-sector in India.
The External Marketing Assistance Scheme provides grant of market
assistance at the rate of 5% and 10% of FOB value realisation on export

46 | P a g e
of specified diversified products. The benefit is available to both
manufacturer- exporters and merchant exporters.
Export promotion policy include –
 policies for increasing investment and production in export
sector
 price support measures for rendering exports more competitive,
 measures for strengthening marketing effort by the export sector.

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UNIT – 8
EXPORT PROMOTION ORGANISATIONS
INTRODUCTION –
Exporters need guidance and assistance at different stages of the export
effort. For this purpose, the Government of India have set up several
institutions whose main functions are to help the exporter in his work.
Export marketing effort is of vital importance for the success of apart-
promotion programme in any country. For undertaking international
marketing operations an exporter needs special guidance and assistance in
critical areas like packaging, market promotion and publicity, quality
certification, risk coverage, market intelligence, finance and credit
support etc. It is only with the support and services rendered by
specialised institutions, exporter is able to successfully convert his
'production' into „sales‟ in international market. Consequently, any
country, including India, engaged in the task of export promotion, has to
establish specialised institutions for strengthening export-marketing effort
for the country as a whole.
Institutions engaged in export efforts fall in six distinct tiers –

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GOVERNMENT POLICY MAKING AND CONSULTATIONS
Appropriate government policies are important for successful export
effort. In view of the increasingly important and critical role of foreign
trade in economic development, a separate Ministry of Commerce has
been entrusted with the responsibility of promoting India's interest in
international market.
A. Ministry of commerce –
The Department of Commerce, in the Ministry of Commerce has
been made responsible for the external trade of India and all
matters connected with the same. The main functions of the
Ministry are the formulation of international commercial policy,
negotiation of trade agreements, formulation of country's export-
import policy and their implementation. It has created a network of
commercial sections in Indian embassies and high commissions in
various countries for export- import trade flows. It has set up an
"Exporters Grievances Redressal Cell" to assist exporters in quick
redressal of grievances.
B. Board of Trade –
For ensuring a regular consultation, monitoring and review of
India's foreign trade policies and operations, Government of India
have set up a Board of Trade with representatives from Commerce
and other important Ministries, Trade and Industry Associations,
and Export Service Organisations. It is an important national
platform for a regular dialogue between the Government and the
trade and industry. The deliberations in the Board of Trade provide
guidelines to the Government for appropriate policy measures for
corrective action.

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C. Cabinet Committee on Exports –
With a view to ensure regular and effective monitoring of India's
foreign trade performance and related policies, Cabinet Committee
on Export has also been set up.
D. Empowered Committee of Secretaries –
For speedier and quicker decision-making, an Empowered
Committee of Secretaries has also been established to assist the
Cabinet Committee on Exports.
E. Grievances Cell –
Grievances Cell has been set up to entertain and monitor disposal
of grievances and suggestions received. It is a cell meant for
speedy redressal of genuine grievances. Grievances Committees
headed by Director General of Foreign Trade and head of
concerned Regional Licensing Authority have been constituted in
the respective licensing offices. The Committee also include
representatives of FIEO, concerned Export Promotion
Council/Commodity Board and other departments and
organisations. The grievances may be addressed to the Grievance
Cell of the concerned Licensing Authority in the prescribed
Porforma.
F. Director General of Foreign Trade (DGFT) –
DGFT is an important office of the Ministry of Commerce, to help
the formulation of India's Export-Import policy and

50 | P a g e
implementation thereof. It has set up regional offices in almost all
States and Union Territories of India. These offices are known as
Regional Licensing Authorities. There is an Export Commissioner
in the DGFT office who functions as a nodal point for all export
promotion schemes. The Regional Licensing offices also act as
Export facilitation centres.
G. Director General, Commercial Intelligence & Statistics (DGCI &
S) –
DGCI & S has been entrusted with the task of compilation and
publication of data on India's Foreign Trade. It brings out various
publications relating to Foreign Trade of India. The major
publications are as under –
 Monthly Statistics of Foreign Trade of India
 Monthly Press Notes on Foreign Trade
 Monthly Brochure of Foreign Trade Statistics of India
(Principal Commodities and Countries)
 Indian Trade Classification based on Harmonised
Commodity Description and Coding System
 Indian Trade Journal
H. Ministry of Textiles –
Ministry of Textiles is another Ministry of Government of India
which is responsible for policy formulation, development,
regulation and export promotion of textile sector including
sericulture, jute and handicrafts, etc. It has a separate Export
Promotion, Division, offices, advisory boards, development
corporations, Export Promotion Councils and Commodity Boards.

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The advisory boards have been constituted to advise the
government in the formulation of the overall development
programmes in the concerned sector. It also devises strategy for
expanding markets in India and abroad. The four advisory boards
are as under:
 All India Handloom Board
 All India Handicrafts Board
 All India Powerloom Board
 Wool Development Board
There are Development Commissioners, Handicrafts and Handlooms,
who advises on matters relating to the development and exports of these
sectors. There are Textile Commissioner and Jute Commissioner who
advise on the matters relating to the growth of exports of these sectors.
Textile Committee has also been set up for ensuring of textile machine
manufactured indigenously, especially for exports. It also issues
certificates of origin and other special certificates.
I. States Cell –
The cell has been created under Ministry of Commerce. Its
functions are to act as a nodal agency for interacting with state
Government or Union Territories on matters concerning export or
import from the State or Union Territories. It provides guideline to
State level export organisations. It assists them in the formation of
export plans for each cases.

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J. Development Commissioner, Small Scale Industries Organisation –
The Directorate has the headquarter if! New Delhi and extension
centres located in almost an States and Union Territories. They
provide export, promotion services almost at the doorsteps of the
small scale industries and cottage unit. The important functions
are:
 to help the small scale industries to develop their export
capacities
 to organise export training programmes
 to collect and disseminate information
 to help such units in developing their export markets
 to take up the problems and other issues. related to small
scale industries
Besides, there are Directorates of Industries, National Small Industries
Corporation and State Corporations for the promotion of exports from
small scale industries.
TECHNICAL AND SPECIALISED SERVICES ASSISTANCE –
Export marketing effort at the individual corporate level also needs to be
reinforced through a number of technical and specialised service inputs.
These cover important and crucial areas like packaging, quality control,
risk coverage, promotion and finance.

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INDIAN TRADE PROMOTION ORGANISATION (ITPO) –
 India Trade Promotion Organisation (ITPO) was incorporated by
merger of Trade Development Authority (TDA), a Registered
Society under Ministry of Commerce & Industry, with Trade Fair
Authority of India (TFAI) with effect from 1 January 1992. TFAI
was earlier incorporated, under Section 25 of the Indian Companies
Act, 1956, on 30 December 1976 by amalgamating 3 organisations
of the Government of India viz. India International Trade Fair
Organisation, Directorate of Exhibitions & Commercial Publicity
and Indian Council of Trade Fairs & Exhibitions and commenced
operations with effect from 1 March 1977.
 Headquater at Pragati Bhawan in Pragati Maidan, New Delhi
 Owner – Government of India
 Functions – provide services to promote Indian exports, by
organising trade fairs, buyer-seller meeets, and providing
information on product & market, assit in technology upgradation
and product development etc…..
INDIAN INSTITUTE OF FOREIGN TRADE (IIFT) –
 Established on 2 May, 1963
 By Government of India
 Director – Manoj Pant
 Located at New Delhi, Kolkata, Delhi and West Bengal
 It is an autonomous Public Business School

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 To help professionalize the country‟s foreign trade management
and increase export by developing human resources; generating,
analysing and disseminating data; and conducting research.
 Major programme of IIFT is MBA-IB (Master of Business
Administration-International Business)
INDIAN INSTITUTE PACKAGING (IIP) –
 Set up in 1966
 By packaging and allied industries and Ministry of commerce,
Government of India
 For improving packaging standard in the country
 With its head quarters and principal laboratories at Mumbai and
regional laboratories at Kolkata, Delhi and Chennai
 It is a training cum research institute pertaining to packaging and
testing
 Functions –
Training of packaging
Testing facilities
UN certification for dangerous goods
Research & Development
Collection & dissemination (spread) of information
Advise the exporter related to packaging etc…..
INDIAN COUNCIL OF ARBITRATION (ICA) –
 It was set up on 15th April 1965

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 As an autonomous non-profit organisation registered under the
Societies Registration Act, 1860
 Constituted by the Ministry of Commerce, Government of India
 The main objective of the Council is to promote the use of
commercial arbitration, particularly in the course of India's export
trade
FEDERATION OF INDIAN EXPORT ORGANISATION (FIEO) –
 Established in october 1965 by Ministry of Commerce of the
Government of India and private trade and industry
 Headquater at Niryat Bhawan, New Delhi
 Functions –
 Representing and assisting Indian entrepreneurs & exporters
in foreign markets
 Link b/w Indian & Foreign businessman
 Conference, seminars etc….. conducted
 Disseminate of information
MARINE PRODUCTS EXPORTS DEVELOPMENT AUTHORITY
(MPEDA) –
 Constituted on 20 April, 1972 under MPEDA Act, 1972
 Headquater in Kochi
 By Government of India
 Functions –
 Promote seafood exports

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 Connect with government agencies & officials to remove
constraints
 Create awareness on the capabilities of Indian processing,
packaging, quality and inspection procedures
 Conducting overseas market survey
 Collecting data and maintenance of data
 Providing assistance for market development
 Undertaking publicity through media and producing
literature and films on trade promotion
EXPORT PROCESSING ZONES (EPZs) –
 Are areas within developing countries that offer incentives and a
barrier-free enviornment to promote economic growth by attracting
foreign investment for export-oriented production
 Was set up in 1965
 There are seven EPZs in India at:
 Kandla (Gujarat)
 Santacruz (Mumbai)
 Falta (West Bengal)
 Noida (UP)
 Cochin (Kerala)
 Chennai (Tamilnadu)
 Visakhapatnam (Andhra Pradesh)
 Government has also permitted development of EPZs by private,
state or joint sector
 FACILITIES AVAILABLE TO UNITS IN EPZ –

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a. Each zone provides basic infrastructure such as developed land for
construction of factory sheds, standard design factory buildings
providing ready-built sheds, roads, power, water supply and
drainage.
b. Customs clearance is arranged within the zones at no extra charge.
c. Provision has also been made for locating banking, post office
facilities and offices of clearing agents in the Service Centre
located in each Zone.
DIFFERENCE B/W EPZ & SEZ –
S.
no
Basis EPZ SEZ
1.
Geographical
size
Smaller Larger
2. Business scope Fewer Larger
3. Existence Developing countries Developed countries
4.
Infrastructure
types
Confined to manufacturing
establishment
Consists of manufacturing
units, townships, roads,
hospitals, school, other utility
services
5. Business area Manufcaturing
Trading, services &
manufacturing
6. Focused area
Development of export
business
Growth of domestic business
along with export
7. Tax benefits Low High
8.
Incentive
package
Low High

58 | P a g e
9.
Custom
procedure
Routine inspection Less interference
10.
Land
development
Developed by Government
Developed by investors anf
developers
100% EXPORT ORIENTED UNITS (100% EOUs) –
 Introduced in 1981
 Complementary to EPZ scheme
 To boost export, increase foreign earnings and created employment
in India
 Units that are undertaking to export their entire production of
goods are allowed to setup as a EOU
 EOUs can be engaged in manufacturing, agriculture, development
of software, repair, remaking, re-engineering etc….
 EOUs are allowed to procure raw material or capital goods duty
free, either through import or through domestic sources
FACILITIES FOR UNITS LOCATED UNDER
EOU/EPZ/STP/EHTP SCHEMES –
 Importability or Procurement of Goods from Domestic Tariff
Areas {Free of duty}
 Exemption from Duties
 Income Tax Concession (as per Income Tax Act, 1961)
 Exemption from Industrial Licensing (i.e. relief in producing goods
which are reserved for small sector industries)

59 | P a g e
 Sub-contracting (They can, with the permission of the Customs
Authorities, sub-contract part of the production and production
process in DTA)
 Inter-Unit Transfer (without payment of duty)
 Supplies from DTA (domestic tariff area)
 Export Obligation relief
 100% Foreign Equity
M. VISVESVARAYA INDUSTRIAL RESEARCH &
DEVELOPMENT CENTRE –
 Non-government company
 Incorporated on 26 june, 1970
 Its named after M. Visvesvaraya
 MVIRDC became of a member of WTCA in 1971 after which it
was known as WTC, Mumbai
 Function –
 Trade information services
 WTCA Online
 Trade education services
 Foreign trade facilitation cell for guidance
 International trade library
 Research & development
CHAMBER OF COMMERCE (COC) –
 Also known as board of trade
 To promote & protectthe interest of its members

60 | P a g e
 Exist in all over the world
 First COC was founded in France in 1599
 Play a prominent role in the export promotion activities of trade
and industry
 They arrange periodic meetings which help in:
 An exchange of information and compilation of data,
indicating the present state of the export activities in a
particular trade or industry
 An exchange of views and formulation of specific remedial
policies, which will be taken up with the Government

EXPORT & IMPORT POLICY & DOCUMENTATION

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EXPORT & IMPORT POLICY & DOCUMENTATION