Objectives of Foreign Trade Policy 2009-14

To arrest and reverse declining trend of exports due to global recession

To double Indias exports of goods and services by 2014.
i!" To develop export potential, improving export performance, boosting foreign trade and earning
valuable foreign exchange. FTP assumes great significance this year as Indias exports have been
battered by the global recession.
! fall in exports has led to the closure of several small and mediumscale exportoriented
units, resulting in largescale unemployment.
"#$%&%"
#P$% & %'#( "cheme at )ero *uty
'efixation of nnual verage #xport Obligation
FP() F*( *+FP(
*, ) *-
(c.e!e for #O/
#xtension of -nco!e Tax #xe!ption to #O/ and (TP-
#xtension of #$%$
T%%
(c.e!e for (tatus 0olders
(c.e!e for #O/
1alue dded *anufacturing 21*3 2nnounce!ents of 3
#P$% 4%xport 'romotion #apital (oods "cheme+ (c.e!e"
1. ,bligation under %'#( scheme relaxed.
2. To aid technological -pgradation of export sector, %'#( "cheme at )ero *uty has been
introduced.
.. %xport obligation on import of spares, moulds etc. under %'#( "cheme has been reduced by
/00.
'efixation of nnual verage #xport Obligation"
Ta1ing into account the decline in exports, the facility of 2efixation of !nnual !verage %xport
,bligation for a particular financial year in 3hich there is decline in exports from the country, has been
extended for the / year 'olicy period 200414.
nnounce!ents for FP( 45ocus 'roduct "cheme+) F*( 45ocus &ar1et "cheme+) *+FP(
4&ar1et 6in1ed 5ocus 'roduct "cheme+
27 ne3 mar1ets added in this scheme.
Incentive available under 5ocus 'roduct "cheme 85'"9 rose from 1.2/0 to 20..%xtra
products included in the scope of benefits under 5'". 5'" extended for export of green
products and some products from the :orth %ast
Incentives under 5&" raised from 2./ 0 to . 0
8&65'"9 expanded by inclusion of products li1e pharmaceuticals, textile fabrics, rubber
products, glass products, auto components, motor cars, bicycle and its parts.etc. 8$o3ever,
benefits to these products 3ill be provided, if exports are made to 1. identified mar1ets
8!lgeria, %gypt, ;enya, :igeria, "outh !frica, Tan<ania, =ra<il, &exico, -1raine, >ietnam,
#ambodia, !ustralia and :e3 )ealand9.
*, 4&ar1et *evelopment "cheme+ 5 *- 4&ar1et !ccess Initiative+
$igher allocation for 8&*!9 and 8&!I9 has been announced.
To6ns of #xport #xcellence 2T##3
The follo3ing cities have been recogni<ed as to3ns of export excellence 8T%%9
1. 0andicrafts " ?aipur, "rinagar and !nantnag
2. +eat.er Products " ;anpur, *e3as and !mbur
3. 0orticultural Products" &alihabad
(c.e!e for (tatus 0olders 8"tatus $olders means star status holders9
dditional ,uty $redit (crip7s s.all be given to (tatus 0olders 8 19 of t.e FO: value
of past exports accelerate exports and encourage technological -pgradation.
This facility shall be available for sectors of leather 8excluding finished leather9, textiles and @ute,
handicrafts, engineering 8excluding Iron A steel A nonferrous metals in primary and intermediate
form, automobiles A t3o 3heelers, nuclear reactors A parts, and ships, boats and floating
structures9, plastics and basic chemicals 8excluding 'harma products9.
This facility shall be available up to .1 &arch, 2011.
Transferability for the *uty #redit scrips being issued to status holders under >;(-B C>ishesh
;rishi A (ram -pa@ Bo@ana+ "cheme permitted only for the procurement of cold c.ain
e;uip!ents<
(c.e!e for #xport Oriented /nits 2#O/3
%,-s have been allo3ed to sell products manufactured by them in *T! 8*omestic Tariff !rea9 up
to a limit of 400 instead of existing D/0, 8i.e. instead of D/0 these units can sell up to 40 0 of their
products in the domestic mar1ets9
%xtension of bloc1 period by one year for calculation of :et 5oreign %xchange earnings of %,-s
1ept under consideration.
%,- allo3ed #%:>!T #redit 5acility
#xtension of -nco!e Tax #xe!ption to #O/ 4%xport ,riented -nits+ and (TP- 4"oft3are
Technology 'ar1s of India+
Income Tax exemption to 1000 %,-s and to "T'I units under "ection 10= and 10! of Income Tax !ct
has been already extended for the financial year 201011 in the =udget 200410.
#xtension of #$%$ 4%xport #redit (uarantee #orporation 8of India 6td9+
The ad@ustment assistance scheme initiated in *ecember, 200E to provide enhanced %#(# cover at
4/0, to the adversely affected sectors, is continued till &arch, 2010.
!nnouncements
nnounce!ents for *arine sector-
1. 5isheries exempted from maintenance of average %, under %'#( "cheme 8along 3ith D
sectors9 ho3ever 5ishing Tra3lers, boats, ships and other similar items shall not be allo3ed for
this exemption.
2. !dditional flexibility under Target plus "cheme 8T'"9 F *uty 5ree #ertificate of %ntitlement
8*5#%9 "cheme for the marine sector.
nnounce!ents for %e!s 5 =e6ellery (ector"
1. *uty *ra3bac1 is allo3ed on (old ?e3ellery exports to neutrali<e duty incidence.
2. 'lan to establish G*iamond =ourse 8s9 3ith an aim to ma1e India and International Trading
$ub announced.
.. Introduction of a ne3 facility to allo3 import on consignment basis of cut A polished
diamonds for the purpose of gradingF certification.
4. 1. value limits of personal carriage have been increased from H 2 million to -"H / million in
case of participation in overseas exhibitions.
/. The limit in case of personal carriage, as samples, for export promotion tours, has also been
increased from -"H 0.1 million to -"H 1 million.
7. Time limit of 70 days for reimport of exported gems and @e3ellery items, for participation in
exhibitions has been extended to 40 days in case of -"!.
nnounce!ents for gro #xports-
1. Introduction of a single 3indo3 system to facilitate export of perishable agricultural produce
3ith an aim to reduce transaction and handling cost.
2. This system 3ill involve creation of multifunctional nodal agencies. These agencies 3ill be
accredited by !'%*! C!gricultural A 'rocessed 5ood 'roducts %xport *evelopment !uthority+
nnounce!ents for +eat.er #xports-
,n the payment of /0 0 applicable export duty, +eat.er sector s.all be allo6ed re-export of
unsold i!ported ra6 .ides and s>ins and se!i finis.ed leat.er from public bonded 3are
houses.
nnounce!ents for Tea #xports-
1. The existing &inimum value addition under advance authori<ation scheme for export of tea is
100 0. -t .as been reduced fro! t.e existing 1009 to ?09<
2. *T! 8*omestic Tariff !rea9 sale limit of instant tea by %,- units increased from .00 to /00.
.. %xport of tea has been included under >;(-B "cheme benefits.
nnounce!ents for P.ar!a #xports-
1. %xport ,bligation 'eriod for advance authori<ations issued increased from existing 7 months
to .7 months.
2. 'harmacy sector included under &65'" for countries in !frica and 6atin !merica A some
countries in ,ceania and 5ar %ast.
nnounce!ents for 0andloo! #xports-
The claims under Focus Product Scheme, the requirement of Handloom mark was
required earlier which has een remo!ed.
nnounce!ents for 1alue dded *anufacturing 21*3
To encourage >alue !dded &anufactured export, a minimum 1/0 value addition on imported inputs
under !dvance !uthori<ation "cheme.
nnounce!ents for Project #xports-
'ro@ect %xports and a large number of manufactured goods covered under 5'" and &65'".
Fuel included in ,#P: (c.e!e-
#ustom duty component on fuel 3here fuel is allo3ed as a consumable in "tandard Input,utput
:orm included in factoring.
#asy -!port of sa!ples-
:umber of sample pieces has been increased from the existing 1/ to /0. This 3ill facilitate the duty free
import of samples by exporters.
$onvertibility of (.ipping :ills
(reater flexibility has been permitted to allo3 conversion of "hipping =ills from one %xport 'romotion
scheme to other scheme. #ustoms shall no3 permit this conversion 3ithin three months, instead of the
present limited period of only one month.
'eduction in Transaction $osts
1. *ispatch of imported goods directly from the 'ort to the site has been allo3ed under !dvance
!uthori<ation scheme for deemed supplies. 8'resently the duty free imported goods could be
ta1en only to the manufacturing unit of the authori<ation holder or its supporting
manufacturer.
2. &aximum applicable fee for 1E !uthori<ationsF license applications 8except those mentioned
in #hapter . of 5T'9 has been reduced to 2s. 100,000 from the existing 2s 1,/0,000 8for
manual applications9 and 2s. /0,000 from the existing 2s.D/,000 8for %*I applications9.
.. :o fee shall no3 be charged for grant of incentives under the "chemes in #hapter . of 5T'.
,isposal of *anufacturing @astes-
*isposal of manufacturing 3astes F scrap 3ill no3 be allo3ed after payment of applicable excise duty
also before fulfillment of export obligation under !dvance !uthori<ation and %'#( "cheme. %arlier it
3as allo3ed after fulfillment of export obligation.
nnounce!ents for (ports @eapon-
6icenses for the import of sports 3eapon 3ill be issued no3 by 2egional !uthorities provided a :,#
8:o ,b@ection #ertificate9 is issued by &inistry of "ports A Bouth !ffairs. 8%arlier *(5T C*irectorate
(eneral of 5oreign Trade+ $eadIuarters had to be approached for this9
nnounce!ents for *edical ,evices-
To solve the problem of medical device industry, the procedure for issue of 5ree "ale #ertificate has
been simplified and the validity of the #ertificate has been increased from 1 year to 2 years.
nnounce!ents for uto!obile -ndustry-
Those !utomobile industries 3hich have their 2A* establishment 3ill be allo3ed free import of
reference fuels 8petrol and diesel9, up to a maximum of / ;6 per annum, 3hich are not manufactured
in India.
nnounce!ents for #,- -nitiatives-
1. %xport 'romotion #ouncils A #ommodity =oards have been advised to issue 2#&# through a
3eb based online system.
2. It is expected that issuance of 2#&# 3ould become %*I enabled before the end of 2004.
-nter *inisterial $o!!ittee
&r. !nand "harma announced that an Inter &inisterial #ommittee 3ill be formed to redressF resolve
problemsFissues of exporters.
(et up of ,irectorate of Trade 'e!edy *easures nnounced
! *irectorate of Trade 2emedy &easures shall be set up, 3hich 3ill enable support to Indian industry
and exporters, especially the &icro "mall A medium %nterprises &"&%s in availing their rights
through trade remedy instruments,
,uty $redit (crip7s
%arlier the payment of customs duty for %xport ,bligation 8%,9 shortfall under !dvance
!uthori<ation, *5I! or %'#( !uthori<ation 3as allo3ed in cash only. :o3 this payment can be done
in the 3ay of debit of *uty #redit scrips.
-!port of 'estricted -te!s
2estricted Items can be imported no3 8as replenishment9 against transferred *5I!s 8*uty 5ree
Import !uthori<ations9 as the present *52# 8*uty 5ree 2eplenishment #ard9 scheme.
,ollar $redits
There is a provision for state-run ban>s to provide dollar credits