[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL)

1. INTRODUCTION
Export-Import (EXIM) Policy alternatively known as Trade Policy refers to Policies adopted by a country with reference to exports and imports. Trade; Policy can be free trade policy or protective trade policy. A free trade is one which does not impose any restriction on the exchange of goods and services between different countries. A free trade policy involves complete absence of tariffs, quotas, exchange restrictions, taxes and subsidies on production, factor use and consumption. Though free trade, theoretically, offers several advantages, in reality, particularly underdeveloped countries were at a disadvantage in such a system of international trade. As a result, in the early 20th century, international economy saw the emergence of protective trade policies. A protective trade policy pursued by a country seeks to maintain a system of trade restrictions with the objective of protecting the domestic economy from the competition of foreign products. Protective trade policy constituted an important plank in the commercial policies of underdeveloped countries during the 50s, 60s, and 70s and to some extent in the 80s. Many of the underdeveloped countries continue to have protective trade policies even today. Trade policies may be outward looking or inward looking. An outward looking trade policy encourages not only free trade but also the free movement of capital, workers, enterprises and students, a welcome to the multinational enterprises, and an open system of communications. An inward looking trade Policy Framework and Procedural Aspects policy stresses the need for a country to evolve its own style of development and to be the master of its own fate, with restrictions on the movement of goods, services and people in and out of the country. An inward looking trade Policy encourages the development of indigenous technologies appropriate to a countrys resource endowment. Given these, a developing country may adopt commodity specific trade policies such as the following: A. Primary outward looking polices: Aimed at encouraging agricultural and raw material export. B. Secondary outward looking policies: Aimed at promoting manufactured exports. C. Primary inward looking polices: Objective is to achieve agricultural self-sufficiency. D. Secondary inward looking polices: Objective is attaining manufactured commodity selfsufficiency through import substitution. Trade Policy will strongly influence the direction, trend and growth of foreign trade of a country. This, in turn, will have a bearing on the economic development process. Therefore, trade policy is an important economic instrument which can be used by a country, with suitable modifications from time to time, to achieve its long-term objectives.

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL)

2. INDIA'S EXIM POLICY: A BACKDROP

India's experience of the colonial past had major influence on Exim policy in the initial decades after independence. India's strategy towards, trade policy was driven by perceived foreign exchange scarcities and the desire to ensure that scarce foreign exchange is used only for essential purposes for economic development. Industrialization and self-sufficiency in essential commodities were the important objectives of India's trade policy. This was because it was felt that dependence on other, more powerful countries for imports of essential commodities would lead to political dependence on them as well. This was succinctly brought out by the National Planning Committee (NPC) in 1946 set up the Indian National Congress, under the Chairmanship of Pt. Jawaharlal Nehru. "In the context of the modem world, no country can be politically and economically independent, even within the framework of international interdependence, unless it is highly industrialized and has developed its power resources to the utmost Nor can it achieve or maintain high standards of living and liquidate poverty without the aid of modern technology in almost every sphere of life. An industrially backward country will continually upset the world equilibrium and encourage the aggressive tendencies of more developed countries. Even if it retains its political independence, this will be nominal only and economic control will tend to pass to others". Earlier the NPC had said that, "The objective of the country as a whole was the attainment, as far as possible, of national self-sufficiency. International trade was certainly not excluded, but we were anxious to avoid being drawn into the whirlpool of economic imperialism." These laid the broad framework for the formulation of EXIM policy in the subsequent years. On the whole, import substitution and protection to domestic industrialization through a system of tariff and non-tariff controls became highlights of India's EXIM Policy for the most of the period during 1950-51 to 1990-91. Since 1990-91, however, radical changes have been introduced.

3. THE FOREIGN TRADE REGIME: ANALYTICAL PHASES AND CHANGES OVER TIME
J.N. Bhagwati and A Krueger, in their comparative analysis of the impact of foreign trade regime and economic development in a number of countries, defined a set of analytical phases with reference to the EXIM policy of a country. These phases in the foreign trade regime were designed essentially as a classificatory and descriptive device to capture meaningfully the evolution of foreign trade regime in terms of its restrictionist content and the dimensions and patterns of its use of control and price instruments. There are broadly five phases which are as follows: Phase I: Characterized by the systematic and significant imposition of quantitative restrictions (QR). It might start in-response to an unsustainable balance of payments deficit. Throughout Phase I, controls are generally maintained and often intensified Phase II: Characterized by continued reliance upon quantitative restrictions and generally increased restrictiveness of the entire control system. Phase II is distinguished by two additional and related aspects of the QR system, both relatively unimportant during Phase I: 1. The detailed workings of the control system become increasingly complex, and

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL)

2. Price measures are adopted to buttress the functioning of the control system. Both these characteristics of Phase II arise from dissatisfaction with the results of an undifferentiated system and are often the result of many small decisions rather than an overall policy design. Price measures are introduced to both exports and imports. The continuation or intensification of foreign exchange shortage leads to the recognition that additional export earnings would be desirable. Rebate schemes, import replenishment schemes, special credits for exporters, and a variety of other devices may be instituted that offset part or all the discrimination against exports implicit in an overvalued exchange rate. As for imports, price measures are also adopted to absorb part of the excess demand for imports. Tariffs may be increased or surcharges added to the cost of importing. The following aspects of the price situation in Phase II are then evident: (1) the exchange parity is overlaid by tariffs and subsidies, levied in lieu of formal parity change, (2) domestic currency is overvalued at the current parity plus trade tariffs and subsidies, implying a premium on imports. Phase III: In this phase, attempts are made to systematize the change introduced during the previous phase. It may consist of a mere "tidying-up" operation directed at replacing the diverse import premiums by reasonably uniform tariffs such that the differential incentive effects caused by diverse premiums on different imports are greatly reduced or virtually eliminated. Alternatively, the tidying-up operations may replace the existing tariffs and export subsidies with a formal parity change, the result being that the effective exchange rates on exports and imports do not change much but the dispersion of tariffs is replaced by uniform devaluation. On the other hand, Phase III may take the form of devaluation cum liberalization package. Such a package may have a gross devaluation large enough to leave a net devaluation despite the removal of trade tariffs and subsidies, and measure of import liberalization. Phase IV: The continued liberalization in Phase III leads to the emergence of Phase IV. There will be consistent decline in QR and import tariffs. The effective exchange rate for exports will come closer to the effective exchange rate for imports. Phase V: The transition into Phase V occurs when the exchange regime is virtually liberalized. There will be full convertibility on current account and quantitative restrictions will not be employed as a means of regulating the balance of payments. Thus, Phase V represents a total alternative to the QR regimes of Phases I and II. The pegged and exchange rate will be at its equilibrium level and a flexible exchange rate policy will be in. operation. The application of these phases to the Exim policies of India since independence would help to understand the policy developments in a proper perspective.

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL)

4. INDIA'S EXIM POLICY: PHASES OF CHANGES

In the early fifties (1950-56) there was a rough equilibrium in the balance of payments, with import demand more or less equaling export earnings. During this period, there was no clear Exim policy and import restrictions of any kind were not in use. The conditions were, more or less, similar to Phase IV. In the second half of the fifties (1956-61), due to heavy industry oriented industrial planning, the rapid rise in imports put pressure on India's balance of payments. The Government imposed quantitative restrictions were selective so as to encourage the development of particular industries through import licenses. Import substitution was stimulated while exports were not considered a line of activity to be stimulated. Thus, this period resembled the characteristics of Phase I. In the early sixties (1961-66) quantitative restrictions for imports continued. At the same time, efforts were made to boost exports by creating a favorable atmosphere to export industries, diversification of export markets and the development of export support services. Export subsidization was introduced in 1962 primarily to offset the penalties that quantitative restrictions imposed, in effect, on exports. This period could be classified under Phase II. The economy entered Phase III in the second half of the 60s (1966-68) with devaluation in dune 1966 to systematize and rationalize the export incentive system. At the same time, export subsidies were reduced, export duties imposed, and import duties were reduced. The net devaluation after allowing for these changes was, on an average, less than the gross devaluation of 57.5 percent and varied among commodities. The total net devaluation on the trade account was 21.6 percent for exports and 42.3 percent for imports. Consequently, the net effect was a further stimulation of import substitution over export production. At the end of sixties up to the mid-seventies (1968-75) the hesitant steps towards liberalization introduced with devaluation were abandoned. The country moved back to Phase II. Export subsidies were reinstated and augmented. Import policy became increasingly restrictive and complex. This was due to various shocks which the economy experienced such as (1) refugee inflow due to Bangladesh war in 1971 (2) stagnant agricultural production resulting out of adverse weather conditions, (3) oilprice hike shock of 1973, etc.

The foreign exchange reserves position improved in the latter half of the 70s, due to: increased remittance from Indians working in West Asia, improved agricultural production and Decline in public investment. The net result was a relaxation in the severity of import control regime during 1975-85, signifying the re-entry into Phase III. Import allocation rules were made simpler. Protective quotas, however, remained intact and domestic industry continued to be completely shielded from import competition.

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL) In April 1985, in a significant departure, the Government announced new Export-Import Policy for a period of three years. The objectives were to bring some stability to the policy and thereby reduce the uncertainty about year to year changes that exporters and importers faced. However, in reality, this did not restrain the Government from announcing changes in the Exim policy from time to time. Although the stringency of the import regime did not dilute substantially, the two three-year policies (i.e. Exim polices of 1985-88 and 1988-91), did represent some major simplifications. In particular, the number of items in the category of Open General License (OGL) for capital goods imports increased from nil in 1975 to over 1,100 items in the 1988-91 policy. Similarly, many intermediate goods were put in the OGL category. Thus policy changes that occurred in the latter half of the 80s till 1991 (1986-91) characterized the continuance of Phase III, which began in 1975. However, it was since 1991 that radical changes were introduced in India's Exim policy. There has been a gradual and steady curtailment of import tariffs and liberalization of quantitative restrictions. All these signify that India has entered Phase IV with regard to the foreign trade regime.

5. SPECIAL FOCUS INITIATIVES

Higher Support for Market and Product Diversification
1. Additional benefit of 2% bonus, over and above the existing benefits of 5% / 2% under Focus Product Scheme, allowed for about 135 existing products, which have suffered due to recession in exports. Major sectors include all Handicrafts items, Silk Carpets, Toys and Sports Goods (all of which were earlier eligible for 5% benefits); Leather Products and Leather Footwear, Handloom Products and Engineering Items including Bicycle parts and Grinding Media Balls (all of which were earlier eligible for 2% benefit). 2. 256 new products added under FPS (at 8 digit level), which shall be entitled for benefits @ 2% of FOB value of exports to all markets. Major Sectors / Product Groups are Engineering, Electronics, Rubber & Rubber Products, Other Oil Meals, Finished Leather, Packaged Coconut Water and Coconut Shell worked items. 3. Instant Tea and CSNL Cardinol included for benefits under VKGUY @ 5% of FOB value of exports. 4. Nearly 300 products (at 8 digit level) from the readymade garment sector incentivized under MLFPS for further 6 months from October, 2010 to march, 2011 for exports to 27 EU countries.

Support for Technological up-gradation

5. 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. In addition, to give a boost to technological up-gradation for additional sectors as well, the benefit of the scheme has been expanded to cover paper & paperboard and articles thereof, cera- mic products, refractories, glass & glassware, rubber & articles thereof, Plywood and allied products, marine products, sports goods and toys and additional engineering products.
BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY 5

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL) 6. Additional Towns of Export Excellence (TEEs) announced viz.Barmer (Rajasthan) for Handicrafts; Bhiwandi (Maharashtra) for Textiles; and Agra (Uttar Pradesh) for Leather Products.

Benefit and flexibility to Status Holders

7. Status Holders contribute to a substantial part of our exports. To support them to upgrade their technology, 1% Status Holder Incentive Scheme (SHIS) introduced in August 2009 and valid for only two years up to 31.3.2011, has been extended by one more year for 2011-12 exports. In addition, to give a boost to technological up-gradation for additional sectors as well, the benefit of the scheme has been expanded to cover chemical & Allied products, paper, paperboard and articles thereof, ceramic products, refractories, glass & glassware, rubber & articles thereof, plywood and allied products, electronics products, sports goods and toys and additional engineering products. 8. Additional flexibility provided for transferability of Duty Credit Scrips being issued to Status Holders under paragraph 3.13.4 of FTP under VKGUY scheme by allowing transfer of scrip for import of cold chain equipments to unit(s) in the Food Park.

Stability / Continuity of the Foreign Trade Policy

9. The popular and exporter friendly Duty Entitlement Passbook (DEPB) scheme has been extended beyond 31.12.2010 till 30.06.2011. 10. Availability of concessional Export Credit: Interest subvention of 2% for pre-shipment credit for export sectors namely, Handloom, Handicraft, Carpet and SMEs for all export sectors, have been allowed till 31.3.2011 in the budget 2010-11. This facility has now been extended to a number of additional products pertaining to sectors like Engineering, leather, textiles, Jute. 11. Advance Authorization for Annual Requirement shall also be exempted from payment of anti-dumping & Safeguard duty in line with the underlying principle that goods and services should be exported and not the taxes and levies.

Procedural Simplification and Reduction of Transaction Cost

12. Exporters shall now have the flexibility to get a high value EPCG authorization by filing their EPCG application on Annual basis, without the need to file the application for individual capital goods from time to time. It will reduce transaction time and cost. 13. Exporters shall now have the flexibility to Club Advance authorization with Advance Authorization for Annual Requirement for the purpose of account closure. 14. To impart flexibility to exporters and to facilitate smooth clearance of consignments, a Single customs notification for the two variants of Advance Authorization scheme namely advance authorization for physical exports & deemed exports shall be issued. It will also eliminate the ambiguity in clubbing of such exports. 15. Adhoc Norms ratified under Advance Authorization scheme shall henceforth apply to all cases for the same export product up to one year not only prospectively but also retrospectively. 16. Clarification on the availability of 4% SAD refund benefit, as given by DOR in terms of customs Notification No. 102/2007, only to trader importers, to be also extended to manufacturers, who sell the imported items like traders.
BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY 6

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL) 17. Chartered Engineer Certificate for Advance Authorization on self-declared basis has been dispensed with. This will reduce documentation and the transaction cost.

EDI Initiatives
18. To reduce the transaction cost and time, the scope and domain of EDI is endeavored to be continuously broadened. To remove redundancy of repeated submissions of RCMC, an eRCMC initiative has been commenced. Under this, the Export Promotion Councils would upload the RCMC data of their members on DGFTs website only once, thus reducing the procedural burden of repeated submissions and associated cost and time. 19. Facility of a data preparation module for Advance Authorization and Export Promotion Capital Good (EPCG) has been provided on an offline mode, which would reduce the need of continuous online interaction for long and address the connectivity and server response issues significantly. 20. In order to provide wider choice to the users and enlarge access for online filing, additional licensed certifying authorities for digital signatures and banks for electronic fund transfer (EFT) operations have been included in the gamut of EDI operations. 21. The online message exchange for Annual Advance Authorization and Duty Free Import Authorization (DFIA) shall also be made operational with Customs w.e.f. 1.12.2010.

Leather Sector
22. Leather sector shall be allowed re-export of unsold imported raw hides and skins and semifinished leather from Public bonded warehouses, without payment of any export duty. This will facilitate the logistics for establishment of such warehouses and easy access to raw material for the leather sector. 23. Finished Leather export shall be entitled for Duty Credit Scrip @ 2% under FPS. 24. Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme would significantly benefit the Leather Sector.

Handloom sector
25. Duty free import of specified trimmings, embellishments etc. shall be available on Handloom made-ups exports @ 5% of FOB value of exports. 26. Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme would significantly benefit the Handloom Sector.

Textiles sector
27. Duty free import of specified trimmings, embellishment etc. shall be available @ 3% on exports of polyester made-ups in line with the facility available to sectors like Textiles & Leather. It will promote export of products such as micro cloth, which has become popular in home textiles. 28. Readymade Garment sector granted enhanced support under MLFPS for a period of further 6 months from October, 2010 to March, 2011 for exports to 27 EU countries.

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL)

Gems & Jewellery sector

29. The list of items allowed for duty free import by Gems & Jewellery sector has been expanded by Inclusion of additional items such as Tags and labels, Security censor on card, Staple wire, Poly bag. This will reduce the cost of the product to some extent.

Handicraft Sector
30. The facility of duty free import of tools under Duty Free Import scrips for Handicraft sector shall be made operational. 31. Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme will significantly benefit the Handicrafts and Silk Carpets sectors.

Service sector
32. Scrips issued under Served from India Scheme (SFIS) can now be used for payment of duty on import of Vehicles, which are in the nature of professional equipment.

Agriculture and Plantation

33. Instant Tea and CSNL Cardinol included for benefits under VKGUY @ 5% of FOB value of exports. 34. Oil Meals (Cotton, rape seed, and groundnut), Castor Oil derivatives, Packed Coconut Water and Coconut Shell worked items shall be entitled for benefits @ 2% of FOB value of exports to all markets under FPS.

Engineering and Electronics

35. Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme will significantly benefit Bicycle parts and Grinding Media Balls exporters. 36. Additional items of Engineering, namely, Pipes & Tubes, Electric Generating Sets, Cast Articles of Iron & Steel, Ferro Manganese and Ferro Silicon shall now be entitled for benefit @ 2% under FPS. 37. A number of engineering items namely, Machine Tools, Compressors, Iron & Steel Structures including Transmission Towers and Scaffolding, LPG Cylinders, Ductile Tubes & Pipes shall now be entitled for benefits @ 2% of FOB value of exports to all markets under FPS instead of their exports to specific markets under MLFPS earlier. 38. Telecom Equipments, Color TVs, Audio Systems, Optical Media, Semi-conductors, Capacitors, Resistors, PCBs, LEDs, Conductors, Desktops and Notebooks shall now be entitled for benefits @ 2% of FOB value of exports to all markets under FPS instead of their exports to limited market under MLFPS earlier.

Toys and Sports goods

39. Additional 2% bonus benefits over and above the existing benefits under Focus Product Scheme will significantly benefit the Toys and Sports Goods Sector. 40. 40. Benefits under Zero duty EPCG and SHIS schemes will significantly promote technological up gradation of Toys and Sports Goods sectors.
BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY 8

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL)

6. BOARD OF TRADE (BOT)

BOT has a clear and dynamic role in advising government on relevant issues connected with Foreign Trade BOT has following terms of reference: 1. To advise Government on Policy measures for preparation and implementation of both short and long term plans for increasing exports in the light of emerging national and international economic scenarios; 2. To review export performance of various sectors, identify constraints and suggest industry specific measures to optimize export earnings; 3. To examine existing institutional framework for imports and exports and suggest practical measures for further streamlining to achieve desired objectives; 4. To review policy instruments and procedures for imports and exports and suggest steps to rationalize and channelize such schemes for optimum use; 5. To examine issues which are considered relevant for promotion of Indias foreign trade, and to strengthen international competitiveness of Indian goods and services; and 6. To commission studies for furtherance of above objectives.

Composition:
Commerce & Industry Minister will be the Chairman of the Board of Trade (BOT). Government shall also nominate up to 25 persons, of whom at least 10 will be experts in trade policy. In addition, Chairmen of recognized EPCs and President or Secretary-Generals of National Chambers of Commerce will beex-officio members. BOT will meet at least once every quarter.

7. GENERAL PROVISIONS REGARDING IMPORTS AND EXPORTS

Exports and Imports free unless regulated

Exports and Imports shall be free, except in cases where they are regulated by the provisions of this Policy or any other law for the time being in force. The item wise export and import policy shall be, as specified in ITC (HS) published and notified by Director General of Foreign Trade, as amended from time to time.

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL)

Compliance with Laws

Every exporter or importer shall comply with the provisions of the Foreign Trade (Development and Regulation) Act, 1992, the Rules and Orders made thereunder, the provisions of this Policy and the terms and conditions of any license/certificate/permission granted to him, as well as provisions of any other law for the time being in force. All imported goods shall also be subject to domestic Laws, Rules, Orders, Regulations, technical specifications, environmental and safety norms as applicable to domestically produced goods. No import or export of rough diamonds shall be permitted unless the shipment parcel is accompanied by Kimberley Process (KP) Certificate required under the procedure specified by the Gem & Jewellery Export Promotion Council (GJEPC).

Interpretation of Policy

If any question or doubt arises in respect of the interpretation of any provision contained in this Policy, or regarding the classification of any item in the ITC (HS) or Handbook (Vol.1) or Handbook (Vol.2), or Schedule Of DEPB Rate the said question or doubt shall be referred to the Director General of Foreign Trade whose decision thereon shall be final and binding. If any question or doubt arises whether a license/ certificate/permission has been issued in accordance with this Policy or if any question or doubt arises touching upon the scope and content of such documents, the same shall be referred to the Director General of Foreign Trade whose decision thereon shall be final and binding.

Procedure

The Director General of Foreign Trade may, in any case or class of cases, specify the procedure to be followed by an exporter or importer or by any licensing or any other competent authority for the purpose of implementing the provisions of the Act, the Rules and the Orders made thereunder and this Policy. Such procedures shall be included in the Handbook (Vol.1), Handbook (Vol.2), Schedule of DEPB Rate and in ITC (HS) and published by means of a Public Notice. Such procedures may, in like manner, be amended from time to time. The Handbook (Vol.1) is a supplement to the EXIM Policy and contains relevant procedures and other details. The procedure of availing benefits under various schemes of the Policy are given in the Handbook (Vol.1).

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

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[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL)

Exemption from Policy/ Procedure

Any request for relaxation of the provisions of this Policy or of any procedure, on the ground that there is genuine hardship to the applicant or that a strict application of the Policy or the procedure is likely to have an adverse impact on trade, may be made to the Director General of Foreign Trade for such relief as may be necessary. The Director General of Foreign Trade may pass such orders or grant such relaxation or relief, as he may deem fit and proper. The Director General of Foreign Trade may, in public interest, exempt any person or class or category of persons from any provision of this Policy or any procedure and may, while granting such exemption, impose such conditions as he may deem fit. Such request may be considered only after consulting ALC if the request is in respect of a provision of Chapter-4 (excluding any provision relating to Gem & Jewellery sector) of the Policy/ Procedure. However, any such request in respect of a provision other than Chapter-4 and Gem & Jewellery sector as given above may be considered only after consulting Policy Relaxation Committee.

Principles of Restriction

DGFT may, through a notification, adopt and enforce any measure necessary for:-

i. ii. iii. iv. v. vi.

Protection of public morals. Protection of human, animal or plant life or health. Protection of patents, trademarks and copyrights and the prevention of deceptive practices. Prevention of prison labor. Protection of national treasures of artistic, historic or archaeological value. Conservation of exhaustible natural resources.

Restricted Goods

Any goods, the export or import of which is restricted under ITC(HS) may be exported or imported only in accordance with a license/ certificate/ permission or a public notice issued in this behalf.

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

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[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL)

Terms and Conditions of a License/ Certificate/ Permission

Every license/certificate/permission shall be valid for the period of validity specified in the license/ certificate/ permission and shall contain such terms and conditions as may be specified by the licensing authority which may include: (a) (b) (c ) (d) (e) The quantity, description and value of the goods; Actual User condition; Export obligation; The value addition to be achieved; and The minimum export price.

License/ Certificate/ Permission not a Right Penalty

No person may claim a license/certificate/ permission as a right and the Director General of Foreign Trade or the licensing authority shall have the power to refuse to grant or renew a license/certificate/permission in accordance with the provisions of the Act and the Rules made thereunder. If a license/certificate/permission holder violates any condition of the license/certificate/ permission or fails to fulfill the export obligation, he shall be liable for action in accordance with the Act, the Rules and Orders made there under, the Policy and any other law for the time being in force.

State Trading

Any goods, the import or export of which is governed through exclusive or special privileges granted to State Trading Enterprise(s), may be imported or exported by the State Trading Enterprise(s) as specified in the ITC (HS) Book subject to the conditions specified therein. The Director General of Foreign Trade may, however, grant a license/certificate/permission to any other person to import or export any of these goods. In respect of goods the import or export of which is governed through exclusive or special privileges granted to State Trading Enterprise(s), the State Trading Enterprise(s) shall make any such purchases or sales involving imports or exports solely in accordance with commercial considerations, including price, quality, availability, marketability, transportation and other conditions of purchase or sale. These enterprises shall act in a nondiscriminatory manner and shall afford the enterprises of other countries adequate opportunity.

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

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[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL)

Importer-Exporter Code Number

No export or import shall be made by any person without an Importer-Exporter Code (IEC) number unless specifically exempted. An Importer-Exporter Code (IEC) number shall be granted on application by the competent authority in accordance with the procedure specified in the Handbook (Vol.1). However, if an IEC holder has not imported or exported in the preceding licensing year, such IEC shall be made inoperative by DGFT. The Director General of Foreign Trade may issue, from time to time, such instructions or frame such schemes as may be required to promote trade and strengthen economic ties with neighboring countries. Transit of goods through India from or to countries adjacent to India shall be regulated in accordance with the bilateral treaties between India and those countries.

Trade with Neighboring Countries Transit Facility

Trade with Russia under DebtRepayment Agreement

In the case of trade with Russia under the Debt Repayment Agreement, the Director General of Foreign Trade may issue, from time to time, such instructions or frame such schemes as may be required, and anything contained in this Policy, in so far as it is inconsistent with such instructions or schemes, shall not apply. Capital goods, raw materials, intermediates, components, consumables, spares, parts, accessories, instruments and other goods, which are importable without any restriction, may be imported by any person. However, if such imports require a license/ certificate/permission, the actual user alone may import such goods unless the actual user condition is specifically dispensed with by the licensing authority. All second hand goods shall be restricted for imports and may be imported only in accordance with the provisions of this Policy, ITC (HS), Handbook (Vol.1), Public Notice or a license/certificate/permission issued in this behalf. Bonafide household goods and personal effects may be imported as part of passenger baggage. Samples of such items that are otherwise freely importable under this Policy
BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY 13

Actual User Condition

Second Hand Goods

Passenger Baggage

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL) may also be imported as part of passenger baggage without a license/certificate/permission. Exporters coming from abroad are also allowed to import drawings, patterns, labels, price tags, buttons, belts, trimming and embellishments required for export, as part of their passenger baggage without a license/certificate/permission.

Import on Export basis

New or second hand capital goods, equipments, components, parts and accessories, containers meant for packing of goods for exports, jigs, fixtures, dies and moulds may be imported for export without license/ certificate/ permission on execution of Legal Undertaking/Bank Guarantee with the Customs Authorities provided that the item is freely exportable without any conditionality/ requirement of license/ permission as may be required under ITC (HS) Schedule II. Capital goods, equipments, components, parts and accessories, whether imported or indigenous, may be sent abroad for repairs, testing, and quality improvement or up gradation or standardization of technology and re-imported without a license/certificate/permission.

Re-import of goods repaired abroad

Import of goods used in projects abroad

After completion of the projects abroad, project contractors may import, without a license/ certificate/ permission, used goods including capital goods provided they have been used for at least one year. Sale of goods on high seas for import into India may be made subject to this Policy or any other law for the time being in force. The goods already imported/shipped/arrived, in advance, but not cleared from Customs may also be cleared against the license/ certificate/ permission issued subsequently. Wherever any duty free import is allowed or where otherwise specifically stated, the importer shall execute a Legal Undertaking (LUT)/Bank Guarantee (BG) with the Customs Authority before clearance of goods through the Customs, in the manner as may be prescribed. In case of indigenous sourcing, the license/ certificate/ permission holder shall furnish BG/LUT to the licensing authority before sourcing the material from the indigenous supplier/nominated agency.

Sale on High Seas Clearance of Goods from Customs Execution of BG/LUT

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

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[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL) Private/Public bonded warehouses may be set up in the Domestic Tariff Area as per the terms and conditions of notification issued by Department of Revenue. Any person may import goods except prohibited items, arms and ammunition, hazardous waste and chemicals and warehouse them in such private/public bonded warehouses. Such goods may be cleared for home consumption in accordance with the provisions of this Policy and against License/certificate/ permission, wherever required. Customs duty as applicable shall be paid at the time of clearance of such goods. If such goods are not cleared for home consumption within a period of one year or such extended period as the custom authorities may permit, the importer of such goods shall reexport the goods.

Private/ Public Bonded Warehouses for Imports

Free Exports

All goods may be exported without any restriction except to the extent such exports are regulated by ITC (HS) or any other provision of this Policy or any other law for the time being in force. The Director General of Foreign Trade may, however, specify through a public notice such terms and conditions according to which any goods, not included in the ITC (HS), may be exported without a license/ certificate/ permission.

Export of Samples

Export of samples and Free of charge goods shall be governed by the provisions given in Handbook (Vol.1). Bonafide personal baggage may be exported either along with the passenger or, if unaccompanied, within one year before or after the passenger's departure from India. However, items mentioned as Restricted in ITC (HS) shall require a license/certificate/permission, except in the case of edible items.

Export of Gifts

Goods, including edible items, of value not exceeding Rs.1,00,000/- in a licensing year, may be exported as a gift. However, items mentioned as restricted for exports in ITC (HS) shall not be exported as a gift, without a license/certificate/permission, except in the case of edible items.

Export of Spares

Warranty spares, whether indigenous or imported, of plant, equipment, machinery, automobiles or any other goods may be exported along with the main equipment or subsequently
BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY 15

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL) but within the contracted warranty period of such goods subject to approval of RBI.

Third Party Exports

Third party exports, as defined in paragraph 9.55 shall be allowed under the Policy.

Export of Imported Goods

Goods imported, in accordance with this Policy, may be exported in the same or substantially the same form without a license/certificate/permission provided that the item to be imported or exported is not mentioned as restricted for import or export in the ITC (HS). Exports of such goods imported against payment in freely convertible currency would be permitted against payment in freely convertible currency.

Goods, including those mentioned as restricted item for import (except prohibited items) may be imported under Customs Bond for export in freely convertible currency without a license/ certificate/ permission provided that the item is freely exportable without any conditionality/ requirement of license/permission as may be required under ITC (HS) Schedule II.

Export of Replacement Goods

Goods or parts thereof on being exported and found defective/damaged or otherwise unfit for use may be replaced free of charge by the exporter and such goods shall be allowed clearance by the customs authorities provided that the replacement goods are not mentioned as restricted items for exports in ITC(HS).

Export of Repaired Goods

Goods or parts thereof on being exported and found defective, damaged or otherwise unfit for use may be imported for repair and subsequent re-export. Such goods shall be allowed clearance without a license/ certificate/ permission and in accordance with customs notification issued in this behalf.

Private Bonded Warehouses for

Private bonded warehouse exclusively for exports may be set up in DTA as per the terms and conditions of the
BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY 16

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL)

Exports

notifications issued by Department of Revenue. Such warehouse shall be entitled to procure the goods from domestic manufacturers without payment of duty. The supplies made by the domestic supplier to the notified warehouses shall be treated as physical exports provided the payments for the same are made in free foreign exchange. If an exporter fails to realize the export proceeds within the time specified by the Reserve Bank of India, he shall, without prejudice to any liability or penalty under any law for the time being in force, be liable to action in accordance with the provisions of the Act, the Rules and Orders made thereunder and the provisions of this Policy. Consignments of items meant for exports shall not be withheld /delayed for any reason by any agency of the Central/State Government. In case of any doubt, the authorities concerned may ask for an undertaking from the exporter.

Realization of Export Proceeds

Free movement of export goods

No seizure of Stock

No seizure of stock shall be made by any agency so as to disrupt the manufacturing activity and delivery schedule of export goods. In exceptional cases, the concerned agency may seize the stock on the basis of prima facie evidence. However, such seizure should be lifted within 7 days.

Export Promotion Council

The basic objective of export promotion councils is to promote and develop the exports of the country. Each Council is responsible for the promotion of a particular group of products, projects and services. The list of the councils and their main functions are given in Handbook (Vol.1).

Registration -cumMembership Certificate

Any person, applying for (i) a license/ certificate/ permission to import/ export, [except items listed as restricted items in ITC(HS)] or (ii) any other benefit or concession under this policy shall be required to furnish Registration-cum-Membership Certificate (RCMC) granted by the competent authority in accordance with the procedure specified in the Handbook (Vol.1) unless specifically exempted under the Policy.

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

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[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL) 8. Export

Promotion Capital Goods (EPCG) Scheme

Zero duty EPCG scheme allows import of capital goods for pre production, production and post production (including CKD/SKD thereof as well as computer software systems) at zero Customs duty, subject to an export obligation equivalent to 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issuedate. The scheme will be available for exporters of engineering & electronic products, basic chemicals & pharmacy, apparels & textiles, plastics, handicrafts, chemicals & allied products and leather & leather products; subject to exclusions as provided in HBPv1. Validity period for import of capital goods and provision for extension in export obligation period will be as separately provided in the HBPv1. All other provisions pertaining to concessional 3 % duty EPCG scheme under this Chapter, to the extent they are not inconsistent with the above provisions of zero duty EPCG scheme, shall be applicable to the zero duty EPCG scheme also. The zero duty EPCG scheme will be in operation till 31.3.2011 .

Zero duty EPCG Scheme

Concessional 3% Duty EPCG Scheme

Concessional 3 % duty EPCG scheme allows import of capital goods for pre production, production and post production (including CKD/SKD thereof as well as computer software systems) at 3 % Customs duty, subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 8 years reckoned from Authorization issuedate. In case of agro units, and units in cottage or tiny sector,import of capital goods at 3 % Customs duty shall be allowed subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods imported, in 12 years from Authorization issue-date.

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

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[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL) For SSI units, import of capital goods at 3 % Customs duty shall be allowed, subject to fulfillment of export obligation equivalent to 6 times of duty saved on capital goods, in 8 years from Authorization issue-date, provided the landed cif value of such imported capital goods under the scheme does not exceed Rs. 5 0 lakhs and total investment in plant and machinery after such import does not exceed SSI limit. However, in respect of EPCG Authorization with a duty saved amount of Rs. 1 00 crores or more, export obligation shall be fulfilled in 12 years. In case CVD is paid in cash on imports under EPCG,incidence of CVD would not be taken for computation of net duty saved, provided the same is not CENVATed. Capital goods shall include spares (including refurbished /reconditioned spares), tools, jigs, fixtures, dies and moulds. Second hand capital goods, without any restriction on age, may also be imported under EPCG scheme. However, import of motor cars, sports utility vehicles/all purpose vehicles shall be allowed only to hotels, travel agents, tour operators or tour transport operators and companies owning/operating golf resorts, subject to the condition that: (i) total foreign exchange earning from hotel, travel & tourism and golf tourism sectors in current and preceding three licensing years is Rs. 1 .5 crores or more. (ii) duty saved amount on all EPCG Authorizations issued in a licensing year for import of motor cars,sports utility vehicles/ all purpose vehicles shall not exceed 5 0% of average foreign exchange earnings from hotel, travel & tourism and golf tourism sectors in preceding three licensing years. (iii) vehicles imported shall be so registered that the vehicle is used for tourist purpose only. A copy of the Registration certificate should be submitted to concerned RA as a confirmation of import of vehicle. However, parts of motor cars, sports utility vehicles/ all purpose vehicles such as chassis etc. cannot be imported under the EPCG Scheme. Import of Restricted items of imports mentioned under
BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY 19

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL) ITC(HS) shall only be allowed under EPCG Scheme after approval from EFC at Headquarters. Spares (including refurbished/reconditioned spares) ,moulds, dies, jigs, fixtures, tools, refractory for initial lining and catalyst for initial charge; for existing plant and machinery (imported earlier, under EPCG or otherwise),shall be allowed to be imported under the EPCG scheme subject to an export obligation equivalent to 5 0% of the normal export obligation prescribed in para 5 .1 and 5 .2 above (for import of capital goods), to be fulfilled in 8 years (6 years for zero duty EPCG scheme), reckoned from Authorization issue date. This would however be subject to the condition that the c.i.f. value of import of the above spares etc. will be limited to 1 0% of the value of plant and machinery imported under the EPCG scheme. In case of plant and machinery not imported under the EPCG scheme, c.i.f. value of import of the spares etc. will be limited to 1 0% of the book value of the plant and machinery.

An EPCG Authorization can also be issued for import of capital goods under Scheme for project Imports notified by the Central Board of Excise and Customs under S.No.441 of Customs Exemption Notification No. 21/2002 dated 01.03.2002

EPCG for Projects

Export obligation for such EPCG Authorizations would be eight times (6 times for zero duty EPCG scheme) of duty saved. Duty saved would be difference between the effective duty under aforesaid Customs Notification and concessional duty under the EPCG Scheme.

EPCG for Retail Sector

To create modern infrastructure in retail sector, concessional duty benefits under EPCG scheme shall be extended for import of capital goods required by retailers having minimum area of 1 000 sq. meters. Such retailer shall fulfill export obligation i.e. 8 times of duty saved, in 8 years. EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s)/ vendor(s), merchant exporters tied to supporting manufacturer(s) and service providers. Export Promotion Capital Goods (EPCG) Scheme also covers a service provider who is designated /certified as a Common Service Provider (CSP) by the DGFT,
BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY 20

Eligibility

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL) Department of Commerce or State Industrial Infrastructural Corporation in a Town of Export Excellence subject to provisions of Foreign Trade Policy/Handbook of Procedures with the following conditions:(i) EPCG licence to be given to the CSP should have a clear endorsement giving the details of the users and the quantum of Export Obligation (EO) which each user would fulfill; (ii) Such exports will not count towards fulfillment of other specific export obligations ; and (iii) Each one of the users of the CSP apart from the CSP should furnish 1 00% bank Guarantee (BG) equivalent to their portion of duty foregone apportioned in terms of quantum of EO to be discharged by them and the B.G. will be enforced in the event of the obligation not being fulfilled. Import of capital goods shall be subject to Actual User condition till export obligation is completed.

Conditions for import of Capital Goods

Following conditions shall apply to the fulfillment of the export obligation:-

(i) Export Obligation shall be fulfilled by export of goods manufactured/services rendered by the applicant.

Export obligation

Export obligation under the scheme shall be, over and above, the average level of exports achieved by him in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, if any; except for categories mentioned in paragraph 5 .7.6 of HBP v1. Such average would be the arithmetic mean of export performance in the last three years for the same and similar products provided that Premier Trading House (PTH) shall have option of fixing average level of exports based on arithmetic mean of export performance in the last five years instead of three years. Upto 50% Export Obligation may also be fulfilled by exports of other good(s) manufactured or service(s) provided by the same firm / company, or group company / managed hotel, which has the EPCG authorization.
BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY 21

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL) However, EPCG authorization issued prior to 1 .4.2008 will be governed by earlier policy provisions. However, in such cases, additional export obligation imposed shall be over and above average exports achieved by the unit / company / group company /managed hotel in preceding three years for both the original and the substitute product(s) / service(s), despite exemptions in Para 5.7.6 of HBP v1. (ii) Shipments under Advance Authorization, DFRC,DFIA, DEPB or Drawback scheme, or incentive schemes under Chapter 3 of FTP; would also count for fulfillment of EPCG export obligation. (iii) Export obligation can also be fulfilled by the supply ITA-I items to DTA, provided realization is in free foreign exchange. (iv) Exports shall be physical exports. However, deemed exports as specified in paragraph 8.2 (a), (b), (d) (f), (g) & (j) of FTP shall also be counted towards fulfillment of export obligation, alongwith usual benefits available under paragraph 8.3 of FTP. Royalty payments received in freely convertible currency and foreign exchange received for R&D services shall also be counted for discharge under EPCG. Payment received in rupee terms for port handling services, in terms of Chapter 9 of FTP shall also be counted for export obligation discharge.

Provision for BIFR units

Any firm/ company registered with BIFR or any firm/ company acquiring a unit, which is under BIFR, may be allowed EO extension, as per rehabilitation package prepared by operating agency and approved by BIFR/Rehabilitation Department of State Government, upto 12 years if not specified. Above provisions apply also to SSI units as per rehabilitation scheme of concerned State government. LUT/Bond or 15 % BG ( as applicable) may be given for EPCG Authorization granted to units in Agri Export Zones provided EPCG Authorization is taken for export of primary agricultural product(s) notified in Appendix 8 or their value added variants.

EPCG for agro units

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

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[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL)

Indigenous Sourcing of Capital Goods and benefits to Domestic Supplier

A person holding an EPCG Authorization may source capital goods from a domestic manufacturer. Such domestic manufacturer shall be eligible for deemed export benefit under paragraph 8.3 of FTP. Such domestic sourcing shall also be permitted from EOUs and these supplies shall be counted for purpose of fulfillment of positive NFE by said EOU as provided in Para 6.9 (a) of FTP.

Fixation of Export Obligation

In case of direct imports, export obligation shall be reckoned with reference to actual duty saved amount. In case of domestic sourcing, export obligation shall be reckoned with reference to notional Customs duties saved on FOR value. EPCG Authorization holders can opt for Technological Upgradation of existing capital good imported under EPCG Authorization. Conditions governing Technological Up-gradation of existing capital goods are as under: (i) Minimum time period for applying for Technological Up-gradation of existing capital goods imported under EPCG is 5 years from Authorization issuedate. (ii) Minimum exports made under old capital goods must be 4 0% of total export obligation imposed on first EPCG Authorization. (iii) Export obligation would be re-fixed such that total export obligation mandated for both capital goods would be sum total of 6 times of duty saved on both the capital goods, to be fulfilled in 8 years from new authorization issue-date. (iv) Facility for technological up-gradation shall be available only once and the minimum imports to be made shall be at least 1 0% of the existing investment in plant and machinery by applicant. (v) Capital Goods to be imported must be new and technologically superior to earlier CG.

Technological Upgradation of existing EPCG machinery

Incentives for Fast Track Companies

To incentivize fast track companies with a view to accelerate exports, in cases where Authorization holder has fulfilled 75% or more of specific export obligation and 1 00% of Average Export Obligation till date, if any,
BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY 23

[EXPORT-IMPORT POLICY OF INDIA 2009-2014] MBA (PHARMACEUTICAL) in half or less than half the original export obligation period specified , remaining export obligation shall be condoned and the Authorization redeemed .

9. SPECIAL ECONOMIC ZONES

Special Economic Zones (SEZs) Scheme in India was conceived by the Commerce and Industries Minister Murosoli Maran during a visit to Special Economic Zones in China in 1999. The scheme was announced at the time of annual review of EXIM Policy effective from 1.4.2000. SEZ is basically a geographically distributed area or zones where the economic laws are more liberal as compared to other parts of the country. Within SEZs, units may be set-up for the manufacture of goods, provisioning of services, and other activities including processing, assembling, trading and repairing etc. A SEZ may be set-up in the public, private, or joint sector and /or by a state government and even by a foreign country. The minimum land area requirement for establishing a SEZ is 1000 hectares. Out of this total area, only 30-35% of area is used for setting up plants and rest of the area is used to provide housing facilities, malls, multiplexes etc. The area under 'SEZ' covers a broad range of zone types, including Export Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Trade Zones (FTZ), Free Ports, Urban Enterprise Zones and others. Usually the goal of an SEZ structure is to increase foreign investment. In Indian, at present there are eight functional Special Economic Zones located at Santa Cruz (Maharashtra), Cochin (Kerala), Kandla and Surat (Gujarat), Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh), Falta (West Bengal) and Nodia (Uttar Pradesh) in India. Further a Special Economic Zone at Indore ( Madhya Pradesh ) is also ready for operation. In addition 18 approvals have been given for setting up of SEZ at Positra (Gujarat), Navi Mumbai and Kopata (Maharashtra), Nanguneri (Tamil Nadu), Kulpi and Salt Lake (West Bengal), Paradeep and Gopalpur (Orissa), Bhadohi, Kanpur, Moradabad and Greater Noida (U.P.), Vishakhapatnam and Kakinada (Andhra Pradesh), Vallarpadam /Puthuvypeen (Kerala) Hassan (Karnataka), Jaipur and Jodhpur (Rajasthan) on the basis of proposals received from the State Governments. Any new policy or amendment related to the Special Economic Zones (SEZs) will be very soon released with the new Exim Policy 2008-2009 on or after 31st March 2008. The policy relating to Special Economic Zones is governed by SEZ Act 2005, and the Rules framed thereunder

10. FREE TRADE & WAREHOUSING ZONES

Free Trade and Warehousing Zone was introduced in the Exim Policy with the objective to facilitate import and export of goods and services. Basically The Free Trade & Warehousing Zones (FTWZ) is a special category of Special Economic Zones with a focus on trading and warehousing. Each Zone to have Rs. 100 crores outlay and 5 lakh sq.mts built up area. For development and establishment of FTWZ the government has permitted 100% Foreign Direct Investment. Any new policy or amendment related to the Free Trade and Warehousing Zone will be released with the new Exim Policy 2008-2009 on or after 31st March 2008. The policy relating to Free Trade and Warehousing Zones is governed by SEZ Act 2005, and the Rules framed there under.

BY: MILAN C. PADARIYA CMS- GANPAT UNIVERSITY

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