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Unit II Foreign Trade Policy And Procedures For Economics Of Regulation Of Domestic And Foreign Exchange Markets Bcom Sem 2 Delhi University Notes

Unit II Foreign Trade Policy And Procedures For Economics Of Regulation Of Domestic And Foreign Exchange Markets Bcom Sem 2 Delhi University Notes

Unit II Foreign Trade Policy And Procedures For Economics Of Regulation Of Domestic And Foreign Exchange Markets Bcom Sem 2 Delhi University : The trade policies are formulated and announced by the Commerce ministry of India. From time to time various committees have been appointed to have a relook at the policies in place. Every country in the civilised world has a well laid out foreign trade policy. India is no different with a well structured policy on the manner in which India will do business with the world. The EXIM policy or the export import policy is managed and implemented by a specific government body known as DGFT in common parlance. It stands for Directorate General of Foreign Trade. The policy is also regulated by the 1992 parliamentary act of Foreign Trade Development and Regulation.

Download here Unit II Foreign Trade Policy And Procedures For Economics Of Regulation Of Domestic And Foreign Exchange Markets Bcom Semester 2 Delhi University Notes in pdf format 

Unit II Foreign Trade Policy And Procedures For Economics Of Regulation Of Domestic And Foreign Exchange Markets Bcom Sem 2 Delhi University Notes

Unit II Foreign Trade Policy And Procedures For Economics Of Regulation Of Domestic And Foreign Exchange Markets Bcom Sem 2 Delhi University :  The Foreign Trade Act came in place of the Exports (Control) Act, 1947. The Indian policy on foreign trade whether they pertain to import or exports in and from India, has a very specific set of objectives which are:

 Foreign trade regulation.

 Promotion and augmentation of exports volume and managing imports into the nation.

 To create a favourable impact on the state of balance of payments.

The trade policies are formulated and announced by the Commerce ministry of India. From time to time various committees have been appointed to have a relook at the policies in place. Presently, there are facilitation committees which are there to ensure smooth and regulated import of certain restricted items and items under the free trade agreement between India and Sri Lanka as well as exports from the country. For anyone seeking approval for specific import and exports there is a well lad procedure:

 An exporter may make application seeking approval through online mode to the DGFT. The approving authority in turn may issue a letter stating deficiencies in the application via Electronic mail.

 The application will need authorised digital signature authentication which may be secured from a list of 3 vendors.

 The DGFT necessitates separate applications for EDI and Non EDI ports – exports.

 If one wants to import a restricted item or export the same then an application will have to be made to the regional authority (RA). The documents are accepted in Hindi and English. Application irregularities must be made right within 90 days else the application shall lose reckoning.

 IEC or Import Export Numbers are mandatory for export and imports except for a few specified exempted categories. The rule is 1 IEC per PAN number.

 Any changes to the IEC will need an application to the relevant RA. Further, it is the duty of the exporter/importer to have an updated profile through Form – ANF-1 of their dealings.

Recently, the Foreign Trade policy for 2015-2020 has been announced which has brought in Schemes like MEIS and SEIS relating to merchandise and services exports and highlights a paradigm shift towards India enhancing captive production capacities.

Unit II Foreign Trade Policy And Procedures For Economics Of Regulation Of Domestic And Foreign Exchange Markets Bcom Sem 2 Delhi University Notes

Unit II Foreign Trade Policy And Procedures For Economics Of Regulation Of Domestic And Foreign Exchange Markets Bcom Sem 2 Delhi University :  e-governance of Foreign Trade.

(a) DGFT delivers most of its services on a transparent and efficient EDI platform using tools like Online filing of Applications, Message Exchange with Community Partners, Digital Signatures and Electronic payment of application fee. Use of EDI at DGFT has enabled faster processing, speedier communication by e-mail and on-line availability of application processing status. The endeavour is to achieve higher level of information sharing through SMS.

(b) Export Import related information including Acts, Rules, Policy & Procedures thereof including online DGFT portal can be accessed.

(c) All the DGFT Regional Authorities are EDI enabled and connected with the DGFT Central Server to provide online connectivity to EXIM community in a 24×7 environment. (d) DGFT keeps expanding the scope and domain of EDI on a continuous basis. The endeavour is to achieve higher level of integration with community partners

Procedure

(a) An exporter shall file his application online on DGFT website at http://dgft.gov.in/. Application will then be processed in accordance with prevalent rules and regulations. The processing of applications will be made online. DGFT shall issue deficiency letters, if any, in online mode or through use of e-mail. No communication shall be issued by DGFT in manual mode. As a measure of transitional arrangement, exporters may file application manually, till EDI online module is ready or upto 30th September, 2015 whichever is earlier, for the following category of applications:-

  • Application for Status Holder Certificate in ANF 3C under paragraph.
  • Application for bond waiver in ANF 4F under paragraph.
  • Application for Nominated Agency Certificate in ANF 4-I under paragraph.

Unit II Foreign Trade Policy And Procedures For Economics Of Regulation Of Domestic And Foreign Exchange Markets Bcom Sem 2 Delhi University Notes

Unit II Foreign Trade Policy And Procedures For Economics Of Regulation Of Domestic And Foreign Exchange Markets Bcom Sem 2 Delhi University : In pursuance of the provisions of paragraph 1.03 of Foreign Trade Policy (FTP), the Director General of Foreign Trade (DGFT) notified the procedure to be followed by an exporter or importer or by the licensing/Regional Authority or by any other authority for purpose of implementing the provisions of Foreign Trade (Development & Regulation) Act, the Rules/orders made there under and the provisions of Foreign Trade Policy. The said procedure is contained Hand Book of Procedures, Appendices & Aayat Niryat Forms and Standard Input Output Norms (SION). These compilations, as amended from time to time, shall come into force from the date of their notification and shall remain in force until 31st March, 2020.

Unit II Foreign Trade Policy And Procedures For Economics Of Regulation Of Domestic And Foreign Exchange Markets Bcom Sem 2 Delhi University Notes

Unit II Foreign Trade Policy And Procedures For Economics Of Regulation Of Domestic And Foreign Exchange Markets Bcom Sem 2 Delhi University :  HIGHLIGHTS OF THE FOREIGN TRADE POLICY 2015-2020.

A. SIMPLIFICATION & MERGER OF REWARD SCHEMES Export from India Schemes:

1. Merchandise Exports from India Scheme (MEIS)

  • Earlier there were 5 different schemes (Focus Product Scheme, Market Linked Focus Product Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, VKGUY) for rewarding merchandise exports with different kinds of duty scrips with varying conditions (sector specific or actual user only) attached to their use. Now all these schemes have been merged into a single scheme, namely Merchandise Export from India Scheme (MEIS) and there would be no conditionality attached to the scrips issued under the scheme. The main features of MEIS, including details of various groups of products supported under MEIS and the country groupings are at Annexure-1.
  • Rewards for export of notified goods to notified markets under ‘Merchandise Exports from India Scheme (MEIS) shall be payable as percentage of realized FOB value (in free foreign exchange). The debits towards basic customs duty in the transferable reward duty credit scrips would also be allowed adjustment as duty drawback. At present, only the additional duty of customs / excise duty / service tax is allowed adjustment as CENVAT credit or drawback, as per Department of Revenue rules.

2. Service Exports from India Scheme (SEIS)

  • Served From India Scheme (SFIS) has been replaced with Service Exports from India Scheme (SEIS). SEIS shall apply to ‘Service Providers located in India’ instead of ‘Indian Service Providers’. Thus SEIS provides for rewards to all Service providers of notified services, who are providing services from India, regardless of the constitution or profile of the service provider. The list of services and the rates of rewards under SEIS are at Annexure-2.
  • The rate of reward under SEIS would be based on net foreign exchange earned. The reward issued as duty credit scrip, would no longer be with actual user condition and will no longer be restricted to usage for specified types of goods but be freely transferable and usable for all types of goods and service tax debits on procurement of services / goods. Debits would be eligible for CENVAT credit or drawback.

3. Chapter -3 Incentives (MEIS & SEIS) to be available for SEZs It is now proposed to extend Chapter -3 Incentives (MEIS & SEIS) to units located in SEZs also.

4. Duty credit scrips to be freely transferable and usable for payment of custom duty, excise duty and service tax.

  • All scrips issued under MEIS and SEIS and the goods imported against these scrips would be fully transferable.
  •  Scrips issued under Exports from India Schemes can be used for the following:- (i) Payment of customs duty for import of inputs / goods including capital goods, except items listed in Appendix 3A. (ii) Payment of excise duty on domestic procurement of inputs or goods, including capital goods as per DoR notification.

5. Status Holders

  •  Business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade are proposed to be recognized as Status Holders and given special treatment and privileges to facilitate their trade transactions, in order to reduce their transaction costs and time.
  •  The nomenclature of Export House, Star Export House, Trading House, Star Trading House, Premier Trading House certificate has been changed to One, Two, Three, Four, Five Star Export House.

Unit II Foreign Trade Policy And Procedures For Economics Of Regulation Of Domestic And Foreign Exchange Markets Bcom Sem 2 Delhi University Notes

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