Thursday, 31 October 2019

Unit 11: EXIM Policy


                                                  Unit 11: EXIM Policy  

When the Eighth Plan commenced, the three-year Import-Export policy (1990-93), valid until March 1993 was in operation.

With a view to reinforcing the trade policy reforms and complementing the fiscal, industrial and investment measures, the new five-year Export- Import Policy (1992-97) was introduced with effect from April 1992.

The new 5-year Export and Import for the period 1997-2002 aims at giving a major thrust to acceleration of India's exports through restructuring and revamping of various export promotion schemes and wide ranging measures for simplification and streaming of procedures with a view to making them more transparent and easy to administer.

The standard definition applied by international organisations states that an Export Processing Zone (EPZ) is an industrial area that constitutes an enclave with regard to customs' tariffs and the commercial code in force in the host country.

Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.

The SEZ Rules provide for different minimum land requirement for different class of SEZs.

Every SEZ is divided into a processing area where alone the SEZ units would come up and the non-processing area where the supporting infrastructure is to be created.

Canalisation: Erstwhile import of certain commodities was allowed only through specific government agency.

This is called canalisation, where the import of these goods is canalised through government agency.

Import substitution: It means decreasing the dependability on imports i.

is to produce goods that we import.

It was a policy followed by India after independence.

Liberalized Exchanged Rate Systems (LERS): It is a system under which 40% of the foreign Notes exchange receipts were to be exchanged through RBI at the official exchange rate and rest is allowed to be converted at market exchange rate.

Open General License (OGL): Items included in the list of OGL can be imported easily without much government restriction.

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