Saturday, 7 March 2020

EXIM Policy


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.e. is to produce goods
that we import. It was a policy followed by India after independence.
Notes Liberalized Exchanged Rate Systems (LERS): It is a system under which 40% of the foreign
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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