export assistance and promotion
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CONTENTS: EXPORT ASSISTANCE AND PROMOTION MEASURES:
DUTY EXCEMPTION AND DRAWBACK INCOME-TAX CONCESSION EXPORT AWARDS CSS
MAD TRADE FAIRES AND EXHIBITIONS EXPORT RISK INSURANCE FINANCE EXPORT SUBSIDIES 1OO% EXPORT ORIENTED UNITS BUYER-SELLER MEETS FOREIGN TRAVELS RESEARCH STUDIES EXPORT TRAINING QUALITY CONTROL EPCG SCHEME
EXPORT ASSISTANCE AND PROMOTION MEASURES
Export assistance and incentives are widely
employed strategy of export promotion. The
main aim of these incentives is to increase the
profitability of export business.
DUTY EXCEMPTION / DRAWBACK
It is originated from India
It is designed to avoid the incidents of
commodity taxes such as excise duty and
customs duties on the export.
The exporters are reimbursed on tariff paid on
the imported raw materials and intermediates
and central excise duties on domestically
produced inputs which enter into export
production.
INCOME TAX CONCESSION
It has been provided to exporters in India since
the early 1960’s
According to which earnings from exports are
either partially exempted from income-tax,or
taxes at a lower rate
Tax concessions are available for export of
technical know-how and technical services
The dividend,royalty,fee,etc received from
such exports are exempted from income tax
The deduction is equal to 1.1/3 times the
expenditure incurred directly or association
with any other person during the previous year
EXPORT AWARDS
• A number of export awards have been
instituted to encourage exporters and to
recognize excellence in export
• There are different categories of awards for
each category-wise exporter
• Exporters are selected for the award on
the basis of certain criterion such as
development of market for a product
abroad which has not been explored
previously, introduction of new product,
record increase in export turnover,
product development etc.
CASH COMPENSATORY SUPPORT(CSS)
• This scheme is in existence since 1966
• CSS is allowed on a selective basis and is
granted primarily with the objectives of making
the export item more competitive by in the
international market
• The main element for fixation of ccs rate is
compensation for unrebated indirect taxes like
sales tax,octroi duty ,etc which are not
refundable through the duty drawback
mechanism
MARKETING DEVELOPMENT ASSISTANCE(MDA)
• The govt:of india established the market
development fund in 1963
• Assistance under the MDA is available for
market and commodity researchers, trade
delegations and study teams, participation in
trade fairs and exhibitions, establishment of
offices and branches in foreign countries etc.
TRADE FAIRES AND EXHIBITIONS
It gives excellent opportunities to Indian
exporters to exhibit their products and to know
the requirements of foreign buyers
In india ,the Trade Fair Authority of india is the
major institution sponsoring international fairs
and facilitating participation in fairs
Any registered company in private or public
sector, small scale ,recognized export
houses and members of export promotion
councils are eligible for participation in trade
fairs, and exhibitions
EXPORT RISK INSURANCE
An international business is fraught with
different type of risks
The ECGC has policies covering different
political and commercial risks associated with
export marketing, certain types of risks
associated with overseas investments and risks
arising out of exchange rate fluctuations
Further ECGC extends the export credit risks
cover to the commercial banks, marine
insurance is provided by the General Insurance
Corporation and its subsidiaries.
Any registered company in private or public
sector, small scale ,recognized export houses
and members of export promotion councils
are eligible for participation in trade fairs,
and exhibitions
FINANCE
The export –import bank , commercial banks
and certain other financial institutions like
specified co- operative banks provide pre
shipment and post shipment finance to export
EXPORT SUBSIDIES
Subsidies in a number of cases are granted to
exporter to make the Indian exporters more
competitive in overseas market.
Freight subsidy is granted mostly to goods which
are exported by air.
A number of leather goods are eligible for air
subsidy.
ASSISTANCE TO 100% EXPORT ORIENTED UNITS
It refers to an industrial unit which offers for
exports its entire production.
EOUs will provide necessary services for timely
execution of export orders.
BUYER- SELLER MEETS
It facilitates the Indian exporters to export their
product and services.
Important objectives of arranging such meets
are as follows;
To establish marketing contacts.
To gain knowledge.
To familiarize the importers the
quality and range products
manufactured in India.
FOREIGN TRAVELS
The govt. of India , with the co-operation of
IIFT and ITC ,sponsors a number of business
orientation tours
The team members are drawn from Indian
exporters , ministry of commerce ,the IIFT etc.
It enables the members to visit important
potential markets and study the requirements
and demand conditions of the foreign
markets.
RESEARCH STUDIES
• A number of research studies have been
undertaken by the IIFT,EPC’s and commodity
boards
• The research studies cover specific product in
specific market
The research explore the market for India's
products
EXPORT TRAINING
The IIFT regulatory organizes a 10 week training
program me every year in collaboration with
International Trade Centre
The selection of candidates for the admission to
training is normally made by a committee
consisting of members from IIFT,the host contry
and the ministry of commerce ,through
advertisement in national papers
The purpose of training is to put the selected
young executives to the rigorous export
marketing environment and developing analytical
skills through marketing research on select
products
QUALITY CONTROL AND PRE-SHIPMENT INSPECTION
The government enacted the export (Quality
Control &Inspection)Act in August ,1963
The purpose of this Act was to provide for the
sound development of India ‘s export through
quality control and inspection
The Act empowers the central government to
notify commodities which shall be subject to
quality control
EPCG (Export Promotion Capital Goods ) scheme
In order to encourage exports ,EPCG scheme
has been launched. Under this scheme, import
of capital goods is permitted with concessional
import duty. Modern textile mills and
readymade garment units are in need of
modern machines and improved equipment
available in developed and newly industrialized
nations . International market requires quality
which can be furnished by technology oriented
plant and machinery.
OBJECTIVE
To offset high freight cost and other
externalities to international markets with a
view to enhance India’s export
competitiveness.
The scheme offers two windows ;
0% duty EPCG scheme
3% duty EPCG scheme
0% duty EPCG scheme
Import of capital goods at 0% customs duty,
subject to an export obligation equivalent to 6
times of duty saved on capital goods imported
under EPCG scheme, to be fulfilled within 6 years.
3% duty EPCG Scheme
Import of capital goods at 0% 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.
ELIGIBILITYELIGIBILITY
Manufacturers ,exporters and service providers
within the following sectors ;
Engineering and electronic products
Basic chemicals and pharmaceuticals
Plastics
Handicrafts
Chemicals and allied products and
Leather and leather products
CONCLUSION…………………
REFERENCES
INTERNATIONAL TRADE $ FINANCIAL
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Pvt.Ltd,NewDelhi,2009
EXPORT
MANAGEMENT,T.A.S.BALAGOPAL,HIMALAYAPU
BLISHING HOUSE,BOMBAY,1986
MANAGEMENT OF EXPORT
MARKETING,Dr.M.J.MATHEW,R B S A
PUBLISHERS,JAIPURE,1993
EXPORT
MANAGEMENT ,T.A.S.BALAGOPAL,HIMALAY
A PUBLISHING HOUSE,NEWDELHI,2008
BUSINESS ENVIRONMENT,TEXT $
CASES,FRANCIS CHERUNILAM,HIMALAYA
PUBLISHING HOUSE,MUMBAI,2011
INTERNATIONAL BUSINESS,CHARLES W L
HILL $ ARUN KUMAR JAIN,TATA MCGRAW-
HILL PUBLISHING COMPANY
LTD,NEWDELHI,2009
INTERNATIONAL BUSINESS,PURVA
GUPTA,SHREE NIVAS
PUBLICATIONS,JAIPUR,2010
INTERNATIONAL BUSINESS,FRANCIS
CHERUNILAM,WHEELER
PUBLISHING,NEWDELHI,1998
EXPORT MANAGEMENT,D.C.KAPOOR,VIKAS
PUBLISHNING HOUSE PVT.LTD,2006
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