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EXPORT PROMOTION ORGANISATIONS

Objectives

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The importance of the institutional infrastructure for export promotion in India

The role of government policy making and consultative body in the export

The functions of export promotion councils and commodity boards

The role of various service institutions engaged in export promotion

Explaining the importance of government trading organizations engaged in the export of specified commodities.

Introduction

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Export business requires special knowledge and business acumen.

Exporters need guidance and assistance at different stages of the export effort.

For this purpose, the Government of India have set up several institutions whose main functions are to help the exporter in their work.

Importance Of Institutional Infrastructure

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Guidance and assistance to exporter on

Institutions engaged in export promotion efforts fall in six distinct tiers.

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At the top is the Department of Commerce of the Ministry of trade .

At the second tier, there are deliberative and consultative organizations to ensure that export problems are comprehensively dealt with after mutual discussions between the Government and the Industry.

At the third tier are the commodity specific organizations which deal with problems relating to individual commodities and/or groups of commodities.

Cont….

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The fourth tier consists of service institutions which facilitate and assist the exporters to expand their operations and reach out more effectively to the World Markets.

The fifth tier consists of Government trading

organizations specifically set up to handle export/import of specified commodities

Agencies for export promotion at the State level constitute the Sixth tier.

Government Policy Making And Consultations.

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Board of Trade: Govt. of India set up BOT for ensuring consultation, monitoring and review of India’s trade policies and operations.

Cabinet Committee on Exports in order to view regular and effective monitoring of Indian foreign trade.

Empowered committee of Secretaries : For speedier and quicker decision-making and to assist cabinet committee on exports.

Cont…

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Grievances Cell: Set up to entertain and monitor disposal of grievances and suggestions received. Headed By Director General Of Foreign Trade.

Director General of Foreign Trade (DGFT): is an important office of ministry of commerce to help formulation of India’s export import policy and implementation thereof.

Cont….

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Director General, Commercial Intelligence& Statistics (DGCI & S):has been entrusted with compilation and publication of data on IFT. Major publications are:Monthly Statistics of Foreign Trade of IndiaMonthly Press Notes on Foreign TradeMonthly Brochure of Foreign Trade Statistics of India

(Principal Commodities and Countries)Indian Trade Classification based on Harmonised Commodity

Description and Coding SystemIndian Trade Journal

Cont….

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Development Commissioner, Small Scale Industries OrganizationTo help the small scale industries to develop their

export capacities To organize export training programsTo collect and disseminate informationTo help such units in developing their export marketsTo take up the problems and other issues related to

small scale industries.

Indian Trade Promotion Organization (ITPO)

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Set up by Ministry of Commerce, Government of India, on 1st January 1992 with its headquarters at New Delhi after the merger of Trade Development, Authority (TDA) and Trade Fair Authority of India,(TFAI).

It has five regional offices at Mumbai, Bangalore, Kolkata, Kanpur, and Chennai and four in Germany, Japan, UAE and USA.

Function of (ITPO)

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Organizes Trade Fairs and ExhibitionsInvolves the State Governments for promotion of IFT.Assists in Technological Up gradation and Product

Development: provides assistance to Indian companies in locating foreign collaborators for transfer of technology, joint venture and marketing tie ups.

Helps in establishing Overseas Contacts between Indian suppliers and overseas buyers.

Other servicesTo conduct in-house and need-based research on trade and

export promotionTo participate in overseas trade fairs and exhibitionsTo organize seminars, conferences and workshops.

Indian Institute of Foreign Trade (IIFT)

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Set-up in 1963 by the Government of India as an autonomous body registered under the Societies Registration Act.

Prime objective was to professionalizing the country’s foreign trade management and increase exports by developing human resource, generating, analyzing and disseminating data and conducting research.

Functions of (IIFT)

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Training.Specialised in international business and global outlook.

Collects and Supplies Information.Market studies and survey in the overseas market.

Organizes Seminars and Workshops.In export marketing areas like, export pricing, export

promotion etc.

Trade Delegations.Send abroad to study overseas markets and also to interact

with overseas importers

Cont….

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Publications.Foreign trade Review (FTR), a quarterly journal.Focus WTO, a bimonthly magazine.Technology Exports, quarterly newsletter.

Research and Consultancy.Over 570 research studies and surveys.It acts as consulting house for solving the

problems of the exporters and importers.

Indian Institute Packaging (IIP)

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Set up as national institute jointly by the Ministry of Commerce, Government of India, and the Indian Packaging industry and allied interests in 1966, with its head quarters and principal laboratories at Mumbai and regional laboratories at Kolkata, Delhi and Chennai.

Functions of (IIP)

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Training Programmes– Pertaining to packaging and also provides suggestions in

regard to packaging• Testing Facilities

– Testing of packaging material to ensure export quality• UN Certification

– Dangerous good packages need UN certification mark.– IIP is the only authorized body in India to give this

certification.• Environmental Cell

– To guide exporter what kind of material to be used to reduce environmental threat.

Cont….

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International MembershipAsian Packaging Federation (APF)Institute of Packaging Professionals (IOPPA),USA.Institute of Packaging (IOP), UK.Technical Association for Pulp and Paper Industry

(TAPPI)World Packaging Organization (WPO)

Cont….

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Research and Development– For improving overall infrastructural facilities for

achieving packaging improvement.

• Other functions– It also carries out graphic designing for international

products– It advises the government of India for all export related

packages.

Indian Council Of Arbitration (ICA)

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Set up in accordance to the recommendation of the Committee on Commercial Arbitration formed by the Ministry of Commerce, Government of India.

It was set up on 15th April 1965 as an autonomous non-profit organization registered under the Societies Registration Act, 1860.

The main objective of the Council is to promote the use of commercial arbitration, particularly in the course of India’s export trade.

Functions of ICA

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The council provides arbitration facilities for all types of domestic and international commercial disputes.

It keeps the latest developments, in the field of international commercial arbitration and maintains co-operative links with national and international arbitration bodies throughout the world.

Cont….

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It organizes arbitration meetings, conferences, training programs etc., for company executives, businessmen, lawyers, arbitrators, etc., from time to time in different parts of the country.

It conducts research and publishes informative literature on different aspects of commercial arbitration, including a quarterly Arbitration Journal.

Federation of Indian Export Organization (FIEO)

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It is an apex body of various export promotion organizations.

It was set up in October 1965. It represents the Indian entrepreneurs spirit of enterprise in the global market.

It has kept pace with the country’s evolving economic and trade policies and has provided the content, directing the thrust to India’s expanding international trade.

Functions of FIEO

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International Linkage

Distribution of Information

Maintains communication with the Government

Market Development assistance (MDAJ)

Cont....

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Market Research and Development Department.Inviting delegationsOrganizing trade fairs and exhibitions in India as well as

abroad.Opening foreign offices and warehouses.Organizing seminars for promotion for international

trade.Opening new FIEO offices abroad.

Publicity Department.

MPEDA:

Constituted in 1972 under the Marine Products Export Development Authority Act 1972.

Head quarter : Kochi in Kerala.

The authority operates trade promotion offices one at Tokyo and other at New York

Functions

To promote seafood exports by liaisoning with Indian exporters and overseas importers.

To develop contact with govt. agencies and officials to remove identified constraints.

To improve the image of Indian sea products in overseas markets through publicity campaigns.

To create awareness on the capabilities of Indian processing ,packaging, quality and inspection procedures.

Cont…Promotion of deep sea fishing projects through test

fishing joint venture and equity participation.

To undertake various market programmes such as: conducting overseas market survey collecting data and maintenance of data bank participating in overseas trade fairs and exhibitions organizing trade fair and exhibition in India

e.g It organizes seafood trade fair and exhibition every alternate year in India

EXPORT PROCESSING ZONEFree Trade Zones (FTZ)/ Export Processing Zones

(EPZs) have emerged as an effective instrument to boost export of manufactured products. The Zones, set up as enclaves separated from the Domestic Tariff Domestic Tariff Area (DTAArea (DTA) by physical barriers, are intended to provide an internationally competitive duty free environment for export production at low costs.

The basic objectives of EPZs are to enhance foreign exchange earnings,develop export-oriented industries and to generate employment opportunities.

With the announcement of Special With the announcement of Special Economic Zone Scheme in year 2000, the Economic Zone Scheme in year 2000, the

four Export Processing Zones / FTZ, four Export Processing Zones / FTZ, namely Kandla, SEEPZ, Cochin and namely Kandla, SEEPZ, Cochin and

Surat have been converted into Special Surat have been converted into Special Economic Zones with effect from 1-11-Economic Zones with effect from 1-11-

20002000..

The first Zone was set up at Kandla (Gujarat) in 1965,

followed by SEEPZ, Mumbai in 1972. Thereafter, four more Zones were set up at

NOIDA (UP), FALTA (West Bengal), Cochin (Kerala), Chennai (Tamil Nadu) in 1984 and at Vishakhapatnam

(Andhra Pradesh) in 1989. In 1997, Surat Export Processing Zone came into

existence.

FACILITIES AVAILABLE TO UNITS IN EPZ :

Each Zone provides basic infrastructural facilities, like developed land, standard design factory buildings, built-up sheds, roads, power supply and drainage ,in addition to a whole range of fiscal incentives by way of Customs, Excise and Income Tax exemptions.

Customs clearance facilities are offered within the Zone at no extra charge, while facilities like banking, post office and clearing agencies are also available in the service centers attached to each Zone.

Difference between EPZ and SEZ:SEZ is an integrated township with fully developed

infrastructure on international standards whereas EPZ is just an industrial part.

All EPZs have been asked to convert themselves into SEZs some units are not interested in the conversion on account of the sale into DTA as concessional rate of duty is not available in SEZs

100% EXPORT ORIENTED UNITS (100% EOU,S):

Scheme introduced in early 1981 is complementary to the EPZ scheme.

It adopts the same production regime but offers a wider option in location with reference to factors like source of raw material, port ,hinterland facilities, availability of technology skills, existence of industrial base and need for a larger area of land for the project.

These are established with a vie to generating additional productional capacity for exports by providing an appropriate policy framework, flexibility of operations and incentives.

A 100 % Export-Oriented Unit is an Industrial unit offering for export its entire production, excluding the permitted levels of domestic tariff area sales.

EOUs may be set up with a foreign equity participation of up to 100 per cent. For setting up a 100 per cent EOU the following conditions are applicable :

the entire production and operation of 100 per cent EOUs must be in a customs bonded factory, unless specifically exempt from physical bonding; Goods will be imported into the customs bonded factory.

the unit shall undertake to manufacture in the bonded area and to export its entire production for a period of 10 years ordinarily and 5 years in case of products liable to rapid technological change.

Units undertaking to export their entire production of goods and services may be set up under:

The Export Oriented Unit Schemes

The Export Processing Zone Scheme

The Electronic Hardware Technology Park Scheme

The Software Technology Park Scheme

ACTIVITIES UNDERTAKEN BY SUCH UNITS

Manufacturing,sercvicing,reparing,remaking,reconditioing,rengineering including making of gold/ silver/ platinum/ jewellery and articles.

Agriculture including agro-processing, aquaculture, animal husbandry,biotechnolgy,floriculture,horticulture,pisciculture,viticulture,poultry,sericulture and granites.

Export of all products except goods mentioned and prohibites items of physical export in it’s classification of export and import items.

Software units may undertake export using data communication links or in the form of physical exports including export of professional services.

Units of generation distribution of power can also be set up in EPZs

Facilities for units located under EOU/EPZ/STP/EHTP schemes:

Importability or procurement of goods from domestic tariff areas

No license are required for such import or domestic procurement.

Exemption from duties: They are exempted from most of the duties and levies such as state levies including sale taxes, anti dumping duties etc. 

Income tax exemption: They also entitled for concession in respect of payment of income tax under various section of income tax act ,1961 

Sub contracting: They can with the permission of the custom authorities, sub contract part of the production and production process in DTA .

Inter unit Transfer: They can supply to other EOU/SEZ/EHTP/STP units without payment of duty and such supplies are counted towards fulfillment of export obligation. 

Supplies from DTA: Supplies from DTA to EOU/SEZ/EHTP/STP units are regarded as deemed exports and the DTA supplier is eligible for the deemed export benefits 

DTA sale: Units other than gems and jewellery units, may sell goods and services upto 50% of fob value of exports. No DAT sale is permitted in case of motor cars , alcoholic liquors, tea(except intent tea),books

100% foreign equity: In the FDI in the manufacturing sector is permissible to the EOU/SEZ/EHTP/STP units

 

Cont…..

Visvesvaraya Industrial Research and Development Center:

The WORD TRADE CENTRE ,Mumbai has been named as Visvesvaraya Industrial Research And Development Center after the name of scientist .

Established in 1970 as non profit company.

FUNCTION OF WTC:

Trade information services: WTC offers impex data bank facility. It is India’s first ever computerized database on import and export . It helps in identifying product in demand for export or import , locate markets , evaluate competitive prices etc.

WTCA online unique internet based website providing a one stop for global business information through strategic alliances with leading information and service provider 

Cont….Foreign trade facilitation cell has been set up to give

advice on starting of import and export business and problem solving.

To make recommendation to govt. in regard to the EXIM policy and procedure

Research and development: conducted a research work on various topics like multimodal transport, agro-based industries , European union market.

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THANK YOU