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…………………

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