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BBA 1st Year Business Environment FEMA Short Question Answer

9. Validity of import free license extended from 12 months to 18 months.

10. Additional assistance for having new international markets.

11. The use of data communication network allowed for exporting software items.

12. To provide the benefit of deemed export to oil and gas sector side by side with power sector.

Modifications in EXIM Policy (2001 -2002)

Important highlights of new EXIM policy are:

1. India meets its WTO obligations and joins the league of free trade nations.

2. India dismantles import license raj adequate safeguards in place against import surcharge.

3. Quantitative Restrictions [Qfrs] on import of 715 items lifted.

4. Free import of commonly used items like tea, coffee, cocoeuts, eggs, meat and consumer goods allowed.

5. Export targeted at US $ 75 billion over next 4 years.

6. Agriculture policy moots agri-economic zones.

7. All export promotion schemes extended to agriculture exports.

8. 100% FDI under automatic route for all manufacturing sectors.

9. Procedures for exports simplified.

10. Non-tariff barriers imposed on agriculture imports.

11. War-room to be setup for tracking import of 300 sensitive tams

12. Tough conditions for automobile import.

13. Market access initiative for export of specific products of specific markets.

14. Major changes in current export schemes.

EXIM Policy for Tenth Plan (2002-2007)

The Union Minister of Commerce and Industry Mr. Maran has announced EXIM policy for 10th plan period on 31st March 2002.

The Highlights of the Policy: These are as follows:

1. Annual target to boost exports upto 80 billion dollars.

2. Indian share in world trade is targeted to be 1% from the present level of 0.61%.

3. Elimination of quantitative restrictions on exports.

4. Special incentives for agricultural exports.

5 Focussing sharply on SEZ’s.

6. DEPB and EPCG schemes not only retained but also made more flexible.

7. Cottage Sector and SSI: (i) Common service provided in industry clusters and availability of EPCG scheme.

(ii) Access to market initiative fund.

(iii) Eligibility for export house status brought down to 5 crore.

8. Electronic Hardware: (i) EHTP modified to enable IT sector to face zero duty regime under

(ii) Domestic states to count as export obligation, where import duty is zero.

9. Chemical and Petrochemical (1) Reimbursement of 50% of registration fees.

(ii) Free export of samples without any limit.

10. Gems and Jewellery; (i) Customs duty on rough diamond imports removed. Licensing regime removed too.

(ii) Value added norms for jewellery exports cut to 7% and 3% from 10%.

11. Transport subsidy to units in J & 1< and the North-East to offset the disadvantage of being far from ports.

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