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GROUP -5
CONTENTS
•Regulation of foreign trade,

•Foreign Trade development and regulation act,

•Foreign trade policies,

•Export promotion,

•Organizational Setup,

•Production Assistance,

•Marketing assistance,

•EPZ, EOU, SEZ,

•Export Housing

•Trade housing
FOREIGN TRADE

              Exchange of goods and
               services between the
               countries is known as
               foreign trade. The
               difference is the
               producer and
               consumers reside in
               separate countries.
DEVELOPMENT AND REGULATION ACT
       OF FOREIGN TRADE POLICY
In 1992, the govt. enacted foreign trade (Development &
Regulation ) Act to facilitate import and enhancing exports
from India.
As per the provisions of the act , the Govt. :-
 may make provisions for facilitating and controlling foreign
trade;
May prohibit ,restrict and regulate exports & imports ,in all or
specified cases as well as subject them to exemptions;
Is authorized to formulate and announce an export & import
policy and also amend the same from time-to-time,by
notification in the Official Gazette.
Changes that took place :-

With  economic reforms,globalisation of the Indian
economy has been the guiding factor in formulating the
trade policies.

The   reform measures introduced in the subsequent
policies have focused on liberalization , openness and
transparency.

They   have provided an export friendly environment by
simplifying the procedures for trade facilitation.
KEY STRATEGIES FOR ACHIEVING ITS
           OBJECTIVES :-
Simplifying   procedures and bringing down transaction
costs;
Facilitating development of India as a global hub for
manufacturing , trading and services.
Identifying and nurturing special focus areas to
generate additional employment opportunities ,
particularly in semi-urban and rural areas.
Facilitating technological and infrastructural
upgradation of the Indian economy ,especially through
import of capital goods and equipments.
Activating Indian embassies as key players in the
export strategy.
MEANING OF FOREIGN TRADE POLICY
Foreign trade policy is the combination of words
First is foreign trade and
Second is policy
 Foreign trade:It is the exchange of goods and
  services between nations. Goods can be defined as
  finished products, as intermediate goods used in
  producing other goods, or as agricultural products
  and foodstuffs.
 Policy: policy is the set of rules and proceedure.
OBJECTIVES OF THE FOREIGN TRADE
POLICY OF INDIA
  The Foreign Trade Policy of India is
  based on two major objectives, they are –

    To double the percentage share of
  global merchandise trade within the next
  five years.
  To act as an effective instrument of
  economic growth by giving a thrust to
  employment generation
STRATEGY OF FOREIGN TRADE POLICY OF
INDIA
   Removing government controls

   Facilitating development of India as a global hub for manufacturing,
    trading, and services

   Generating additional employment opportunities

   technological and infrastructural up gradation

   Simplification of commercial and legal procedures and bringing
    down transaction costs.

   Simplification of levies and duties on inputs used in export products
FEATURES OF FTP(04-09)
   A new scheme called the vishesh krishi upaj yojana
    for promoting the exports of fruits, vegetables, flowers
    and their value added products has been introduced.
   Funds shall be earmarked for the development of agri
    export zones (AEZ).
   Units in AEZ shall be exempt from bank guarantee
    under the EPCG scheme.
   Import of capital goods shall be permitted duty free
    under the EPCG scheme.
   Import of gold of 18 carat and above shall be allowed
    under the replenishment scheme.
FEATURES OF FTP(09-2014)
   Duty exemption scheme
   Duty free import authorisation
   Export promotion of capital goods(EPCG)
   Deemed exports
   Star export houses
   Focus market scheme
   Focus product scheme
   Vishesh krishi gram upaj yojna(VKGUY)
   Service export
   100%EOU/SEZ, etc
PRODUCT ASSISTANCE/ FACILITIES

Experts depend , inter alia ., on exportable surplus and the
quality and price of the goods. Govt. have therefore , taken a
number of measures to enlarge and strengthen the
production base, to improve the productive efficiency an
quality of products and to make the product more cost
effective.
MEANING OF EXPORT PROCESSING ZONES


 Export Processing Zones (EPZs) are industrial estates
 which form enclaves from the national customs territory of
 a country, it can be summarized as a unit bearing clusters
 of specially designed zones of aggressive economic
 activity for the promotion of export.The main concept of
 Export Processing Zones was conceived in the early
 1970s to promote the growth of the sickening export
 business of India. Further, the meaning of Export
 Processing Zones (EPZs) can be broadly defined as an
 area enjoying special government of India support with
 respect to fiscal incentives, tax rebates and other
 exclusive benefits for the growth of export.
OBJECTIVES OF SETTING UP OF EPZS


•    Encourage and generate the economic development
•   Encourage Foreign Direct Investments (FDI)
•   To earn foreign exchange
•   To generate employment opportunities
•   Foster the establishment and development of industrial
    enterprises within the said zones
•   Encourage and generate wider economic activities by
    encouraging foreign investments for the development of
    the zones
•   Upgrade labor and management skills
•   Ensure world class quality of products .
WHERE EPZ LOCATED?

 •   Kandla Free Trade Zone (KAFTZ), Kandla, Gujarat
 •   Santa Cruz Electronic Export Processing Zone
     (SEEPZ), S. Cruz, Maharashtra
 •   Cochin Export Processing Zone (CEPZ), Cochin,
     Kerala
 •   Falta Export Processing Zone (FEPZ), Falta,West
     Bengal
 •   Madras Export Processing Zone (MEPZ), Madras,
     Tamil Nadu
 •   Noida Export Processing Zone (NEPZ), Noida, Uttar
     Pradesh
 •   Visakhapatnam Export Processing Zone (VEPZ),
     Visakhapatnam, Andhra Pradesh
SETTING UP 100% EOUS.

      The Government amended in November 1983 a concession
    scheme to facilitate the setting up of export-oriented units (EOUs)
    in order to enable them to meet requirements of foreign demand
    in terms of pricing, quality, precision etc.

       EOU refers to an industrial unit which refers to an industrial
    unit which offers for exports its entire production ,excluding
    permitted levels of reject.

    EOUs can be set up anywhere in the country and may be
    engaged in the manufacture and production of software,
    floriculture, horticulture, agriculture, aquaculture, animal
    husbandry, pisciculture, poultry and sericulture or other similar
    activities.
SEZ
•   Special economic zone is a particular area inside a state which acts as foreign
    territory for tariff and trade operations. Govt. provides tax exemption (IT, Excise,
    customs, sales etc.), subsidised water and electricity etc.
    SEZ can be sector specific or multi product sez. It helps in the development of
    infrastructure of the area around the SEZ, provides employment to people, makes
    the exports more viable. All this will helps the country's products to become mor
    competitive vis-a-vis providing all round development of region.
    It should be noted that if 100 acres are alloted for SEZ, then only 30-35% of area is
    used for setting up plants , rest of the area is used to provide housing facilities, malls,
    multiplexes etc.
    Also Tax exemption is for specific period say for 10 yrs or so.
     India was one of the first in Asia to recognize the effectiveness of the Export
    Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in
    Kandla in 1965. With a view to overcome the shortcomings experienced on account
    of the multiplicity of controls and clearances; absence of world-class infrastructure,
    and an unstable fiscal regime and with a view to attract larger foreign investments in
    India, the Special Economic Zones (SEZs) Policy was announced in April 2000.
TRADING HOUSES

   Trading Houses (TH) are independent
    companies staffed by international trade
    experts. They are business intermediaries
    between foreign manufacturers and foreign
    buyers or consumers of goods and services.
    Trading Houses export, import, and engage
    in third country trading of goods and services
    produced by other companies.
TRADING HOUSES OFFER THE FOLLOWING
SERVICES
   Identifying and selecting a market
   Identifying, selecting and evaluating clients
   Defining a product and related packaging requirements
   Marketing and adapting the product
   Negotiating the terms of sales (financing, shipping,
    payment terms, insurance)
   Preparing export documents
   Protecting clients from all export-related risks (including
    commercial and political factors as well as fluctuations in
    transportations and exchange rates)
   Shipping and receiving of goods
   Following up on claims and providing after-sales service
   Providing promotional support abroad
TRADING HOUSES ALSO PROVIDES VALUE
ADDED SERVICES LIKE:
 Save time since the Trading House already has
  well-established networking overseas
 Save money by spreading costs over several
  product lines
 Benefit from the established credibility of the
  Trading House on foreign markets
 Benefit from greater efficiency from the Trading
  House's experience in specific markets
 Diversify their market and improve their export
  strategy
CONCLUSION
 After the implementation foreign trade policy
  , the import and export among foreign
  countries have increased and have become
  more secured.
 Setting up of EPZ and SEZ have also
  increased foreign investors .
 Trading Housing have given a platform to
  both manufacturers and consumers to freely
  and easily trade between different countries.

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Meaning of foreign trade policy

  • 1. GROUP -5 CONTENTS •Regulation of foreign trade, •Foreign Trade development and regulation act, •Foreign trade policies, •Export promotion, •Organizational Setup, •Production Assistance, •Marketing assistance, •EPZ, EOU, SEZ, •Export Housing •Trade housing
  • 2. FOREIGN TRADE  Exchange of goods and services between the countries is known as foreign trade. The difference is the producer and consumers reside in separate countries.
  • 3. DEVELOPMENT AND REGULATION ACT OF FOREIGN TRADE POLICY In 1992, the govt. enacted foreign trade (Development & Regulation ) Act to facilitate import and enhancing exports from India. As per the provisions of the act , the Govt. :-  may make provisions for facilitating and controlling foreign trade; May prohibit ,restrict and regulate exports & imports ,in all or specified cases as well as subject them to exemptions; Is authorized to formulate and announce an export & import policy and also amend the same from time-to-time,by notification in the Official Gazette.
  • 4. Changes that took place :- With economic reforms,globalisation of the Indian economy has been the guiding factor in formulating the trade policies. The reform measures introduced in the subsequent policies have focused on liberalization , openness and transparency. They have provided an export friendly environment by simplifying the procedures for trade facilitation.
  • 5. KEY STRATEGIES FOR ACHIEVING ITS OBJECTIVES :- Simplifying procedures and bringing down transaction costs; Facilitating development of India as a global hub for manufacturing , trading and services. Identifying and nurturing special focus areas to generate additional employment opportunities , particularly in semi-urban and rural areas. Facilitating technological and infrastructural upgradation of the Indian economy ,especially through import of capital goods and equipments. Activating Indian embassies as key players in the export strategy.
  • 6. MEANING OF FOREIGN TRADE POLICY Foreign trade policy is the combination of words First is foreign trade and Second is policy  Foreign trade:It is the exchange of goods and services between nations. Goods can be defined as finished products, as intermediate goods used in producing other goods, or as agricultural products and foodstuffs.  Policy: policy is the set of rules and proceedure.
  • 7. OBJECTIVES OF THE FOREIGN TRADE POLICY OF INDIA The Foreign Trade Policy of India is based on two major objectives, they are –  To double the percentage share of global merchandise trade within the next five years. To act as an effective instrument of economic growth by giving a thrust to employment generation
  • 8. STRATEGY OF FOREIGN TRADE POLICY OF INDIA  Removing government controls  Facilitating development of India as a global hub for manufacturing, trading, and services  Generating additional employment opportunities  technological and infrastructural up gradation  Simplification of commercial and legal procedures and bringing down transaction costs.  Simplification of levies and duties on inputs used in export products
  • 9. FEATURES OF FTP(04-09)  A new scheme called the vishesh krishi upaj yojana for promoting the exports of fruits, vegetables, flowers and their value added products has been introduced.  Funds shall be earmarked for the development of agri export zones (AEZ).  Units in AEZ shall be exempt from bank guarantee under the EPCG scheme.  Import of capital goods shall be permitted duty free under the EPCG scheme.  Import of gold of 18 carat and above shall be allowed under the replenishment scheme.
  • 10. FEATURES OF FTP(09-2014)  Duty exemption scheme  Duty free import authorisation  Export promotion of capital goods(EPCG)  Deemed exports  Star export houses  Focus market scheme  Focus product scheme  Vishesh krishi gram upaj yojna(VKGUY)  Service export  100%EOU/SEZ, etc
  • 11. PRODUCT ASSISTANCE/ FACILITIES Experts depend , inter alia ., on exportable surplus and the quality and price of the goods. Govt. have therefore , taken a number of measures to enlarge and strengthen the production base, to improve the productive efficiency an quality of products and to make the product more cost effective.
  • 12. MEANING OF EXPORT PROCESSING ZONES Export Processing Zones (EPZs) are industrial estates which form enclaves from the national customs territory of a country, it can be summarized as a unit bearing clusters of specially designed zones of aggressive economic activity for the promotion of export.The main concept of Export Processing Zones was conceived in the early 1970s to promote the growth of the sickening export business of India. Further, the meaning of Export Processing Zones (EPZs) can be broadly defined as an area enjoying special government of India support with respect to fiscal incentives, tax rebates and other exclusive benefits for the growth of export.
  • 13. OBJECTIVES OF SETTING UP OF EPZS • Encourage and generate the economic development • Encourage Foreign Direct Investments (FDI) • To earn foreign exchange • To generate employment opportunities • Foster the establishment and development of industrial enterprises within the said zones • Encourage and generate wider economic activities by encouraging foreign investments for the development of the zones • Upgrade labor and management skills • Ensure world class quality of products .
  • 14. WHERE EPZ LOCATED? • Kandla Free Trade Zone (KAFTZ), Kandla, Gujarat • Santa Cruz Electronic Export Processing Zone (SEEPZ), S. Cruz, Maharashtra • Cochin Export Processing Zone (CEPZ), Cochin, Kerala • Falta Export Processing Zone (FEPZ), Falta,West Bengal • Madras Export Processing Zone (MEPZ), Madras, Tamil Nadu • Noida Export Processing Zone (NEPZ), Noida, Uttar Pradesh • Visakhapatnam Export Processing Zone (VEPZ), Visakhapatnam, Andhra Pradesh
  • 15. SETTING UP 100% EOUS.  The Government amended in November 1983 a concession scheme to facilitate the setting up of export-oriented units (EOUs) in order to enable them to meet requirements of foreign demand in terms of pricing, quality, precision etc.  EOU refers to an industrial unit which refers to an industrial unit which offers for exports its entire production ,excluding permitted levels of reject.  EOUs can be set up anywhere in the country and may be engaged in the manufacture and production of software, floriculture, horticulture, agriculture, aquaculture, animal husbandry, pisciculture, poultry and sericulture or other similar activities.
  • 16. SEZ • Special economic zone is a particular area inside a state which acts as foreign territory for tariff and trade operations. Govt. provides tax exemption (IT, Excise, customs, sales etc.), subsidised water and electricity etc. SEZ can be sector specific or multi product sez. It helps in the development of infrastructure of the area around the SEZ, provides employment to people, makes the exports more viable. All this will helps the country's products to become mor competitive vis-a-vis providing all round development of region. It should be noted that if 100 acres are alloted for SEZ, then only 30-35% of area is used for setting up plants , rest of the area is used to provide housing facilities, malls, multiplexes etc. Also Tax exemption is for specific period say for 10 yrs or so. India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000.
  • 17. TRADING HOUSES  Trading Houses (TH) are independent companies staffed by international trade experts. They are business intermediaries between foreign manufacturers and foreign buyers or consumers of goods and services. Trading Houses export, import, and engage in third country trading of goods and services produced by other companies.
  • 18. TRADING HOUSES OFFER THE FOLLOWING SERVICES  Identifying and selecting a market  Identifying, selecting and evaluating clients  Defining a product and related packaging requirements  Marketing and adapting the product  Negotiating the terms of sales (financing, shipping, payment terms, insurance)  Preparing export documents  Protecting clients from all export-related risks (including commercial and political factors as well as fluctuations in transportations and exchange rates)  Shipping and receiving of goods  Following up on claims and providing after-sales service  Providing promotional support abroad
  • 19. TRADING HOUSES ALSO PROVIDES VALUE ADDED SERVICES LIKE:  Save time since the Trading House already has well-established networking overseas  Save money by spreading costs over several product lines  Benefit from the established credibility of the Trading House on foreign markets  Benefit from greater efficiency from the Trading House's experience in specific markets  Diversify their market and improve their export strategy
  • 20. CONCLUSION  After the implementation foreign trade policy , the import and export among foreign countries have increased and have become more secured.  Setting up of EPZ and SEZ have also increased foreign investors .  Trading Housing have given a platform to both manufacturers and consumers to freely and easily trade between different countries.