Export promotion policy in India – Export promotion policy (1951 -2020)

Export promotion policy in India

India’s Export Promotion Policy

1. Introduction:

Export-Import policy frames rules and regulations for exports and imports of a country. This policy is also known as Foreign Trade Policy It provides policy and strategy of the government to be followed for importing exports and regulating imports. This policy is periodically reviewed to incorporate necessary changes as per changing domestic and international environment. During first five decades of planning (1951-2000) following Export-Import Policy has formulated.

2. Export Promotion Policy of First Five decades of India (1951-2000):

Import export policy has been implemanted far diversifying foreign trade and change in nature of foreign trade corresponding to development during the period of planning in India. There has been significant change in quantum, direction and nature of foreign trade due to government planned efforts.

[A] Import policy of First Five Decades in India:  Following are the main objectives of our import policy during first five decades of planning in India.

  1.  To promote the imports of capital goods for accelerating the economic development of the country.

  2.  Import substitution stratagy was followed to lesson dependence on foreign countries.

  3.  To provide the facilities of imports of raw material, intermediate goods and technology to export oriented units which teads to promote exports

  4.   Long-run objective is to readuces deficits in balance of payment through export earnings.

  5.  To increase growth rate of economy with stability.

  6.  Self sufficiency in mega and capital goods industry was stressed.

  7.  To inscribe into trade settlement with foreign contries for stedy the global trade.

Instruments: Import restrictions, import licensing, import quatas, import tariff etc. instruments has been used by government of India to implement import policy in India. Imports of such commodities have restricted while priority have given to imports of some commodities. Some commodities has been put under OGL (Open General Lincence). Import tariff has been used till 1990 to control imports of non- essential goods and to protect infant industries. The way of import quata has adopted against dumping of goods. Government provide subsidies to domestic industries which increases their competitiveness against foreign commodities.

Policy: India’s import policy during first five decades of planning has discussed into three stages.

(1) Stage of Restrictive Import Policy: Since 1956-57 to 1975-76 for the purpose of economic development a restrictive import policy has been adopted due to implementation of strategy of heavy industrilization, import substitution and developmental improts. It leads to control in the deficits in Balance of payments.

(2) Stage of Liberalisation: Restrictive import policy has creates so many problems on sector of production and distribution. Therefore during 1997-98 import liberalisation policy was adopted. During 1977-78, government expanded list of import-items under Open General License (OGL) and reduces list of restrictive items. Government has also give permission to private importers.

(3) Third Stage of Liberalisation Policy:

Since new economic policy of 1991. the government has adopted import liberalisation policy insteade of import substitution policy. To increases competitiveness of export oriented units the way of import liberalisation policy has adopted. The government has implemented outward looking policy insteade of inward looking policy. Governement takes following steps for this

  1.  Government expanded the list of imports items under OGL.

  2.  It is also decided to give priority to import of raw materials such as petroleum products, fertiliser, oil and oil seeds. food grains, phosphoric acid, ameonia and other such products. This whould increase the domestic production.

  3.  To encourage the erea of free trade, various contract has done with different countries.

  4.  A scheme of automatic licensing was introduced under which upto 10% of the value of the previous years licence can be imported.

  5.  A scheme of special import licence was introduced.

  6.  For registred exporters the concept of net foreign exhange earning was made a guiding criterion for issue licences therunder.

  7.   More assistance has given for imports of technology.

  8.  Strengthening of the advanced licensing system.

Before 1985, a single policy was announced to incorporating both export policy and import policy: But it the year 1985, for the first time a joint Export-Import Policy (EXIM Policy) was announced. After that various EXIM Policies were announced by government. The main EXIM policies were enacted in the year 1990. 1999, 2000 and thenafter.

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Export Policy of First Five Decades in India:

Following are the main objectives of our export policy during first five decades of planning in India.

  1. To defend regional market existing in the economy.

  2. To expand the export of specific products as this would facilitate in growing regional market.

  3. To reduces the deficits in balance of payment.

  4. To get necessary foreign exhange for repament of foreign debt.

  5. Share of India in world trade has increased through export promotion.

  6. To get price stability through foreign exchange which we got through export promotion.

  7. To appreciate trade with other countries.

  8. To manage the export of goods and services for attainning the preferred  rate of exchange.

  9. To inscribe into trade settlement with foreign countries for steadying the global trade.


Following instruments has used for export policy in India.

(1) Export control and duties were relaxed.

(2) Export quotas got eliminated.

(3) The incentives were given to exchange export.

(4) Income tax relief to export earnings,

Policy: Export policy of 20th Century in India cna be explained in two parts.

(1) Export policy of 1951 to 1990

(II) Export policy of 1991 to 2000

(1) Export policy of 1951 to 1990:

In the first decade the export promotion programmes were neglected. But since second decade following steps have been taken for export promotion.

  1.  Board of export promotion and committees have established for exports of Tea, Coffee, Rubber, Cashewnut, leather and etc.

  2. To solve the problem of exports, a separate trade department is started in 1962. An economist industricelist and administrative officers will take care of this.

  3. The Export Credit and Guarantee Corporation (ECGC) was started in 1964.

  4. To find the possibility of new markets and diversification in exports. STC (State Trading Corporation) and MMTC (Mineral and Metal Trading Corporation) has been established.

  5.  In order to promote export, Export Houses have started in the private and public sector. Export promotion offices has been started to give guidence to the exporters.

  6. Some concessions has been given for import duty and custom duty. Concession in railway and the availibility of railway wagons also have been taken into consideration. The export industries will be provided the licences on liberal basis. Rupee has been devaluated in 1966 and policy of floating exchange rate has been adopted since 1973.

  7. In order to motivate exports 100% export oriented units are started. The duty free items like raw material, semi-finished goods and capital goods can be imported. The necessary relief is also granted from MRTP and FERA.

  8. Kandla was considered as free trade zone to boost up the exports.

  9. In order to give incentives to the electronic industry the free processing zone is developed.

(II) Export policy of 1991 to 2000:

  1.   India has fevaluted by 20% the currency to boost up export.
  2.   Replecement licence has been given to 30% on the basis of FOB value.
  3.  The scheme of supprtive licence has been cancelled. The controls are on the phased manufacturing programmes only.
  1.  Only small scale industries and the manufactures producing life saving drugs are included under OGL or allowed to import under additional licensing.
  2.  All additional licence have benn cancalled to export units. However they get’s benefits to 30% of replecement rate on the basis of FOB value.

4.  Decentralisation of the export card will be made. The STC and MMTC will be compelled to act as trade house of government.

5. The partial convertibility of rupee is adopted and it’s ration has been accepted as 40: 60. It means that RBI has convert 40% of its export earning at it’s official rate and 60% of it’s market rate.

 6. In the context of export earnings full convertibility of repee in current account has been done in the budget of 1993-94.

7. Commerce department would eveluated unnecessary restriction on exports and removed it. Government gives tax rebate for five years to industries. which established in free trade area.

 8. As per the recommendation of the Chelliah Committee the government has reduced the maximum rate of duty. In the budget of 1993-94 govemment had reduced duty from 110% to 85%. Import duty on imports of computer software has been completely abolished since 1997-98.

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Types of export promotion

3. Export Promotion Policy of India (2002 -2007)

(1) Special Economic Zones: The Policy aimed at strengthening the SEZ scheme and helping SEZ units in becoming internationally competitive by various measures.

These measures included the following:

(I) The deemed offshore banking units (OBUS) were to be treated like foreign branches of the Indian banks and were to be exempt from Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) requirements. They were expected to help units in SEZ to access international finance.

(ii) Domestic suppliers to SEZS were entitled to avail of benefits of Duty Entitlement Passbook Scheme.

(iii) The policy also contained procedural simplification in the process of subcontracting carried out by the SEZ units.

(iv) For improving the power situation in and around SEZS, units for generation and distribution of power were permitted to be set up in the SEZS

(2) Cottage Sector and Handicrafts:

  1. An amount of 5 crore under Market Access Initiative (MAI) has been earmarked for promoting cottage sector exports coming under the KVIC.

  2. The units in the handicrafts sector can also access funds from MAI scheme for development of website for virtual exhibition of their product.

  3. Under the Export Promotion Capital Goods (EPCG) scheme, these units will not be required to maintain average level of exports, while calculating the Export Obligation.

  4. These units shall be entitled to the benefit of Export House status on achieving lower average export performance of 5 crore as against 15 crore for others.

  5. The units in handicraft sector shall be entitled to duty free imports of an enlarged list of items as embellishments upto 3% of FOB value of their exports.

(3) Agricultural Exports:

The policy aimed at providing a major thrust to agricultural exports by removing export restrictions on designated items. It contained measures for promoting exports of agro and agro-based products in the floriculture and horticulture sector. Non-actionable subsidies such as transport subsidy were provided for the export of fruits, vegetables, floriculture, poultry and dairy products.

All quantitative restrictions on exports (with the exception of a few sensitive items) were removed, with only a few items being retained for export through State Trading Enterprises.

(4) Star Achievers: To provide necessary impetus to star achievers in exports, EXIM Policy provided a strategic package of incentives comprising several new or special facilities. The Policy also operationalised the procedure for duty-free import of fuel under the Advance Licensing Scheme, provided the license holder had a captive power plant.

(5) Textiles and Clothing : In view of the expected phasing out of all import restrictions (by importers like USA) on textile products by 2005 under the Agreement on Textile and Clothing (ATC), the EXIM Policy focused on measures to encourage value added exports by the garment sector. The quota-free regime of textile imports came into effect on 1st January, 2005.

(6) Electronic Hardware Technology Parks (EHTP) Scheme: This scheme was modified to create for the hardware sector a zero-duty regime under Information and Technology Agreement.

It mandated the export criterion of only a positive net foreign exchange as a percentage of exports and removed all other export obligations for units in Electronic Hardware Technology Parks. The Policy also allowed duty-free project imports of equipment and other goods used abroad for more than one year.

7) Gems and Jewellery: The changes carried out in the gems and jewellery scheme included abolition of the licensing regime for the import of rough diamonds, reduction in the value addition norms for export of jewellery and permitting personal carriage of jewellery.

(8) Growth Orientation:

The Policy had several growth-oriented features including the following:

(i) It retained all the existing duty exemption/remission schemes, along with provision of not having any value ceilings.

(ii) It introduced several procedural simplifications for reducing transaction costs and delays, such as

(a) the abolition of DEEC Book,

(b) withdrawal of Annual Advance License under the Advance License Scheme,

(c) exemption from disclosure of technical characteristics for audit purposes under various schemes,

(d) adoption of 8-digit classification for imports for eliminating the classification disputes,

(e) introduction of ‘same day’ licensing,

(f) new norms for reduction in percentage of physical examination of export cargo,

(g) introduction of the simplified brand rate of drawback scheme and

(h) permitting direct negotiation of export documents.

(9) Other Features:

(i) Widening of the scope of the Market Access initiative scheme by including activities considered necessary for a focused market promotion of exports.

(ii) Setting up of “Business Centre” in Indian Missions abroad for the use of visiting Indian exporters/businessmen.

(iii) Introduction of ‘Focus Africa’ (with Focus CIS to follow) programme, for diversifying markets.

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4. Export Promotion Policy of India  (2009 -2014)

(1) Facilities for Agriculture and Village Industry: Since agriculture has the potential for promoting employment and developing rural areas so special package has been announced for agriculture sector

(i) Vishesh Krishi Upaj) and Gram Udyog Yojana has been further strengthened to promote exports of agriculture goods, forest based products and gram udyog products.

(ii) The import of capital goods for storage, packaging and transportation of agriculture goods will be liberalised.

(iii) Agri-Export Zones set up in the early EXIM policy will be further strengthened. Various concessions and incentives are provided to these agri-export zones. These zones help to promote export of agriculture products. These zones are provided infrastructure so as to increase agro-exports.

(iv) Import of agriculture inputs such as pesticides, seeds, planting material has been further liberalised.

(v) For agricultural exports the limit of designated Towns of Export-Excellence has been reduced to 150 crore

(2) Facilities for Handloom and Handicraft Sector:

More funds have been allocated for Market Development Assistance (MDA) and Market Access Initiative (MAI) schemes for promoting exports of handloom and handicrafts.

(II) The limit of designated Towns of Export-Excellence has been reduced from 250 crore to Rs 150 crore of exports. In other words, on attaining the export of Rs. 150 crore by any town in a year, it will get the status of Town of Export-Excellence and hence will get special assistance from government in the form of better infrastructure, easy import of capital goods and inputs for production. 

I) For handicrafts and handloom sector, machinery and equipment for waste treatment have been exempted from custom duty.

(iv) All handicraft export items will be treated as Special Focus Products’ and are entitled to benefits under “Special Focus Product Schemes.

(v) Exports of sports goods and toys will be promoted.

(vi) Status Holder Exports having export of ? 15 crore or more in a year will be entitled to special concessions

Export promotion policy in India

(3) Facilities for Gems and Jewellery Industry:

I) Exporters of gems and jewellery can import/procure duty free inputs for manufacturing jewellery such as gold, silver, platinum, rough gems, precious and semi precious stones, unprocessed pearls, diamonds, etc.

(ii) Special efforts will be made to make India international trading hub for diamond.

(ii) To promote export of gems and jewellery products, the value limits of personal carriage have been increased from US$ 2 million to US $ Smillion for participation in overseas exhibition.

(iv) Jewellery parcels upto US $ 75000 can be exported through foreign post office also.

(v) Import of commercial samples of jewellery upto 3.00.000 will be duty free.

(vi) Time limit of 60 days for re-import of exported gems and jewellery items for participation in exhibitions has been extended to 90 days in case of USA

Export promotion policy in India

(4) Developing Export Infrastructure:

For developing export infrastructure. assistance will be provided to state governments. It aims at creating new export promotion industrial parks and promoting facilities in the existing parks/zones. It aims at constructing roads, for Finking production centre’s with ports, setting up container freight stations, common waste treatment plants, etc.

(5) Market Access Initiatives (MAI): Under this schemes, financial assistance is provided for export promotion activities. These activities include conducting market studies/surveys in foreign countries, participation in international trade fairs brand promotion in other countries, assistance for checking dumping, etc.

(6) Export Houses and Trading Houses: Based on export performance during current year and previous three years taken together the export houses are categorised as follows:

Export promotion policy in India

Status categoryTotal Export Performance 
Export House 20
Star Export House 100
Trading House 500
Star Trading House 2500
Premier Trading House 7500


such status houses are eligible for exemption from furnishing bank guarantee, get fast clearance of export-import-documents, tax concessions, etc.

(7) Export Promotion Capital Goods (EPCG) Scheme: This scheme is of two types: (i) Zero Duty EPCG Scheme: It allows import of capital goods at zero per cent custom duty subject to an export obligation equivalent to six times of duty saved on capital goods imported under this scheme. This export obligation is to be fulfilled in six years. This scheme is applicable on engineering goods, electronic products. chemicals, textiles, handicrafts and leather goods. (ii) 3% Duty EPCG Scheme: It allows import of capital goods at 3% custom duty subject to an export obligation equivalent to eight times of duty saved on capital goods imported under this scheme. This export obligation is to be fulfilled in eight years. This scheme is applicable on those capital goods which do not fall under zero duty EPCG Scheme.

Export promotion policy in India

(8) Export Oriented Units (EOUS), Electronics Hardware Technology Parks (EHTPS), Software Technology Parks (STPs) and Bio-Technology Parks (BTPs): The units which undertake to export their entire production may be set up in EOUS, EHTPS, STPs and BTPs. Trading units are not covered under this scheme. These units can import all types of goods including capital goods required for their activities without payment of any custom duty. The units set up as EOUS or set up in any of above parks are entitled to following concessions:

  1.   Reimbursement of Central Sales Tax (CST).

  2.   Exemption from payment of excise duty. (iii) Refund of Service Tax paid.

  3.   Exemption from Income Tax till 31st March, 2011.

  4.  Exemption from industrial licensing for manufacture of items reserved for small scale industries.

  5.   Export proceeds for such units can be realised within 12 months; whereas, for other units, this time period is 6 months.

  6.  These units are not required to furnish bank guarantee for imports provided their annual turnover is 5 crore or more.

(9) More Facilities to Special Economic Zones (SEZS): The special economic zones set up to boost exports from these areas will be further strengthened. In these zones infrastructure of international quality will be set up. Units set up in SEZS will continue to get income tax concessions, exemption from custom and excise duties etc. The Special Economic Zone Bill was passed by parliament in June 2005. So far 350 SEZS have been notified by the government, out of these 105 SEZS had become fully operational by 26 February, 2010.

(10) Strengthening Free Trade and Warehousing Zones (FTVVZs): Government started a scheme named ‘Free Trade and Warehousing Zones’ in EXIM policy 2004-09. This scheme is aimed at making India a global-trading centre. In this scheme, 100% FDI (Foreign Direct Investment) is allowed for setting up these warehousing zones. Each zone will have a minimum outlay of 100 crore and built- up area of 5 [etch square metres. In these zones, there is freedom to carry-out import and export transactions. These zones qualify for all benefits offered to special economic zones. Under this scheme an Indian trader can buy goods from any country, store them in a warehouse in FTWZ and sell these goods to buyers anywhere in the world. In these zones, import and export will be duty-free. The new foreign trade policy aims at strengthening FTWZS. By establishing these free trade and warehousing zones the image of India will improve at the international level. It will give a boost to India’s foreign trade..

Export promotion policy in India

(11) Procedural Simplification:

(i) The number of returns and forms used in foreign trade has been reduced and these forms have been simplified.

(ii) For speedy redressal of grievances, a new mechanism for grievance-redressal has been formulated. It will substantially reduce litigation time of exporters and importers.

(iii) The percentage of physical examination of export cargo has been reduced to less than 10 per cent to build trust among exporters, ie, only upto 10% of goods meant for export will be physically examined.

(iv) Online verification of documents under various export promotion schemes has been started.

(v) Fee for obtaining exporter- importer code number has been reduced.

(vi) A single set of common form called Aayaat Miry/tat’ form has been launched. This form can be used for both exports and imports.

(12) Other Provisions:

(i) Duty Entitlement Pass Book Scheme launched in the previous EXIM Policy has been extended till 31st December, 2010.

(ii) Duty Free Import Authorisation Scheme launched in the previous EXIM policy has been continued in the new EXIM policy also.

(iii) Market development assistance (MDA) is provided to exporters for developing markets

iii the nations covered under ‘Focus Market Scheme’. Under this scheme, financial assistance is provided for attending international trade fairs, seminars, conferences, etc.

(iv) Import of second-hand-capital goods has been permitted without age-estrictions. Le old machistes can be imported irrespective of age of machine

(v) Status Holder Exporters, Le expres who have exports of 15 crore or more in a year, will be entitled to duty credit of 1of exports made during the year 2009-10 and 2010-11 These exporters will also be entitled to incentives and concessions provided to them under earlier EXIM policy. Approximately dos of India’s goods’ esports are contributed by Status Holder Exporters.

(vi) Interest subvention Concession) of 25% on outstanding Imans is provided to EOUs till 31st March, 2011. This concession will be given for 7 employment oriented export sectors namely textiles, handicrafts, carpets, leather. gems and jewellery, marine products, micro and small enterprises

Export promotion policy in India

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5. Export Promotion Policy of India (2015-2020)

(1) Merchandise Exports from India Scheme (MEIS):

(a) Earlier there were 5 different schemes (Fucus Product Scheme. Market Linked Focus Product Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, VKGUY) for rewarding merchandise exports with different kinds of duty scrips with varying conditions (sector specific or actual user only) attached to their use Now all these schemes have been merged into a single scheme, namely Merchandise Export from India Scheme (MEIS) and there would be no conditionality attached to the scrips issued under the scheme.

(b) Rewards for export of notified goods to notified markets under Merchandise Exports from India Scheme (MEIS) shall be payable as percentage of realized FOB value (in free foreign exchange.

(c) Served From India Scheme (SFIS) has been replaced with Service Exports from India Scheme (SEIS) SEIS shall apply to Service Providers located in India’ instead of ‘Indian Service Providers’. Thus SEIS provides for rewards to all Service providers of notified services, who are providing services from India, regardless of the constitution or profile of the service provider.

(d) The rate of reward under SEIS would be based on net foreign exchange eamed. The reward issued as duty credit scrip would no longer be with actual user condition and will no longer be restricted to usage for specified types of goods but be freely transferable and usable for all types of goods and service taxdebits on procurement of services / goods.

(e) It is now proposed to extend Incentives (MEIS & SEIS) to units located in SEZs also.

(f) Duty credit scrips to be freely transferable and usable for payment of custom duty, excise duty and service tax.

Export promotion policy in India

(2) Status Holders:

(a) Business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade are proposed to be recognized as Status Holders and given special treatment and privileges to facilitate their trade transactions, in order to reduce their transaction costs and time.

(b) The nomenclature of Export House, Star Export House, Trading House, Star Trading House, Premier Trading House certificate has been changed to One, Two, Three, Four, Five Star Export House.

(c) The criteria for export performance for recognition of status holder have been changed from Rupees to US dollar earnings.

Export promotion policy in India

Status Category

Export Performance

FOB/FOR (as converted)

Value (in US $million)during current and pervious two years)

One Star Export House3
Two Star Export House25
Three Star Export House100
Four Star Export House500
Five Star Export House2000

(d) Manufacturers who are also Status Holders will be enabled to self-certify their manufactured goods as originating from India with a view to qualify for preferential treatment under different Preferential Trading Agreements [PTAs). Free Trade Agreements IFTAs). Comprehensive Economic Cooperation Agreements (CECAS) and Comprehensive Economic Partnerships Agreements (CEPAS] which are in operation. They shall be permitted to self-certify the goods as manufactured as per their Industrial Entrepreneur Memorandum (IEM) / Industrial Licence (IL)/ Letter of Intent (LOI).

(3) Boost To “Make In India”: Reduced Export Obligation (EO) for domestic procurement under EPCG scheme:

Specific Export Obligation under EPCG scheme, in case capital goods are procured from indigenous manufacturers, which is currently 90% of the normal export obligation (6 times at the duty saved amount) has been reduced to 75%, in order to promote domestic capital goods manufacturing industry.

(4) Higher level of rewards under MEIS for export items with high domestic content and value addition.

(5) Trade Facilitation & Ease Of Doing Business: DGFT already provides facility of Online filing of various applications under FTP by the exporters/importers. However, certain documents like Certificates issued by Chartered Accountants/ Company Secretary / Cost Accountant etc. have to be filed in physical forms only. Inorder to move further towards paperless processing of reward schemes, it has been decided to develop an online procedure to upload digitally signed documents by Chartered Accountant/ Company Secretary/Cost Accountant. In the new system. it will be possible to upload online documents like annexure attached to ANF 38, ANI 3C and ANF 3D, which are at present signed by these signatories and submitted physically

Henceforth. hardcopies of applications and specified documents would not be required to be submitted to RA. saving paper as well as cost and time for the exporters,

(6) Online inter-ministerial consultations: It is proposed to have Online inter-ministerial consultations for approval of export of SCOMET items, Norms fixation. Import Authorisations, Export Authorisation, in a phased manner, with the objective to reduce time for approval. As a result, there would not be any need to

submit hard copies of documents for these purposes by the exporters.

Export promotion policy in India

(7) New Initiatives for EOUS, EHTPS and STPS:

(i) EOUS, EHTPS. STPs have been allowed to share infrastructural facilities among themselves. This will enable units to utilize their infrastructural facilities in an optimum way and avoid duplication of efforts and cost to create separate infrastructural facilities in different units.

(ii) Inter unit transfer of goods and services have been allowed among EOUS, EHTPS, STPS, and BTPs. This will facilitate group of those units which source inputs centrally in order to obtain bulk discount. This will reduce cost of transportation. other logistic costs and result in maintaining effective supply chain.

(iii) EOUS have been allowed facility to set up Warehouses near the port of export. This will help in reducing lead time for delivery of goods and will also address the issue of un-predictability of supply orders.

(iv) STP units, EHTP units, software EOUS have been allowed the facility to use all duty free equipment/goods for training purposes. This will help these units in developing skills of their employees.

100% EOU units have been allowed facility of supply of spares/ components up to 2% of the value of the manufactured articles to a buyer in domestic market for the purpose of after sale services.

EOUS having physical export turnover of Rs.10 crore and above, have been allowed the facility of fast track clearances of import and domestic procurement. They will be allowed fast tract clearances of goods, for export production, on the basis of pre-authenticated procurement certificate, issued by customs / central excise authorities. They will not have to seek procurement permission for every import consignment.

Export promotion policy in India

(8) Facilitating & Encouraging Export of Defence Exports:

(a) Normal export obligation period under advance authorization is 18 months. Export obligation period for export items falling in the category of defence, military store, aerospace and nuclear energy shall be 24 months from the date of issue of authorization or co-terminus with contracted duration of the export order, whichever is later. This provision will help export of defence items and other high technology items.

(b) A list of military stores requiring NOC of Department of Defence Production has been notified by DGFT recently. A committee has been formed to create ITC (HS) codesfor defence and security items for which industrial licenses are issued by DIPP

(c) In an endeavour to resolve quality complaints and trade disputes, between exporters and importers, a new chapter, namely, Chapter on Quality Complaints and Trade Disputes has been incorporated in the Foreign Trade Policy.

(9) Vishakhapatnam and Bhimavaram added as Towns of Export Excellence: Government has already recognized 33 towns as export excellence towns. It has been decided to add Vishakhapatnam and Bhimavaram in Andhra Pradesh as towns of export excellence (Product Category- Seafood).

Export promotion policy in India

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