Export Import (EXIM) Policy

As per the provisions laid under the Foreign Trade (Development and Regulation) Act, the Department of Commerce, GoI formulates and announces the Export and Import policy (EXIM policy) every five years which is updated annually in the form of an Annual Supplement. The Foreign Trade Policy consists of the following three parts:

• a) Foreign Trade Policy (FTP) 2009-14 – The prime objective of the current policy is to reverse the trend of declining exports and assist sectors that have been affected by recession. It has adopted a multi-pronged strategy which includes providing additional support to the affected sectors, promoting technological upgradation and taking measures to reduce transaction costs of exports. The measures include fiscal incentives, institutional changes, procedural rationalization, efforts for enhanced market access and diversification of export markets. The Policy can be referred from http://dgft.gov.in/exim/2000/policy/ftp-plcontentE-1011.pdf.
• b) Handbook of Procedures (HBP) - contains detailed procedures and appendices which are required to implement the FTP (http://dgft.gov.in/exim/2000/procedures/ftp-hbcontentE-1011.pdf). A listing of Aayat Niryat Forms (ANF) or the forms required for export and import of products are attached in the appendices of the handbook.
• c) ITC (HS) Schedules - Indian Trade Classification (Harmonized System) - ITC (HS) schedules on policies with respect to various product lines (whether these can be imported freely or are subject to some policy conditions) can be referred from http://dgft.gov.in/exim/2000/download-ftp1011.htm. In addition, there are also voluminous compilations (done by private individuals) such as the “Big's Easy Reference Customs Tariff Publication released annually (authored by Arun Goyal)” that covers import tariffs, policies, country preferences etc. against each of the items at the 8 digit level. Broadly the items fall under the following categories:
  
  • Prohibited Items: refers to products which are prohibited for export or import to / from a particular country. This restriction can also be for a particular period. Some of the prohibited items include tallow, fat or oils rendered, unrendered or otherwise of any animal origin, animal rennet and wild animals including their parts and product, ivory and its part/products.
  • Channelised Items: are those items which can be imported or exported only by State (Govt.) Trading Enterprises.
  • Restricted Items: For most of the items falling under this category, import or export is allowed only after obtaining a License / Permit from the DGFT. This License can be for a specific product or for a specified period. Most of the restricted items fall under agricultural products gropus or live animals and fishes.
  • Free Items [OGL (Open General License) Items]: These are items which can be freely imported or exported without any restriction. Majority of the items are under the free importability clause.

The Handbook of Procedures contains elaborative procedures and templates for various export and import schemes. It is advisable that interested exporters/importers carefully go through the FTP Policy, HBP and ITC HS Schedules before finalizing their decision to export/import a particular item. Covering the minutest details is beyond the scope of the guide as the purpose is to outline the key provisions, procedures and schemes offered by the government.