Import facilities for exporters:
Advance License / Duty free Replenishment certificate
(DFRC): An advance license is issued to allow duty free
import of inputs which are physically incorporated in
the export product .In addition fuel, oil, energy,
catalysts which are consumed in the course of their use
obtain the export product, may also be allowed.
Duty entitlement Pass book scheme( DEPB):
Under the DEPB scheme, an exporter may apply for
credit as a specified percentage of FOB value of
exports, made in freely convertible currency. The credit
shall be available against such products and at such
rates as may be specified by DGFT by way of public
notice issued in this behalf for import of raw material ,
intermediates, components, parts packaging materials.
Export Promotion of capital goods Scheme
(EPCG):EPCG scheme was introduced in order to
enable manufacturer exporter to import machinery and
other capital goods for export production at
concessional or no custom duties at all. Facility is
subject to export obligation i.e. the exporter is required
to guarantees exports of certain minimum value.
The scheme covers the following :
EPCG allows of capital goods for production at 5 %
custom duty subject to an export obligation equivalent t
o 8 times of duty saved on capital goods imported
under EPCG scheme to be fulfilled over a period of 8
years reckoned from date of issue of licence.
Duty drawback:
Excise duty refund: Excise duty is tax imposed by the
central government on goods manufactured in India.
This duty is collected at source before removal of goods
from the factory premises. Export goods are totally
exempt from central excise duty.
Octroi exemption: Octroi is paid on manufactured
goods, when they enter the municipal limits of a city or
a town.
Income tax incentives
Marketing Assistance:
Marketing Development assistance: Under MDA
exporters with annual exporter turnover up to 5 crores
are eligible for financial assistance for a range of export
promotion activities such as participation activities such
participation in trade fairs, buyers and seller meet in
India and abroad, export promotion seminars.
Marketing Access Initiative : MAI is intended to
provided financial assistance for medium term export
promotion efforts with a sharp focus on country and
product. Export promotion councils, industry and trade
associations, agencies of state government, Indian
mission abroad are eligible for assitance under the
scheme.
Supply of raw materials:
Industrial Raw Material Assistance centers (IRMAC):
IRMAC is established by the government of India as a
subsidiary of STC. Such centers import raw material in
bulk and supply them to registered exporters against
valid import valid license. This enables exporters to get
timely supply of raw material at reasonable prices.
Back to Back letter of credit:
Export promotion Councils: Export promotion council
are non-profit organization registered under the
companies Act or societies registration Act as case may
be. They are supported by financial assistance from the
central government.
The main role of the EPCs is to project India image
abroad as reliable supplier of high quality goods and
services. In particular EPC encourage and monitor the
observance of international standards and specification
by exporters. EPC keep abreast of trends and
opportunities in international market for goods and
services and assist their members in taking advantage
of such International markets for goods and services
and assist their members in taking advantage of such
opportunities in order expand and diversify.
Functions:
Registration of exporters and registration-cum-
Membership certificate (RCMC) under EXIM policy.
Providing a forum and link between govt and their
members for consideration and implementation of
scheme for export production and marketing.
Collection and dissemination of information primarily on
export opportunities through various media, including
news papers, bulletins, letters, fax.
Sponsoring and inviting business delegations, sales
team, study teams, for exploring markets for
developing export.
Fixation of floor price or minimum export price or
recommendation thereof to the government.
Arranging or participating in buyers and sellers meet ,
export of trade fairs and exhibition in India and abroad,
publicity of goods in foreign market.
Recommendation in formulation and implementation of
export assistance schemes such fixation of duty
drawback.
Issue pertaining to production and marketing of
products.
Fixation of export quota.
At present there are 21 EPC dealing with various
commodities, such as basic chemicals , and allied
products, cotton textiles, handlooms, apparels, cashew,
gem and jewellery, silk, marine product, carpets,
leather manufactures, gems and jewellery, plastic,
spices, sport goods, eng goods, tobacco, wool,
handicraft, electronics and computer software.
Registration-cum-membership certificate (RCMC):
Any exporter can apply to become member of EPC, and
An exporter should obtain RCMC shall declare main line of
business in the application which shall be made to
export promotion council. If the export product is not
covered by any EPC, then the exporter may obtain the
RCMC from FIEO for eg Services. In case of exporter
for services it can register with FIEO or with Electronic
and software export promotion council.
There is prescribed form ayaat and niryaat form,
along with certified copy of IEC no, certificate in
support of banks financial soundness. The licence
granted shall be valid for 5 years. In order to claim
export, import benefits RCMC is must. RCMC gets
cancelled if there is any violation of terms and
conditions.
Commodity Boards are boards, which have been
specially established by the Government of India for
the promotion of some of the traditional commodities
of exports having high export potentials. These
The functions of Commodity Boards are similar to that
of EPCs.
Difference Between EPCs and CBs
Commodity Boards look after the export promotion of
primary and traditional items of exports while Export
Promotion Councils look after the export promotion of
non-traditional items like engineering goods,
computers, chemicals, etc. with promising export
potential.
EPCs are concerned only with the promotion of exports
of their respective products; the scope of Commodity
Boards is much broader. The functions of Commodity
Boards also encompass the development and
production of the respective commodity and domestic
marketing.
Operating Commodity Boards
At present, there are seven Commodity Boards in India.
Coffee Board.
Rubber Board.
Tobacco Board.
Spice Board.
Central Silk Board.
Tea Board.
Coir Board.
Functions of Commodity Boards
Commodity Boards are statutory in character and
operate under the administrative control of the
"Ministry of Commerce".
The major functions of the Commodity Boards are:
To takes active interest in production, development and
exports of respective commodities.
To introduce new methods of cultivation of
commodities.
To offer advice to the government on export matters
such as fixing quota for exports and significant trade
agreements.
To provide trade information, guidance and various
other services to their members and help them in their
export promotion efforts.
To participate in trade fairs and exhibitions abroad.
To sponsor trade delegations and conduct market
surveys for the benefit of their members.
To arrange pre-shipment inspection for export items.
Indian Trade promotion Organisation ( ITPO) : ITPO was
set up by ministry of commerce, government on 1st
January 1992 with its head quarter at New delhi. It has
five regional offices at Mumbai, Banglore, Kolkotta,
Kanpur, Chennai and four offices in germany, Japan,
UAE and USA.
Functions:
Organises Trade Fairs and Exhibitions, seminars,
workshop, seminar
Assists in Technological, product development, foreign
collaboration, joint venture, marketing-tie up.
Helps in establishing overseas contract.
It organises buyers and sellers meet with view to bring
buyer and seller together. It also invites overseas
buyers and organises their meeting with Indian
supplier.
Indian Institute of Foreign Trade( IIFT) was set
up govt of India in 1963.
Functions:
Training and imparting education in international
business. Its specialization in international business
and a global out look makes it unique among
management schools in India.
IIFT conducts market studies and surveys in the
overseas market and tries to find out the demand for
Indian products in overseas market. IT Supplies this
information to the exporters . The exporters can use
information while making export marketing decisions.
Organises Seminars and Workshops: IIFT
organises seminar, and workshops in a number of
export marketing areas, such . export pricing, export
promotion, etc. Exporters can to advantage of such
workshops and seminars by taking active part them.
Trade Delegations: IIFT sends delegates abroad to
study overseas markets and also to interact with
overseas importer. At the same time, it invites
delegates from abroad, who can study Indian market
conditions and can also interact with Indian exporters.
Publications: A large part of the IIFT's research work
- published in the form of study reports, monographs,
status papers, etc. for wider dissemination among the
business community, government departments and
academic fields.
The institute publishes:
Foreign Trade Review (FTR), a quarterly journal.
Focus WTO, a bimonthly magazine.
Technology Exports, a quarterly newsletter.
Research and Consultancy: IIFT has so far brought
out over 570 research studies and surveys. It also
acts as a consulting house for solving the problems of
the exporters and importers. IT analyses the
international business environment and develop
Management Development Programmes:
Combining a unique blend of research and
consultancy, IIFT has been a pacesetter addressing to
the needs of business executives by continuo aligning
the focus of its Management Development Program
with the changing realities. As a result, its intensive
short duration programmes have received the most
enthusiastic response.
Indian Institute of Packaging (IIP): was set up as
a national institute jointly by ministry of commerce,
government of India, Indian packaging industry in
1956, with its head office in Mumbai and Regional
offices at Kolkota and Chennai.
Functions :
Training Programmes: It organises a number of
training programmes pertaining to packaging and
also provides suggestions in regard to packaging.
UN Certification: All dangerous goods packages need
a UN certification mark before they can be dispatched.
IIP is the only authorised body in India to give this
certification.
Environmental Cell: The institute has an environment
cell, which guides exporters as to what type of material
can be used or incorporated in the packaging of their
products so as to reduce environmental threats.
Research and Development: It undertakes research
and development programmes for creating and
improving overall infrastructural facilities for achieving
packaging improvement so as to prevent losses during
transportation.
Collection and Dissemination of Information: It
collects information on various packing and packaging
strategies and disseminate them to the exporter for
International Recognition: The institute is closely
linked with international organisations. It is
recognised by the United Nations Industrial
Development Organisation (UNIDO) and International
Trading Centre (ITC) for consultancy and training.
International Membership: It is a member of the
Asian Packaging Federation (APF); the Institute of
Packaging Professionals (IOPPA), USA; the Institute of
Packaging (IOP) UK;, Technical Association for Pulp
and Paper Industry (TAPPI) and the World Packaging
Organisation (WPO).
Other Functions:
It also carries out graphic designing for
international products. It advises the government of
India for all export related packages.
It is not binding or compulsory for an organisation or
company to be a member of IIP. However, on being a
Indian Council of Arbitration (ICA):
Indian Council of Arbitration (ICA) was set up in
accordance to the recommendations of the Committee
on Commercial Arbitration constituted by the Ministry of
Commerce, Government of India. It was set up on 15th
April 1965 as an autonomous non-profit organisation
registered under the Societies Registration Act, 1860.
The main objective of the Council is to promote the use
of commercial arbitration, particularly in the course of
India's export trade.
ICA is a member of the Federation of International
Commercial Arbitral Institution and has mutual co-
operation agreements with the. International Court of
Arbitration, the London Court of Arbitration and apex
arbitration bodies in Thailand, Republic of Korea,
Yugoslavia, Bulgaria, Romania, Malaysia, Australia,
USA, Denmar, Mauritius, Russia, Germany, Egypt,
Switzerland, Japan, Philippines, Sri Lanka, South
Africa and more.
Functions of Indian Council of Arbitration
The council provides arbitration facilities for all types of
domestic and international commercial disputes.
It uses its network of offices for conciliation of
international trade complaints received from Indian and
foreign parties, for nonperformance of contracts or
non-compliance with arbitration awards.
It organises arbitration meetings, conferences, training
programmes, etc., for company executives,
businessmen, lawyers, arbitrators, etc., from time to
time in different parts of the country.
It conducts research and publishes informative
literature on different aspects of commercial
arbitration, including a quarterly Arbitration Journal.
It provides information and advice to interested parties
regarding the drafting of trade contracts, arbitration
laws and facilities and dispute settlement procedures in
India and in other parts of the world.
It keeps abreast of the latest developments, in the field
of international commercial arbitration and maintains
co-operative links with national and international
Federation of Indian Export Organisation (FIEO):
Federation of Indian Export Organisations (FIEO) is an
apex body of various export promotion organisations. It
was set up in October 1965. It represents the Indian
entrepreneurs' spirit of enterprise in the global market.
It has kept pace with the country's evolving economic
and trade policies and has provided the content,
direction and thrust to India's expanding international
trade. As the apex body of all Indian export promotion
organisations, FIEO works as a partner of the
Government of India to promote Indian exports.
Functions of Federation of Indian Export
Organisation
(a) International Linkage:
It has forged strong links with counterpart organisations
in several countries as well as international agencies to
enable direct communications and interaction between
It is registered with UNCTAD as a national non-
government organisation, and has direct access
to information and data originating from UN
bodies and world agencies like the IMF, ADB,
ESCAP, World Bank, FAO, UNIDO and others.
Dissemination of Information:
It has bilateral arrangements for exchange of
information as well as for liaisoning with several
overseas chambers of commerce and trade and
industry associations.
Liaisoning with the Government: It sends
representations on policy matters to Central
and State (Regional) Governments. It helps in
establishing contacts between the government
and commercial bodies both in India and
Market Development Assistance (MDA): The
Ministry Commerce, Government of India, through
FIEO, reimburses certain percentage of the
expenditure incurred by t recognised exporters, such
as all types of export houses on sales-cum-study
tours, participation in exhibitions and fair abroad,
advertisements in foreign media, etc.
Market Research and Development Department:
The Market Research and Development department
offers the following services to the exporters'
community:
Arranging meetings with diplomats, incoming
delegations and buying missions.
Inviting delegations.
Organising trade fairs and exhibitions in India and
abroad.
Opening foreign offices and warehouses.
Publicity Department: The Publicity department of
FIEO performs the following functions:
Bringing out various special supplements in Indian and
overseas dailies in order to project the selected finished
products in India and abroad.
Creating and telecasting episodes in NEPC channel to
promote India's prominent brands in various countries
covered by the channel.
It has published Directory of Foreign Buyers and
Dictionary of Indian Exporters.
It publishes a fortnightly magazine, 'FIFO News', to
cover developments in the field of international trade
concerning India.
Marine Products Exports Development Authority
(MPEDA)
Marine Products Export Development Authority
(MPEDA) was constituted in 1972 under the Marine
The headquarter of MPEDA is located at Kochi in Kerala.
The Authority operates two overseas trade promotion
offices, one at Tokyo (Japan) and the other at New York
(USA). The role envisaged for the MPEDA under the
statue is comprehensive, which covers organisation,
coordination, regulation and growth of the export of sea
products with special reference to the quality,
processing, packaging, storage, transport, shipment,
marketing extension and training in various aspects of
the industry.
