Trade Facilitation Services

Trade Promotional Measures

India is turning out to be a major player in world trade. The Government of India has set up plans to double the economic growth by 2020. For this to happen it has initiated steps for the overall development of the country’s foreign trade. While increase in exports is of vital importance, efforts are also made to facilitate those imports, which are required to stimulate Indian economy. Coherence and consistency among trade and other economic policies is important for maximizing the contribution of such policies to development. The Government of India has designed a plethora of export promotion measures for agriculture and allied field, some of which are given below.

Market Access Initiative (MAI)

This scheme is intended to provide financial assistance for medium term export promotion efforts with a sharp focus on a country and product. The financial assistance is available for Export Promotion Councils, Industry and Trade Associations, Agencies of State Governments and Indian Commercial Missions abroad.

Marketing Development Assistance (MDA)

The Marketing Development Assistance (MDA) scheme is intended to provide financial assistance for a range of export promotion activities implemented by export promotion
councils, industry and trade associations on a regular basis every year. As per the revised MDA guidelines, assistance is available for exporters with annual export turnover upto Rs 10 crores.

Brand Promotion and Quality

This scheme aims to encourage manufacturers and exporters to attain internationally accepted standards of quality for their products. The Central Government extends support and assistance to exporters on quality awareness and to promote the concept of total quality management.

Vishesh Krishi And Gram Udyog Yojana

The objective of Vishesh Krishi and Gram Udyog Yojana (Erstwhile Vishesh Krishi Upaj Yojana) is to promote export of fruits, vegetables, flowers, minor forest produce, dairy, poultry and their value added products, and gram udyog products by providing incentives to exporters of such products. Exports of fruits, vegetables, flowers, dairy, poultry and their value added products are entitled for duty credit scrip equivalent to 5% of the free on-board (FOB) value. A detailed list of these agricultural products for which this entitlement is to be granted is given in Appendix 37A of the Handbook of Procedures (Vol. I).

Focus Market Scheme

The objective is to enhance export competitiveness by offseting the high freight cost and other disabilities to select international markets. Exports of all products are entitled for duty credit scrip equivalent to 2.5% of the FOB value of exports. The scrip and the items imported against it would be freely transferable.

Focus Product Scheme

This scheme provides incentives to export of products which have high employment intensity in rural and semi urban areas so as to offset the inherent infrastructure inefficiencies and other associated costs involved in marketing of these products. Exports of these products to all countries are entitled for duty credit scrip equivalent to 2.5% of the FOB value of exports. The scrip and the items imported against it would be freely transferable.

Duty Exemption and Remission Schemes

Duty exemption schemes enable duty free import of inputs required for export production. Duty Exemption Scheme consists of (a) Advance authorisation scheme and (b) Duty free import authorisation scheme (DFIA). A duty remission scheme enables post export replenishment/ remission of duty on inputs used in the export product. Duty remission schemes consist of (1) DFRC (duty free replenishment certificate), (2) DEPB (duty entitlement passbook scheme) and (3) DBK (duty drawback scheme).

Re-import of exported goods under Duty Exemption/ Remission Scheme

Goods exported under Advance Authorisation/DFIA / DFRC/ DEPB may be re-imported in the same or substantially the same form subject to such conditions as may be specified by the Department of Revenue from time to time.

Duty Free Import Authorisation

A duty free import authorisation is issued to allow duty free import of inputs, which are used in the manufacture of the export product (making normal allowance for wastage), and fuel, energy, catalyst etc. that are consumed or utilised in the course of their use to obtain the export product.

Package for agriculture in foreign trade policy (2006-07)

1. A new scheme called Vishesh Krishi Upaj Yojanahas been introduced in 2006-07 to boost exports of fruits, vegetables, flowers, minor forest produce and their value added products.
2. Duty free import of capital goods under Export Promotion Capital Goods (EPCG) scheme.
3. Capital goods imported under EPCG for agriculture permitted to be installed anywhere in the Agri Export Zone.
4. Assistance to states for infrastructure development for exports (ASIDE) funds to be utilized for development for Agri Export Zones also.
5. Import of seeds, bulbs, tubers and planting material has been liberalized.
6. Export of plant portions, derivatives and extracts has been liberalized with a view to promote export of medicinal plants and herbal products.
7. APEDA is setting up market facilitation centres for floribusiness in Japan. Roses especially pink roses are in great demand in Japan.

Trade promotion measures in fisheries

1. Central assistance to states for development of critical infrastructure for export such as roads, inland container depots, container freight stations, Export Promotion Industrial Parks and for equity participation in infrastructure projects. 
2. Encouragements to state governments for setting up Export Zones. 
3. Declaration of Towns of Export Excellence to encourage setting up of critical infrastructure for export production, encourage common service providers and facilitate availability of better technological services. 
4. Market Access Initiative Schemes for encouraging increased marketing efforts by exporters/Brand promotion 
5. Schemes to promote the Concept of Total Quality Management. 

Duty exemption schemes in fisheries

1. Advance license for duty free import of inputs for export production. 
2. Duty free import of raw material for export/re export. 
3. Manufacturer exporters, merchant exporters tied to supporting manufacturers and service providers eligible for import of capital goods at 5% Customs duty linked to fulfillment of export obligation in 8 to12 years under EPCG Scheme. 
4. Duty free import of specified specialized inputs/chemicals and flavoring oils shall be allowed to the extent of 1% of FOB value of preceding financial years export.  Use of these special ingredients for seafood processing will enable to achieve a higher value addition and enter new export markets.
5. To encourage the existing mechanized vessels and deep sea trawlers to adopt modern technology for scientific exploitation of our marine resources in an eco-friendly manner and boost marine sector exports, it is proposed to allow import of monofilament long line system for tuna fishing at a concessional rate of duty.

Last Updated on: 04-01-2008