EXIM Policy, a synonym to foreign trade policy, is a set of guidelines and instructions established by the government in the sphere of foreign trade i.e. import and export of India. EXIM policy is a five year plan. It is updated every year on 31st march and the modifications, improvements and new scheme become effective from 1st April every year. EXIM policy of the Indian government is regulated by foreign Trade Development and Regulation Act, 1992.
“EXIM Policy (2015-2020)”
The new EXIM policy has been formulated focusing increase in export scenario, boosting production and supporting the concepts like Make in India and Digital India.
- Two new schemes namely “Merchandise Exports from India Scheme (MEIS)” and “Service Exports from India Scheme (SEIS)” has been introduced replacing multiple schemes existing earlier.
- MEIS to promote export of notified goods to notified markets and SEIS for benefit of all exporters in India.
- Reduce export obligations by 25% and give boost to domestic manufacturing supporting the “Make in India” concept.
- Both MEIS and SEIS firm will get subsidized office spaces in SEZs, along with other benefits.
- As a step to Digital India concept, online procedure to upload digitally signed document by CA/CS/Cost Accountant are developed and further mobile app for filing tax, stamp duty has been developed.
- Benefits of MEIS would be eligible for e-commerce of handicrafts, handlooms, books etc. Exports up to 25000 per consignment will get SEIS benefit.
- Duty Credit scrips to be freely transferable and usable for payments of custom duty, excise duty and service tax.
- Recognition of status holder has been changed from Rupees to US Dollars earning. The position status holder will recognize and reward those entrepreneurs who helped in India to become a major export player.
- Manufacturers who are also status holders will be enable to self-certify their manufactured goods as originating from India.
- Repeatedly submission of physical copies of documents available on Exporter Importer Profile is not required.
- Agricultural and village industry products to be supported across the globe at rates of 3% and 5% under MEIS.
- Export obligation period for export items related to defense, military store, aerospace and nuclear energy to be 24 months. Certificate of independent Chartered Engineer for redemption of EPGG authorization is no longer required.
Impact on the Economy
The EXIM policy “2015-2020” has expected to double the share of India in world trade from present level of 3%by the year 2020.
Simplifying the existing multiple schemes, the new policy has come up with two schemes MEIS and SEIS that reduces the complexities and encourage the entrepreneur. Similarly, use of technology to perform the compliance reduces the transaction cost and manual errors.
This policy has also focused moving away from reliance on subsidies. By extending benefits under EPCG on domestic procurement and offering them more products under MEIS, the policy further seeks to incentive the exports.
Generation of new employment and providing quality products at reasonable price to consumers are expected to be delivered by the policy.
In short, EXIM policy boosts productivity and earn exportable surplus at competitive rates in export.
The EXIM policy “2015-2020” is highly praiseworthy as it purely focuses on developing export potential, improving export performance, encouraging foreign trade and creating and favorable balance of balance of payments resolving quality complaints and trade disputes. Good governance and export are facilitated by this policy and hope the expectations the policy has brought, will be met.