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FTP
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Refers to Foreign Trade Policy,
announced by the Commerce & Industry Minister on 31st
August, 2004. It is a 5-year Policy (2004-2009), which provides a stable
policy framework. The Annual Supplements 2005 and 2006 to the Foreign
Trade Policy (2004-09) announced by the Commerce & Industry Minister in
April, 2005 and 2006 were effective from 1st April, 2005, and 1st April,
2006 respectively. Likewise, the Annual Supplement announced by the
Commerce & Industry Minister on 19 April, 2007 will be effective from
1st April, 2007.
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Exim Policy
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Refers to Export and Import (Exim) Policy. Exim Policy got incorporated
into the comprehensive Foreign Trade Policy, which was announced by the
Commerce & Industry Minister on 31st August, 2004.
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DGFT
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Directorate General of Foreign Trade, which is headed by the Director
General of Foreign Trade. The office of the DGFT is responsible for
formulating and execution of Foreign Trade Policy, including licensing.
Formerly (till 1991), was known as the Chief Controller of Imports &
Exports (CCI&E).
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EPZs/EOUs
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EPZ means Export Processing Zones which are special enclaves, separated
from the Domestic Tariff Area (DTA), to provide an internationally
competitive duty-free environment for export production. EOU means
Export Oriented Units. The EOU scheme is complementary to the EPZ
scheme, except that it is widely dispersed in location, unlike EPZs,
which are set up at specific locations.
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SEZ
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Refers to Special Economic Zones.
Following the SEZ Act 2005 and the SEZ Rules 2006, the number of SEZs
notified has been 63 and number of formal approvals 234. Investment of
Rs.53561 crore and 15,75,452 additional jobs are expected to be
generated by the 63 notified SEZs by December 2009. Incentives and
facilities offered to units in SEZs for promotion of investment,
including foreign direct investment, include duty-free import/domestic
procurement of goods for development, operation and maintenance of SEZ
units, 100% income tax exemption for SEZ units under Section 10-AA of
the Income Tax Act for the first 5 years, 50% for next 5 years and 50%
of the ploughed back export profit for next 5 years, exemption from
Central Sales Tax, exemption from Service Tax and single window
clearance mechanism for establishment of units etc.
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FTWZ
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Free Trade and Warehousing Zone, a
new scheme announced in the Foreign Trade Policy.
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AEZs
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Refers to a scheme of Agricultural
Export Zones.
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BTP
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BTP means Biotechnology Park as
notified by Director General of Foreign Trade on the recommendation of
the Department of Biotechnology
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STP
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STP means Software Technology Park
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E-Commerce
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Refers to electronic commerce. In
the context of Foreign Trade Policy, e-commerce relates to
electronic filing and processing of applications etc.
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EPCG
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EPCG refers to the Export Promotion
Capital Goods (EPCG) Scheme, which gives the manufacturer facility for
import of capital goods for export production at concessional rate of
duty (5 per cent) against certain level of export obligation over a
period of time.
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Duty
Exemption Scheme/Duty Free Import
of Inputs
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Allows duty-free import of inputs for exports under Advance
Licence,
Duty Entitlement Pass Book (DEPB) and Duty Free Replenishment
Certificate (DFRC) Scheme.
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Duty Credit
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Refers to import duty credit. For
example, under the Focus Market Scheme, if an exporter exports to an
identified country Rs.100 worth of goods, he will get 2.5% of Rs.100 on
export of all products to the notified countries, which he can
either use to pay customs duty on his imported inputs or sell in the
market as these scrips would be freely transferable. Similarly, under
the Focus Product Scheme, duty credit facility at the rate of 2.5% of
f.o.b. value of exports on 50% of export turnover of notified
products would be allowed.
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Advance
Licence
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Advance Licence is granted
for import of inputs without payment of customs duties. It is issued in accordance with the Policy and procedures in force
and subject to
fulfilment of time-bound export obligation. Such licences can be issued for
import of inputs
for use in the export production as well as for replenishment of the inputs
already used in
the export product.
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DEPB
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Refers to the Duty Entitlement Pass Book to neutralise the incidence of
basic customs duty on the import content of export product. This is
provided by way of grant of duty credit against the export product at
specified rates. The DEPB Scheme which was notified on 1/4/1997
consisted of (a) Post-export DEPB and (b) Pre-export DEPB. The
pre-export DEPB scheme was abolished w.e.f. 1/4/2000. Under the
post-export DEPB, which is issued after exports, the exporter is given a
duty entitlement Pass Book at a pre-determined credit on the FOB value.
The DEPB allows import of any items except the items which are otherwise
restricted for imports.
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Input-Output
Norms
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The norms which define the
amount of input/inputs required to manufacture a unit
of output.
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DFRC
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Refers to the Duty Free
Replenishment Certificate Scheme which was introduced from 1/4/2000
replacing Transferable Advance Licensing Scheme. The scheme is
available to merchant exporters as well as to manufacturer exporters.
However, it covers only items which are covered under standard
input-output norms notified by DGFT.
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DFIA
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Duty Free Import Authorisation
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Deemed
Exports
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Refers to those transactions in which the goods supplied do not
leave the country and the payment for the goods is received by the supplier in
India.
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FoB
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FoB means Free on Board -- i.e., when an exporter delivers goods "free
on board", he pays all charges involved in getting them actually onto
the ship.
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NFE
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Refers to Net Foreign Exchange. Net Foreign Exchange earning is
calculated as a percentage of exports (NFEP).
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ISO-9000
Manufacturer
Exporter
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Refers to international standards, laid down by the International
StandardsOrganisation. Manufacturer-exporter means a person who exports
goods
manufactured by him or intends to export such goods.
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Merchant
Exporter
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Merchant- Exporter means
a person engaged in trading activities and
exporting or intending to export goods.
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One to
Five Star
Export
House
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With a view to building marketing infrastructure and expertise
required for
export promotion, exporters with certain level of export performance are
conferred the status of One to Five Star Export House.
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Status
Holders
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An exporter recognised as
One to Five Star Export House by DGFT/Development Commissioner for the purpose of benefits and facilitation.
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Registration-cum-
Membership
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Registration-cum-Membership Certificate (RCMC) means a
certification
of registration and membership granted to an exporter by an Export
Promotion Council (EPC) or other competent authority.
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Certificate
Value
addition
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Value-addition refers to the increment added in the process of
manufacture of a particular item, which also becomes part of its price.
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QRs
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QRs mean Quantitative
Restrictions. QRs refer to specific limits imposed by countries on the
quantity or value of goods that can be imported or exported. QRs are
non-tariff measures which are taken to regulate or prohibit
international trade. QRs specifically refer to measures such as
licensing requirements for exports/imports; quotas, ceilings etc.
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ITC (HS)
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Refers to Indian Trade
Classification (Harmonised System). It is a system of classification of
products for the purposes of export and import.
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VKUJ
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Vishesh Krishi Upaj Yojana, a new
scheme introduced in the Foreign Trade Policy (2004-2009) as part of the
package for agriculture.
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SEPC
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An exclusive Services Export
Promotion Council announced in the Foreign Trade Policy to map
opportunities for key services in key markets. |
