Tag: nature and scope of foreign trade

Under the advanced license scheme, an exporter is allowed duty free supply of inputs required to manufacture export goods.

Various trade promotion measures and schemes available to business firms are mentioned in the export-import policy. this export-import policy is also known as the EXIM policy.

Duty drawback compensates or refunds exporters for the duties paid on inputs used to manufacture, the excise duties paid for the export of the products.

Export Promotion Capital Goods (EPCG) scheme is to encourage the import of capital goods for export production, it allows import of capital goods including spares for pre production, production, post production of export goods at zero duty.

Export manufacturing under bond scheme facility entitles firms to produce goods without payment of excise duties and other duties. the duties that are paid for the export goods are also refunded under duty drawback scheme.

Finance is required by the exporter even after the shipment of the product as the exporter has to pay for the various licensing and custom duties when the godds reach its destination in the foreign market.

Government of India is the apex body responsible for the country's external trade as the government develops the rules and regulations levied on the import and export trade made in India.

There are currently 21 Export Promotion Councils (EPCs) in India, each focusing on specific commodities or sectors.

Export Promotion Councils are typically registered as non-profit organizations under the Companies Act to facilitate trade and represent industry interests.

Finances provided for purchasing, manufacturing, processing, packaging of goods are the pre-shipment finances. The post shipment finances are suppliers credits, custom duties to be paid , export bills etc.