Foreign trade

Foreign trade : 

Foreign trade June 2010

Commodity Boards : 

Commodity Boards Constitution of special boards for promoting the trade in plantation crops of India Safe guarding the interest of planters, traders and estate owners Tea Board Coffee Board Spices Board Tobacco Board

Trade Controls : 

Trade Controls Control over the import of goods into India is exercised by the Import Trade Control Organization, which functions under the ministry of Commerce. Salient features of the import restrictions are as follows. Goods may be imported freely without any restriction unless regulated on grounds of public policy or listed in the negative list of imports. The importing of prohibited items is banned; The importing of restricted items is permitted under specific license, or in accordance with a public notice conveying a general schedule Canalized items can be imported only through designated public sector agencies, such as the Indian Oil Corporation and the State Trading Corporation. However, the central government may grant licenses to others to import any canalized goods.

Trade Controls : 

Trade Controls The import of consumer goods and durables continues to be restricted (with exceptions for a Specific items). The import of capital goods machinery has been liberalized and is generally allowed without license. Second hand capital goods are also allowed, subject to certain conditions. Special licensing schemes permit the import of capital goods required for export production either duty-free import of inputs required for export production. The import of gold and specified items of consumer goods is also permissible under special import licenses issued to certain categories of exporters on the basis of either the net foreign exchange earning or the FOB value of physical exports.

Foreign Trade Laws : 

Foreign Trade Laws Foreign Trade Development and Regulation Act, 1992 Power of Central Government to make provisions Import-export trader code numbers and licensing Rules for search, seizure, penalty and confiscation Appeal and revision

State Finance Corporations : 

State Finance Corporations Set up mainly to finance small and medium scale units. Operate in the concerned States. SFCs also assist small scale units for their modernisation and technology upgrade programmes by providing soft loans Restructuring the sick small scale units through rehabilitation schemes and Through equity type assistance under SIDBI's seed capital scheme. 18 SFCs are in existence, operate as Regional Development Banks. They provide financial assistance to industrial units by way of term loans, direct subscription to equity, guarantees, etc.

State Finance Corporations : 

State Finance Corporations One-Man Committee set up by RBI under the Chairmanship has given the following recommendations : Restructuring of weaker SFCs by the Government.  Funds for lending under Single Window Scheme by SFCs should be placed by SIDBI with the SFCs in adequate measures.  Each SFC should get into an MOU with one or two Public Sector banks and participate in joint lending in which both term loan and working capital is provided jointly. SIDBI should sign MOUs with the State Governments to provide some assistance to SFC prior to the approval of assistance packages by the Government of India/SIDBI.  The staff of SFCs has to be adequately trained and SIDBI may be asked to make arrangements for this purpose.

Liberalization : 

Liberalization Comparison of post-liberalization and pre-liberalization Easy foreign currency conversion Removal of trade barriers Rationalization of tariffs WTO and regional trade bloc agreements Export incentives and schemes Promotion and trade fair assistance Financing and guarantees