eipd unit five international business.pptx

Eipd unit

1. Trade Barriers Artificial restrictions imposed to control and restrict free flow of goods and services between countries. They are imposed in form of fiscal and non fiscal measures. Objectives of Trade Barriers – Protect Domestic industries and companies. Generate positive foreign exchange reserves Attaining favourable BOP Protection against dumping Make economy self fulfilling and self sufficient Mobilizing public revenue effectively

2. Types of Tariff Barriers On the Basis of Origin - Export Duty , Import Duty , Transit Duty On the basis of Criteria -Specific Duty , Ad Valorem Duty On the Basis of Trade Relations -Single Column Tariff , Double Column Tariff Triple Column Tariff On the Basis of Purpose -Anti-Dumping Duty , Countervailing Duty , Protective Tariff ,

3. Types of Non Tariff Trade Barriers Quota : Tariff Quota , Mixing Quota, Unilateral , Bilateral Quota Import Licensing Custom Regulation Trading Blocks Export Obligation Exchange Regulation Boycott International Standards Miscellaneous – Health and safety regulation , food and drugs regulation , Environmental Regulation , Subsidies to domestic Industries

4. Effect of Trade Barriers Consumption Effect Price Effect Revenue Effect Terms of Trade Effect BOP effect Income and Employment Effect

5. Category of goods Restricted Canalized Prohibited Goods not specified in the above mentioned categories can be freely imported without any restriction, if the importer has obtained a valid IEC. There is no need to obtain any import license or permission to import such goods. Most of the goods can be freely imported in India.

6. Classification contd … Licensed (Restricted) Items Restricted items can be imported only after obtaining an import license from the relevant regional licensing authority. The goods covered by the license shall be disposed of in the manner specified by the license authority, which should be clearly indicated in the license itself. The list of restricted goods is provided in ITC (HS). An import license is valid for 24 months for capital goods, and 18 months for all other goods. Canalized Items Canalized goods are items which may only be imported using specific procedures or methods of transport. The list of canalized goods can be found in the ITC (HS). Goods in this category can be imported only through canalizing agencies. The main canalized items are currently petroleum products, bulk agricultural products, such as grains and vegetable oils, and some pharmaceutical products. Prohibited Items These are the goods listed in ITC (HS) which are strictly prohibited on all import channels in India. These include wild animals, tallow fat and oils of animal origin, animal rennet, and unprocessed ivory.

7.   Most of import items fall within the scope of India’s EXIM Policy regulation of Open General License (OGL).  This means that they are deemed to be freely importable without restrictions and without a license, except to the extent that they are regulated by the provisions of the Policy or any other law. Imports of items not covered by OGL are regulated and fall into three categories: banned or prohibited items, restricted items requiring an import license, and "canalized" items importable only by government trading monopolies and subject to Cabinet approval regarding timing and quantity.

8. Capital goods can be imported with a license under the Export Promotion Capital Goods plan (EPCG) at reduced rates of duty, subject to the fulfilment of a time-bound export obligation.  The EPGC plan now applies to all industry sectors.  It is also applicable to all capital goods without any threshold limits, on payment of a five percent customs duty.

9. Actual User License On the basis of product to be imported and its target buyer, importers categories are divided into three groups for the purpose of obtaining import licensing: Actual Users- An actual user applies for and receives a license to import of any item for personal use rather than for business or trade purpose. Registered exporters; defined as those who have a valid registration certificate issued by an export promotion council, commodity board or other registered authority designated by the Government for purposes of export-promotion. Others. The two types of actual user license are: General Licenses : This license can be used for the imports of goods from all countries, except those countries from which imports are prohibited; Specific Licenses: This license can only be used for imports from a specific country.

10. Must read links https:// www.eximguru.com / exim /guides/how-to-import/ch_6_import_license.aspx