EDP(EXPORT HOUSE AND TRADE HOUSE IN INDIA)SEM VI CA/IT/CM
EXPORT HOUSE AND TRADE HOUSE IN INDIA
In order to encourage business specialized import trade export house scheme was introduced in 1961. To get recognition as export house they should have a broad program of export and future export plans. They should also maintain quality and delivery schedule and high standard of performance of export contract. This scheme was reviewed a number of times in order to make it more effective. Under the new policy the export houses are granted the following activities
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Import replenishment license eligible to them as registered exporters
Import replenishment licenses transferred to them by others
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Deemed export benefits- The producers who supply the inputs to exports are considered as indirect exporters and become legible for certain export benefits. Certain suppliers, which are effective form of replenishment substitution, are termed as deemed exporter. They qualify for grant of REP license and the discharge of import obligation
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Import /export passbook scheme- This scheme enables the export house and manufacturers and exports having good track record to import duty-free raw materials. The new import policies has extended the coverage of this scheme even to all well distributed manufacturers
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Import of canalized items against REP license- This says that the holders of the REP license are permitted to import canalized items.
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Import of capital Goods- An actual industrial user can also use REP license for the import of capital goods with the approval of DGTT on the recommendation of the sponsoring authority. Import of samples upto Rs 15000 and import of tools upto the value of 10 % of the total value of the license are also permissible against REP license.
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Duty exemption scheme- This scheme permits the import of raw materials, components, consumables and spares meant for export promotion duty free. It covers 6 categories such as advanced license blanket advanced license and advance custom clearance permits. Besides these there are 3 more. The purpose of this scheme is to provide benefits to indirect exporters.
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100% export oriented units- These units are exempted from imports licensing formalities. They may import capital goods raw materials components consumables spares under the open general license. On the condition that their entire production is imported and the operations are under customers boundary factory
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Cash assistance:-The objective of this assistance scheme is to enable exporters to meet competitions in foreign markets by overcoming price disparities due to decrease in the value in rupee.
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Duty drawback & excise rebate: - The drawback scheme is one in which export product get relief of incidence of customs & excise duty paid on raw materials & components & various stages of production. In this context the drawback is defined on a rebate of duty chargeable on an excisable materials used in the manufacturing of goods exported from India. No duty draw back is played on claim where there is negative export earning.
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Exemption from excise duty: -Finished products are exempted from payment of excise duty when they are exported out of India. Exemption can be obtained either by way of rebate of duty on goods exported or by export under bound. Under the first system the manufactures has to pay the duty initially which will be funded subsequently on the export of relevant good. Under the next system manufactures can export the goods without prior payment of duty but subject to execution of bond with security for a sum equivalent.