Sarthaks APP
0 votes
774 views
in Business Studies by (57.2k points)

Explain the institutional support provided by the Government for the promotion of foreign trade.

1 Answer

+1 vote
by (51.5k points)
selected by
 
Best answer

Every country is interested in promoting its foreign trade, particularly exports. The government of India has introduced the following schemes for the promotion of India’s foreign trade.

1. Advance license Scheme: Under this scheme, an exporter is allowed duty free supply of domestic as well as imported inputs required for the manufacture of export goods. This scheme is available to both exporters who export on a regular basis and also to those who export on adhoc basis.

2. Export Promotion Capital Goods Scheme: This scheme is intended to encourage the import of capital goods for producing export goods. Under this scheme, export firms are allowed to import capital goods at negligible or lower rates of customs duties subject o actual user conditions and fulfillment of specified export obligations.

3. Export of services: Under this scheme, to boost the export of services, various ’ categories of service houses have been recognized on the basis of their export performance. They are referred to as service export house, International Service Export house and International Star service Export House on the basis of their export performance.

4. Export Finance: Exporters require finance not only for producing goods for export but also after the shipment of the goods, because it may take some time to receive payment from the importers. Therefore, two types of export finances are made available to exporters by authorized banks.

5. Duty Drawback Scheme: Under this scheme, goods meant, for exports are exempted from payment of excise and customs duty. Therefore, and such duty paid on export goods are refunded to exporters on the production of proof of export of goods, to the concerned authorities, such refunds are called customs drawbacks.

6. Export Manufacturing under Bond Scheme: Under this scheme, Business firms can produce goods without payment of excise and other duties. But the firms desirous of getting such a facility have to give an undertaking that they are manufacturing goods for exports purposes and will export such products on their production.

7. Exemption from Payment of sales Taxes and Income-Tax: Under this scheme, goods meant for export purposes are exempted from payment pf sales tax. Further, the income derived from export operations have exempted from payment of income tax a long time. However, at present, exemption from income- tax is available only to 100% export -oriented units and units set up in Export processing Zones/special Economic Zones for select years.

8. Scheme of Recognizing export firm as Export house, Trading House and Star Trading House: This scheme is intended to promote established exporters and help them in marketing their products in international markets. Under this scheme, the Government grants the status of Export House, Trading House and Star Trading House to select export firms. This status is granted to firms only on their achieving prescribed average export performance in the past select years and also on their fulfillment of other conditions as laid down in the import-export policy.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...