Export Promotion Organization

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ARVIND YADAV

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    EIM(l2)

    EXPORT PROM OTION ORGANIZATIONS

    In order to support the export ac tiv ities by all interested parties the Government and Industry have established a number of Organizations which are primarily invol Vf; cI in promoting Indian exports and al so address ing the various issues faced by exporters from time to time.

    The main features of an Export Promotion Organization are:

    They act as service organiza tion s for promoting exports and are not involved in trading.

    They work to create 1\ f:H'OU n lhle image and awareness ofIndia"s industry , products and their potential in fOTCig!1 markets.

    They make their ser ,ices availa b~e to Indian exporters both easily and cconolllicdly .

    They have been largely f0n11l'd due to government initiatives to create an institutional infrast.-ucturc for exports.

    "[hey provide non finar:dal a ' ~is tallcc to exporters which help them in ge tt ing ~lIppo rt rrom fillanci al and governl11c'1( incl'ntive schemes.

    11 Exnort Promotion Cou ncils (EPe) : These are nOI1 profit organi za tions regis tered under the Societies Registration Act or Companies Act and are financially sup po rted by the Central Governm nt. There are 27 EPC's operating in India. Some of them arc:

    Apparels EPC / Basic Chemicals and Pharmaceuticals EPC / Cotton EPC / Cmpet EPC / Cashew EPC / Engineering EPc / Gems and Jewellery EPC / I-Iandloom EPC / Indian silk EPC / Council for Leather Export,Plastic s & Linoleum EPC / SP0l1S Goods EPC / Shellac EPC / Wool & \voolens EPC / E:Jcc tronics anci computer software EPC / Handicraft EPC / EPC for EOU 's an SETs / Proj cCl EPC I Agricultural & Processed Food Product ExportDevelopment Authority / Federation of Indian EXp0l1 organization(FIEO) / Marine Product Export Development Authority.

    Functions of EPC :

    To Liaison between exporters and Go vernment and help making EXIM policies

    To issue Certificate of Origin to Exporters for use in certain countries.

    To Collect & Supply Information on overseas import, import regulations, competitors , market potential and other areas in foreign trade.

    Organising meetings / seminars / workshops for exporters and foreign costomers.

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    Assist in organizing Trade Fairs in India and abroad. Arrange buyer-seller met ings , Arrange for sending trade d legations abroad or from abroad to India

    To render Professiona l advice to Exporters in areas of technology dc\ 'I f llle nt ,md upgradation, product quu lity and desig n improvement, standards and speci fic ali Jl dC.

    Exploration of Export Markets and Identify items for expo11s.

    2) Commoditv Board :

    Commodity Boards have al so been set up by GOI for natural commodities like tea , coffee, spices etc and they also perform similar functions like EPC's above to promote exports of these produc ts.

    3) Marine Products Export Development Authority (MPEDA) :

    MPRDA is established by GOI in 1972, with headquarters in Cochin ,Kerala and two offices in Tokyo and N~w Yo rk . It looks after all the aspects of marine products exports and regulates its growth.It undertakes the mandatory regi stration o r fishing vess el s, processing plants, stor" ge premi ses and expo11ers.lt fixes standards and spec ifi cati ons of export marine products . It promotes exports by trade fa ir pan ic ip;ll ioll of its members ,advert isi ng lias ion ing vvith foreign buyers, training to lr d i,lllS ill nwrine products and e~: po rt s etc .

    4) Agricultural & Processed Food Products Export DcvcloPlllUll Authority (APEDA) :

    The APEDA is an autonomous body with headquarters in Delhi and is attached with the

    commerce ministry of GOL Its functions are;

    a) It registers its members, fixes product standards & specifications, sets packaging

    standards, develops and trains mnnpower, invites trade delegations fr0111 abroad, arranges

    for participation of its members in national & international trade fairs in India and

    abroad, gives annual awards to encourage leading exporters etc.

    b) Development of the Agriculture and Processed Food industri es by pro \'id ing financial

    assistance, undertaking feasibililY s ludies, equity participation, re lief & suhsidy schemes.

    c) Improvement in quality and technology upg radation by regular inspection of products,

    processes, storage houses and transportation methods.

    d) Collection and di ssemination of information from members and fore ign markets.

    e) Advi sory role ' It provides recommendations and support to exporters. It helops solve

    their problems and explains to them about foreign markets rules and regulations, export

    procedures etc.

    5) Federation of Indian Exporters Organization (FlEO):

    Established in 1965 FIEO is an apex body of various export bodies in the country . It works with the GOI as a partner to promote Indian exports. Its main functions are: a) International Linkage :

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    It is connected to international bodies like UNCTAD, ADB,IMF, World Bank, UNIDO etc and has relations with similar bodies in various countries which helps in establishing links between Indian and international businesses. It is in touch with foreign Chamber of Commerces, trade

  • The EIC was set by GOI in 1963 to provide support to development of export trade thru quality and pre- shipment inspection.!t also has powers to search and sei ze commodities, initiate proceedings against erring manufacturers / exporters, 'vvi thhold or cancei inspecti on cert ifi cC1 tes issued by inspection agencies. Over 1000 items are subject to compulsory pre-shipmen t inspection. It has five EIe centres at Mumbai, Cochin, Kolkarta , Delhi and Chennai for inspection of export good s. It ha~ al so a Pilot Test House at MUi11bai for tes ti ng of products to meet internati onal staqr l"rds in its chemical, electrical and mechan ical laboratories. It also coUecrs, di ssem inates information in quality and test ing procedures and also advises government and other exporters for meeting and setting qllaEty standards. It organizes training of personnel in area of testing and inspection. It a lso issues General System of Preference (OSP) ce rrifi.cates needed to take advantage' given by certain preference giving countries .

    10) Indian Institute of P acka gin g (n~) :

    The IIP was set up in 1966 in Mumbai with the objective of g iving the Indian exporters guidance and trai ni ng in packaging techniques. It helps to remove shortcomings in packaging and a ims to make it export worthy. It collects information on latest international packagi ng methods and provides it to Indian exporters. It is basically a service organi zati n. It is th only agency in India to provide th e UN cert ificati on mark to dangerous goods packaging before they can be exported. It undertakes research in packagin g raw mate ria ls, arranges testing of packaging materi a ls, advi ses on packaging material s to redu ce environmental threats . It create s awareness Cor right packaging materi a ls to 3\'n i t! transit losses due to poor pac J,; ag ing ~lil cI publi shes quarterly magazines.

    II) Indian Coundl uf Arbitnltion (lCA) :

    The lCA was estabii sheci in 1965 in N ew Delhi to promote the settl ement of commercial disputes through arbitmtion instead of costly legal proc;;sses esp in illternational trade. The jurisriiction of the council can only be invoked if a clause to se ttle dispute through is there in the contact be tween the parties.The procedure of arbitration is governed by the rules of arbitration laid down by the council. It has settled a large number of disputes in a peaceful manne r.

    12) Directorate General of Cummercial Intelligence and Statistics (DCCI&S):

    The DGCI&S is the oldest agencies in India and was se t up in Kolkatta in 1862 It is a nodal agency fo r the GO I and collects, compiles, and di sseminates trade statistics and variolls types of commercial information needed by policy makers, importers, exporters, researchers and others . It captures data from major and minor ports daily trade tllrn over and processes it thru variolls check operations. It provides quick estimates to GOI for its assessment of foreign trade for any polcy interventions etc. It supplies information on a payment basis to various users. It resolves Commercial disputes referred to it by Indian embassies abroad, EPe's, RBI and Chambers of Commerce etc. it provides commercial intelligence to to exporters with names and addresses and also commodity and countrywise export information. It also has a functioning Commercial Library giving free information to traders, government bodies, manufacturers, students, researchers etc.

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    13) Chambc,'s of Comme,'ce :

    The Chamber of Commerce are volunta,y non-profit and democratic associatIOns of traders, businessmen, professional and industrialists o r tl specific d iscipline or general. They have the power to issue Certificate of Origin to members .They arrange for discussions amongst members on common problems.They make recommendations and representations to the government. They organize sending and receiving of trade delegations to and from abroad, Some of them arrange short training courses for in export management for benefit uf their members.The Indian Merchant Chamber of Commerce (IMCA) and association of Chambers of Commerce (ASSOCHAM) are examples.

    14) Software Technology Par ks (STP) Scheme. :

    Under STP scheme, a software development unit can b~ set lip for software development, data entry, data processing, data analysis, and control clata management and call centre services for exports .a unit can also be set up for manuj~lcturing of hardware and software in an integrated manper for e, ports. They can import goods withoutpayment of duties as per EXIM policy. Looki ng to their special nature specific provisions are made in the foreign trade poli cy for their export promotion.

    15) IOO (1., E xport Oriented Unit (EOU):

    EOU schen' c \';as imple mented in 1981. EO U' s are i ll mens og engineering, chemical s, food products , pl

  • every year. Nearly 3.62,650 persons were employed ill SEZ's and the total investment is

    more than rs 1 lac crore.

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