What "EXIM Policy" Actually Means
In India, "EXIM policy" is an informal umbrella term covering at least four distinct regulatory layers: the Foreign Trade Policy (FTP) issued every five years by the Ministry of Commerce; DGFT notifications that amend specific scheme provisions; Customs notifications from the CBIC on duty rates and import conditions; and RBI/FEMA circulars governing foreign exchange aspects of trade. Navigating them requires knowing which layer governs your specific situation.
India's Foreign Trade Policy (FTP 2023): What Changed
FTP 2023 replaced the FTP 2015–2020 framework with a stated shift from incentive-based support to entitlement-based and remission-based instruments. The headline change was the replacement of MEIS (which WTO-ruled against India) with RoDTEP — a scheme that refunds embedded taxes rather than providing direct export subsidies.
Key Export Promotion Schemes at a Glance
- RoDTEP — Remission of Duties and Taxes on Exported Products; administered by CBIC
- Advance Authorisation (AA) — duty-free import of inputs for export production
- EPCG — duty-free import of capital goods against export obligation
- DFIA — duty-free import for post-export replenishment
- EOU/SEZ — production in bond with duty/tax exemptions on inputs and domestic sales
- SEIS — Service Exports from India Scheme (under review post-WTO ruling)
How to Read a DGFT Notification
DGFT notifications are published at dgft.gov.in and typically amend a specific chapter of the ITC(HS) schedule or a specific scheme procedure. Each notification has a reference number (format: DGFT Policy Circular No. XX/YYYY-YY or Public Notice No. XX/YYYY-YY), an effective date, and a reason section. The reason section is often where the real policy intent is buried.
Customs Duty Structure: Calculating Landed Cost
The total customs duty on an imported product is not just the Basic Customs Duty (BCD). It includes the Social Welfare Surcharge (SWS) calculated on BCD, IGST on the CIF + BCD + SWS value, and in some cases a Compensation Cess. Missing any component leads to significant landed cost miscalculation.
RBI/FEMA Compliance for Exporters
Exporters must realise export proceeds within 9 months from the date of shipment (15 months for Status Holders) and submit the realisation evidence via EDPMS (Export Data Processing and Monitoring System). Failure triggers caution listing, which blocks future Letters of Credit and can lead to enforcement action under FEMA.