Economy / Foreign Trade / Some Important terms.
Some Important terms.
- DGFT (Directorate General of Foreign Trade):
- Headed by the Director General of Foreign Trade.
- Responsible for formulating and executing exim (export and import) policy, including licensing.
- EPZs (Export Processing Zones) and EOUs (Export Oriented Units):
- EPZ: Special enclaves providing a duty-free environment for export production, separate from the national market (DTA - Domestic Tariff Area).
- EOU: Complementary to the EPZ scheme, dispersed in various locations, facilitating export-oriented production.
- Forfaiting:
- Finance companies collect money due to exporters from importers for a commission.
- Forfaiters assume risks associated with receivables.
- RoDTEP (Remission of Duties or Taxes on Export Product):
- Introduced in 2019 by the Government of India to replace the Merchandise Exports from India Scheme (MEIS).
- Monitored by the Ministry of Finance (MoF) and claimed to be WTO-compatible.
- Deemed Exports:
- Refers to inputs used in exports, receiving similar concessions as actual exports for promotion.
- EPCG (Export Promotion Capital Goods) Scheme:
- Allows manufacturers to import capital goods for export production at a concessional rate against a specified export obligation.
- EEFC (Exchange Earners Foreign Currency) Account Scheme:
- Introduced in 1992, enables exporters and other exchange earners to retain a portion of their receipts in foreign exchange with an authorized dealer in India.
- ITC (HS) - Indian Trade Classification (Harmonised System):
- System classifying products for export and import purposes.
- Counter Trade:
- International barter where goods are paid for with other goods.
- ASIDE (Assistance to States for Development of Export Infrastructure and other activities) Scheme:
- Scheme providing assistance to states for developing export infrastructure and related activities.
