International-Business-Dr-R-Chandran-E-book

AGREEMENTS OBJECTIVE OF
AGREEMENT
Licensing
Procedures
1.f. Rules
applicable on
Exports.
transparency in
issuance of
import licenses
and also
prescribes time
limits for
licenses to be
issued
• Allows export
product to be
relieved to
indirect taxes
(e.g. Excise)
prohibits direct
tax benefits
(e.g. Income
Tax waivers on
export earnings
• Also allows
countries to
levy duties on
exports for
controlling it, if
situation so
demands, but
prohibits other
restrictions
(except in few
cases)
166
International Business- Dr. R. Chandran
IMPACT ON
INDIAN
POLICY/ LAWS
progressively
improved,
though still far
from being
perfect. Delays
& misuse of
discretionary
powers
frequent. EDI
being put in
place.
• Foreign Trade
Policy provides
schemes to
neutralize the
incidence of
indirect taxes*
e.g. DEPB*,
Adv. License,
Spl. Imp.
License etc &
Draw Back.
• Govt provides
IT waver# on
export earnings
(80HHC of IT
Act)
• e.g. Customs
duty on import
contents used
in export
product, excise,
sales tax/VAT
etc. Few
countries have
launched
BUSINESS
IMPLICATIONS
within India and
in other countries
will have a
positive tall out
for small
businesses that
are usually at the
receiving end of
restrictive policy
environment.
• Exporting
companies have
right to demand
from Govt. such
schemes that
neutralize the
incidence of
indirect taxes on
the export
product. In
absence of such
schemes Indian
products will be
at serious
disadvantage
internationally as
all countries have
such schemes in
place.
• The IT waiver on
export earnings is
temporary
measure;
• According to an
EXIM Bank
Only for Private Circulation