IB03
Import Export Documentation
(For CNM Cases)
Assignment II
Assignment
Code: 2016IB03A2 Last Date of Submission: 30th April 2016
Maximum Marks: 100
Attempt all the questions. All the questions are compulsory and
carry equal marks.
Section-A
1
Export Promotion Capital
Goods Scheme (EPCG) has been revised by Director General of Foreign Trade in 2012 and 2013. What
are the major amendments in this scheme?
What penalties/
punishments DGFT can impose In case an exporter does not fulfill the Export Obligation under the Scheme?
2 What do you mean by Status Holder
Scheme under the foreign Trade Policy 2009-14? What
special incentives/ benefits are
available to the Status holders in India? Discuss the minimum limit of FOB/FOR Export value for all the
categories of Status holders.
3
Explain the salient features of Foreign Trade (Development &
Regulations) Act, 1992 and explain
the role of Board of Trade in deciding the Foreign Trade Policy of India.
4 Write short notes on
(a) Electronic Data Exchange
(b) Export Oriented Units
(c) Export Bill
(d) Delivered at Terminal (DAT)
(e) Delivered at Place (DAP)
Section-B
Case
Study: Read the following case carefully and answer the
questions given at the end
India is
facing stiff competition in the world markets for export of rice. Besides,
there are many domestic problems for rice exporters. If these internal problems
are relaxed to the extent possible, the exporters may find easy way to boost
rice export and such measures will go a long way to sustain the exports. Some
of the major problems are as under:
As per
the state Govt. policy, various taxes are imposed on rice exports, such as the
states are imposing Purchase Tax (on indirect export), Market Fees, Rural
Development Fund, Administrative Charges etc. These taxes are rendering the
pricing of rice internationally in competitive. Thus, Indian rice becomes
costlier in the international market as compared to other competing countries
in the world and Indian rice exports get setback many times. In fact, in
Pakistan rice meant for exports specially the branded ones; duties are
extremely low or duty free.
There is
lack of proper infrastructural facilities. Many times exporters, when they
carry their stock to sea port and if the stock is not loaded due to some reason
or the other, exporters do not find a warehouse or proper place to store their
stocks properly and safely at sea port, exporters have to face lot of difficulties,
besides, it adds additional expenditure to the exporters. Due to increase in
the cost of inputs used for paddy cultivation the production cost goes up and
the Minimum Support Price (MSP)
for paddy is enhanced every year by the govt. of India to safeguard the
interest of the growers. When paddy is converted to rice, it becomes costlier
and thus makes it internationally uncompetitive. Rice production meant for
export purpose is having subsidy in other countries, which reduces their cost
of production and thereby reducing the cost of rice. Therefore, the export
price of rice of such countries is more competitive in the international
markets compared to Indian rice. The major rice producing nations have
decreased the price to capture the international markets but Indian rice prices
are inelastic due to relatively high cost of production and become
uncompetitive in the international markets. Much of basmati rice export
prospects have been lost in the recent part to other competing countries like
Pakistan etc because of high prices. Rice mills have not been fully modernized
to ensure high milling recovery and reduce the percentage of broken rice. The
conventional rice mills are having Rubber Roll Sheller in which percentage of
broken rice is more than the modern rice mills that are having under Runner
Sheller. Hence, head rice obtained from milling of conventional mills becomes
costly due to recovery of higher percentage of broken rice. Therefore,
conventional mills are required to be modernized to get recovery of higher
percentage of head rice suitable for export. Lack of proper arrangements for
production of sufficient quantity of quality seeds needed for cultivation of
rice for export purposes.
The
export is also suffering much due to the competition from other exporting
countries like Thailand, Vietnam and Pakistan because the cost of production in
these competing countries is low as compared to the cost of production in
India. In fact, trade segment believes that Indian rice can face the global
competition if subsidy is provided. In these days basmati rice is facing aroma
problem, because intensity of aroma in traditional basmati varieties is not as
high as it used to be. Also Basmati varieties are highly prone to lodging and
lodging affects the natural grain development. In such situation both aroma and
linear kernel elongation are affected. Post harvest handling of produce is
another important aspect. Generally, farmers are harvesting the crop at
different moisture levels and keeping the produce at higher moisture level for
a longer period will impair the intensity of aroma.
In
absence of genetically pure seed of basmati varieties, in majority of basmati
rice fields, a variation in plant height, grain size and maturity of the crop
is found. This is one of the major reasons for poor quality of basmati rice. In
fact, at the time of rice processing the grain size can be taken care of, but
it is a waste. However, using good quality seed the loss can be converted into
profit.
5. Case Questions:
a. List
out the problems of Rice Exporters of India.
b. Suggest
the measures to overcome these problems.
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