International trade between different countries is an important factor in raising living standards, providing employment and enabling consumers to enjoy a greater variety of goods.
International trade has occurred since the earliest civilizations began trading, but in recent years international trade has become increasingly important with a larger share of GDP devoted to exports and imports.
With an increased importance of trade, there have also been growing concerns about the potential negative effects of trade – in particular, the unbalanced benefits with some losing out, despite overall net gains.
Importance of trade
Make use of abundant raw materials
Some countries are naturally abundant in raw materials – oil (Qatar), metals, fish (Iceland), Congo (diamonds) Butter (New Zealand). Without trade, these countries would not benefit from the natural endowments of raw materials.
Comparative advantage of trade
Even if one country can produce two goods at a lower absolute cost – doesn’t mean they should produce everything. India, with lower labour costs, may have a comparative advantage in labour intensive production (e.g. call centers, clothing manufacture). Therefore, it would be efficient for India to export these services and goods. While an economy like the UK may have a comparative advantage in education and video game production. Trade allows countries to specialise. More details on how comparative advantage can increase economic welfare. The theory of comparative advantage has limitations, but it explains at least some aspects of international trade.
A major driving factor behind the trade is giving consumers greater choice of differentiated products. We import BMW cars from Germany, not because they are the cheapest but because of the quality and brand image. Regarding music and film, trade enables the widest choice of music and film to appeal to different tastes. When the Beatles went on tour to the US in the 1960s, it was exporting British music. Relative labour costs were unimportant.
Perhaps the best example is with goods like clothing. Some clothing (e.g. value clothes from Primark – price is very important and they are likely to be imported from low-labour cost countries like Bangladesh. However, we also import fashion labels Gucci (Italy) Chanel (France). Here consumers are benefitting from choice, rather than the lowest price
Specialisation and economies of scale
Another aspect to be noted is that it doesn’t really matter what countries specialise in, the important thing is to pursue specialisation and this enables companies to benefit from economies of scale which outweigh most other factors. Sometimes, countries may specialise in particular industries for no over-riding reason – it may just be historical accident. But, that specialisation enables improved efficiency. For high value added products, multinationals often split production process into a global production system. For example, Apple design their computers in the US but contract the production to Asian factories. Trade enables a product to have multiple country sources. With car production, the productive process is often even more global with engines, tyres, design and marketing all potentially coming from different countries.
Service sector trade
Trade tends to conjure images of physical goods import bananas, export cars. But, increasingly the service sector economy means more trade is of invisibles – services, such as insurance, IT services and banking. Even in making this website, I sometimes outsource IT services to developers in other countries. It may be for jobs as small as $50. Furthermore, I may export a revision guide for £9.50 to countries all around the world. A global economy with modern communications enables many micro trades, which wouldn’t have been as possible in a pre-internet age.
- NOTIFICATIONS 2017-2018
- Export Policy of Onions – Imposition of minimum Export Price (MEP)
- Amendment in import policy condition of Urea under ITC (HS)Code 3102 10 00 of Chapter 31 of ITC (HS), 2017 – Schedule – I (Import Policy)
- Nofication of `Indian Trade Classification ( Harmonised System) of Export Items, 2018 [ Schedule 2, Export Policy of ITC (HS), 2018]
- Export Policy of Onions â Removal of Minimum Export Price (MEP)
- Updation in Para 4 (A) of General Notes Regarding Import Policy of ITC (HS), 2017, Schedule – I (Import Policy)
- Amendment in import policy condition of pepper classified under chapter 09 of ITC(HS), 2017-Schedule -1(Import Policy)
- Amendment in the Foreign Trade (Exemption from application of Rules in certain cases) Amendment Order, 2017.
- Amendment in Para 2.17 of the Foreign Trade Policy 2015-20 on “Prohibition on direct or indirect import and export from/to DPRK (Democratic People`s Republic of Korea) in terms of UNSC resolutions concerning DPRK.
- Amendment in import policy and policy condition of pepper classified under Chapter 09 of ITC (HS), 2017 – Schedule-1 (Import Policy).
- Amendments to Foreign Trade Policy 2015-2020 – Extension of Integrated and Goods and Service Tax (IGST) and Compensation Cess exemption under Advance Authorisation and EPCG Scheme till 01.10.2018.
- Amendments to Foreign Trade Policy 2015-20 – Extension to Integrated Goods and Service Tax (IGST) and compensation Cess exemption under EOU Scheme till 01.10.2018
- Amendment in import policy conditions of apples under Exim code 08081000 of Chapter 08 of ITC (HS), 2017 – Schedule -1 ( Import Policy)
- Amendments in Foreign Trade Policy 2015-2020, related to import of Raw Sugar under DFIA Scheme -reg
- Amendment in Para 2.31 of Foreign Trade Policy, 2015-2020
- Insertion of Policy conditin under Chapter 41, 42 and 43 of ITC (HS), 2017 – Schedule -1 ( Import Policy)
- NOTIFICATIONS 2018-2019
- Amendment in the import policy of Peas under Chapter 7 of the ITC (HS) 2017, Schedule -I (Import Policy).
- Amendment in para 2.47 of FTP 2015-20
- Amendments to Foreign Trade Policy 2015-2020 – Extension of Integrated Goods and Service Tax (IGST) and Compensation Cess exemption under Advance Authorisation, EPCG and EOU scheme upto 31.03.2019
- Amendment in Export Policy of Chemicals under Appendix 3 (SCOMET items) to Schedule -2 of ITC(HS) Classification of Export and Import Items, 2018
- Amendment in import policy and policy condition of pepper classified under Chapter 09 of ITC (HS), 2017–Schedule–1(Import Policy).
- Amendment in import policy of Peas under Chapter 7 of the ITC (HS) 2017, Schedule -I (Import Policy).
- Withdrawal of Notification No.15 dated 02.07.2018 regarding amendment in import policy of Peas under Chapter 7 of the ITC (HS) 2017, Schedule -I (Import Policy)
- Corrigendum to Notification No.25/2015-2020 dated 17.08.2018
- EXPORT POLICY OF BIO-FUELS
- Amendment in import policy of biofuels
- Export policy of Beach Sand Minerals (BSM) in Chapter 26 of Schedule 2 of ITC(HS) Classification of Export and Import Items 2018 – regarding
- Amendment of Import Policy Condition of Petcoke
- Amendment of Policy Conditions of Urea under Chapter 31 of the ITC (HS) 2017, Schedule – I (Import Policy).
- Amendment in Para 2.47 and Para 3.05 of Chapter-3 of FTP 2015-2020.
- In supersession of Notificatoin No.35/2015-2020 dt. 17.01.2017 amends the Import Policy of Arecanut.
- Insertion of import policy conditions under Chapter 29 and 30 of the ITC (HS) 2017, Schedule-I (Import Policy).
- Addition of Vishakhapatnam port for import of new vehicles.
- Corrigendum to Notification No. 09/ 2015-2020 dated 28.05.2018-reg.
- Amendment in Appendix 3 (SCOMET Items) to Schedule-2 of ITC(HS) Classification of Export and Import Items,2018.
- Amendment in import policy of fresh ginger under Chapter 09 of the ITC (HS) 2017, Schedule – I (Import Policy).
- Amendment in import policy of Peas under Chapter 7 of the ITC (HS) 2017, Schedule-I (Import Policy)
- Prohibition on import of milk and milk products from China.
- Amendment in Foreign Trade Policy 2015-20
- Supply of essential commodities to the Republic of Maldives during 2018-19.
- Amendment in impot policy conditions of Natural Rubber under Exim Code 4001 10 of Chapter 40 of ITC(HS), 2017 – Schedule – 1 (Import Policy).
- Export Policy of Edilble Oils – Removal of Prohibition on Export of all varieties of Edible Oil, except Mustard Oil
- Incorporatoin of new HS Codes for laying down import policy for Kabuli Chana, Bengal gram and Others under Exim Code 0713 of Chapter 07 of ITC (HS), 2017, Schedule – I (Import Policy).
- Amendment in import policy conditions under Exim Code 9022 of Chapter 90 of ITC (HS), 2017, Schedule – I (Import Policy).
- Amendment in import policy of ea under Chapter 7 of the ITC (HS) 2017, Schedule â I (Import Policy)
- Amendment in Para 1.05(b) Foreign Trade Policy 2015-2020
- Amendment in import policy of Beans of the species Vigna mungo (L) Hepper or Vigna radiate (L) Wilczek under Chapter 7 of the ITC (HS) 2017, Schedule â I ( Import Policy)
- Insertion of a new Policy condition under Chapter 87 of ITC (HS), 2017 – Schedule – I (Import Policy)
- Amendment in Para 3.08 (b) of Chapter-3 of FTP 2015-2020.
- Amendment in the Chapter-1 of FTP 2015-2020
- Amendments in para 6.08 (b) of Foreign Trade Policy 2015-20.
- PUBLIC NOTICES 2017-2018
- Amendments in Appendix 4J of Hand Book of Procedures 2015-20.
- Amendment in Chapter 2 of the Handbook of Procedure (2015-20).
- Merchandise Exports from India Scheme (MEIS) benefit for Bengal-gram under ITC(HS) code 07132000 upto 20.06.2018
- Correction in Entry No.8019 of Table 2 of the Appendix 3B – Merchandise Exports from India Scheme (MEIS).
- Processing of Merchandise Exports from India Scheme (MEIS) applications for SEZs Exports.
- Amendments in Hand Book of Procedures 2015-2020, related to import of Raw Sugar under DFIA scheme -reg
- Amendment inPara 2.54 of teh Handbook of Procedures, 2015-2020.
- PUBLIC NOTICES 2018-2019
- Onetime condonation under the EPCG Scheme – Extension till 30.09.2018.
- Amendments in Table 2 of Appendix 3B Foreign Trade Policy 2015-2020
- Enlistment as designated port in para 2.54 (d) (iv) Handbook of Procedures, (2015-20)
- Amendment of Para 2.54 (d) (v) iv in Handbook of Procedures, 2015-2020
- Implementation of the Track and Trace System for export of pharmaceuticals and drug consignments alongwith maintaining the parent-child relationship in the levels of packaging and their movement in supply chain – extension of date implementation regarding
- Amendments in standard input output norms, Appendix-4B and Appendix 4J of Hand Book of Procedures 2015-20
- Amendments in Appendix 3B of the Foreign Trade Policy 2015-20
- Inclusion of GIA, Israel and GIA, Japan as authorized laboratories for certification/grading of diamonds of 0.25 carat and above.
- Maintenance of Annual Average Export Obligation.
- Enhancement in rate of rewards for MEIS Sl.No.207, HS Code 07122000.
- Enlistment under Appendix 2E – Agencies Authorized to issue Certificate of Origin – (Non-Preferential).
- CIRCULARS 2017-2018
- Guidelines on monitoring /revalidation of Bank Guarantee-regarding
- Order of the High Court, Hyderabad in W.P. No.34771/2014 in respect of item at EXIM Code 1005 Maize (Corn)
- Relief in Average Export Obligation in terms of Para 5.19 of Hand Book of Procedures of FTP 2015-20
- Clarification regarding export policy of onions – Removal of Minimum Export Price (MEP) and Letter of Credit (LC)
- CIRCULARS 2018-2019
- Clarification regarding export policy of Roasted Gram – Removal of packing restriction.
- Service Providers (and not Ports) are eligible for SFIS/SFIS benefit
- Clarification on the term `Duty` under Sl.No.3 of Appendix-3A of Foreign Trade Policy 2015-2020.
- Clarification of SEIS benefits to Steamer Agents, etc.
- TRADE NOTICE 2017-2018
- Implementation of Notification No. 19 dated 5.8.2017
- Directions to Bank
- Establishing, Contact@DGFT service as single point contact for all Foreign Trade related issues
- Non-Compliance of Sanitary and Phyto-Sanitary measures by Indian Exporters/Importers.
- Implementation of Notification No.22 dated 21.08.2017
- Import of raw sugar under TRQ at 25% customs duty.
- Implementation of MoU between India and Mozambique for import of pigeon peas and other pulses grown in Mozambique -reg
- Application fee for grant of import authorization
- Advise to exporters to promptly check shipping bill transmission status on ICEGATE and DGFT website
- Information on details of shipping bills in cases where exporters who have inadvertently ticked `N`(for No) instead of Y“(for Yes) in “Reward”cloumn of shipping bills while filing the EDI shipping bills, but have declared the intent in the affirmative (in wording) in the shipping bill
- Launch of e-MPS- facility to make online payment for miscellaneous applications
- Processing of MEIS applications under FTP 2015-20 in terms of Public Notice 62 dated 16.02.2018
- TRADE NOTICE 2018-2019
- EODC Monitoring System for Advance/EPCG Authorisations.
- Launch of facility to check status of Importer Exporter Code (IEC) application made to DGFT
- Applicability of provisions of para 2.20 of HBP, 2015-20 on Advance Authorisations issued under 2009-14, FTP – reg
- Eligibility of IT enavled Services under Appendix 3D of the Services Exports From India Scheme of the Foreign Trade Policy 2015-20
- Implementation of Notification No.4 dated 25.4.2018
- Laying down of modalities for import of Pigeon Peas ( Cajanus Cajan)/ Toor Dal, Moong/Urad dal for the fiscal year 2018-2019
- Non-submission of complete Appendix 4E, containing technical details, chemical reactions and data sheet for advance authorisation applications on self declaration basis under Para 4.04 and 4.07 of HBP for cases relating to NC-4
- Public Notice No.33 dated 23.10.2017 applied to all scrips under Chapter 3 of FTP.
- Implementation of MOU between India and Mozambique for import of pulses from Mozambique.
- Clarification regarding DGFT Notification No.4 & 5.
- Extension of date for mandatory digital payment through e-MPS
- Implementation of Notification No.4 dated 25.4.2018 -reg
- Quota allotted under the Indo-Sri Lanka Free Trade Agreement : Minutes of the Meeting dated 9.5.2018
- Guidelines for filing/processing of MEIS applications in case of Project Exports
- Doing away with the requirement of DSC for online/digital payment through e-MPS.
- Benefit of Focus Product Scheme to HS Code 8481-FTP 2009-14
- EODC Camp in RAs during 11.6.2018 to 22.6.2018.
SEZ Act / Rules
- The document contains FAQs and the consolidated list of changes made in the SCOMET list vide Notification no. 5/2015-2020 dated 24.04.2017
- The FAQs and Guidelines on India’s export control policy clarify the basic questions related to Policy and Procedures
- Appendix 3 containing the list of SCOMET items
- Amendment in Para 2.17 of the Foreign Trade Policy 2015-20 on “Prohibition on direct or indirect import and export from/to DPRK (Democratic People`s Republic of Korea) in terms of UNSC resolutions concerning DPRK
- Amendment to Paragraph 2.72 (b) of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20. -reg
- Amendment in Appendix 3 (SCOMET items) to Schedule -2 of ITC(HS) Classification of Export and Import Items, 2012. -reg
- Amendment in paras 2.16, 2.20, 2.51, 2.74, 2.79 and 2.80 of the Handbook of Procedures (HBP) of Foreign Trade Policy (FTP) 2015-20 -reg
- Amendment in export policy for export of chemicals listed under SCOMET Category 1C of Appendix 3 of Schedule 2, ITC(HS) Classification of Export and Import Items
- SCOMET Export permission for ‘Stock & Sale’ purpose
- Amendments in Paras 2.72, 2.73, 2.74,2.81 & 2.82 and Appendix 2S of the Handbook of Procedures, 2015-2020
- Amendment in Table A of Schedule 2 and Appendix 3 of ITC(HS) Classification of Export and Import Items
- ANF Form concerning SCOMET export licence