Institutions Connected With EXIM Trade

The primary aim to set up machinery for consultation is to create the required forum and environment for consulting various quarters interested and engaged in foreign trade.

It facilitates to develop a dialogue between Government, industry and the entrepreneurs, at various levels, to discuss varied problems faced by the enterprises and suggest necessary measures to solve the problems. Export is a dynamic industry and faces stiff international competition. It requires innovation, flexible approach and expeditious action to catch the swift changes that emerge as new opportunities. Further, orientation in attitude has to be developed to visualize and anticipate the changes that may overtake the scene. Equally, appropriate Government policies are important to support for rapid growth in international trade. To gear up with the changes, exporter needs guidance and assistance at different stages of export effort. For this purpose, Government has set up several institutions whose function is to support exporter in his endeavors. Institutions that are engaged in expo falls in six distinct tiers. The set-up is:

Department of Commerce

Primary Government agency responsible for formulating and directing Foreign Trade Policy and programs including establishing relations with other countries where needed

Board of Trade

Mechanism to maintain continuous dialogue with trade and industry for appropriate policy measures and corrective action by Government

Commodity specific organizations

Tackling problems connected with individual commodities and groups of commodities Service Institutions Assist exporters to expand their operations to reach world markets more effectively Government Trading organizations

Handling export/import of specified commodities & supplementing efforts of private enterprises in export promotion and import management

Government Policy Making and Consultations

The following bodies are involved in policy making and consultation process:

1. Department of Commerce

Ministry of Commerce is the apex ministry at the central level to formulate and execute India’s foreign trade policy and to initiate various exports promotional measures. e main functions of the Ministry are formulation of international commercial policy, negotiation of trade agreements, formulation of export-import policy and their implementation. has created a network of commercial sections in Indian embassies and high commissions various countries for export-import trade flows. It has set up an “Exporters’ Grievances dressal Cell” to assist exports in quick redressal of grievances. The department of Commerce, in the Ministry of Commerce, has been made responsible for India’s external trade and all matters connected with the same. This is the main organization to formulate and guide India’s foreign trade, formed with the responsibility of promoting India’s interest in international market. The Department of Commerce has six divisions and their functions are as under:

• Trade Policy Division: To keep abreast of the developments in the International organizations like UNCTAD, WTO, the Economic Commissions for Europe, Africa, Latin America and Asia and Far East
• Foreign Trade Territorial: Development of trade with different countries and regions of the world
• Export Products Division: Problems connected with production, generation of surplus and development of markets for the various products under its jurisdiction
• Export Industries Division: Development and Regulation of tobacco, Rubber and cardamom.
• Export Services Division: Export promotion activities relating to handlooms, textiles, woolens, readymade garments, silks, jute and jute products, handicrafts, coir and coir products Problems of Export Assistance
• Economic Division: Formulation of exports strategies, Export planning, Periodic appraisal and Review of policies

2. Board of Trade

It has been set up on May 5, 1989 with a view to provide an effective mechanism to maintain continuous dialogue with trade and industry in respect of major developments in the field of international trade. It provides regular consultation, monitoring and review of India’s foreign trade policies and operations. The board has the representatives from commerce and other important Ministries, Trade and Industry Associations and Export Services Organizations. It is an important national platform for a regular dialogue between the Government and trade and industry. The deliberations in the Board of Trade provide guidelines to the Government for appropriate policy measures for corrective action.

The Minister of Commerce is the chairman of the Board of Trade. The official membership includes Secretaries of the Ministries of Commerce and Industry, Finance (Revenue), External Affairs (ER), Textiles, Chairman of ITPO, Chairman/MD of ECGC, MD of Exim Bank and Deputy Governor of Reserve Bank of India. The non-official members are President of FICCI, ASSOCHAM, CH, FIEO, All India Handloom Weavers Marketing Co-operative Society.

Cabinet Committee regular and effective monitoring of India’s foreign trade performance and related policies

4. Empowered Committee of Secretaries

For speedier and quicker decision making, an Empowered Committee of Secretaries has been set up to assist the Cabinet Committee on Exports.

5. Grievances Cell

Grievances Cell has been established to entertain and monitor disposal of grievances and suggestions received. The purpose is to redress the genuine grievances, at the earliest. The grievance committee is headed by the Director General of Foreign. Trade. At the State level, the head of the concerned Regional Licensing authority heads the grievances committee. The committee also includes representatives of FIEO, concerned Export Promotion Council/ Commodity Board and other departments and organisations. The grievances may be addressed to the Grievances Cell, in the prescribed proforma.

6. Director General of Foreign Trade (DGFT)

DGFT is an important office of the Ministry of Commerce to help formulation of India’s Export4mport formulation policy and implementation thereof. It has set up regional offices in almost all the states and Union territories. These offices are known as Regional Licensing Authorities. The Regional Licensing offices also act as Export facilitation centres.

7. Ministry of Textiles

This is another ministry of Government of India which is responsible for policy formulation, development, regulation and export promotion of textile sector including sericulture, jute and handicrafts etc. It has a separate Export Promotion Division, advisory boards, development corporations, Export Promotion Councils and Commodity Boards. The advisory hoards have been set up to advise the government in the formulation of the overall development programmes in the concerned sector. It also devises strategy for expanding markets in India and abroad. The four advisory boards are as under:

(a) All India Hand loom Board

(b) All India Handicrafts Board

(c) All India Power loom Board

(d) Wool Development Board.

There are Development Commissioners, Handicrafts and Handlooms who advise on matters relating to development and exports of these sectors. There are Textile Commissioner and Jute commissioner who advise on the matters relating to growth of exports of these sectors. Textile committee has also been set up for ensuring textile machinery indigenously, especially for exports.

8. Institutional Framework

Export Promotion Councils and Commodity Boards have been established with the objective of promoting and strengthening commodity specialization. They are the key institutions in the institutional framework, established in India for export promotion.

Export Promotion Councils: There are 19 Councils covering different products. These Councils advise the Government the measures necessary to facilitate future exports growth, assist manufacturers and exporters to overcome various constraints and extend them full range of services for the development of overseas market. The councils also have certain regulatory functions such as the power to de-register errant and defaulting exporters. An idea of the functions of the Export Promotion Council can be had from understanding some of the functions of the Engineering Export Promotion Council. Some of their functions are:

(a) To apprise the Government of exporters’ problems;

(b) To keep its members posted with regard to trade inquiries and opportunities;

(c) To help in exploration of overseas markets and identification of items with export potential;

(d) To render assistance on specific problems confronting individual exporters;

(e) To help resolve amicably disputes between exporters and importers of Indian engineering goods and (f) to offer various facilities to engineering exporters in line with other exporting countries.

Over the years, the role of Export Promotion Councils has reduced to traditional liaison work and has lost their importance. Now, the procedures connected with the foreign trade are more simplified. So, they have to redefine their role to offer concrete market promotional and consolidation programmes and services to their members.

Commodity Boards: There are 9 statutory Boards. These Boards deal with the entire range of problems of production, development, marketing etc. In respect of these commodities concerned, they act themselves as if they are the Export Promotion Councils. These Boards take promotional measures by opening foreign offices abroad, participating in trade fairs and exhibitions, conducting market surveys, sponsoring trade delegations etc.

9. States’ Cell

This has been created under Ministry of Commerce. Its functions are to act as a nodel agency for interacting with state government or Union territories on matters concerning export or import from the state or Union territories. It provides guidance to state level export organizations. It assists them in the formulation of export plans for each state.

10. Development Commissioner, Small Scale industries Organization

The Directorate has the headquarter in New Delhi and Extension Centres are located in almost all the States and Union Territories. They provide export promotion services almost at the door steps of small-scale industries and cottage units. The important functions are:

• To help the small scale industries to develop their export capacities
• To organize export training programmes
• To collect and disseminate information
• To help such units in developing their export markets
• To take up the problems and other issues related to small-scale indus Corporation tries Besides, there are Directorates of Industries, National Small Scale Industries exports from small-scale industries.