m
 



 
 mm

PRESENTED BY-
HARSHIT MALHOTRA
DEEPSHIKHA AGARWAL
 HISTORICAL BACKGROUND

‡1947 Indian achieves independence; highly protected

economy because of colonial rule
‡1956 Founding of m

 

 
 
under the Indian Companies Act
‡1960 Setting up of M  
‡1981 Setting up of 

‡1992 Establishment of m
 
‡1994 Start of mm

 
 OVERVIEW OF EXPOR AND RADING
HOUSES

hey are large international trading companies that

specialize in the long-term development of exporting,
importing, countertrading and third-country trading in
goods and services which are generally supplied by, or
sourced from, other parties.

Export trading houses export large volumes of products

from many sources of lower unit costs through established
networks of overseas offices.
 |
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1. o make available supplies of essential commodities to consumers at
reasonable prices on a regular basis.

2. o ensure a fair price of the produce to the farmers so that there may be
an adequate incentive to increase production.

3. o minimize violent price fluctuations occurring as a result of seasonal

variations in supply and demand.

4. o arrange for supply of fertilizers and insecticides.

5. o undertake the procurement and maintenance of buffer stock and

their distribution whenever and wherever necessary.

6. o arrange for storage, transportation, packaging and processing.

 ammM
here are several ways to define state trading.

[Early definitions focused on state conduct (or operation) of foreign

trade, on governments monopolizing foreign trade and on
government ownership of an enterprise.

[A functional definition gradually replaced these approaches with

÷  (1982) arguing that state trading occurs when a
government or a government-backed agency determines the
essential conditions (including prices or quantities) on which exports
and imports have to take place.

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Here private traders and government coexist.

raders are free to buy and sell in the market .

he government may place some restrictions on them such as declaration of

stocks, limits on stocks, which can be held at a point of time and submission of
regular accounts.

he government enters the market for purchase of commodities directly

from producers at notified procurement price. It undertakes the distribution of
commodities to consumers through a network of shops.
[
! 

he purchase and sale of commodities is undertaken entirely by the

government or its agencies. Private traders are not allowed to enter the
market for purchase or sale.

In India complete wholesale trade in wheat was taken over by the

government in 1973; but it had to be given very soon.



 &'()*  
 +
   to undertake the purchase, storage
movement, transport, distribution and sale of food grains.
[ mM|m|m

1. MMC Limited

2. India rade Promotion Organisation Limited

3. Export credit and Guarantee Corporation Limited

4. he MICA rading Corporation of India Limited (MICO)

5. he Projects and Equipments corporation of India Limited

6. Spices rading corporation of India Limited

7. ea rading Corporation Limited

 Gujarat

6
 
Diversified group with interests in commodities trading, edible oil
manufacturing, port operations (Mundra) & natural gas distribution;
headquartered in Ahmedabad; companies: Adani Enterprises Ltd, Gujarat
Adani Port, Adani Wilmar, Mundra SEZ etc


 
 

Trading company based in Ahmedabad, Gujarat; has the status of a 


; exports rice, wheat, sugar & imports edible oil, pulses, plywood
etc

  
 

Flagship company of the Agarwal Group; engaged in the business of bulk
transportation, trading of auto components & coke, manufacturing of refractory
items and wind energy generation; located in Ahmedabad
 Haryana

Ñ





Institutional Sector 44, Gurgaon 122002, Haryana, India Map

 
 set up by D.P. Jindal Group engaged in the

export and import of steel products; products include pipe fittings, auto spares,
scaffolding, granite & marbles, steel products and cotton; based in Gurgaon,
Haryana
 Maharashtra



 

Company in Mumbai, engaged in the trading and export of agro-based

commodities to South East Asia, Middle East, Europe, Africa, and USA; items:
lentils, sugar, onions, peanuts, brass, wheat flour, soya bean meal, rape seed
meal, chilly, jaggery etc

Tamil Nadu
   


Group with diverse business interests in wheat flour milling, cotton yarn,
ferrous castings, sheet metal fabrication, machine building & trading; based
in Coimbatore; companies: Eltex Super Castings, McKinnon India, Prokop
Eltex etc
 Punjab

6


Manufacturers of acrylic mink blankets, blended yarn & knitted fabrics based in
Ludhiana, Punjab; also imports & exports BOPP film, pulses & spices, baby
clinical dipper, chemicals, shoes, sandals, ball bearings, aerated water, yarn etc





Exporter of automotive components, fasteners, forgings & castings, machinery

supplies, bicycles & parts, wrought iron components, 2 & 3 wheeler
components, tractor & JVC components, moped parts, etc; based in Ludhiana
with a division in China
- The objective is to recognise established exporters as
Export House, Trading House, Star Trading House
and Super Star Trading House with a view to build
marketing infrastructure and expertise required for
export promotion.
- Such Houses should operate as highly professional
and dynamic institutions and act as important
instruments of export growth.
- Merchant as well as Manufacturer exporters, Export
Oriented Units (EOUs)/units located in Export
Processing Zones (EPZs)/ Electronic Hardware
Technology Parks (EHTPs)/ Software Technology
Parks (STPs) shall be eligible for such recognition.
- Export Performance Level
- For being a status holder exporter, an applicant is
required to achieve the following prescribed export
- Performance (including deemed exports)
exceeding the level given below, level during the
current licensing year plus the preceding three
years (taken together).
-
Status Category Export Performance FOB / FOR Value
(Rupees in Crores)

Export House(EH) 20

Star Export House(SEH) 100

rading House(H) 500

Star rading House(SH) 2500

Premier rading House(PH) 7500

- Following exports are eligible for double weightage for the Export
House/Trading House status, i.e. exports by specified category units or
exporters are entitled for double weightage.
- (i) SSI/tiny/cottage sector units

- (ii) Units registered with the KVIC (Khadi & Village Industries
Commission) or KVIBs (Khadi
- & Village Industries Board)

- (iii) Units located in:

- (a) North-Eastern States
- (b) Sikkim
- (c) Jammu & Kashmir

- (iv) Units exporting handloom, handicrafts, hand knotted carpets, or silk

carpets
-
- (v) Exporters exporting to countries in:
- (a) Latin America
- (b) CIS (Commonwealth of Independent States)
- (c) Sub-Saharan Africa
(vi)Units having ISO 9000 (Series), ISO 14000
(Series)/WHOGMP/HACCP/SEI CMM level-II and above status
granted by agencies listed in Appendix-6 of the HB '09-14 edn.

- (vii) Shvices(specified) exporters

- (viii) Exports of agro products

- he Double Weightage shall be admissible to Merchants as

well as Manufacturer Exporters. However, a shipment can get
double weightage only once in anyone of the above
categories.
= Export House/ Trading House/ Star Trading House/ Super

Star Trading House Certificate shall be valid for a period of 3

years starting from 1st April of the licensing year ,unless

otherwise specified. On the expiry of such certificate,

application for renewal of status certificate shall be required

to be made within a period of six months.

- During the said period, the status holders shall be eligible to

claim the usual facilities and benefits..

- Exemption from furnishing of bank gurantee in schemes
- 100% retention of foreign exchange in EEFC account
- 2 star export houses and above shall be permitted to
establish export warehouses
- Authorization/Licence/certification and custom clearances
for both exports and imports on self declaration basis.
Exporters who have attained Export House,
Trading House, Star Trading Houses and
Super Star Trading Houses status for three
terms or more and continue to export shall be
eligible for golden status certificate which
would enable them to enjoy the benefits of
status certificate.
A. Kumar Cloth House Export
House
B. Punjab Small Inds
& Export Corporation
C. Golden Laminates Limited
D. Shiv Export House
E. Akarshan Cloth House And
Readymade
›6 6! ""
Goods are collected and payments
made at door step
Better price realizations because of
overseas marketing organization
All risks and hassles of exporting
avoided
Global network for techno-commercial
information
Market entry at lower cost
Long term business perspective
" !›"
Proven record of reliability for quality,
prices and delivery
Lower cost thanks to a network of
procurement facilities
One stop shopping facility
After sale services assured
Lower transportation and handling
costs
Long term business perspective
1. Additional Duty Credit Scrips shall be given to Status Holders @
1% of the FOB value of past exports accelerate exports and
encourage technological up gradation.
2. his facility shall be available for sectors of leather (excluding
finished leather), textiles and jute, handicrafts, engineering
(excluding Iron & steel & non-ferrous metals in primary and
intermediate form, automobiles & two wheelers, nuclear
reactors & parts, and ships, boats and floating structures),
plastics and basic chemicals (excluding pharma products).
3. his facility shall be available up to 31 March, 2011.
4. ransferability for the Duty Credit scrips being issued to status
holders under VKGUY Scheme permitted only for the
procurement of cold chain equipments.
- [Fisheries exempted from maintenance of
average EO under EPCG Scheme (along with 7
sectors) however Fishing Trawlers, boats, ships
and other similar items shall not be allowed for this
exemption.
- Additional flexibility under Target Plus Scheme
(TPS) / Duty Free Certificate of Entitlement
(DFCE) Scheme for the marine sector.
- Duty Drawback is allowed on Gold Jewellery exports to
neutralize duty incidence.
- Plan to establish "Diamond Bourse (s) with an aim to make
India and International rading Hub announced.
- Introduction of a new facility to allow import on consignment
basis of cut & polished diamonds for the purpose of grading/
certification.
EPCG Scheme:
1. Obligation under EPCG scheme relaxed.
2. o aid technological up gradation of export sector, EPCG
Scheme at Zero Duty has been introduced.
3. Export obligation on import of spares, moulds etc.
under EPCG Scheme has been reduced by 50%.
- Introduction of a single window system to facilitate export of
perishable agricultural produce with an aim to reduce
transaction and handling cost.
- his system will involve creation of multi-functional nodal
agencies. hese agencies will be accredited by APEDA.
m!


On the payment of 50 % applicable export duty, Leather
sector shall be allowed re-export of unsold imported raw
hides and skins and semi finished leather from public
bonded ware houses.
- he existing Minimum value addition under advance
authorisation scheme for export of tea is 100 %. It has been
reduced from the existing 100% to 50%.
- DA (Domestic arriff Area) sale limit of instant tea by EOU
units increased from 30% to 50%.
- Export of tea has been included under VKGUY Scheme
benefits.
- Export Obligation Period for advance authorizations issued
increased from existing 6 months to 36 months.
- Pharma sector included under MLFPS for countries in Africa
and Latin America & some countries in Oceania and Far East.
m!

!  
he claims under Focus Product Scheme, the requirement
of " Handloom mark" was required earlier. his has been
removed.
- EOUs have been allowed to sell products manufactured by
them in DA (Domestic ariff Area) upto a limit of 90% instead
of existing 75%, without changing the criteria of similar goods
, within the overall entitlement of 50% for DA sale. (his
means that instead of 75% these units can sell up to 90 % of
their products in the domestic markets)
- EOU allowed to procure finished goods for consolidation
along with their manufactured goods, subject to certain
safeguards.
- Extension of block period by one year for calculation of Net
Foreign Exchange earning of EOUs kept under consideration.
- EOU allowed CENVA Credit Facility.
- 26 new markets have been added under Focus Market
Scheme.
- he incentive available under Focus Market Scheme (FMS)
has been raised from 2.5% to 3%.
- he incentive available under Focus Product Scheme (FPS) has
been raised from 1.25% to 2%.
- Extra products have been included in the scope of benefits
under FMS.
! 
,-,.
Higher allocation for Market Development Assistance (MDA) and
Market Access Initiative (MAI) has been announced.

+ M  M /MM

he following cities have been recognized as towns of export

excellence (EE)


.Jaipur, Srinagar and Anantnag

% .Kanpur, Dewas and Ambur
  
% .Malihabad