Chapter-1 Role, Functions and Organisational Set Up

Chapter-1

Role, Functions and Organisational Set Up

The mandate of the Department of Commerce Special Economic Zones (SEZs), Joint Study Groups is regulation, development and promotion of (JSGs) etc, two posts each of Joint Secretaries and India’s international trade and commerce through Directors were created in the Department during formulation of appropriate international trade 2008-09. & commercial policy and implementation of The Department is functionally organized into the the various provisions thereof. The basic role of following eight Divisions: the Department is to facilitate the creation of 1. Administration and General Division an enabling environment and infrastructure for 2. Finance Division accelerated growth of international trade. The 3. Economic Division Department formulates, implements and monitors 4. Trade Policy Division the Foreign Trade Policy (FTP) which provides 5. Foreign Trade Territorial Divisions the basic framework of policy and strategy to be 6. State Trading & Infrastructure Division followed for promoting exports and trade. The 7. Supply Division Trade Policy is periodically reviewed to incorporate 8. Plantation Division. changes necessary to take care of emerging economic scenarios both in the domestic and The various offices/ organizations under the international economy. Besides, the Department administrative control of the Department are: (A) is also entrusted with responsibilities relating to three Attached Offices, (B) eleven Subordinate multilateral and bilateral commercial relations, Offices, (C) ten Autonomous Bodies, (D) five Public Special Economic Zones, state trading, export Sector Undertakings, (E) Advisory Bodies, (F) promotion and trade facilitation, and development fourteen Export Promotion Councils and (G) other and regulation of certain export oriented Organizations. A complete list of these offices/ industries and commodities. The subjects under organizations along with the postal addresses is the administrative control of the Department are given at Annexure 1.2. at Annexure 1.1. The broad organizational set up and major role and The Department is headed by a Secretary who is functions of these bodies are discussed below: assisted by an Additional Secretary & Financial (A) Attached Offices Adviser, three Additional Secretaries, thirteen Joint (i) Directorate General Of Foreign Trade Secretaries and Joint Secretary level officers and a (Dgft) number of other senior officers. Keeping in view the large increase in workload in matters related to the Directorate General of Foreign Trade (DGFT) is an World Trade Organization (WTO), Regional Trade attached office of the Ministry of Commerce and Agreements (RTAs), Free Trade Agreements (FTAs), Industry and is headed by Director General of

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Foreign Trade. Right from its inception till 1991, 25. Patna 26. Puducherry when liberalization in the economic policies of the 27. Pune 28. Raipur Government took place, this organization has been essentially involved in the regulation and promotion 29. Rajkot 30. Shillong of foreign trade through regulation. Keeping in line 31. Surat 32. Thiruvanthapuram with liberalization and globalization and the overall 33. Varanasi 34. Visakhapatnam objective of increasing of exports, DGFT has since been assigned the role of “facilitator”. The shift was 35. Vadodara from prohibition and control of imports/exports All regional offices provide facilitation to exporters to promotion and facilitation of exports/imports, in regard to developments in International Trade keeping in view the interests of the country. i.e. WTO agreements, Rules of Origin and anti- ORGANISATIONAL SET-UP dumping issues, etc to help exporters in their import and export decisions in an internationally This Directorate, with headquarters at New Delhi, dynamic environment. is headed by the Director General of Foreign Trade. (ii) Directorate General of Supplies and It is responsible for implementing the Foreign Disposals (DGS&D) Trade Policy with the main objective of promoting India’s exports. The DGFT also issues licenses The DGS&D, with headquarters at New Delhi, to exporters and monitors their corresponding is headed by a Director General. It functions as obligations through a network of 35 regional offices the executive arm of the Supply Division of the and extension counters at Indore and Srinagar. Department of Commerce for conclusion of Rate The regional offices are located at the following Contracts for common user items, procurement places:- of stores, consultancy etc. It has three Regional Supply Offices located at Chennai, Mumbai and S.No. Regional Office S.No. Regional Office Kolkata. DGS&D is in the process of opening a new 1 Ahemdabad 2. Amritsar Regional Supply Office at Hyderabad. The functions 3. Bengaluru 4. Bhopal of DGS&D are carried out ‘ through its functional wings & supporting service wings. The functional 5. Chandigarh 6. Chennai wings are the Supply Wing and the Quality 7. Coimbatore 8. Cuttack Assurance wing. The supporting service wing 9. Dehradun 10. Ernakulam (Cochin) includes Administration, Vigilance, Complaints and Public Relations, Planning and Co-ordination, 11. Guwahati 12. Hyderabad Internal Work Study, Management Information 13. Jaipur 14. Jammu Services, Litigation, etc. 15. Kanpur 16. Kolkata The Supply Wing has commodity-wise Purchase 17. Ludhiana 18. Madurai Directorates such as Information Technology, Electrical Stores, Mechanical Engineering, 19. Moradabad 20. Mumbai Automobiles, Steel & Cement, Structural 21. Nagpur 22. New Delhi Engineering, Hardware, Workshop & Machine 23. Panaji (Goa) 24. Panipat Tools, Wool & Leather, Paper & Paper products, Oil & Chemicals. The handling of commodity wise

2 CHAPTER-1 Role, Functions and Organisational Set Up work facilitates maintenance of a data bank on Development of e-tendering and post tendering prices, vendors, specifications, market trends, etc. modules for specialised items viz. Cement, At present, DGS&D deals with 222 valid R/C. (Rate Automobile Items, Industrial Gases and Spares Contract) items. There are 29 outlying offices, are under development and are expected to be out of which 25 Offices/ Subcenters are Quality operational by 31st Jan, 2012. Development of Assurance Wing (including Headquarters) spread the complete e-payment module including debit all over the country. adjustment with DDOs and integration with CGA’s DGS&D e-PROCUREMENT PROJECT e-Lekha is expected to be operational by 31st Mar, 2012. The DGS&D has developed a comprehensive Tenders relating to generalized items (Approx. 70% e-procurement package encompassing every of Rate Contracts), received after 15th Nov, 2011 aspect of its procurement activity. Implemented are being submitted and processed-electronically through NIC by a customised web-based and online. Thus, DGS&D has almost fully migrated application software, the package is nationally from manual mode to online mode from 15th Nov, operated involving DGS&D HQrs, its three regional 2011. offices and twenty seven field offices. DGS&D’s e-Procurement Application is accessed by around (iii) Directorate General of Anti-Dumping & 3,000 Central Government users through exclusive Allied Duties (DGAD) user IDs and passwords for online placement of The Directorate General of Anti-Dumping & Supply Orders against Rate Contracts. Allied Duties was constituted in April, 1998 and is Packages have already been developed and headed by the Designated Authority of the level of implemented for Registration of Vendors, Additional Secretary to the Government of India Store coding, Pre bid Meetings, Finalization of who is assisted by a Joint Secretary and an Adviser specifications (Technical Particulars), Issue of (Cost). In addition, there are twelve Investigating Tender Notice/ Tender enquiry, Bid submission/ and Costing Officers to conduct investigations. Bid opening/ Evaluation of Bids for common The Directorate is responsible for carrying out generalized items, Award of Rate Contracts, investigations and recommending, where required, Supply Order, Inspection Notes, Dispatch Details under the Customs Tariff Act, the amount of anti- by Vendors, Receipt Details by Consignees, Bill dumping duty/ countervailing duty on the identified submission etc. Intensive training is being imparted articles as would be adequate to remove injury to to DGS&D Officials as well as to all the Vendors/ the domestic industry. DDOs across the country as the Vendors and DDOs (B) Subordinate Offices also need to be trained to operate the system. (i) Directorate General of Commercial The project has increased transparency, improved Intelligence and Statistics (DGCI&S) efficiency and instilled confidence among stake The Directorate General of Commercial Intelligence holders in the procurement processes and is & Statistics (DGCI&S) is the premier organization expected to bring in significant savings to the of Govt. of India for collection, compilation and exchequer by developing a fully net-worked dissemination of India’s trade statistics and environment where all the tendering and rate commercial information. This Directorate, with contracting work will be done online/electronically its office located at Kolkata, is headed by the through a web enabled software. 3 Annual Report 2011-12

Director General. It is entrusted with the work of India Trade Journal, a weekly publication, is the collecting, compiling and publishing/disseminating premier publication of DGCI&S. The dynamic pages trade statistics and various types of commercial of the DGCI&S website www.dgciskol.nic.in are information required by the policy makers, mainly for online data transmission. DGCI&S has researchers, importers, exporters, traders as well recently shifted to its new building at Anandapur, as overseas buyers. DGCI&S collects the basic data near E.M. Bye Pass, Kolkata in October 2010. from different customs formations in the form of (ii) Office of Development Commissioner of DTR (Daily Trade Return) and then processes and Special Economic Zones (SEZs) compiles it using state-of-the-art technology. The The main objectives of the SEZ Scheme are foreign trade data generated by the Directorate generation of additional economic activity, are disseminated through (i) Monthly Press promotion of exports of goods and services, Release brought out every month by the Ministry promotion of investment from domestic and foreign of Commerce and Industry, (ii) Monthly Foreign sources, creation of employment opportunities Trade Statistics of India by Principal Commodities along with the development of infrastructure & Countries, (iii) Monthly Statistics of Foreign facilities. All laws of India are applicable in SEZs Trade of India (Import & Export), and (iv) Quarterly unless specifically exempted as per the SEZ Act/ Statistics of Foreign Trade of India by Countries. It Rules. Each Zone is headed by a Development also brings out an Assessment Report on India’s Commissioner and is administered as per the SEZ Foreign Trade by Air, every year. As far as ancillary Act, 2005 and SEZ Rules, 2006. Units may be set up statistics is concerned, DGCI&S also compiles in the SEZ for manufacturing, trading or for service and publishes on regular basis the Inland Trade activity. The units in the SEZ have to be net foreign Statistics covering inter-state movements of goods exchange earners but they are not subjected to any by rail, river and air, Statistics on India’s customs predetermined value addition or minimum export and excise revenue collections (according to the performance requirements. Sales in the Domestic tariff heads), Shipping Statistics, Inland Coastal Tariff Area from the SEZ units are treated asif Trade Statistics and Selected Statistics of Foreign the goods are being imported and are subject to Trade of India. The Directorate is conducting two payment of applicable customs duties. pilot surveys - one on trade in health services and the other on education services in the current (iii) Pay and Accounts Office (Supply) financial year under the technical guidance of an The payment and accounting functions of Supply expert committee constituted by the CSO. Attempts Division, including those of DGS&D, are performed are on in consultation with the CSO and the states by the Chief Controller of Accounts (CCA) under the to develop a suitable methodology for creating Departmentalized Accounting System. Payment to a database on interstate movement of goods by suppliers across the country are made through this road. organization at its headquarters in New Delhi and The Directorate brings out a number of publications regional offices situated in Kolkata, Mumbai and on, inter alia; inland and coastal trade statistics, Chennai. Internal Audit functions are also carried revenue statistics, shipping & air cargo statistics etc, out in respect of 9 CDDO and 16 non-CDDO situated which are utilized by the Government Departments at various locations in the country. as well as by trading communities and researchers.

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(iv) Pay and Accounts Office (Commerce & (ii) Rubber Board Textiles) The Rubber Board was set up under Section The Pay and Accounts Office, common to both (4) of the Rubber Act, 1947. The Chairperson is the Department of Commerce and the Ministry of the Chief Executive Officer of the Board and its Textiles, is responsible for the payment of claims, headquarters is located at Kottayam in Kerala. The accounting of transactions and other related Board is responsible for the development of the matters through the four Departmental Pay & rubber industry in the country by way of assisting Accounts Offices in Delhi, two in Mumbai, two in and encouraging scientific, technical and economic Kolkata and two in Chennai. These Departmental research; providing training to growers in improved Pay and Accounts Offices are controlled by the methods of planting, cultivation, manuring, Principal Accounts Office at Delhi with the Chief spraying, harvesting; improving processing and Controller of Accounts (CCA) as the Head of the marketing of rubber; and collecting statistics Department of the Accounts Wing. from the owners of estates, dealers, processors (C) Autonomous Bodies and rubber product manufacturers. It is also the function of the Board to secure better working (i) Coffee Board conditions and provide/improve amenities and The Coffee Board is a statutory organisation incentives to rubber plantation workers. The Rubber constituted under Section (4) of the Coffee Act, Production Department of the Board has five Zonal 1942 and functions under the administrative Offices, forty-one Regional Offices, a number of control of the Ministry of Commerce and Industry, Field Stations/ Rubber Development Centres and Government of India. The Board comprises 33 Regional Nurseries. The Rubber Research Institute Members including the Chairperson, who is the of India is also located at Kottayam and has ten Chief Executive and functions from Bangalore. research/breeding stations in different parts of the The remaining 32 Members representing various country. interests are appointed as per provisions under (iii) Tea Board Section 4(2) of the Coffee Act read with Rule 3 of The Tea Board is an autonomous body under the the Coffee Rules, 1955. The Board is mainly focusing Ministry of Commerce & Industry, Government its activities in the areas of research, extension, of India, set up as a statutory body on 1st April, development, quality upgradation, economic & 1954 as per provision under Section (4) of the Tea market intelligence, external & internal promotion Act, 1953. It is an apex body, which looks after the and labour welfare. The Board has a Central Coffee overall interests of the tea industry. The Board is Research Institute at Balehonnur (Karnataka) and headed by a Chairperson and there are other 30 Regional Coffee Research Stations at Chettalli Members representing various interests pertaining (Karnataka), Chundale(Kerala), Thandigudi (Tamil to tea industry. The Board’s Head Office is situated Nadu), R.V.Nagar (Andhra Pradesh) and Diphu in Kolkata and there are 16 regional/ sub-regional (Assam), and a bio-technology centre at Mysore, offices throughout India. It has also three overseas apart from the extension offices located in coffee offices at London, Moscow and Dubai whose growing regions of Karnataka, Kerala, Tamil Nadu, activities are mostly promotional in nature. Tea Andhra Pradesh, Orissa and North Eastern Region. Board’s functions and responsibilities include measures for development of the tea industry,

5 Annual Report 2011-12 extending financial and technical assistance to the spices listed in the schedule of the Spices Board tea growers, manufacturers and producers, export Act, 1986. The primary functions of the Board promotion and domestic generic promotion, include production development of small and regulating and controlling different marketing large cardamom; development, promotion and activities including that of tea auctions, facilitating regulation of export of spices. The Board is also R&D activities, market liaison, assistance to labour responsible for implementing programmes for welfare activities, maintenance of statistical data development of spices in North Eastern region and etc. organic spices in the country. The activities of the (iv) Tobacco Board Board include issue of certificate of registration as exporter of spices; undertaking programmes The Tobacco Board was constituted as a statutory and projects for promotion of export of spices like body on 1st January, 1976 under Section (4) of setting up of spices parks, support of infrastructure the Tobacco Act, 1975. The Board is headed by a improvement in spices processing, assisting and Chairman with its headquarters at Guntur, Andhra encouraging studies and research on medicinal Pradesh and is responsible for the development of properties of spices, development of new products, the tobacco industry. At present, the activities of improvement of processing, grading and packaging Board are restricted to production and marketing of spices; striving towards stabilization of prices of of Virginia tobacco only. However, the Board is spices for export and controlling & upgrading quality performing the function of export promotion in for export (including setting up of regional quality respect of all varieties of tobacco. evaluation labs and training centres). With regard The Tobacco Board provides a comprehensive to cardamom, the domestic marketing is facilitated package of support and extension services to through e-auctions by registered auctioneers and farmers through: dealers. The research activities on cardamom are • Supply of essential inputs including also done by the Spices Board. fertilizers and extending subsidies on (vi) The Marine Products Export inputs. Development Authority (MPEDA) • Organising crop and input loans to growers at lower rates of interest. The Marine Products Export Development Authority • Improving yield & quality of tobacco was set up as a Statutory Body in 1972 under an Act through implementing several extension of Parliament (No.13 of 1972). The Authority, with and development programmes. its headquarters at Kochi and field offices in all the • Transfer of technology for improving maritime States of India, is headed by a Chairperson. productivity and quality of the tobacco The Authority is responsible for development of leaf. the marine industry with special focus on marine (v) Spices Board exports. Besides, it has Trade Promotion Offices in Tokyo (Japan) and New York (USA). The Spices Board was constituted as a statutory body on 26th February, 1987 under Section (3) of (vii) Agricultural and Processed Food the Spices Board Act, 1986. The Board is headed Products Export Development Authority by a Chairperson with its Head Office at Kochi and (APEDA) is responsible for the development of cardamom The Agricultural and Processed Food Products industry and promoting the export of all the 52 Export Development Authority (APEDA) was

6 CHAPTER-1 Role, Functions and Organisational Set Up established by the Government of India under (viii) Export Inspection Council (EIC) the Agricultural and Processed Food Products The Export Inspection Council was set up asa Export Development Authority Act passed by the Statutory Body on 1st January, 1964 under Section Parliament in December, 1985. The Authority, 3 of the Export (Quality Control and Inspection) Act, with its headquarters at New Delhi, is headed by 1963 to ensure sound development of export trade a Chairperson. APEDA has been serving the agri- of India through quality control and inspection and export community for 25 years and to reach out to for matters connected therewith. The Council is the exporters in different parts of the Country. In an advisory body to the Central Government, with addition to five Regional Offices, APEDA has set up its office located at New Delhi and is headed by a 13 Virtual Offices at Thiruvananthapuram(Kerala), Chairperson. The Executive Head of the EIC is the Bhubaneshwar (Orissa), Srinagar (J & K), Chandigarh, Director of Inspection & Quality Control who is Imphal (Manipur), Agartala (Tripura), Kohima responsible for the enforcement of quality control (Nagaland), Chennai (Tamil Nadu), Raipur and compulsory pre-shipment inspection of various (Chhatisgarh), Ahmedabad (Gujarat), Bhopal commodities meant for export and notified by the (Madhya Pradesh), Lucknow (Uttar Pradesh) Government under the Export (Quality Control and and Panaji, (Goa). Apeda has been entrusted Inspection) Act, 1963. The Council is assisted in its with the responsibility of export promotion and functions by the Export Inspection Agencies (EIAs), development of 14 agricultural and processed food which are field organizations located at Chennai, product groups listed in the Schedule to the APEDA Delhi, Kochi, Kolkata and Mumbai and have state- Act. In addition to this APEDA has been entrusted of-art and accredited laboratories with the required with the responsibility to monitor the import of logistic support for quality certification activities. sugar as well. These Agencies have a network of twenty-nine APEDA has been actively engaged in the sub-offices and laboratories located at different development of markets besides upgradation of ports or major industrial centres to back up the pre- infrastructure and quality to promote the export of shipment inspection and certification activities. agro products. In its endeavour to promote agro (ix) Indian Institute of Foreign Trade (IIFT) products, APEDA provides financial assistance to the registered exporters under its Schemes for The Indian Institute of Foreign Trade was registered Market Development, Infrastructure Development, in May, 1963 under the Societies Registration Act, Quality Development, Research & Development 1860. The Institute with its head office atNew and Transport Assistance. Delhi and one regional branch at Kolkata, is headed by a Director. The Institute has been conferred During the year 2009, APEDA has been empowered “Deemed University” status in 2002 and is engaged by an amendment to the APEDA Act, 1985 to in the following activities: undertake measures as may be prescribed by the • Conducting academic courses leading Central Government the registration and protection to award of Ph.D degree and degrees/ of Intellectual Property Rights in respect of special diploma/certificate in International products in India or outside India. Accordingly, Business, Industrial Marketing, APEDA has initiated the process for registration of Capital & Financial Market and Export Basmati Rice as Geographical Indications (GI) by Management. filling an application with GI Registry, Chennai.

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• Training of personnel in international sugar, edible oils etc.) into India and developing trade. exports of a large number of items from India. • Organizing research on issues in foreign The core strength of STC lies in handling exports/ trade, marketing research, area surveys, imports of bulk agro commodities. However over commodity surveys, market surveys; and the years, STC has also diversified into exports • Dissemination of information arising of steel raw materials, gold jewellery, iron ore, from its activities relating to research and molasses and imports of bullion, hydrocarbons, market studies. minerals, metals, ores, fertilizers, petro-chemicals, (x) Indian Institute of Packaging (IIP) etc. This has helped STC to achieve record breaking performances in the recent year, STC is today The Indian Institute of Packaging (IIP) is an apex able to structure and execute trade deals of any body in the field of Packaging and was registered magnitude, as per the specific requirement of its under Society Registration Act, 1860 in the year customers. 1966 by the packaging fraternity with the financial support of the Ministry of Commerce & Industry, STCL Ltd., having its headquarters at Bangalore, Government of India. is a subsidiary of STC. It was initially established in 1982 as Cardamom Trading Corporation Ltd., The primary objective of the Institute is to stimulate a Government of India undertaking under the consciousness of good packaging; undertake, Ministry of Commerce & Industry. The company promote, study research and development in diversified its trading activities from cardamom to packaging and package design for export promotion, spices to become Spices Trading Corporation Ltd., provide short-term and long-term educational and in 1987. With globalization and opening of trade training programme in packaging as well as to world over, the Spices Trading Corporation Ltd. organize seminars, conferences in collaboration was renamed as STCL Ltd. STCL became a wholly with other Ministries, Govt. Departments and owned subsidiary of the State Trading Corporation industry associations. of India Ltd. in 1999. STCL is involved in trading of The Institute has since opened its branches at Delhi, spices, value added spice products, agricultural Kolkata, Chennai, and Hyderabad. The Institute has commodities, fertilizers and pesticides. The CMD also planned to set up its branches at Ahmadabad of STC is the Chairman of STCL Ltd. and North East under the 12th five year plan. (ii) MMTC Limited (D) Public Sector Undertakings (PSUs) The MMTC Limited (Minerals and Metals Trading (i) State Trading Corporation of India Corporation) was created in 1963 as an individual Limited (STC) entity on separation from State Trading Corporation STC was set up on 18th May, 1956, primarily with of India Ltd. primarily to deal in exports of minerals a view to undertake trade with East European and ores and imports of non-ferrous metals. In Countries and to supplement the efforts of private 1970, MMTC took over imports of fertilizer raw trade and industry in developing exports from materials and finished fertilizers. Over the years the country. STC has played an important role in import and export of various other items like steel, country’s economy by arranging imports of essential diamonds, bullion, etc. were progressively added items of mass consumption (such as wheat, pulses, to the portfolio of the company. Keeping pace with

8 CHAPTER-1 Role, Functions and Organisational Set Up the national economic development, MMTC has proceeds due to commercial or political causes and grown over the years to become the largest trading (b) different types of guarantees to banks and other organization in India. financial institutions to enable them to extend (iii) PEC Limited credit facilities to exporters on liberal basis. (v) India Trade Promotion Organization The PEC Ltd (Project and Equipment Corporation (ITPO) of India) was carved out of the STC in 1971- 72 to take over the canalized business of STC’s The Trade Fair Authority of India (TFAI) and the railway equipment division, to diversify into Trade Development Authority (TDA) were merged turn-key projects especially outside India and to together in 1992, and the new organization was aid and assist in promotion of exports of Indian renamed as India Trade Promotion Organisation engineering equipment. With effect from 23rd (ITPO). ITPO is the premier trade promotion agency May, 1990, PEC became a subsidiary of the then of India and provides a broad spectrum of services to newly formed Holding Company, Bharat Business trade and industry so as to promote India’s exports. International Ltd. Thereafter, from 27th March, These services include organisation of trade fairs 1991, PEC became an independent company in India and abroad, Buyer-Seller Meets, Contact directly owned by Government of India. The main Promotion Programmes apart from information functions of PEC Ltd. includes export of projects, dissemination on products and markets. With its engineering equipment and manufactured goods, Headquarters at Pragati Maidan, New Delhi and defence equipment & stores; import of industrial regional offices at Bangalore, Chennai, Kolkata and raw materials, bullion and agro commodities; Mumbai, ITPO ensures representative participation consolidation of existing lines of business and of trade and industry from different regions of the simultaneously developing new products and new country in its events in India and abroad markets; diversification in export of non-engineering (E) Export Promotion Councils (EPCs) items eg. coal and coke, iron ore, edible oils, steel scraps, etc.; and structuring counter trade/ special Presently, there are fourteen Export Promotion trading arrangements for further exports. Councils under the administrative control of the Department of Commerce. Names and addresses (iv) Export Credit Guarantee Corporation of of these Councils are given in Annexure 1.2. These India Limited (ECGC) Councils are registered as non-profit organizations The Corporation was established in 1957 as the under the Companies Act/ Societies Registration Export Risk Insurance Corporation of India Ltd. Act. The Councils perform both advisory and Keeping in view the wider role played by the executive functions. The role and functions of these Corporation, the name was changed to Export Councils are guided by the Foreign Trade Policy, Credit Guarantee Corporation of India Ltd. 2009-14. These Councils are also the registering (ECGC). ECGC is the premier organization in the authorities for exporters under the Foreign Trade country which offers credit risk insurance cover Policy 2009-14. to exporters, banks, etc. The primary objective of (F) Advisory Bodies the Corporation is to promote country’s exports by covering the risk of export on credit. It provides: (i) Board of Trade (BOT) (a) a range of insurance covers to Indian exporters The Board of Trade (BOT) was reconstituted on against the risk of non-realization of export 16.07.2009 under the Chairmanship of Commerce

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& Industry Minister vide order No.01/94/180/438/ organizations connected with export promotion. AM05/BOT/PC-V dated 16.07. 2009. The Board of It provides the content, direction and thrust to Trade, inter alia, advises the Government on policy India’s global export effort. It also functions asa measures connected with the Foreign Trade Policy primary servicing agency to provide integrated in order to achieve the objectives of boosting assistance to its members comprising professional India’s trade. exporting firms holding recognition status granted The third meeting of the reconstituted Board by the government, consultancy firms and service of Trade was held on 11.10.2011 to discuss the providers. The Federation organizes seminars and following issues: arranges participation in various exhibitions in (a) Overview of global Trade; India and abroad. It also brings out ‘FIEO News’, for (b) Policy measures to mitigate fallout of the creating awareness amongst its member exporters adverse scenario; and importers. (c) Procedural simplification: specific suggestion, if any; and (ii) Indian Council of Arbitration (ICA) (d) Views on Strategy paper put out by Department The Indian Council of Arbitration, India’s premier of Commerce. Arbitral Institution, is a society registered under Commerce, Industry and Textile Minister during the Societies Registration Act, 1860 operating on the meeting has informed that The National no profit basis, with its head office in New Delhi Manufacturing Policy is under finalization wherein and eight branches with a pan India network. lot of trust is being extended to industry to be The organization originally established in 1965 able to open big windows of opportunity for the promotes and administers the use of alternative industry and creating integrated planned Mega dispute resolution mechanisms in commercial Industrial Township. disputes. (ii) Inter-State Trade Council: The main objectives of the Council are to promote the knowledge and use of arbitration and provide The Inter State Trade Council has been set up arbitration facilities for amicable and quick to serve as a mechanism for institutionalized settlement of commercial disputes with a view to dialogue between the Union and the States in maintaining the smooth flow of trade, particularly matters relating to trade facilitation and to create export trade on a sustained and enduring basis. a framework for making States partners in India’s export effort. The ICA undertakes many promotional activities like conducting Conferences, Workshops, etc. It (G) Other Organizations also brings out quarterly, a compilation of articles (i) Federation of Indian Export on Arbitration. Regular mailers are also sent to Organizations (FIEO) corporates urging them for using the dispute The Federation of Indian Export Organizations resolution clause of the ICA. set up in 1965, is an apex body of various export (iii) Indian Diamond Institute (IDI) promotion organizations and institutions with its With the objective of enhancing the quality, design major regional offices at Delhi, Mumbai, Chennai and global competitiveness of the Indian jewellery, and Kolkata. The main objective of FIEO is to the Indian Diamond Institute was established as render an integrated package of services to various a society in 1978 with its office located at Surat.

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The Institute is sponsored by the Department (v) National Centre for Trade Information of Commerce and patronized by the Gems and (NCTI) Jewellery Export Promotion Council (GJEPC). The National Centre for Trade Information (NCTI) The institute conducts various diploma and was incorporated on 31st March, 1995 as a other courses related to diamond & jewellery company under Section 25 of Companies Act, 1956. trade and industry. It also offers the three year The company started functioning w.e.f. March diploma course on Diamond, Gem & Jewellery 1996. It has a Board of Directors for administration Design & Manufacture. The Institute also provides of its affairs, which includes representatives certification services for diamonds, colouredstones from Ministry of Commerce & Industry, National and gold jewellery. IDI has a Gem Testing Laboratory, Informatics Centre (NIC), Indian Institute of which is ISO 9001:2008 certified. The Institute has Foreign Trade (IIFT), and Directorate General of an R&D centre, duly recognised by the Scientific Commercial Intelligence & Statistics (DGCI&S), & Industrial Research Organisation (SIRO) under India Trade Promotion Organisation (ITPO), Council Ministry of Science & Technology, Government of for Leather Exports (CLE), The Marine Products India. The Institute has been recognized world over Export Development Authority (MPEDA), PEC Ltd., as a Diamond Certification and Grading Laboratory. Coir Board and ASSOCHAM. The Institute also has Sardar Vallabhbhai Patel The ITPO and NIC are co-promoters of the Centre of Jewellery Design and Manufacture company and have contributed a sum of ` 4.00 (SVJDM) & state-of-the-art IDI-City Centre crore (` 2.00 crore each) as Corpus Fund in the offering advanced courses in jewellery design and equity contribution of the company. The ITPO manufacture. provides fully furnished office space and the NIC (iv) Footwear Design & Development provides the software and hardware against their Institute (FDDI) equity contribution in kind. The Centre provides Footwear Design and Development Institute was value added information in the field of electronic established in the year 1986 as a society under trading opportunities, live trade leads from World the Societies Registration Act, 1860 with an Trade Point Federation (WTPF), trade data analysis objective to train the professional manpower for and organized export awareness seminars and footwear industry. The Institute is an ISO:9001 and updating/uploading information on its website. ISO:14001 certified Institute, which conducts wide It has uploaded on its website 52 issues of Trade range of long term and short term programmes in Point-India containing approximately 250 trade the area of Retail Management, Fashion, Footwear leads each week. Merchandising, Marketing, Creative Design, and (vi) Price Stabilization Fund Trust (PSF) Leather Goods & Accessories Design, etc. The The Price Stabilization Fund (PSF) Scheme was institute provides one stop solution to the footwear launched by Government of India in April 2003 industry and is internationally acclaimed as one against the backdrop of decline in international of the premier institutes in the area of footwear and domestic prices of tea, coffee, rubber, and design, technology and management. tobacco causing distress to primary growers. The growers of these commodities were particularly affected due to substantial reduction in unit value

11 Annual Report 2011-12 realization for these crops, at times falling below A Personal Accident Insurance Scheme is also under their cost of production. The objective of the implementation by PSFT through Cholamandalam scheme is to safeguard the interests of the growers M/s. General Insurance Co. Ltd. for the period of these commodities and provide financial relief 2011-12, which covers the growers in the sectors when prices fall below a specified level. The of tea, coffee, rubber, tobacco and spices (chillies, scheme is being operationalized through the cardamom, ginger, turmeric and pepper) having Price Stabilization Fund Trust. As on 30 November plantations upto 4 hectares only. The scheme 2011, deposits in the PSF Corpus Fund were covers all plantation workers working on these ` 435.47 crore, out of which ` 432.88 crore was plantations regardless of the size of holdings. The contributed by GOI and ` 2.59 crore by growers by insurance cover is upto ` 1.00 lakh per person. way of entry fee. The premium of ` 22.06/- is shared between the beneficiary and the PSF Trust in the ratio 50:50. The target is 57.17 lakh growers and workers.

12 CHAPTER-1 Role, Functions and Organisational Set Up

Annexure-1.1 Work Allocated to Department of Commerce in accordance with the Allocation of Business Rules, 1961

I. International Trade ∅∅ Projects & Equipment Corporation of • International Trade and Commercial India Limited (PEC); Policy including tariff and non-tariff ∅∅ India Trade Promotion Organization barriers. and its subsidiaries; and • International Agencies connected with ∅∅ Minerals and Metals Trading Trade Policy (eg. UNCTAD, ESCAP, ECA, Corporation and its subsidiaries. ECLA, EEC, EFTA, GATT/WTO, ITC and • Production, distribution (for domestic CFC). consumption and exports) and • International Commodity Agreements development of plantation crops, tea, other than agreements relating to coffee, rubber, spices, tobacco and wheat, sugar, jute and cotton. cashew. • International Customs Tariff Bureau • Processing and distribution for domestic including residuary work relating to the consumption and exports of instant tea Tariff Commission. and instant coffee:- II. Foreign Trade (Goods & Services) (a) Tea Board • All matters relating to foreign trade. (b) Coffee Board • Import and Export Trade Policy and (c) Rubber Board Control excluding matters relating to- (d) Spices Board ∅∅ Import of feature films; (e) Tobacco Board. ∅∅ Export of Indian films- both feature IV. Management of Certain Services length and shorts; and • Cadre Management of Indian Trade Service Import and distribution of cine- ∅∅ and all matters pertaining to training, film (unexposed) and other goods career planning and manpower planning required by the film industry. for the service. III. State Trading • Cadre Management of Indian Supply • Policies of state trading and performance Service and all matters pertaining to of organizations established for the training, career planning and manpower purpose and including planning for the service. ∅∅ The State Trading Corporation of India • Cadre Management of Indian Inspection Limited and its subsidiary, STCL Ltd. Service and all matters pertaining to (formerly, Spices Trading Corporation training, career planning and manpower Ltd.) [excluding Handicrafts and planning for the service. Handlooms Export Corporation V. Special Economic Zones and Central Cottage Industries • All matters relating to development, Corporation; the Tea Trading operation and maintenance of special Corporation of India Limited, which economic zones and units in special are no longer subsidiaries of STC]; economic zones, including export and import policy, fiscal regime, investment

13 Annual Report 2011-12

policy, other economic policy and • All organizations and institutions connected regulatory framework. with the provision of services relating to the export effort including - Note: All fiscal concessions and policy issues ɤɤ Export Credit and Export Insurance having financial implications are decided with including Export Credit Guarantee the concurrence of the Ministry of Finance or Corporation Limited; failing such concurrence with the approval of the ɤɤ Export Inspection Council Standards Cabinet. including Quality Control; VI. Export Products and Industries and ɤɤ Directorate General of Commercial Trade Facilitation Intelligence and Statistics; and • Gems and Jewellery. ɤɤ Free Trade-Zones. • Matters relating to Export Promotion Board, Board of Trade and International Projects and programmes for stimulating and Trade Advisory Committee. assisting the export efforts. • Matters relating to concerned Export VII. Attached and Subordinate Offices Promotion Councils/Export Promotion • Directorate General of Foreign Trade. Organizations. • Directorate General of Supplies and • Indian Institute of Foreign Trade and Indian Disposals. Institute of Packaging. • Directorate General of Anti-Dumping and • Indian Diamond Institute and Footwear Allied Duties and related matters. Design and Development Institute. • Directorate General of Commercial Coordination for export infrastructure. • Intelligence and Statistics. • Development and expansion of export production in relation to all commodities, VIII. Statutory Bodies products, manufacturers and semi- • Marine Products Export Development manufacturers including - Authority. ɤɤ agricultural produce within the • Agricultural and Processed Food Products meaning of the Agricultural Produce Export Development Authority. (Grading and Marking) Act, 1937 (1 of IX. Miscellaneous 1937); Purchase and inspection of stores for Central ɤɤ marine products; Government Ministries/ Departments including ɤɤ industrial products (engineering goods, chemicals, plastics, leather their attached and subordinate offices and Union products, etc.); Territories, other than the items of purchase and ɤɤ fuels, minerals & mineral products; inspection of stores which are delegated to other and specific export oriented products authorities by general or special order. including plantation crops, etc. but excluding jute products and handicrafts.

14 CHAPTER-1 Role, Functions and Organisational Set Up Annexure-1.2 Attached Offices/ Subordinate Offices/ Autonomous Bodies/ Public Sector Undertakings/ Export Promotion Councils/Other Organizations under the Department of Commerce Attached Offices

1. Directorate General of Foreign Trade, 10. Pay and Accounts Office (Commerce), Udyog Udyog Bhavan, New Delhi – 110 107. Bhavan, New Delhi - 110 107 2. Directorate General of Supplies & Disposals, 11. Pay and Accounts Office (Supply), Akbar Road Jeevan Tara Building, Parliament Street, New Hutments, New Delhi. Delhi - 110 001. Autonomous Bodies 3. Directorate General of Anti-Dumping & Allied 1. Coffee Board, 1,Dr. B.R. Ambedkar Duties, Udyog Bhavan, New Delhi – 110 107. Veedhi,Bangalore – 560001. Subordinate Offices 2. Rubber Board, Sub-Jail Road,P.B. No. 1122, 1. Directorate General of Commercial Kottayam - 686002. Intelligence and Statistics, No. 1, Council 3. Tea Board, 14,BTM Sarani,Brabourne Road, House Street, Kolkata – 700 001. P.B. No.2172, Kolkata – 700001. 2. Cochin Special Economic Zone, Administrative 4. Tobacco Board, P.B.No.322, Guntur – 522004. Building, Kakkanad, Cochin – 600 030. 5. Spices Board,Sugandha Bhavan, N.H. Bypass, 3. Falta Special Economic Zone, IInd MSO PB-2277, Palarivattom P.O. Cochin – 682025. Building, 4th Floor, R.No. 44, Nizam Palace Complex, 234/4, AIC Bose Road, 6. Marine Products Export Development Kolkata – 700 020. Authority,MPEDA House, Panampilly 4. Madras Special Economic Zone, National Avenue,Kochi – 682 036. Highway 45, Tambaram, Chennai – 600045. Public Sector Undertakings 5. Kandla Special Economic Zone, Gandhidham, Kachchh-3702309 (Gujarat) 1. State Trading Corporation of India Jawahar Vyapar Bhavan Tolstoy Marg, New 6. SEEPZ Special Economic Zone, Andheri (East), Delhi - 110 001. Mumbai – 400 096. Subsidiary of STC 7. Visakhapatnam Special Economic Zone, Administrative Building, Duvvada, 1. STCL Ltd., 166/2, 13th Main Road, Visakhapatnam – 530046. Vasanthnagar, Bangalore – 560052 8. Noida Special Economic Zone, Surajpur Dadri 2. MMTC Ltd., Scope Complex, 7, Institutional Road, Noida – 201305 Area, Lodhi Road, New Delhi - 110 003. 9. Indore Special Economic Zone, Sector-III, 3. PEC Ltd.,“Hansalaya” 15, Barakhamba Road, Pithampur (M.P.) New Delhi - 110 001.

15 Annual Report 2011-12

4. Export Credit Guarantee Corporation of 10. Sport Goods Export Promotion Council, India Ltd Express Towers, P.B. No. 373, 1-E/6, Swami Ram Tirth Nagar, Jhandewalan Nariman Point, Mumbai - 400 021 Extension, New Delhi – 110055. 5. India Trade Promotion Organization, Pragati 11. Export Promotion Council for EOUs & SEZ Maidan, Mathura Road, New Delhi - 110 001 Units, 705, Bhikaji Cama Bhawan, Bhikaji Export Promotion Councils Cama Place, New Delhi-110066. 1. Chemexcil, Jhansi Castle, 4th Floor, 7, 12. Pharmexcil, 101, AdityaTrade Centre, Cooperage Road, Mumbai – 400039. Ameerpeth,Hyderabad-500 038, Andhra Pradesh. 2. CAPEXIL,”Vanijya Bhawan”,International Trade Facilitation Centre, 1/1 Wood Street,3rd 13. Indian Oil Seeds & Produce Export Promotion Floor, Kolkata – 700016. Council, 78-79, Bajaj Bhawan, Nariman Point, Mumbai – 400 021. 3. Cashew Export Promotion Council of India, P.B. No. 1709,Chittor Road, Ernakulam South, 14. Services Export Promotion Council 705, Cochin - 682016. Bhikaji Cama Bhavan, Bhikaji Cama Place, New Delhi-110066. 4. Council for Leather Exports,No.1, CMDA Tower II, III floor, Gandhi Irwin Road,Egmore, Other Organizations Chennai - 600 008. 1. Federation of Indian Export Organizations, 5. EEPC”Vanijya Bhawan”, International Trade Niryat Bhawan, Rao Tula Ram Marg,Opp. Facilitation Centre, 1st Floor, 1/1 Wood Street, Army Hospital (Research & Referral), New Kolkata – 700016, West Bengal. Delhi-110057. 6. Gems & Jewellery Export Promotion Council, 2. Indian Council of Arbitration, Federation Office No. AW 1010, Tower A, G Block, Bharat House,Tansen Marg,New Delhi-110003 Diamond Bourse,Next to ICICI Bank, Bandra- 3. Indian Diamond Institute, Katargam, GIDC, Kurla Complex, Bandra – East, Mumbai – Sumul Dairy Road, P.B. No. 508, Surat-395008, 400051. Gujarat. 7. Project Exports Promotion Council of India 4. Footwear Design & Development Institute, (PEPC), H-118, Himalaya House, 11th Floor, A-10/A, Sector-24,Noida – 201301,Gautam 23, Kasturba Gandhi Marg, New Delhi – Budh Nagar, Uttar Pradesh. 110001. 5. National Centre for Trade Information, 8. Plastics Export Promotion Council, Crystal NCTI Complex, Pragati Maidan, Tower, Ground Floor, Gundiwali Road New Delhi - 110 001. No.3, Opp. Sir M.V. Road, Andheri (East), 6. Price Stabilisation Fund Trust, Room No.2003. Mumbai – 400069. 20th Floor, Jawahar Vyapar Bhawan, Tolstoy 9. Shellac Export Promotion Council, ”Vanijya Marg, Connaught Place. Bhawan”, International Trade Facilitation New Delhi - 110 001. Centre, 1/1 Wood Street, 2nd Floor, Kolkata – 700016.

16 CHAPTER-1 Role, Functions and Organisational Set Up EA Joining awaited review review macro- Exports; Monthly Monthly Selected Selected EA(SD) Five Year Year Five of Export Coord. of Coord. summary Report to to Report economic economic economic Advice on and other Secretary, Secretary, aspects of studies on studies proposals. indicators; indicators; Analysis of Analysis for Cabinet Cabinet for WTO issues WTO Monitoring/ reports, RFD, RFD, reports, Plan and Mid CIM, Sectoral Sectoral CIM, globalisation, globalisation, Term Review; Review; Term performance, performance, Foreign Trade Trade Foreign Foreign Trade, Trade, Foreign Strategic Plan, Plan, Strategic note on India’s on India’s note Strategy Paper, Paper, Strategy Information on Information Annual Report, Annual Report, Statistics, Press Press Statistics, TPD (MB) AddlDG - ing Anti Anti Cost Cost (SKS) –Dump Adviser - - Additional Secretary (MP) Additional Secretary cil) IBEF, MAI, ECGC, ECGC, JS(MJ) Pharma E&MDA, E&MDA, EP(CAP), ceuticals ceuticals (Pharmax Exim Bank, - Infrastructure, Infrastructure, centre State including States Cell,North East Cell, (State Foreign Trade Interaction on Trading), Foreign Trade (Minerals & Ores), Foreign Trade Exports (Europe including enlarged European Economic Zone, Export Union), Oreinted Unit/Foreign Special Overseas (Export Board Promotion Investment Foreign Investment, Promotion),National Steering Committee and Chairman EIC. Product on Organic EP(LSG), Grievances, Grievances, 1,E-IV, TA/TC, TA/TC, 1,E-IV, JS(A Saxena) EP(G&J),Trade EP(G&J),Trade Establishment- Establishment- FT(Cord.), Kim FT(Cord.), Finance, Public berely Process., Process., berely Protocol, EP(LSG) Protocol, - China) FT(NEA FT(NEA Division JS (AKT) including EP (Agri), and Supply Biotechnol ogyEP (CAP) JS(RC) FT(CIS), Division Additional Secretary (VJ) Additional Secretary Grievances and Hindi Grievances Infrastructure(ASIDE) Infrastructure(ASIDE) Finance Divison, Public Scheme, States Cell, Trade Cell, Trade Scheme, States Anti Dumping (DGAD),(excluding work relating to the India – EU Division EU BTIA and EFTA negotiations), Offset and RTI. Policy FOI, FOI, AM) JS(AW) FT(LAC), FT(LAC), EP(LSG), EP(G&J), Vigilance SEZ, EOU/ SEZ, Kimberley Kimberley FT(NAFTA/ Process and Process - - - India rope), rope), JS(SC) Export FT (Eu Textiles Textiles and GSI liament, liament, tion Par tion EP (Engg) Coordina Promotion Promotion (OP) Commerce Secretary (Dr. Rahul Khullar) (Dr. Secretary Commerce FT(SA/ JS(AM E&MDA, E&MDA, IBEF, Exim IBEF, MAI, ECGC, MAI, ECGC, Bank and EP SAARC/Iran), SAARC/Iran), - FT and Anti- Safe Trade Trade (NCTI, IIP), EP guards, guards, IIFT and (Service Board of Board EP (ECS). Exports), and New and New Dumping Zealand), Zealand), (Australia (Australia subsidies, subsidies, JS (JKD) Promotion Promotion Additional Secretary (RK) Additional Secretary - Minister For Commerce, Industry and Textiles (Shri Anand Sharma) and Textiles Industry Commerce, For Minister JS(S) RTI Act RTI Cord.)and Cord.)and ESCAPEFT ORGANISATIONAL CHART OF DEPARTMENT OF COMMERCE OF DEPARTMENT CHART ORGANISATIONAL FFT(ASEAN), FFT(ASEAN), Minister of State for Commerce & Industry (Shri Jyotiraditya M. Scindia) (Shri Jyotiraditya & Industry Commerce for of State Minister Trade Trade Policy TradeMultilateralRelations and UnitedNation Division (including Conference Regional on Pharmaceuticals (pharmexil) and India-EU BITA Trade and negotiations. and EFTA Development), JS(AS) Customs Customs (including valuation, valuation, Electronic Electronic Facilitation, Facilitation, TPD(NAMA, Rules, Trade Trade Rules, Commerce), Commerce), GSTP), Small GSTP), Government Government & Transfer of & Transfer Procurement, Procurement, UNCTAD India UNCTAD BIMSTEC, GSP, GSP, BIMSTEC, Economics and Economics IBSA and BRICs IBSA Accession, CTDAccession, Settlement and Settlement Initiative, Trade Trade Initiative, and CRTA, APTA, APTA, and CRTA, Import Licensing Project, UNCTAD UNCTAD Project, and Aid for Trade Trade and Aid for Textiles, Disputes Disputes Textiles, LDCs, Investment Investment LDCs, and Competition, and Competition, (including TRIMS) Technology, Trade Trade Technology, Debt and Finance, and Finance, Debt Procedures, RMTR Procedures, JS(JSD) Pharmexcil Conference), Conference), Labour, STEs, STEs, Labour, TPD services, BIP, Ministerial Ministerial BIP, Council, Centre Council, Centre TRIPS, ITPO, and ITPO, TRIPS, New Convention Convention New for WTO Studies, Studies, WTO for TNC and General and General TNC TPD (Agriculture, TPD (Agriculture, Environment and Environment TPD(Coordination) TPD(Coordination) Centre Project and Project Centre and Administration) and Administration) Safeguards, SPS, TBT, TBT, SPS, Safeguards, Adviser (RSK) JS(DSD) FT(Africa), FT(Africa), Additional Secretary and Financial Additional Secretary Establishment Administration & Administration Export Inspection FT(WANA)EP(MP), FT(WANA)EP(MP), Finance, Budget & Accounts, Internal Work Study Management / Unit/Organization Career Management & & Training, Assistance, India Market Brand Equity Fund, Development Division Finance, Economic Trade