I (Meaning and importance of Exports) Unit Structure

60) MODVAT-- 
MODVAT stands for modified value Added Tax, New it has 
been replaced by CENVAT. 
61) Negative List of Exports 
– 
Negative list of exports means a list of items the export of 
which is not allowed freely. It includes 
– 
Prohibited items, such as birds, animals and plants. 
Restricted items, such as cattle, camels, chemical fertilizers
Canalized items, such as Gum Karaya, Niger seeds, 
petroleum products etc. 
62) Non-Tariff Barriers-- 
Non-Tariff barriers are also called quantitative restrictions. 
They restrict the quantity of goods to be imported / exported. 
63) OGL-- 
Open General License means the list which contains those 
items which can be imported or exported without restrictions. Items 
covered by an OGL can be exported or imported freely without any 
licencing formalities to or from all permitted nations. 
64) Oversea
s Buyer‘s credit – 
It is a special scheme introduced by EXIM Bank of India. 
Under this scheme, EXIM Bank provides loans to overseas buyers 
to buy Indian capital goods. The loans are provided at international 
rate of interest. The main objective is to promote the exports of 
Indian capital goods. 
65) Packing Credit 
– 
Packing credit is also known as pre-shipment finance. It 
refers to the credit provided to the exporter to meet working capital 
requirements before the shipment of goods such as payment of 

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wages, purchase of raw material, payment of recurring factory 
expenses etc. 
66) Penetration pricing 
– strategy – 
A pricing strategy in which exporter introduces the product 
into the market charging very low price initially. The purpose is to 
capture the largest-market possible and drive away competitors.