Following are the highlights of the 'new look' five-year Exim Policy unveiled by Commerce Minister Murasoli Maran in New Delhi on Sunday:
Massive thrust to exports;
All QRs on exports removed;
DEPB (Duty Entitlement Pass Book), advance licence, EPCG (Export Promotion Capital Goods) and other schemes to continue with further improvements;
Transport assistance for export of agro products;
Special focus on cottage sector and handicrafts;
Major new incentives for SEZs (Special Export Zones) - Income Tax concessions and permission to set up overseas banking units;
Incentive package for hardware sector;
Procedural simplifications to further reduce transaction costs;
New commodity classification for imports and exports;
Diversification of markets with new programmes for Africa and CIS (Confederation of Independent States);
Quantum increase in assistance to states for export development and market access initiative;
Sector specific benefits;
Units in SEZs to be permitted to undertake hedging of commodity price risks;
External Commercial Borrowings in SEZs;
Restrictions on export of all cultivated varieties of seed, except jute and onion, removed;
3% special DEPB rate for primary and processed foods;
Rs 50 million earmarked under Market Access Initiative to promote cottage sector exports;
Duty-free imports for handicraft sector;
Zero customs duty on import of rough diamonds;
Value addition norms for export of plain jewellery reduced from 10 per cent to 7 per cent;
Reimbursement of 50 per cent of registration fees for registration of drugs;
Free import of equipment and other goods used abroad for more than one year;
100% retention of foreign exchange in Exchange Earners' Foreign Currency account;
Links with CIS countries to be revived;
New 8 digit commodity classification for imports;
Repatriation period for realisation of export proceeds extended from 180 days to 360 days;
Penal interest rate of bonafide defaults to be brought down from 24 per cent to 15 per cent;
Newcomers to be entitled for licences without any verification against execution of bank guarantee; and
EPCG licences of Rs 1 billion or more to have 12-year export obligation period with 5-year moratorium.
