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ASSOCHAM calls for modified exim policy

The Associated Chambers of Commerce and Industry of India has suggested that the new export-import policy should be dovetailed to the budget's accent on reviving flagging business sentiment and allow duty-free licences to be freely clubbed and made applicable from the date of issue.

In a memorandum to the commerce ministry, ASSOCHAM President K P Singh pointed out that exporters are now penalised for non-fulfilment of export obligations under individual licences, although, overall, they may have performed well.

Singh noted that whereas earlier all duty-free licenses were allowed to be clubbed, albeit in exceptional cases, such as allowance is now available for advance licences only. The words "in exceptional cases" have been done away with to liberalise clubbing in the interests of streamlining procedures and avoiding over canalisation. However, in cases where companies need to club licences other than only advance licences like for special imprest licences as hitherto permissible, the amended version is restrictive.

The earlier provision took into account special imprest licences also even where there were slight differences in modalities. In any case, the financial impact of the former case is more of form than of substance and the small mathematical calculation involved for adjustment is negligible compared to the necessity of retention of the provision.

ASSOCHAM has stated that if a cognisable attempt has to be made towards large scale exports, it is but natural that advance licences or advance intermediate licences and special imprest licences has to be applied for by exporters on the basis of guesstimates of the quantum of exports expected. The imports have thus to the timely provisioned, so that markets can be explored and identified in detail, individual orders obtained and exports made in an acceptable time frame.

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