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Implementation of Exim Policy would be the key: CII

Commenting on the new Exim Policy announced by the Minister of Commerce and Industry Murasoli Maran, the Confederation of Indian Industry stated that many new initiatives have been announced with a view to giving exports a new thrust, but implementation would be key to achieve the target of taking India's share to 1 per cent of world exports.

Welcoming the initiatives to reduce transaction costs to exporters, CII pointed out that the new Exim Policy has primarily focussed on procedural simplification in the various export promotion schemes and rebating fully the incidence of duties and facilitation of exports at the ports and DGFT offices through better co-ordination, which would improve the competitiveness of the exporting community.

CII has particularly welcomed the involvement of the states in export promotion activities. However, the fund allocated for the scheme could have been much more for the states to meaningfully address infrastructure and other constraints.

Even the allocation for market access initiative programme of Rs 420 million for 2002-03 could have been enhanced to at least Rs 1 billion, CII added.

CII also hailed the continuation of all the existing export promotion and duty neutralisation schemes. The continuation of DEPB scheme with further simplification is especially welcome, CII added.

As far as the Advance License scheme is concerned, CII pointed out that the dispensation of the logging of DEEC books and the redemption of advance licenses on the basis of shipping bills and bank realization certificate of export would reduce unnecessary delays.

Similarly the relaxation of minute verification of technical characteristics and specification of inputs would make the duty replenishment certificate scheme more attractive. CII also welcomed the reduction in interest rate from 24 per cent to 15 per cent in case of non-fulfillment of export obligation by exporters under the various schemes.

Commenting on the special focus on development of SEZs, CII stated that the measures announced should be followed up with quick implementation. The special focus on export status holders, export oriented units and industrial clusters would help in tapping the inherent strength and opportunities to propel economic activity and promote exports, CII added.

The focus on agriculture, cottage sectors and handicrafts, according to CII are also welcome measures and would help in tapping the export potential in the sectors. The switchover to a common eight-digit ITC HS classification, CII stated would help in harmonisation of tariffs with the customs and also impart greater transparency.

CII also welcomed the sectoral focus on leather, textiles, electronics and gems and jewellery. All these areas have immense untapped export potential which would get a boost, CII added. The focus on Africa and CIS countries were also welcome, according to CII.

CII, however, expressed disappointment that no scheme had been announced for remission of indirect taxes, which the exporters are subject to at present. The refund of sales tax, service tax, octroi, electricity duty need to be allowed, CII stated. Similarly there has been no mention about extension of deemed export to more categories where customs duty has been reduced to 'nil' in this Exim Policy.

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