Exim policy to add 300 items to SIL

NEW DELHI, MAR 15: The revised export-import policy 1997-2002 to be unveiled by commerce minister Ramakrishna Hegde on March 31 is expe...

NEW DELHI, MAR 15: The revised export-import policy 1997-2002 to be unveiled by commerce minister Ramakrishna Hegde on March 31 is expected to retain all major export promotion schemes with the focus on rationalisation of procedures.

These schemes include advance licence scheme, export promotion capital goods scheme EPCG and the duty entitlement passbook scheme DEPB. In accordance with the commitment to the World Trade Organisation WTO, roughly 200 to 300 items figuring on the restricted list of the exim policy are expected to be shifted to the Special Import Licence SIL list and to the freely exportable list.

The commerce minister has had several rounds of interactive sessions with representatives of trade and industry, including those with the Federation of Indian Export Organisations FIEO in Mumbai recently.

There are definite indications that suggestions made by trade and industry during these meetings will be incorporated to the extent possible in the revised policy.

The commerceministry will make a determined effort to cut the transaction cost of exporters to make their products globally competitive. The zero duty EPCG scheme will be retained while the EPCGC scheme with 10 per cent customs duty may be scrapped. Both the schemes allow imports of new as well as second-hand capital goods against a stiff export obligation.

The demand for the 10 per cent duty EPCG scheme has been on the decline since capital goods in the normal course can be imported at 15 per cent customs duty without the export onus. The zero duty scheme has been exempted from the five per cent basic customs duty imposed by finance minister Yeshwant Sinha in the 1999-2000 budget. It will, however, attract countervailing duty of 10 per cent levied more than a year ago.

The scheme of export processing zones are likely to be revamped on the lines applicable to those in the UAE. This follows the recommendations of an official team led by director-general of foreign trade NL Lakhanpal to UAE more than a month ago.

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NewEPZs, going by the recommendations, will be set up by allowing private sector participation, without insisting on value addition, export obligation etc.

However, sale of products by EPZs in the domestic tariff area will be subject to payment of full customs duty. Currently, sale of these products by Export Oriented Units and Export Processing Zones is subject to 8 per cent excise duty, the same level applicable to domestic units.