Exim policy to simplify procedures: Kamal Nath

Commerce and Industry minister Kamal Nath has said the annual export-import policy will focus on procedural simplification and lowering of ...

Commerce and Industry minister Kamal Nath has said the annual export-import policy will focus on procedural simplification and lowering of transaction costs to make exports more competitive.

Addressing an interactive session on Exim policy organised by the Federation of Indian Export Organisations Fieo, Kamal Nath said there would be lessening of controls and removal of roadblocks, especially in sectors that have a potential for immediate growth such as textiles, leather, handicraft and gems and jewellery.

The minister, who spent more than an hour with exporters taking a note of their problems, said his aim would be to hold more such consultations and invite suggestions on how transaction costs could be lowered and procedures be simplified.

Exporters suggested that a regulatory authority should be set up to keep a check on the arbitrary charges asked by shipping companies. They further said there should be a single window mechanism for filing of duty drawback claims and collection of payments.

Kamal Nath assured exporters that he would take up with the finance ministry the issue of harassment caused to exporters due to the sudden decision to levy taxes on sale of duty entitlement pass book DEPB scrips with retrospective effect. He said since the benefit the exporters were supposed to derive out of the DEPB scheme was being affected, he would take up the matter seriously.

The exim policy will be finalised after consultations and announced after the budget to reflect priorities of the new government, the minister said.

Exporters also asked the minister to restore full benefits of tax exemption under Section 80-HHC of the Income Tax Act.

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Fieo Vice President Subhash Mittal welcomed the minister8217;s decision to form a core advisory group comprising major exporters to carry of a regular dialogue with the government on measures to increase the country8217;s share in world trade from the present 0.7 per cent to 1 per cent before the target year 2007.