NEW DELHI, MARCH 24: The core group of the Foreign Investment Promotion Board has recommended duty relief to foreign firms which suffer losses due to sudden changes in policy or court decisions having a direct implication on their business activities.The group, which comprises finance secretary M S Ahluwalia, industry secretary T R Prasad and commerce secretary P P Prabhu among others, is of the view that representation of foreign investors in such cases should be "considered with understanding and taken up in the department of revenue to afford them the duty relief to the extent feasible".The group noted that certain companies were found importing 100 per cent of components but refused to acknowledge that the imports attracted custom duty applicable on completely knocked down and semi-knocked (CKD/SKD) kits. In such cases, the concerned ministries should clarify the position firmly.The core group drew these conclusions following a note from the ministry of external affairs suggesting discussion onforeign investors' perception. Some countries like the US have conveyed a strong positive impression of business opportunities even after acknowledging the ground realities. However, it has been noticed that certain countries were excessively concerned with collateral issues.
