Hegde unveils sops to boost exports

The package allows existing Star and Super Star Trading Houses to keep their status even if their export performance does not come up to scratch in this difficult year, and will confer Star and Super Star Trading House status on large firms irrespective of their present exports to give them an incentive to become large exporters in the near future.

Duty-free imports of inputs are being allowed from today for electronic hardware exporters. These inputs include integrated circuits or components, sub-assemblies, accessories, parts, etc. These exporters will have toaccount for such inputs at the end of the year to officials nominated by the Department of Electronics (DoE).

A one-time extension up to September 30 had earlier been allowed to firms which had defaulted on their export obligations and was available to those who had fulfilled at least half of their obligation. This scheme has been extended for six months up to March 31 next on similar terms.

Due to a difficult export environment this year, trading houses are apprehensive that their status, which entitles them to several benefits, will be cancelled as they will fail to achieve 20 per cent export growth this year. As an exception, it has been decided to let them retain their status if they reach their respective threshold criteria.

On a suggestion by the Bombay Chambers of Commerce the minister has decided to confer Star and Super Star trading houses status on companies whose annual manufacturing turnover is Rs 300 crore and Rs 1000 crore respectively. This will be done without taking into account theircurrent export performance, on the basis of a “simple application accompanied by a balance sheet”.

The firms will have to sign an MoU with the Director General of Foreign Trade (DGFT) that they will achieve within three years the respective export targets that are required for the conferment of the status of a Star or Super Star Trading House as the case may be.