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THE new Exim policy for 2002-07 has attempted to provide an enabling environment to make exports easier by announcing a series of procedural simplification under various schemes currently being operated officially.
These include, among others, same day licensing in all the regional licensing offices, reduction in percentage of physical examination of export cargo, finalisation of the application for fixation of brand rate of drawback within a fortnight, direct negotiation of export documents in order to help exporters save bank charges and 100 per cent retention in EEFC (Export Earners' Foreign Currency) accounts and extension of repatriation period for realisation of export proceeds from 180 days to 360 days. These facilities are being made available to the status export holders now, the Minister said while unveiling the Exim Policy.
On DEPB (Duty Entitlement Passbook) scheme, the value cap exemption would continue and there would be no mid-term reduction of rates except in exceptional circumstances, bringing immense relief to trade and industry, which is hurt when such corrections are made.
Export Promotion Capital Goods (EPCG) licences of Rs 100 crore or more would have 12 years export obligation period, as against eight years earlier, with a five-year moratorium, while supplies under deemed exports would be eligible for export obligation (EO) fulfilment along with deemed export benefits. EO fulfilment period extended from 8 to 12 years in respect of units in agri-export zones and in respect of companies under the revival plan of the BIFR.
The policy also postulates refixation of EO in respect of past cases of imports of second-hand capital goods under the EPCG scheme.
Some of the sector-specific packages in the policy include reduction of customs duty on import of rough diamonds to zero per cent, reduction in value-addition norms for export of plain jewellery from 10 to seven per cent, allowing export of all mechanised unstudded jewellery at a value-addition of three per cent only as part of the effort to achieve a quantum leap in jewellery exports.
Extension of duty-free imports of trimmings and embellishments up to three per cent of FOB value — hitherto restricted to leather garments — to all leather products and permitting DEBP rates for all kinds of blended fabrics were among several other benefits for the textile sector.
For electronic hardware, the Electronic Hardware Technology Park (EHTP) scheme is being modified to enable the sector to face the zero duty regime under the Information Technology Agreement (ITA-1) of the WTO.
Units in the EHTP would now be entitled to (i) NFEP-net foreign exchange as a percentage of exports - positive in five years only instead of every year;(ii) no other export obligation for EHTPs; and (iii) supplies of ITA-1 items having zero duty in the domestic market to be eligible for counting of export obligation.
The policy also marks the launch of a new programme called ``Special focus on cottage sector and handicrafts'', keeping in view that the small-scale sector forms 50 per cent of India's exports.
As part of this package, an initial amount of Rs 5 crore has been earmarked for promoting cottage sector exports coming under the KVIC. Units in the handicraft sector could also access funds on the MAI (Market Access Initiative) scheme, while under the EPCG scheme, these units would not be required to maintain average level of exports.
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