The Hindu Business Line : Textile Ministry seeks changes in Exim Policy

IN the run-up to the modified Export-Import (Exim) Policy for 2003-04 to be unveiled on March 31, the Textile Ministry has pitched for policy-related and procedure-related changes. The Ministry also sought suitable amendment in the duty entitlement passbook (DEPB) rates, after obtaining the inputs from various export promotion councils (EPCs).

Official sources told Business Line here that in the domain of policy changes, most of the textile EPCs are unanimous for reduction or complete scrapping of the system of annual average past export performance (PEP) under the Export Promotion Capital Goods (EPCG) scheme and the facility of converting DEPB shipping bills to drawback shipping bills and vice-versa. They also, the sources said, sought incentives to status holders and also retrospective application of dispensing away of DEEC (Duty Exemption Entitlement Certificate) on advance licences. The latter move would help to close pending files since the DEEC is now dispensed with.

Elaborating on incentives to status holders, they said, currently status holders such as export house, trading house, super star trading house do not enjoy any commercial benefits that were earlier provided to them. Any fillip of two per cent would bring high revenue outgo and it would not be feasible in view of its incompatibility with WTO norms. However, to encourage the status holders particularly in the higher brackets, an incentive up to two per cent of the DEPB/drawback can be allocated for research and development. Alternatively, the status holders might at least be extended one per cent as a spur under the DEPB/drawback scheme over and above the DEPB/DBK entitlement under the normal policy provision.

Yet another change sought by the industry pertains to allowing of duty-free import of garment samples without any limit and also duty-free import of embellishments/consumables to cottage-based handicrafts sector. Readymade garments significantly contribute to the textile exports, but still the apparel exporters have been facing problem of availability of quality fabric for garment production. The sources noted that while some of the big garment houses are able to meet their fabric requirement through imports, the small exporters find it difficult to import fabric. Hence, the Ministry has sought a suitable provision in the forthcoming Exim Policy to enable such small exporters to have an easy access to import of fabric.

On procedural problems, the sources said that the Customs verification of the details of exports as given on the DEPB are as per their records is duplication of efforts since DEPB is issued by licensing authorities on the basis of the shipping bills passed by the Customs.

Exporters feel that the Customs do not follow clearly laid down procedures, thereby causing delay and harassment for them. The exporters also seek simultaneous issue of corresponding notifications by the Revenue Department whenever the DGFT in the Commerce Ministry makes alterations in the scheme so that the benefits of the latter's policy changes are fully realised. All the improvements being sought by exporters would go a long way in pruning the high transaction cost and render policy provisions more exporter-friendly, the sources added.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Fertiliser price hike rolled back

Infrastructure project process set in motion

IOC seeks to buy less from Reliance Petro — To absorb more from MRPL

SCI to pay Rs 3 interim dividend

Textile Ministry seeks changes in Exim Policy

Finance cos return to campus hirings