The Hindu Business Line : `Fast track clearance scheme for EOUs in 3 weeks'

THE Union Minister for Commerce and Industry, Mr Kamal Nath, on Wednesday assured export-oriented units (EOUs) that the Fast Track Clearance scheme, which seeks to expedite Customs clearances to qualified EOU units, would be in operation within the next two to three weeks. He gave this assurance at an interactive session with exporters organised by the Export Promotion Council for EOUs and SEZ units here on Wednesday.

In the Exim Policy 2002-07, Paragraph 6.29 had been incorporated, which provided that a Fast Track Clearance procedure for EOUs having `status holders' certificate shall be notified separately. The provision was incorporated in the Exim Policy announced on April 1, 2003. However, in spite of this provision being incorporated, no instructions were issued for the entire year for implementation of the scheme. Subsequently, a complete scheme on this was incorporated in the Foreign Trade Policy announced on August 31, 2004, but even after this the scheme has not yet been made operational.

Replying to this complaint made by some EOUs, the Minister assured that he was initiating steps to ensure that the scheme was operational in the next two to three weeks, which would help in reducing transaction costs for the qualified units.

In response to another suggestion from EOUs, Mr Kamal Nath said he would take a look into their plea for removal of the Sunset Clause of 2010 for income-tax exemption to new EOUs. As per this clause, EOUs will get the 10-year exemption only up to 2009-10, irrespective of when the unit is set up. EOUs have been demanding that they be granted this benefit without any time limit as is being granted to SEZ units.

The EOU sector has been pointing out that the time limit for providing I-T exemption only up to 2010 for EOUs under the Sunset Clause would work as a deterrent to fresh investments in the EOU sector. It argues that the benefit should be given for a 10-year period to EOUs without any time restrictions. The Minister also offered to put up before the Board of Approvals the plea of SEZ units that goods and services coming from the SEZ area into the Domestic Tariff Area (DTA) should not be required to comply with the policy conditions that are applicable to actual imports into India, except for production of the Import Licence for non-OGL goods.

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