The Tribune, Chandigarh, India

Monday, April 1, 2002, Chandigarh, India

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Industry, chambers happy
Tribune News Service

New Delhi, March 31
Union Commerce Minister, Murasoli Maran today received three cheers from the captains of industry with all major trade and industry associations welcoming the series of initiatives announced in the five year Exim Policy.

President of Federation of Indian Chambers of Commerce and Industry (FICCI), Mr R.S. Lodha said the Exim Policy is an attempt to make international trade and engine of growth and has sought to create a framework for enhancing India’s export capability.

“The most encouraging aspect of the new look Exim policy is its focus in raising India’s export competitiveness and initiating several bold measures to do so”, Mr Lodha said.

“The policy has addressed all issues in a structured and comprehensive manner”, the FICCI president said. However, he said that for giving a boost to Indian SEZs, it was important to formulate a special labour legislation. “ An advantage of China in this regard is its cheap and efficient labour which India must neutralise urgently. The labour intensive technology can impart critical cost competitive edge”, he said.

The Confederation of Indian Industry (CII) has welcomed the involvement of the states in export promotion activities. However, the fund allocated for the scheme could have been much more for the states to meaningfully address infrastructure and other constraints, the CII said in a statement.

The CII also welcomed the continuation of all existing export promotion and duty neutralisation schemes. Commenting on the special focus on development of SEZs, the CII said that the measures announced should be followed up with quick implementation. The switchover to a common eight digit commodity classification would help in harmonisation of tariffs with the customs and also impart greater transparency, the apex industry association said.

President of the Associated Chambers of Commerce and Industry of India (Assocham), Mr K K Nohria said policy announcements are extremely positive “encompassing all sectors, giving rise to expectations of a 12 per cent export growth every year for the next five years to capture 1 per cent of the global trade”.

The Assocham president welcomed the incentives to export and trading houses in terms of 100 per cent retention in EEFC and continuation of the policy of the DEPB scheme.

President of PHDCCI, Mr Arun Kapur said that the policy was much in line with industry expectations. The measures announced would help the industry to plan ahead and give stimulus to export growth.

“The extension of the period of realisation of export proceeds from 180 days to 360 days is welcome and in tune with the depressed global economic trends,” Mr Kapur said.

Further, removal of QRs on exports of some agro products as also the removal of packaging restrictions would help in giving a major push to the agriculture sector, Mr Kapur said.

Exports procedure simplified
Tribune News Service

New Delhi, March 31
In an attempt to reduce transaction costs, Union Commerce Minister, Murasoli Maran today announced a series of measures aimed at simplifying the procedural hassles covering the Directorate General of Foreign Trade (DGFT), customs and banks.

The measures include the adoption of a new eight digit commodity classification the DGFT, Customs and the Directorate General of Commercial Intelligence and Statistics (DGCIS).

The common classification is expected to eliminate the classification disputes and hence reduce transaction costs and time. The Ministry of Environment and Forests is also in the process of finalisation of guidelines to regulate the import of hazardous waste.

The maximum fee limit for electronic applications under various schemes has been reduced from Rs 1.5 lakh to Rs 1 lakh and same day licensing has been introduced in all regional offices. The application for the fixation of brand rate of drawback shall be finalised within 15 days and direct negotiation of export documents to be permitted with banks. The repatriation period of realisation of export has been extended from 180 days to 360 days.

Further, penal interest rate for bona fide defaults has been brought down from 24 per cent to 15 per cent and there will be no penalty for the non-realisation of export proceeds in respect of cases covered by ECGC insurance package.

As regards the duty neutralisation instruments, the Exim Policy stated that the value cap exemption granted on 429 items to continue and there will be no present market value (PMV) verification except on specific intelligence.

The Duty Exemption Entitlement Certificate (DEEC) book will be abolished and status holders shall be eligible for license and customs clearances for both imports and exports on self-declaration basis.

Export Promotion Capital Goods Scheme (EPCG) licenses of Rs 100 crore or more will now have 12 years export obligation period with five years moratorium.

I’m not quitting, says Maran

New Delhi, March 31
The Commerce and Industry Minister, Mr Murasoli Maran, today dismissed reports that he might resign after announcing the Exim policy.

“It is nonsense. I am not resigning”, he told reporters after unveiling the Exim policy, replying to a query whether he was planning to quit after the policy announcement. Asked if problems of coordination between the various ministries were not hindering the smooth implementation of the Exim policy, Mr Maran quipped Central Board of Excise and Customs Chairman K.L. Verma will reply to the question. PTI