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SALIENT
FEATURES OF THE EXIM POLICY 2002-07
SPECIAL ECONOMIC ZONES
OFFSHORE banking units (OBUs) shall be permitted in SEZs. Detailed guidelines are being worked out by the RBI. This should help some of our cities emerge as financial nerve centers of Asia.
Units in SEZ would be permitted to undertake hedging of commodity price risks, provided such transactions are undertaken by the units on stand-alone basis. This will impart security to the returns of the unit.
It has also been decided to permit external commercial borrowings (ECBs) for a tenure of less than three years in SEZs. The detailed guidelines will be worked out by the RBl. This will provide opportunities for accessing working capital loan for these units at internationally competitive rates
Sample fabrics permitted duty-free within the 3 per cent limit for trimmings and embellishment
10 percent variation in GSM be allowed for fabrics under advance license.
Additional items such as Zip fasteners, inlay cards, eyelets, rivets, eyes, toggles, velco tape, cord and cord stopper included in input output norms.
Duty entitlement passbook (DEPB) rates for all kinds of blended fabrics permitted. Such blended fabrics to have the lowest rate as applicable to different constituent fabrics
a) Strategic package for status holders
The status holders shall be eligible for the following new/special facilities:
License / certificate / permissions and customs clearances for both imports and exports on self-declaration basis.
- Fixation of input-output norms or priority:
- Priority finance for medium and long-term capital requirement as per conditions notified by the RBI;
- Exemption from compulsory negotiation of documents through banks. The remittance, however, would continue to be received through baking channels;
- 100 per cent retention of foreign exchange in exchange earners' foreign currency (EEFC) account
- Enhancement in normal repatriation period from 180 days to 360 days.
b) Neutralizing high fuel costs
Fuel costs to be rebated by it in standard input output norms (SlONs) for all export products. This would enhance the cost competitiveness of our export products. The value or fuel to be permitted as a percentage of FOB. Value of exports Dye and dye intermediates 4 percent; fiber to yam 4 percent; yam to fabric/ made-ups/ garment 3 per cent; Fiber to fabric/made-ups/garments 7 percent.
c) Diversification of markets
Setting up of a 'Business center in Indian missions abroad for visiting Indian exporters / businessmen.
Focus LAG (Latin American countries) was launched in November 1997 in order to accelerate our trade with the Latin American countries. This has been a great success. To consolidate the gains of this programme, we are extending this up to March 2003.
Focus Africa is being launched today. There is a tremendous potential for trade with the sub-Saharan African region. During 2000-01 India's total trade with Sub Saharan African region was $3.3 billion. Out of this, our exports accounted for $1.8 billion and our imports ware 5 billion.
The first phase of the focus Africa programmne shall include 7 countries namely, Nigeria, South Mica, Mauritius, Kenya, Ethiopia, Tanzania and Ghana. The exporters exporting to these markets shall be given the Export House status on export of Rs.5 crore.
Links with CIS countries to be revived. We have traditional trade ties with these countries. In the year 2000 -01, our exports to these countries were to the extent of $10.92 billion. In this group, Kazakhstan Kyrgyz tan, Uzbekistan, Turkmenistan, Ukraine and Azerbaijan to be in special focus in the first phase.
d) North Eastern States, Sikkim and Jammu & Kashmir
Transport subsidy for exports to be given to units located in North East, Sikkim and Jammu & Kashmir so to offset the disadvantage of being far from ports.
e) Re-location of industries
To encourage re-location of industries to India,plants and machineries would be permitted to be imported without a license, where the depreciated value of such relocating plants exceeds Rs50 crore.
With a view to reducing transaction cost, various procedural simplifications have been introduced. These include: DGFT.
A new 8 digit commodity classification for imports is being adopted from today. This classification shall also be adopted by Customs and DGCI&S shortly.
The common classification to be used by the DGFT and the Customs will eliminate the classification disputes and hence, reduce transaction costs and time.
Same day Licensing induced in all regional offices.
Adoption and harmonization of the $ digit ITt (I-IS~ co4e. The percentage of physical examination of export cargo has already been reduced to less than 10 percent except for few sensitive destinations. The application for fixationof brand rate of drawback shall finalized within 15 days.
Direct negotiation of export documents to be permitted. This will help the exporters to save bank charges.
100 percent retention in EEFC accounts.
The repatriation period for realization of export proceeds extended from 180 days to 360 days. The facility is already available to units in SEZ and exporters exporting to Latin American countries. These facilities are being made available to status Holders only for The present.
a) Advance license
Duty exemption entitlement certificate (DEEC) book to be abolished. Redemption on the basis of shipping bills and bank realization certificates.
Withdrawal of advance license for annual requirement (AAL) scheme as problems were encountered in closure of AAL, arid the significance of scheme considerably reduced due to dispensation of DEEC. The exporters can, avail advance lience for any value.
Mandatory spares to be allowed in the advance license up to 10 per cent of the CIF value.
b) Duty free replenishment certificate (DFRC)
Technical characteristics to be dispensed with audit purpose.
c) Duty entitlement Passbook (DEPB)
Value cap exemption granted on 429 items to Continue.
No present market value (PMV) verification except on specific intelligence.
Same DEPB rate for exports whether as CBUs or in CKD/SKD form. Reduction in rates only after due notice.
d) Export promotion capital goods (EPCG)
EPCG licenses of Rs.100 crore or more to have 12 year export obligation (EO) period with 5 years moratorium period.
Supplies under deemed exports to be eligible for export obligation fulfilment along with deemed export benefit.
Re-fixation of EO in respect of past cases of imports of second hand capital goods under EPGG scheme 4 |
