New Delhi, March 30: Industry is looking for simplification of procedures in the Export Import (Exim) Policy for 2003-04 that will enable exporters to derive the full range of benefits they are entitled to.
In a submission made to commerce and industry minister Arun Jaitley just a couple of days before the announcement of the policy, the Confederation of Indian Industry (CII) concedes that there are a number of provisions to facilitate exports in the existing policy.
However, it says, “There are lacunae that impede the full benefits of the schemes like the Duty Entitlement Passbook (DEPB) Scheme from filtering through to the exporters.”
The objective of DEPB scheme is to neutralise the incidence of customs duty on the import content of the export product. However, the customs duty on fuel is not taken into account while fixing the DEPB rate working out to the disadvantage of exporters, says CII.
At its meeting with Arun Jaitley, the Federation of Indian Chambers of Commerce and Industry (Ficci) has urged the government to formulate a single comprehensive drawback scheme by clubbing multiple exports schemes like advance licenses, DEPB, Duty Free Replenishment Certificate (DFRC) and Duty Drawback Scheme.
Ficci has also called for the simplification of the excise duty and sales tax regime for exports, review of the policy on fixation and maintenance of average export obligations prevalent under various schemes and the grant of amnesty in export obligation fulfilment with retrospective effect.
CII has demanded a separate chapter for service exports in the forthcoming Exim policy. This is because the Export Promotion Capital Goods (EPCG) scheme, which allows import of capital goods at a concessional duty of 5 per cent to service providers to commitment of specified export obligation over a period of eight years, has gone unnoticed.