HIGHLIGHTS OF EXIM POLICY 1997-2002 : The new Exim Policy 1997-2002 aims at giving a major thrust to acceleration of India's exports through restructuring and revamping of various export promotion schemes. The procedures have been simplified and streamlined with a view to making them more transparent and easy to administer. The policy alms at continuing the trade reform and trade liberalisation with a view to achieving a higher rate of export growth. The policy encourages the industry to enhance its competitiveness in the global market and to achieve its full potential in the areas of its strength. The major changes are:
1. Simplification of Schemes: Significant changes have been made to reduce the multiplicity of various export promotion schemes and to improve the attractiveness of such schemes. In order to facilitate easy access to inputs required for export production the new policy has only two schemes. They are Advance Licensing Scheme and Duty Entitlement Pass Book (DEPB) scheme.
2. Liberalisation of Imports: Restricted items have been further liberalised for imports.
3. EPCG Scheme: Under the Export Promotional .capital Goods Scheme (EPCG) scheme, duty on capital goods has been reduced from 15% to 10%. Under the zero duty EPCG scheme, the threshold limit for zero duty imports has been reduced from Rs.20 crores to Rs.5 crores for agricultural and allied sectors.
Special Impress licence facility is being extended to domestic capital goods suppliers for supply under the zero duty EPCG scheme.
4. Gold and Jewellery Scheme: To promote export of gold and jewellery, the plumber of nominated agencies permitted to stock gold has been increased. Earlier it was done by MMT, STC, SBI, etc. Under the gems and Jewellery replenishment (RP) scheme, third party exports have been allowed so that small exporters arc able to sell their products in the international markets. They can claim REP licences based on disclaimer certificate from the third party. Bulk licence for import of rough diamonds has been further liberalised. Further, EOU, EPZ units in the gems and Jewellery sector are being permitted to sell 10% of the output in the DTA on payment of duty.
5. Agricultural Sector: Efforts have been made to boost agro-export. The changes in this sector include:
i. Allowed import of equipments of Rs.5 crores and above under zero duty EPCG scheme.
ii. Double weight age will be given for agro export in calculating eligibility of Export House, Trading House, etc. On total value of exports, 1% additional special Import Licence will be given if export of fruits, vegetables, floriculture and horticulture produce/products, constitute 10% or more of the total exports.
iii. EOUIEPZ units will be permitted to sell 50% of their output in the DTA on payment of duty without stipulation of any value addition conditional
6. Software: In order to promote the export of software following facilities have been provided to this sector:
i. Software units can undertake exports using data communication link in the form of physical exports through the courier service also. Software units have been per mined on-line data communication if or DTA sales.
ii. Software units can use the computer system for commercial training as well.
iii. Software units can also import goods on loan from client for a specified period.
7. Deemed Exports: Deemed exports facilities have been extended to oil and gas sectors in addition to power sector. In a bid to encourage domestic sourcing of inputs, domestic manufacturers supplying against EPCG, licences will be entitled now for deemed export drawback facility. In case of supply to zero duty EPCC licence holder, the domestic supplier will be entitled to import raw materials duty-free under the special Impress Licence.
8. Special Incentives for Export of SSI Produce/Products from North Eastern States New Markets: Following facilities have been provided for export of SSI produce from North Eastern States/ new Markets.
i. Additional Special Import Licence of 1% on total value of exports will be given to Export House flaring Houses, etc., where such export of products from North Eastern States constitute 10% or more of the total exports.
ii. Double weight age on such exports is being given for recognition as EH/TH/STH/SSTI.1.
iii. Additional SIL will be given for exploration of new markets.
IV. SIL on export of SSI products has been increased from 1% to 2%.
9. Export House Trading House Star Trading House Super Star Trading House: Existing eligibility criterion for recognition of EH/TH/STH/SSTH based on average annual export performance of preceding 3 licences years was Rs.10 Crore, 50 Crores, 250 Crores and 750 Crores. This has been revised to Rs.20 Crores, 100 Crores, 500 Crores and 1500 Crores respectively. It has been targeted to contribute nearly 60 to 70% of the country's total exports by EWTHISTHISSTH by the turn of the century.
10. Incentive to Improve Quality of Exports Products: The SIL entitlement of exporters holding IS0 9000 series or ISlISO 9000 series has been increased from 2% of FOB to 5% of FOB.