TRADITIONAL EXPORTS GET A BOOST
FROM EXIM POLICY
The Export and Import
Policy (2003-04) gives a major boost to some of India’s leading
traditional sectors such as the agro-sector, textiles, gems &
jewellery and the small scale sector.
In the agro-sector,
all the 45 Agri Export Zones (AEZs) have been notified. The corporate
sector with proven credentials will be encouraged to sponsor AEZs
for boosting the country’s agricultural exports. Thereby, the
corporates can provide such services as provision of pre/post-harvest
treatment and operations, plant protection, processing, packaging,
storage and related research & development (R&D). Further,
the Duty Entitlement Pass Book (DEPB) rates for selected agro
products will factor in the costs of pre-production inputs such
as fertilisers, pesticides and seeds.
In the gem &
jewellery sector, Diamond & Jewellery Dollar Account for
exporters dealing in purchase/sale of diamonds and diamond studded
jewellery is being allowed, while nominated agencies are being
permitted to accept payment in dollars for cost of imports of
precious metals from the EEFC (Exchange Earners Foreign Currency)
Account. Removal of 50% increase in quantum of export obligation
will spur value-addition in the textile sector. The
Annual Advance Licence facility, which has been agreed to in the
Policy, was a specific request made by the Apparel Export Promotion
council (AEPC) at a Open House held here in January 2003.
Exporters in the
small scale sector will benefit from provisions such as
cluster development; extension to SSIs of similar package as applicable
to large industries under BIFR rehabilitation schemes and permission
to import second-hand capital goods under EPCG. Incentives to
status holders will also benefit SSIs.
As stated by Shri
Arun Jaitley, Union Minister of Commerce & Industry: "We have
not ignored the traditional export sectors. They have been covered
under the general schemes. For instance, any scheme which encourages
the Special Economic Zones (SEZs) would also benefit, say the
textile sector. Also, the incentives announced for traditional
export growth engines last year in the five year policy continue.
While not specifically mentioned, certain changes have been introduced
on the basis of demands made by specific sectors. The existing
condition of increase in export obligation by 50% in case of export
of a product higher up in the value chain under the EPCG scheme
is being done away with specifically on the demand of the textile
sector".
