Highlights of Exim Policy

The new 5-year Export and Import policy for the period 1997-2002 aims at giving a major thrust to acceleration of India's exports through restructuring and revamping of various export promotion schemes and wide ranging measures for simplification of procedures with a view to making them more transparent and easy to administer.

Gems & Jewellery Scheme To promote export of gold jewellery, it is proposed to increase the number of nominated agencies permitted to stock gold. At present only HHEC, SBI, MMTC and STC are doing this. This improvement will make available adequate quantity of gold to exporters on replenishment basis or on outright purchase.

Moreover, the EOU/EPZ units are being permitted to sell 10% of their output in the DTA against SIL on payment of duty.

Duty Exemption Scheme Significant changes have been made to reduce the multiplicity of schemes, improve their attractiveness and to make them simple and easy to administer. The quantity based advance license has been continued.

It has restructured various export promotion schemes and has replaced Value Based Advance License and the Passbook Scheme by a new scheme called Duty Entitlement Passbook Scheme. Under this scheme, an exporter, on the basis of notified entitlement rates, will be granted duty credits which will allow them to import inputs duty free. He can make use of this to import any free importable item. The credit can be transferred to another person but the transfer will be valid within the same port.

Under the Advance Licensing Scheme, the procedure has been further simplified. The Export Obligation period of 12 months has now been extended to 18 months. Further extension for 6 months will be granted on payment of 1% of the value of unfulfilled exports. This will reduce considerable paper work and harassment to the exporter.

Software Software units can undertake exports using a data communication link or in the form of physical exports through a courier service also. They will be permitted on-line data communication for DTA sales, use of the computer system for commercial training and import of goods on loan from clients for a specified period.

Agro Sector Import of equipment of Rs 5 crores and above under the Zero Duty EPCG Scheme will be permitted for this sector.

Double weightage will be given to agro exports in calculating the eligibility of Export Houses, Trading Houses, etc. An additional 1% Special Import License on the total value of exports will be given for export of fruits, vegetables, floriculture and horticulture products.

EOU/EPZ units will be permitted to sell 50% of their output in the DTA on payment of duty without insistence on value addition.

Special Incentives for Export of SSI product/Products from North Eastern States/New Markets
An additional Special Import Licence of 1% on total value of exports has been given to EH/TH, etc., where such exports of products from North Eastern States constitute 10% or more of the total exports made. Double weightage on such exports has been given for recognition as EH/TH/STH/SSTH. Additional SIL has also been given for exploration of new markets. SIL on export of SSI products has been increased from 1% to 2%.

In case of small scale exporters holding ISO 9000 series or IS/ISO 9000 series quality certification, the FOB value of export will now be Rs. 1 crores and above during the preceding three licensing years instead of the limit of Rs. 5 crore and Rs. 2 crore respectively prescribed for others.

Export /Trading /Star Trading /Super Star Trading Houses
Earlier eligibility criterion for recognition of Export House/Trading House/Star Trading House/Super Star Trading House based on the average annual export performance of the preceding 3 licensing years was Rs 10 crores, 50 crores, 250 crores and 750 crores respectively. Keeping in mind the export target growth to be reached by the turn of the century and the fact that such status holders contribute between 60-70% of the country's total exports this has now been revised to Rs 20 crores, 100 crores, 500 crores and 1500 crores respectively.

Incentives to improve Quality of Export Products The SIL entitlement of exporters holding IS/ISO 9000 series has been increased from 2% of FOB to 5% of FOB.