Cotton Textiles India
Highlights of the Foreign Trade Policy
The Hon’ble Union Minister of Commerce & Industry, Government of India, had announced the Foreign Trade Policy on 8th April’05. Some of the Salient Features / Highlights of the proposals pertaining to Textile Industry in general and Handlooms in particular are.
1. Formulation of Inter-State trade Council to engage State Governments in providing an enabling environment for promotion of international trade.
2. Proposed removal of export cess on export of all agricultural and plantation commodities levied under various Commodity Board Acts.
3. Realizing that great potential and opportunities exist in the manufacturing sector, Annual supplement introduces a number of measures to enhance the competitiveness of manufacturing sector.
(i) No safeguard and antidumping duty to be levied on inputs under advance licence for deemed export supplies made to ICB (International Competitive Bidding) projects.
(ii) To promote accelerated export performance, balance export obligation will be waived for the exporters completing 75% of their export obligation in half the prescribed export obligation period.
(iii) Reduced export obligation and enhanced time available for exports under the EPCG Scheme for the imports made by the agriculture sector.
(iv) Reduced obligation at six times the duty saved amount as against the normal eight times for imports made by the SSI sectors under the EPCG Scheme.
(v) EPCG Scheme will facilitate the modernization of retail sector by allowing concessional duty imports. For this the retailer should have a minimum covered shopping area of 1000 square meters.
4. Export of poultry and dairy products and their value added products facilitated by granting them duty credit @ 5% of the FOB value of the exports under the Vishesh Krishi Upaj Yojna.
5. Package has been developed for modernizing the marine sector Package allows duty free import of inputs based on the past export performance, import of mono filament long line system for tuna fishing at concessional duty and establishes a self removal for clearance of waste of perishable commodities.
6. Gems & Jewellery exports -
(i) Entitlement of duty free imports of samples enhanced to Rs. 3 lakhs.
(ii) Supply of gold of 0.995 and above purity allowed for release for export purposes.
7. Package for EOU sector : For units debonding from EOU’s, a simplified procedure is being worked out. Similarly, capital goods can be transferred to other units by simply intimating Central Excise & Development Commissioner. EOUs can claim IT exemption within a period of 12 months from the date of exports.
8. Reducing congestion at the major ports. The facility for export obligation discharge in rupee payment under the EPCG has been extended to the minor ports, ICDs and CFS also.
9. Procedural simplification :
(i) Single common application form called Aayaat Niryaat Form introduced reducing the size of the form
by more than 60%.
(ii) Thee categories of advance licences merged into a single category
(iii) Annual advance licence, which was available only to status holders, will now be available to all the exporters with some export performance.
(iv) Export obligation extension for five years under advance licence based on BIFR rehabilitation package.
(v) Bank guarantee thereshold reduced for units in Agri export zones and established service providers and a category of manufacturer exporters.
(vi) Simplified clubbing norms under the advance licence and EPCG Scheme will help exporters in regularizing their cases.
(vii) Chartered Engineer Certificate in lieu of Central Excise Certificate for non-excisable units and those importing spares will be accepted as installation certificate. This will reduce the transaction time.
(viii) Imports made under Served from India Scheme can be transferable within the group companies and managed hotels. The provision will allow bulk sourcing and better utilization of the entitlement.
10. Handlooms :
(i) Government has decided to develop a trademark for Handloom on lines similar to ‘Woolmark’ and ‘Silkmark’ . This will enable handloom products to develop a niche market with the distinct identity.
(ii) All Export Promotion Council shall open a separate Cell to involve and encourage youth and women entrepreneurs in export effort.
(iii) Minister of Commerce and Industry invited Suggestions on a proposal to change the names of Export Promotion Councils to ‘Trade Promotion Council.
(iv) All actions by Income Tax authority on DEPB benefits have been stopped by Prime Minister with immediate effect. The matter is to be decided at economic advisory council headed by Prime Minister in the next 30 days