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Chambers moot changes in Exim Policy 03-04
March 28, 2003 15:27 IST
With just a few days to go for the announcement of the Exim Policy 2003-04, apex industry chambers on Friday mooted a slew of procedural simplifications including some in the DEPB (Duty Entitlement Passbook) scheme to boost exports.
"In the existing policy there are a number of provisions to facilitate exports, but often these are plagued by lacunas that impede the full benefits of the schemes from reaching the exporters," Confederation of Indian Industry said in a release in New Delhi.
Citing the example of the DEPB scheme, both CII and the Associated Chambers of Commerce and Industry said that the objective of the scheme was to neutralise the incidence of customs duty on the import content of the exports, but at present customs duty on fuel in not taken into account while fixing the DEPB rate which is disadvantageous for the exporters opting for the DEPB scheme.
ASSOCHAM also suggested that in the case of DEPBs utilised for own imports, it may be allowed to be revalidated for a further period of six months and sales tax on sale or transfer of DEPB should be abolished.
The chambers further suggested the creation of virtual special economic zones for the realisation of benefits as envisaged under the special economic zones.
ASSOCHAM expects simplification of transfer pricing rules, exemption of VAT on exports, refund of service tax and deferment of the phasing out of tax benefits under Section 80 HHC of Income Tax Act in the Exim Policy 2003-04 to be announced on March 31.
CII said as project exports from India had the potential to increase both value and volumes of total exports, the policy should introduce a chapter to address the issue of specific requirements related to project exports.
Referring to the Export Promotion Capital Goods scheme, CII suggested a separate chapter for service providers, which would facilitate export of key services like health care, education and tourism.
To expedite the development of special economic zones, provisions related to these should be placed separately for easy reference of foreign and domestic companies, the chamber said.
PHDCCI demanded reimbursement of the entry tax paid by EOUs (export oriented units) to state governments.
To help exporters compete in overseas markets all EOUs should be allowed compulsory facility of export packing credit from banks up to 100 per cent of their sanctioned limits, the chamber said, adding, "in case banks are not allowing export-packing credit, the rate of interest charged to EOUs should be in line with rate of interest on working capital."The chamber suggested suitable policy amendments for import and re-export of goods after one stage processing as it was unclear about the benefits accruing in this regard and reiterated its demand for a single notification for both customs and excise and a single set of rules for EOUs.
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