EEPC INDIA submits suggestions for foreign trade policy (2013-14)

Author(s): City Air NewsChandigarh, March 9, 2013: A meeting was organised on Thursday by Ministry of Commerce and Industry and DGFT at CII office in Chandigarh in which prominent exporters ,export associations and Export Promotion bodies...

EEPC INDIA submits suggestions for foreign trade policy (2013-14)

Chandigarh, March 9, 2013: A meeting was organised on Thursday by Ministry of Commerce and Industry and DGFT at CII office in Chandigarh in which prominent exporters ,export associations and Export Promotion bodies of states and Export Promotion councils took part to suggest changes in Foreign Trade Policy , Sumeet Jarath, Additional DGFT and Rajiv Arora , Joint Secretary, MOC and Darshan Singh Regional Joint DGFT listened to the suggestions of all the present and EEPC India submitted certain suggestions for foreign trade policy (2013-14).

It was suggested that as DGFT is encouraging paperless world and already implemented the scheme for compulsorily filing applications with Digital Signature for various types of schemes like EPCG, Advance Licence, Chapter 3 benefits, so the need to file the application in hard copy should be dispensed. It may be replaced with filing of acknowledge slip for successful on-line filing of application with other documents required under the particular Scheme.

Another suggestion given was that since the DGFT  is accepting online  application only under e com with digital signature, so the offline ANF forms should be dispensed away ,to save paper and to be economical.

It was stated that all exporters are eligible to avail Zero Duty EPCG Scheme without any restriction. But Status Holders while claiming SHIS Script under Chapter 3 are denied benefit of Zero Duty EPCG Scheme. This restriction should be removed for claiming SHIS, they suggested.

Further, it was suggested that full transferability should be allowed on SHIS Scripts granted to Status Holders. There should be provision for payment of excise/ service tax on Capital as well as Non Capital goods from SHIS Scripts in own case.

Also, it was suggested that to increase export new products should be added under Focus Product Scheme especially Value Added and Labour Intensive items, which are suffering due to scrapping of DEPB Scheme and un-encouraging Duty Draw Back Rate like Valves of Gun Metal and Industrial Valves and Cocks.

Suggestions also included that there should be a mechanism fixed for capping the value for purpose of calculation of incentives under various schemes to plug loophole for excessive incentive benefits by some unscrupulous elements by over invoicing the goods.

It was also stated that under EPCG Scheme Export Obligation was fixed according to duty saved amount. In case of indigenous procurement of Capital Goods, the EPCG Authorisation holder only avail TED on the Capital Goods, so the Export Obligation should be according to TED/ benefit availed amount and not the full notional duties.

After redemption letter from DGFT office, the Customs Authorities insisted on complete application in ANF 5B alongwith Shipping Bills and Bank Realisation Certificate for releasing of Bond filed with Customs Authorities, which is against the spirit of Foreign Trade Policy. The suitable provision can be incorporated in Foreign Trade Policy to dispense with this procedure.

Chartered Accountant Certificate in Appendix 26 under EPCG Scheme required Past Export Performance for the last three years in Indian Rupees as well as in Freely Convertible Currency to calculate Average Export, which is fixed in Indian Rupees only. So the CAC should be amended after excluding the requirement of Past Export Performance in Freely Convertible Currency, they suggested.

The condition for compulsory Land Line Telephone Number should be dispensed with, from ANF 2A in light of advancement of Technology especially introduction of Smart Mobile Phones. As far as address is concerned, it has already been taken care by Income Tax, PAN number and bank account.

The clause of minimum export of Rs. 5 lakh in previous year for eligibility under MDA should be scrapped to encourage new entrepreneurs. Sales-cum-Study Tour should be re-introduce under MDA Scheme.   The quantum may be increased in ASEAN+2, CIS, Africa from Rs 1.5 lakh to Rs 2 lakh, in LAC from Rs 1.8 lakh to Rs 2.5 lakh and for non focus the amount should be Rs 1 lakh.

Saturday, March 9, 2013