Import Of 148 Trade Items Made Easier
The director-general of foreign trade (DGFT) has liberalised imports of 148 items by moving them to the special import license (SIL) list from the restricted list. It has also expanded the scope of the zero duty Export Promotion Capital Goods (EPCG) scheme for the agricultural sector.
The department of revenue too has issued a number of notifications aimed at boosting exports. It has extended the zero duty EPCG scheme to the hotel industry, and allowed export-oriented units (EOUs) to debond under the zero duty EPCG scheme. This implies that these units can withdraw from the scheme without paying any capital goods duty. Earlier, they had to debond under the 10 per cent EPCG scheme.
Textile garment manufacturers who export their products have also been allowed to make duty-free imports of certain items.
Import of irrigation equipment has been allowed, provided the ownership of the equipment is with EPCG license holders, such equipment is not sold or leased out, and the place where such equipment is sought to be located falls within the jurisdiction of the assistant commissioner of customs and excise.
Duty-free import of fasteners and polywadding materials imported by manufacturers of textile garments for export has been allowed to the extent of 2 per cent of the f o b (free on board) value of the garments exported during the preceding financial year.
The items moved to the SIL list include disc operated record players, tape recorders of certain kinds, digital loop carrier systems, electronic fuses, cookers and kitchen stoves, picture frames, sinks and wash basins and pocket knives.
The move is expected to boost the premium on SIL, which has been hovering around 5-6 per cent since the announcement of the 1998-99 export import (exim) policy in April. In fact, the move to increase the number of items on the SIL list has been on the cards since then.
In April, the government freed imports of 340 items by shifting them to the open general license from the SIL list, with 298 items being under the agreement to remove quantitative restrictions.
This was expected to reduce the SIL premium, which has been on the decline since liberalisation of gold import norms.
Sources said the exim policy did allow debonding on a one-time basis into the zero duty EPCG scheme. However, the revenue department never allowed EOUs to exercise this option.
Several EOUs are keen to debond and shift to the zero duty EPCG scheme, including those in the areas of seafood and marine food, textile and garments. The move is expected to benefit over 500 EOUs.