Exim policy brings relief

This year's Exim policy has brought a degree of relief to small exporters with the extension of the export obligation under the Export Promotion Capital Goods (EPCG) scheme from eight to 10 years.

The scheme which was initiated by Murasoli Maran in 2002, allows the import of capital goods at five per cent duty in return for fulfiling specified export obligations.

Under the new policy, tiny and cottage industries will be allowed to fulfil their export obligation within 12 years, instead of the earlier eight years. For SSIs, the 8 year cap has been retained.

Anil Bhardwaj, secretary general FISME (Federation of Indian Micro, Small and Medium Enterprises) said, "Sometimes a unit is unable to fulfil the export obligation in time. Getting an extension is cumbersome and expensive. The new policy will save the smaller companies from the hassle of getting an extension."

The policy has also raised the EPCG limit for SSI units from Rs 25 lakh to Rs 5 crore. Besides, if the unit's export performance during the past three years is more than Rs 10 crore, it would become eligible for export house recognition.

The procedure for getting EPCG authorisation has also been simplified. Earlier, the excise department had to certify the installation of machinery. Now, certification from a chartered engineer will suffice.

The Exim policy has also laid emphasis on handloom and handicrafts - tools, machinery and equipment for the sector have been included within the duty-free regime.