Assocham Wants Export Eligibility Norms Deferred

The Associated Chambers of Commerce and Industry (Assocham) yesterday asked the Centre to defer by three years, application of the new eligibility criteria for various categories of export houses.

This would prevent retrospective de-recognition of several export houses from the trading house, star trading house and supe- r-star trading house category, the chamber said.On the hike in the new criteria for recognition of exp- ort houses, Assocham said this will reduce the number of exporting houses to a fifth from over 3,000.

The new criteria, announced in the Exim policy of 1997-2002, doubles the average freight-on-board (fob) value of exports made during the preceding three years.

 

Assocham has pointed out that export houses are entitled to duty exemption scheme on the basis of legal undertaking instead of any bank guarantees and a small exporter who no longer qualifies for export-house certificate, would find it difficult to furnish bank guarantees and hence may get deprived of duty exemption. This would make exports uncompetitive in the global markets, it said, adding that under the new criteria the number of trading houses too wouldfall from 464 to just 13, while both star trading house and super-star trading house status would cease to exist.

It said, giving a one year grace might not help as very few exporting houses can cover the shortfall of the past three years in the matter of one year, especially in the context of slow growth in world trade.

Those exporters whose cases are coming up for renewal as on April 1 next year or those hoping to apply for the first time since 1994 will be seriously affected, the chamber said in a release.