Eligibility Norms For Export Houses To Be Relaxed

Commerce ministry weighing $38-40b export target for 97-98

The commerce ministry has decided to relax the eligibility criteria for export houses, trading houses, star trading houses and super star trading houses, in a move slated to benefit a large number of exporters across the country.

Over 1,100 status holders export houses, trading houses and star trading houses were expected to lose their status during the course of 1997 on account of the tighter eligibility criteria introduced in the new Export Import policy.

Speaking to newspersons yesterday after a meeting with Export Promotion Councils (EPCs) and Commodity Boards, commerce minister B B Ramaiah said the ministry was looking to achieve an export target of $38-40 billion for 1997-98.

 

No final official target has, however, been fixed as yet. The intention of the ministry is to arrive at a final target after adding up the individual targets set sectorally by the various EPCs.

A target of $38-40 billion would imply an export growth target of between 15-20 per cent.

Further, to facilitate small scale sector exports, a core group in the commerce ministry would be constituted under the chairmanship of the Director General of Foreign Trade (DGFT) which would also look into grievances.

Facilitation centres would be opened at the regional offices of the DGFT, for the benefit of small exporters.

The long awaited duty entitlement rates for 500 items under the duty entitlement passbook scheme are also to be announced shortly. Under the scheme, provisions will be made for the garments sector to import fabrics.

The new Exim policy had revised the existing eligibility criterion for the recognition of export houses, trading houses, star trading houses and super star trading houses based on the average annual export performance of the three preceding licensing years from Rs 10 crore, Rs 50 crore, Rs 250 crore and Rs 750 crore to Rs 20 crore, Rs 100 crore, Rs 500 crore and Rs 1,500 crore respectively.

It has now been decided to revise the Rs 10 crore to Rs 12.5 crore in the first category. Likewise, a 25 per cent increase in turnover will apply across all the categories, which may again be raised by another 25 per cent next year.

In an attempt to ensure an export growth of at least 20 per cent, export houses, trading houses, star trading houses and super star trading houses had in the new policy been bound to achieve a 20 per cent growth rate to retain their status at the time of renewal of status in the new policy. However, according to the Federation of Indian Export Organisations president Ramu S. Deora : This will also not hold any longer. No official confirmation of this was available.