The new export-import policy has simplified the procedures and reduced the interface between exporters and the director general of foreign trade (DGFT) by reducing the number of documents required for export by half to 26.
Commerce minister B B Ramaiah said yesterday that the exim policy had adopted a micro-management approach while ensuring that the policy environment at the macro level was liberalised.
The policy has clubbed together the several schemes to leave just two: the advance licensing scheme (corresponding to quantity-based advance licence) and a new scheme called duty entitlement passbook scheme.
Schemes like quantity-based advance licence, value-based advance licence, special value based advance licence, special value based advance licence for electronics and other sectors, and the passbook scheme have ceased to exist.
Regional licensing authorities will now extend the export obligation period by six months in case an exporter is not able to complete exports even in the enhanced period of 18 months. Earlier, the export obligation period for the purpose of advance licensing was 12 months.
The authority will however impose a penalty of 1 per cent of the unfulfilled export obligation value.
The value limit of advance licence on the production programme basis has been enhanced from 25 per cent of average free on board (f.o.b.) value of exports to 100 per cent, so that an exporter can obtain advance licence at one go for his requirement and does not have to come to the director general of foreign trade or its regional offices time and again.
Financial powers of regional licensing authorities for issue of licence where input-output norms have already been fixed, and for issue of export promotion capital goods (EPCG) licences has been enhanced so that traders can get the facility at the nearest point.
The counter assistance system in the DGFT headquarters and all its regional offices will be further strengthened, and the head of the office will be personally responsible for every scheme to avoid delays.
The need to submit a large number of documents with every application has been reviewed and the minimum number of documents prescribed. The repetitive nature of information sought in every application has been dispensed with and application forms streamlined.
Work in all DGFT offices will be fully computerised by September 1 to facilitate on-line processing of applications, receipts and issues under export promotion schemes.
It will be possible to file all applications on e-mail through the computer network in all DGFT offices from January 1 next year. By October 1, the facility for submission of application on floppy in all DGFT offices will become operational. This will speed up the process of disposal.
The green channel facility for clearance of export-import consignments by the customs is proposed to be extended to all status holders and manufacturer exporters with a good record.
The internal monitoring system is being strengthened to ensure that exporters grievances are redressed quickly and delays avoided.
Jigs, tools, fixtures, moulds, tackles, computer hardware and equipment imported for the purpose of jobbing under DES now can be retained on payment of customs duty without the permission of the advance licensing committee if the item imported is not on the negative list.
Export house recognition will now be done at the zonal level, instead of the headquarters.
For exporters who cannot file claims for incentives because of genuine reasons, a facility has been provided to consider such applications which have been submitted late, but not later than six months after the specified last date. They will, however, have to suffer a reduction of 10 per cent in the entitlement.
Every attempt has been made to specify the operational requirements under various schemes to avoid the need to seek clarifications.
The definition of net foreign exchange (NFE) earning for claiming special import licence and for discharging export obligations under the zero-duty EPCG scheme has been made simpler and unambiguous. Only the value of licences issued, excluding the value of SIL and EPCG licences, will be deducted from the f.o.b. value of exports to arrive at the NFE.
