Import Curbs To Be Eased On Over 100 Dual Use Items

The Union commerce ministry plans to announce the removal of several dual use items from the restricted list of imports under the new Export-Import (exim) policy for April 1997-2002. This move is part of the governments plan to remove a total of over 150 items from the restricted list under the new policy.

The ministry is currently studying the list to pick out those items which can be used as both industrial and consumer goods, according to sources in the director-general of foreign trades (DGFT) office. The DGFT, S B Mahapatra, confirmed that approximately 100 dual-use items will be moved out of the restricted list. While some of the items will be shifted to the special import licence (SIL) list, others will be moved to the open general licence list.

 

The government had recently liberalised the imports of 161 items. Sources expect a similar number to be liberalised in April. The last relaxation was after a meeting between Union finance minister P Chidambaram and commerce minister B B Ramaiah in which it was decided that the exercise should be done in consultation so that the finance ministry does not reduce tariffs in the coming budget on the items which are freed for import.

Under the last round of relaxation, a total of 92 items were moved from the restricted to the special import list, while 69 items were shifted from the special import list to the open general license list. Most of the items were consumer goods, including office machines and equipment, air-conditioning units, security items, cosmetics, perfumes, glassware and certain other consumer goods and parts. However, over 3,000 items continue to remain on the restricted list.

Further, the movement of items from the restricted to the special import list is not expected to effect the premium on SIL items since items will be moved both off and on the SIL list in such a way that the premium is protected. Ministry sources put the premium at around 13 per cent although exporters argue that it is in the 10-12 per cent range.

Although the ministry is looking at freeing just 100-odd items, experts argue that almost one-fourth of the total items classified in the harmonised classification are dual use items. This creates confusion as there are hundreds of items which can be imported if treated as industrial goods, but face a ban or restriction on import if termed as consumer goods.