www.ieport.com
L. Mansingh, DGFT
on the New Exim Policy and matters relating to Indian Trade
tQ.1
What are the main focus areas of this 2003 EXIM Policy? Is it a cosmetic
change from the five-year policy or a new dimension has been given to it?
Q.2 The Medium term
export strategy focuses on certain export markets and products. How have
these been translated for implementation in the new EXIM Policy?
Q.3 There are
occasional reports on DEPB scheme being abolished. Has the Commerce Ministry
made up its mind one way or the other.
Q.4 Agricultural sector has
been stagnating for some time. What concrete steps the Govt. is taking to
galvanise Agri Export Zones.
Agro products of this
country have a tremendous potential for exports. Government is keen that the
rural sector in general and farmers in particular, also get the benefit of
globalisation and reforms. In view of this, agro products export has been
identified as one of the thrust areas in the new policy. This would
certainly motivate the farmers to adopt latest technology and practices to
improve farm productivity and grow particular varieties in demand abroad. We
expect that this should, couple with the other initiatives taken by Ministry
of Agriculture and the State Governments, help bring about a sea change in
Indian agriculture.
Q.5 VAT regime is being
implemented from Ist April, 2003 across all states. What are its implications
on the export production sector and how the EXIM policy is facilitating such
issues.
Q.7 What is the
framework for removal of remaining QRs on imports? Has such removal affected
the domestic industry?
India can no longer take
recourse to QRs either on the ground of conservation of foreign exchange or
for protection of domestic industry. In view of this, we have progressively
removed all QRs under our import regime. We had a total of 600 tariff lines
in the prohibited and restricted list, which has now been reduced by 69 items
under the new policy. We will continue to review the items in the
restricted list and remove those items, which do not justify any restriction
on imports on such grounds as security concerns, environmental protection,
public morale and religious sentiments etc. The removal of QRs have not lead
to any surge in imports and have had no adverse impact on Indian industry.
The import of sensitive items are in any case monitored closely and corrective
actions are taken to protect domestic industry through available alternatives
such as countervailing in safeguard action as well as raising of import
tariff.
Q.8 How do you perceive
the China threat to Indian industry? Would resorting to anti dumping on such
Chinese imports give relief to domestic industry?
Q.9 Kelkar Panel
had recommended better coordination between Customs and DGFT. Has DGFT
addressed these issues in this Policy?
Since it is the Customs who
implement the DGFT policies, there has to be regular and effective
coordination between the two. We have already taken steps to ensure this and
there is already a satisfactory level of coordination between the two
organizations at all levels. The best proof of this is that for the first
time, all Custom Notifications have been issued simultaneously with the
announcement of the EXIM policy.
Q.10 What new initiatives
have been taken to make the Policy and Procedures more transparent and client
friendly?
Q.11 Export Promotion and
duty loss complement each other. While framing EXIM Policy, what balancing
act has been done to protect revenue loss but at the same time, provide an
impetus to exports?
Duty Neutralisation Scheme do
not lead to “Loss of Duty”. It is a universally accepted principle that
products and services are exported and not taxes. Our exporters are entitled
as per agreement on subsidies and countervailing measure of GATT, as per Duty
Neutralization of the inputs going into the export products. It is tend to
reason that loss of revenue is notional and higher the exports, higher the
level of duty.
Q.12 Upgradation of
domestic industry is a must in order to produce quality export goods. With
this in view, what is the Govt.’s policy on import of second hand capital
goods?
Q.13 After 9/11 a number
of stringent entry conditions have been imposed by the US Govt. on its
imports. Is the Govt. doing something about this?
Q.16 Deemed exporters
are not treated at par with physical exports despite saving precious forex
earnings for the country. How do you propose to bridge this gap?