Changes in Export Import policies

Encouraging changes have been introduced in the EXIM policy for boosting exports. Norms for Export Processing Zones have been eased out. Special packages have been introduced for Export Houses.

A) Gaining Export House status easier :

In a generous move, the government has announced that most of the facilities available to merchandise exports will now be available to service sector also. The service sector includes hotels, tourism, software, entertainment, construction, insurance and banking.

For Service Export House status the average free foreign exchange earning during the preceding license year should be Rs.4 crore

For International Export House, it should be Rs.20crore

For International Star, it should be Rs.100 crore

For International Superstar, it should be Rs.300 crore

In another major move, these service providers can import certain restricted items up to 10 per cent of their forex earned by them in the preceding license year.

The service providers can also avail the special benefits extended to Export Oriented Units (EOUs) in EPZs, EHTP and STP.

B) Free Trade Zones:

The amendments in Exim policy have approved setting up of Free Trade Zones (FTZ’s) from July 1st 1999.

The units in FTZ’s can sell in Domestic Tariff areas with 100 percent custom duties. An existing unit in EPZ can also convert into FTZ with effect from July 1st provided it fulfils certain conditions.

C) Green Card and Golden Status Certificate

Another major incentive given to exporters is introduction of Green Card and Golden Status certificate.

Green cards will be issued to exporters exporting 50 percent of their production with a minimum of Rs.1 crore per year. Issue of such green cards will entitle them to various facilities.

Similarly for exporters who have attained Export House /Trading House/Star Trading House status/Super Star Trading House for three successive terms will be given a Golden Status certificate. This would entitle them to all the benefits accruing from such status in perpetuity irrespective of their performance in subsequent years.

D) More items under Open General License list:

The government has freed 894 items by removing them from the restricted list of imports and placing them on OGL. The items freed include home appliances, tape recorders, computer system, various leather and travel goods, perfumes etc.

 The import of certain items have been partially liberalised by putting them on Special Import License(SIL). The items include burglar alarm, fire alarm, voltage regulator, vaccum cleaners, watches, toys .

An interesting and happy news both for Car industry as well as Car buyers: The car companies can now import upto ten prototypes in a year without any license. This would benefit companies planning to launch their new models.