Changes in Export Import policies
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.
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
Export House, it should be Rs.20crore
Star, it should be Rs.100 crore
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
The amendments in Exim
policy have approved setting up of Free Trade Zones (FTZs) from July 1st 1999.
The units in
FTZs 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
Card and Golden Status Certificate
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.
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.
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 .
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.