Export Of Used Cars May Get Green Signal

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New Delhi, March 13: : The government will favourably consider proposals for allowing export of used cars with the benefits of excise rebate and duty drawback in order to make this activity competitive, Mr MK Zutshi, member (excise), Central Board of Excise and Customs (CBEC), indicated here on Wednesday.

Responding to a suggestion made by Maruti Udyog general Manager in charge of exports Rakesh Gupta, at an open house meeting with exporters, Mr Zutshi requested him to come out with a package to facilitate export of old cars for the government’s consideration.

The meeting was organised by the Federation of Indian Export Organisations (Fieo) for an interface with commerce and industry minister Murasoli Maran and senior officials in the commerce ministry on the upcoming export and import (Exim) policy (2002-07).

Presiding over the meeting, Mr Maran assured FIEO that the new policy would be “exporter’friendly” and all the suggestions made by it would be considered seriously and incorporated in the policy.

Mr NL Lakhanpal, director-general of foreign trade in the commerce ministry, in reply to queries raised by FIEO members indicated that the government was “open” to consider proposals for allowing import of second-hand capital goods older than 10 years by the inter-ministerial committee constituted for the purpose. The current policy restricted imports of machinery which were of 10 years vintage, he added.

Calling upon the government to frame a suitable policy for export of used cars, Mr Rakesh Gupta claimed that they could be exported to neighbouring countries and to Africa if the government extended concessions like excise rebate and duty drawback.

Mr KL Verma, CBEC chairman, said that there was no funds shortage for disbursal of drawback to the exporters though there had ben some delay in this regard.

Mr Verma also said that the department of information technology (IT) had discussions with the commerce department for doing away with the requirement of bond under the Electronic Hardware Technology Park (EHTP) scheme and for allowing domestic sale of items at zero duty.

Mr Lakhanpal clarified that the facility of “deemed” exports was available for projects set up in India with assistance from most multilateral institutions like the World Bank, Asian Development Bank etc.