There are about 1,200 items, including the above mentioned, which are on the restricted list. As per the agreement reached with the European Union and several other developed countries, these items are to be phased out by 2003. The issue is under dispute with the US.

About 1,200 such items are already allowed to be imported freely against SIL, though the measure, according to WTO, amounts to quantitative restrictions.

Following changes announced in the policy on April 13 last, 227 out of 436 items had been transferred from the special import licence to the free list and 99 from the restricted to the free list. Included in thetransfer was about 100 items shifted in a similar manner in January 1998.

In 1996-97, abut 460 items were transferred in a similar manner in line with the commitment to the WTO. Director general of foreign trade NL Lakhanpal said that the procedure adopted by the Centre was to shift items from the restricted to the SIL first and to the free list later.

He said the transfer from the restricted to the special import list will provide some incentive to exporters by way of a hike in the SIL premium. Adding of more items to the list will result in an increase in premium SIL commands in the market.

The Government, he said, had already shifted roughly 800 items from the restricted to the open general licence list. Import of items against OGL will attract customs duties ranging from 30 to 40 per cent.

Lakhanpal said the Centre had gone much beyond its commitment to WTO by shifting the 436 items in question from the restricted list to the SIL list and from special import licence to the freely-importablelist.