Fieo urges govt to implement schemes announced in FTP

New Delhi, March 24 | Updated: Mar 25 2005, 05:30am hrs
The Federation of Indian Exports Organisation (Fieo) has asked the government to implement schemes which were announced in the foreign trade policy (FTP) last year but await notifications from the department of revenue.

These include service tax exemption for export oriented units (EOUs) and refund of service tax for domestic tariff area (DTA) units, zero duty export promotion capital goods (EPCG) scheme for agriculture sector, bank guarantee exemptions for units in agri-export zones and fast-track clearance for EOU units.

In a memorandum submitted to commerce and industry minister Kamal Nath by Fieo president OP Garg also listed a number of points for procedural simplifications.

These include change in nomenclature of status holders, simplification of procedures for grant of status certificates, grant of advance lincences above Rs 100 crore under self-declaration scheme, uniformity in the declaration for advance licence and annual advance licence, need for multiple port of registration facility under annual advance licence to star export houses and scrapping of subsequent verification of duty entitlement passbook (DEPB) and duty free replenishment certificate (DFRC).

Fieo has also sought change in the present market development assistance (MDA) guidelines. The present guidelines give the MDA facility to exporters exporting goods valued at less than Rs 5 crore. Fieo says that this criteria excludes majority of exporters from its purview.

Moreover, the benefit is available only if exporters participate in exhibitions through export promotion councils or commodity boards. This restricts the flexibility which was earlier available under the scheme, claim exporters.