Sops expected...

Updated: Mar 28 2005, 05:30am hrs
The Foreign Trade Policy 2004-2009 has given us a goal and a roadmap for reaching it. We expect every edition of the policy for each of the five years to help us move forward on the growth path with greater momentum.

What exactly are our expectations There are many. We expect the government to come up with a scheme to refund exporters the cost of diverse disability factors, like unrefunded taxes and duties, high cost of credit, high electricity charges and ground-level transaction costs, which together constitute 19-22% of the cost of exporting goods.

We have sought a provision for payment of countervailing duty (CVD) in cash on imports of capital goods under the EPCG Scheme and, naturally, expect a favourable respo-nse to this in the policy.

There is also a case for simplifying the procedures for grant of status certificate.

The present procedures call for considerable time-consuming work, involving computing of shipping bills pertaining to the previous three years, plus the current year, leading to a lot of hassles, besides unnecessary costs. Other expectations include allo-wing transfer of Duty Credit Entitlement under the Target Plus Scheme, allowing of invalidation of direct import against Advance Intermediate Licence and waiver of the requirement that the average level of export performance must be maintained under the EPCG Scheme.

In addition, we would like the next fiscals Exim policy to address the problem of non-availability of raw material to exporters of engineering products. We have made some suggestions in this direction.

The writer is president, Federation of Indian Export Organisations (Fieo)