Export- Import policy 2003-04

Sh. Arun Jaitly commerce and industries minister. Govt. of India announced on March 31, 2003 the EXIM policy for the year 2003-04. This policy is the ambit of long term policy announced earlier for the period 2002-07. This policy was announced in the backdrop of Iraq-American war, rising price of crude oil, Uncertainty over the duration of war and its impact of economy. The engine of growth selected in the policy is services exports and special economic zones along with agricultural and allied products. The growth of exports showed a risk of 16.7% on 2002-03 and the long term target of reaching. 1% of world export trade will be tried under this policy. The main feature of this policy is given as under.

The new policy has tried to rope in services sector for boosting exports in near future. This sector will be allowed imports of consumable and office equipment up to 10% of the average foreign earning in the past three years would now be allowed. This facility would be available for new comers to export against a bank guarantee. As for tourism three star hotels and above would be allowed duty free import facility up to 5% of foreign exchange earnings. In the entertainment sector. A dialogue was on with the Finance Ministry to give tax incentives to virtue capital funds providing finance to the sector.

Under the new policy exports of electronic hardware would be given by a boost by modifying the exports obligation scheme. The policy said that the supplies of all items under the IT agreement from electronics hardware technology pack units to the domestic tariff area would qualify for exports obligation. The duty free imports of hardware for testing and development purposes and 100% depreciation available over three years period for computers and peripherals and the other welcome steps.

The oil companies which have been granted marketing license can now imports petroleum products directly rather than use the canalised route. The new policy allows these companies to import petroleum products directly and sell Is through there retail outlets. The companies can resort to imports as and when required to main uninterrupted supply lines to retail outlets. The industry has welcomed the new EXIM policy while describing the new policy thrust as hold as pragmatic. The Federation of Indian Chambers of commerce and industries (FICCI) reacted by calling the policy as proactive. The Association Chambers of Commerce and Industries (Assocham) said the removal of five items from the restricted list of exports. Would contribute sizably to the overall exports effort. Hailing the thrust on the services and agricultural sectors. The confederation of Indian industries (CII) said it fully endorsed the endeavor of new policy.

In order to push agricultural exports, corporate with proven credentials would be helped to implement Agro-Export Processing Zones regarding the SEZ’ s. in order to provide them international facilities, a suitable fiscal package for offshore banking units in the Zones will be announced. The income tax concessions are also being contemplated for companies investing in agricultural exports processing Zones.

In Gems and jewellery export policy has allowed units in SEZ‘s and EOU’s to bring in gold, silver and platinum against their export earnings. Earlier they could bring in their earnings only in cash. It has also suggested dollar account for export dealing in purchase or sale of diamond and diamond studied jewellery.


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