Efforts on to reduce export transaction costs: Scindia

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SME Times News Bureau | 15 May, 2012
The Centre has implemented a number of measures to bring down export transaction costs as per recommendations of a Task Force on transaction cost in exports, said Minister of State for Commerce & Industry Jyotiraditya M. Scindia in Lok Sabha on Monday.

In written reply Scindia said, "The Task Force made 44 recommendations out of which 23 have been implemented which reduced the transaction cost to the extent of Rs.2100 crore in perpetuity."

According to the estimates of the Task Force, the transaction cost is approximately 7 to 10% of the export value , which includes structural costs such as inland transportation and handling, ports and terminal handling, etc.

The Task Force sought views from 25 trade and industry experts from agriculture, chemicals/pharmaceuticals, ready made garments, textiles, engineering and leather sectors.

Views were sought from representatives of FICCI, CII and FIEO and six different functions across the export value chain that include customs houses agents, tax experts, exim consultants, export managers, logistics managers, and overall experts.

"Certain steps taken to improve transparency, accountability and simplification of export process include broadening the scope of Electronic Data Interface (EDI) usage, strengthening EDI interfaces with various network partners i.e. Customs, Banks and Export Promotions Councils, laying down time-lines for disposal of various authorisations in the Handbook of Procedures of the Foreign Trade Policy, etc.," said Scindia

Procedural simplification to reduce the cost of business operations is a continuous endeavour of the government, he added.