Exporters expect more procedural simplifications in FTP

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SME Times News Bureau | 29 May, 2012
Worried over freefall of the rupee and slowdown in western markets, Indian exporters' body FIEO has urged the government to introduce procedural simplifications in the upcoming foreign trade policy (FTP), scheduled for June 5.

Rafeeque Ahmed, President, Federation of Indian Export Organizations (FIEO) today said, "Over the year the Government has taken various initiatives to simplify and rationalize the procedural complexities in exports. Such measures have considerably reduced exporters transaction time and cost. Still, Indian exporters have to suffer transaction cost about 8 percent to 10 percent of the value of exports."

According to Ahmed, FIEO has suggested various procedural simplifications like clubbing exports from different ports for grant of Duty Credit Scrips, dispensation of Registration and Verification of Duty Credit Scrips for exports from EDI Ports, exemption from Terminal Excise Duty under deemed exports, EDI connectivity among all the thirteen agencies involved in imports and exports, etc.

All these will help in reducing the transaction cost and time of exporters, and the Foreign Trade Policy is likely to minimise procedural hurdles, added Ahmed.

He informed that under Export Promotion Capital Goods (EPCG) scheme also, FIEO has sought concessions in export obligation fulfillment and suggested several measures to this effect.

Currently, certain facilities like import of spares under EPCG Scheme available under the Foreign Trade Policy provisions are not being allowed by the Customs. Exporting community hope that all such lacunae will be cleared in the new Foreign Trade Policy provisions.

However, Union Minister of Commerce Industry and Textiles, Anand Sharma had recently hinted at giving export incentives to some sectors to cushion them from the slowdown in western markets.

"Wait till June 5...The government will do everything that is feasible given the pressure of resources to keep India's exports momentum going...There are concerns, we have to take a balanced view we cannot have a situation where we end up paying higher imports bill and our exports do not grow," the minister said.