Indian Leather, Textile Sector Exports To Get Rs.325 Cr. Relief Package

Kamal Nath, Minister of Commerce and Industry on Thursday announced a special package of Rs.325 crore for the leather and textile export sectors, immediate settlement of duty credit scrips under DEPB scheme and an extension of such scrips for the import of even restricted items after the payment of duty.

Announcing the final stimulus to the slowdown-hit export sector, the minister said the special package for the twin sectors would be given for exports to be undertaken from April 1 this year.

Highlights

The recognition slab for premier trading houses based on export turnaround has been reduced to Rs.7,500 crore from Rs.10,000 crore.

Under the Export Promotion Capital Goods Scheme, where the decline of exports of the products was more than 5%, the export obligation for all exporters of those products will be reduced proportionately. This has been extended for the fiscal year 2010, for exports made during 2008-09, while the export obligation period against advance authorizations has been extended up to 36 months from the current 24 months.

For import of precious metals, STCL Ltd., Diamond India Ltd., MSTC Ltd., Gem and Jewellery Export Promotion Council and Star Trading House, have been added as nominated agencies. Import restrictions on worked corals have been removed. Authorized persons of gems and jewellery units in export oriented unit or EOU will be allowed personal carriage of gold in primary form up to 10 Kgs. in a financial year, subject to Reserve Bank of India and customs guidelines.

The Minister said the duty credit scrip used for payment of duty only on items that fall under free category is now extended for restricted items as well under Duty Entitlement Pass Book and the duty credit scrip will now be issued immediately for realization of export proceeds. The value cap applicable under DEPB has also been revised to two products.

For advance license issued prior to April 1, 2002, the requirements of modvat/cenvat certificate will be dispensed with in case of customs notification prescribed for payment of countervailing duty.

The procedural formalities for claiming duty drawback refund and refund of terminal excise duty for deemed exports have been further simplified. Kamal Nath said the reimbursement of additional excise duty levied on fuel would also be admissible for EOUs.

In order to boost rural exports, a re-credit of 4% special additional duty of SAD, in case of payment of duty by incentive scheme scrips such as Vishesh Krishi and Gram Udyog Yojana, FPS and FMS, would now be allowed.

The Minister said Bhilwara in Rajasthan for textiles and Surat in Gujarat for diamonds have been recognized as Towns of Export Excellence, so that all the benefits for such clusters of export activity would accrue to them.

In a measure to improve health infrastructure, the export of blood samples is now permitted without license after obtaining 'no objection certificate' from the Director General of Health Services.

Nath announced that a new office of Directorate General of Foreign Trade would be opened at Srinagar to increase the export potential and employment generation. He further added that electronic message transfer facilities for advance authorization and EPCG Scheme established for shipments from electronic date interchange or EDI ports from April 1 this year.

While highlighting the achievement during 2004 to 2008, Kamal Nath said India's exports during the fiscal year 2008 touched $162 billion from $63 billion in 2003-04, registering an average annual growth rate of over 25%. The Minister expects to achieve $175 billion for the fiscal year 2009. As a result of increased economic activity, the Minister said that, there is generation of around 140 lakh jobs in the export sector.

by RTT Staff Writer

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