India’s external trade sector was further liberalised with the changes introduced in the new Exim Policy for 1997-2002. The highlights of the Exim Policy (1998-99) are as under:
Important Highlights
(1) Interest rates on export credits have been lowered from 11% to 9%. Bank guarantees have been dispensed with and a reduction in transaction cost has been effected through decentralisation and simplification of procedures.
(2) DEPB rates for more than 2000 items have been announced and the DEPB has been made a more effective instrument of export promotion by seeking to neutralise the incidence of special Customs Duty of 5%.
ADVERTISEMENTS:
(3) License on production programme basis has been allowed with flexibility like the change in description of an export product. Advance license with actual user condition have been allowed based on positive value addition only. Advance licenses to export houses/trading houses/star trading houses/super star trading houses are now being issued automatically.
(4) Value addition of goods manufactured through capital goods imported under EPCG license has been permitted. A fluctuation of 10% of CIF value of imports under EPCG Scheme has been permitted automatically. Additional SIL is being given on the basis of incremental exports.
(5) Transferability of DEPB and advance license have been allowed without waiting for realisation in respect of exports made against an irrevocable letter of credit.
(6) A manufacturing company or an industrial house with an annual manufacturing turnover of Rs 300 crores and Rs 1000 crores have been made eligible for the status of star trading house and super star trading house respectively.
ADVERTISEMENTS:
(7) Deboning under Zero Duty EPCG Scheme has been allowed.
(8) Hotel and Tourism sectors have been made eligible for TH/STH/ SSTH status.
Image Source: thedollarbusiness.com