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Export industry asks govt to declare exports national priority

Agencies - New Delhi

Stressing on the role of exports in the country’s overall economic development, the industry has asked the government to declare it a national priority while seeking a growth-oriented Exim policy with a new export promotion scheme to reimburse indirect local taxes.

Stating that local taxes such as sales tax, service tax, octroi and electricity duty were not reimbursed by existing schemes including advance licence, DFRC, DEPB or drawback, industry captains said entire procedures and practices relating to deemed exports needed a review.

Speaking at a pre-exim policy meeting with the commerce minister, chairman CII committee on technology and innovation, Mr Hari Bhartia said, “We need a quick transparent system for refund for sales tax where SAD is exempted. Also current system of payment and refund of excise duty must change to an exemption of paying excise duty”.

Noting that the country’s exports had grown by 17.38 per cent in April-January 2002-03, he stressed on the need to strengthen the country’s national brand as also promote services and build “Served from India” brand.

The industry also outlined the need to extend the policy benefits of the SEZs evenly throughout the country and asked government to introduce the concept of virtual SEZs.

It also asked government to set up a system to monitor import trade practices in major markets and cited the example of the European Union and the US of having a separate research and development cell within the ministry.

Seeking strengthening of the directorate general of foreign trade (DGFT) and anti-dumping authority and tariff commission, it suggested merger of both to form an international trade commission as in the US.

The industry also stressed on the need to review focus on the top ten markets with a view to increase in exports.

The minister of state for commerce and industry Mr Vidyasagar Rao, commerce secretary Mr Deepak Chatterjee, director general of foreign trade Mr Lalit Man Singh were also present at the meeting.