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DGFT operations to become online soon

PTI - Tirupur

Transactions and approval process in the Directorate General of Foreign Trade (DGFT) would become online soon, a senior DGFT official said.

In the first phase, granting of import and export code (IC) would be taken up on a trial basis, since all the 34 DGFT offices across India had already been networked, Mr L Mansingh, director general of foreign trade, told reporters here.

Stating that online IC process was likely to begin within a couple of months, Mr Mansingh said that the measures had been taken with a view to reduce transaction costs. Exporters and importers would have to submit their PAN numbers and payment advices to get the code, he said, adding that the DGFT would tie up with some banks for verifying the financial transactions of the licencees. Asked about making the entire operation online, Mr Mansingh said that this would take another few months, as the other departments concerned, like the customs, had to be fully computerised for a full-fledged online service.

Referring to the proposal of exporters from Tirupur on branding, he said the office was awaiting final approval from the Centre, though three proposals had been received. Earlier, inaugurating the 17th India Knit Fair, organised by the Tirupur Exporters Association and Apparel Export Promotion Council, Mr Mansingh assured the fullest cooperation from the government in providing necessary infrastructure for the growth of the garment industry.

Mr A Sakthivel, president, Tirupur Exporters Association, in his address, said that Tirupur had exported merchandise worth Rs 5,000 crore in 2002-2003. With an incremental growth of 11 per cent, TEA had set itself a target of achieving an export turnover of Rs 10,000 crore by 2007. However, he urged the government to create an environment, which would act as a catalyst to export promotion, for the growth of the trade. Being declared as a town of export excellence in the five year Exim policy, Tirupur has been receiving priority funding under the Assistance to State for Infrastructural Development for Export (ASIDE) and priority assistance under the Market Access Initiative Scheme (MAIS).

As there was a provision to provide priority funding under ASIDE scheme, he urged the DGFT to accord sanction to its proposal to provide financial assistance to connect two national highways — NH 47 and NH 67-, leading to the major ports of Chennai, Kochi and Tuticorin. Stating that TEA had already submitted a proposal to the DGFT/commerce ministry, seeking aid under MAIS for the branding project, he said the guidelines for availing assistance under it was yet to be promulgated. The DGFT, he said should also recommend to the finance ministry to issue exemption notification, enabling duty free import of furnace oil to the Rs 300 crore Netaji Apparel Park coming up at New Tirupur, where 54 knitwear units are putting up production facilities.