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Industry welcomes NFTP 2004-09
E-Tex Staff - Mumbai
The textile industry has welcomed the National Foreign Trade Policy 2004-09,
which aims at simplifying procedures, reducing transaction costs, and building
up the infrastructure needed to double India’s exports.
According to Mr Amit Goyal, president, CIAE, “One of the most significant
announcements of the policy is on the service tax wherein the minister has announced
that all goods and services exported, including those from DTA units, will be
exempt from service tax. The only question here would be whether the exporters
would be exempted from the service tax or would they be refunded for the same,
this needs to clarified in the procedural announcements”.
The apparel exporters have also breathed a sigh of relief with the announcement
of continuation of the DEPB scheme although the removal of sales tax on sale
of DEPB, one of the demands of the industry, has not been looked into.
According to Mr Goyal another silver lining, seems to be the will of the government
to reduce transaction cost as the new policy while simplifying the procedures
has announced that all exporters with minimum turnover of Rs 5 crore and good
track record will be exempt from furnishing bank guarantee in any of the schemes.
This according to CIAE will help several exporters tide over their finances.
The most important announcement according to CIAE, which exporters were hoping
for, was on the income tax benefit under 80 HHC or a similar scheme but here
the commerce ministry has not come to the rescue of the exporters.
According to Mr Rakesh Mehra, chairman, Synthetic and Rayon Textiles Export
Promotion Council (SRTEPC), “The National Trade Policy 2004-09 is pragmatic
and growth oriented and has rightly focussed on doubling India’s share
of global trade by 2009. It is encouraging to note that export-import activities
are being viewed as an instrument to stimulate the domestic economy.”
Welcoming the announcement on the DEPB scheme, he said, “This, I am sure,
will be reassuring for exporters who can now take a long term view and can plan
accordingly.” He said that the setting up of free trade warehousing zones
will facilitate development of the country as a hub for global manufacturing
and trading.
The SRTEPC Chairman also welcomed the introduction of co-acceptance/ availisation
as equivalent to irrevocable L/C as these forms of payments are becoming increasingly
popular these days in the international market. The introduction of the new
scheme “Target Plus” will certainly encourage exporters to step up
their exports, he said.
“A major emphasis has been laid down on simplification of procedures and
reduction in transaction costs,” he said. He said, “If implemented
properly the various schemes announced in the policy will certainly lead to
the development of exports, thereby making our country a major player in the
global market.”
The East India Cotton Association (EICA) has dubbed the NFTP 2004-09 as the
‘icing on the cake’.
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