The Hindu Business Line : Exporters can breathe easy with DGFT e-initiatives

INTRODUCTION of a digital signature code programme in the office of the Director-General of Foreign Trade (DGFT), New Delhi, enabling seamless transmission of Exim documents, including applications for IEC numbers and other procedural changes, is expected to reduce transaction costs considerably for Indian exporters. Speaking at a workshop on "Mini Export Policy and foreign exchange matters," organised by Capexil here today, Mr Manoj Kumar, Zonal DGFT, Kolkata, holding additional charge as Development Commissioner, Falta SEZ, said most documents required by DGFT can now be filed online by exporters, and within a period of one year, "we should move towards a regime of paperless system".

He said DGFT has already announced a series of measures to fine-tune the Exim Policy 2002-07. Increased focus is now being given to introduction of e-commerce initiatives such as digital signature, electronic fund transfer & message exchange with community partners like customs, banks, etc., he pointed out.

Talking to Business Line at the sidelines of the workshop, Mr Kumar said now that EDI (Electronic Data Interchange) has been activated at Haldia port, it was only a matter of time before online connectivity would be established between DGFT and Custom House in Kolkata, enabling exporters and CHAs to file documents online.

Sounding confident about the projected 12 per cent export growth for the current year, especially going by the impressive growth in December 2003, Mr Kumar said if Indian exporters have to compete with their Chinese counterparts successfully, favourable conditions have to be created in areas such as infrastructure and power.

Welcoming the recently announced export promotion measures as timely, Mr Sudhakar Kasture, Director, Exim Management Institute, Mumbai, said the Duty Free Credit Entitlement scheme for status-holders was good, but full of too many ifs and buts which may not be to the liking of exporters.

He lashed out at some of the conditions as being without any rhyme or reason, like, items exported under free shipping bills are not allowed for computation of DFCEC (Duty Free Credit Entitlement Certificate). He said unless there was thorough review of these pre-conditions, the scheme was bound to flop, and may also lead to litigation.

Among the items kept out are rough, uncut and semi polished diamonds, gold, silver in any form including plain jewellery thereof, foodgrains sourced from Central pool maintained by FCI, and agri products which fall under chapters 1-24 of ITC (HS). The scheme will be applicable to exporters who were also status-holders as on March 31, 2003, and who have achieved maximum export turnover of Rs 25 crore in 2003-04.