The Hindu Business Line : `Trade policy to level the field for DTA units, EOUs, SEZs'

THE National Foreign Trade Policy (NFTP), to be unveiled by the Commerce Minister, Mr Kamal Nath, on August 31, may come up with initiatives aimed at providing a level playing field between domestic tariff area (DTA) units, 100 per cent export oriented units (EOUs) and units in the special economic zones (SEZs).

"I want to see a level playing field between DTAs, EOUs and SEZ units without losing the benefits of SEZs. In the next three weeks, we will take the first step forward and try to set the direction to achieve this," Mr Kamal Nath told members of the Indo-American Chamber of Commerce (IACC) here on Friday.

He pointed out that the DTA units that were exporting 75 per cent or more of their production were seeking benefits similar to those enjoyed by the 100 per cent EOUs.

He also highlighted that the EOUs wanted to become virtual SEZ units to avail themselves of the fiscal benefits enjoyed by the SEZ units.

On demands from certain exporters that the Centre, through its duty neutralisation schemes, should rebate State-level duties, Mr Kamal Nath held that this was a problem area.

"The main issue here is if the Centre starts neutralising State-level taxes to ensure that taxes are not exported, then the States will go on increasing their levies," he pointed out.

On the Patents (Amendment) Bill, the Minister indicated that the nod of the Cabinet would soon be obtained and the Bill is likely to be introduced in Parliament in the next 20 days. He, however, declined to discuss the contents of the Bill or confirm whether changes are being made to the earlier Bill that was tabled in Parliament by the erstwhile National Democratic Alliance Government. The Bill tabled by the NDA Government had lapsed after the Parliament was dissolved.

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