The Hindu Business Line : DEPB scheme to be replaced in six months: Kamal Nath

Mr Kamal Nath said that merchandise trade in the very first year of the policy period has been of the order of almost $80 billion, corresponding to a growth rate of nearly 24 per cent over the last year exports.

New Delhi , April 8

THE Duty Entitlement Pass Book (DEPB) scheme for exporters would get replaced by a new scheme in about six months from now, the Union Commerce and Industry Minister, Mr Kamal Nath, said here today.

"The existing DEPB scheme would continue till the replacement scheme is put in place. The replacement scheme has been devised and further discussions are on within the ministries concerned," Mr Kamal Nath told a press conference on the occasion of the launch of the annual supplement 2005 to the foreign trade policy 2004-09.

The DEPB scheme currently serves 52 per cent of the country's exports value-wise. The objective of the scheme is to neutralise the incidence of basic customs duty on the import content of export product.

Terming the export growth in the latest years as "unprecedented" in India's economic history, Mr Kamal Nath said that merchandise trade in the very first year of the policy period has been of the order of almost $80 billion, corresponding to a growth rate of nearly 24 per cent over the last year exports.

"If we can maintain the momentum, I am confident that India will cross the $150-billion milestone substantially earlier than the end date of the policy period," Mr Kamal Nath said.

On the controversial issue of taxation of income arising from sale/transfer of DEPB licences, the Commerce and Industry Minister said that this issue has been referred to the Prime Minister's Economic Advisory Council, which would look into the legal aspects and come up with a recommendation within the next 30 days. Also, a services export promotion council would be set up very soon under the aegis of the Commerce Ministry, Mr Kamal Nath said.

Apart from a package for marine sector, the annual supplement also provides for certain policy and procedural changes to give a fillip to the gem and jewellery exports.

A package of measures to make the export promotion capital goods scheme (EPCG) more attractive for exporters has been announced. The annual supplement has also introduced several rationalisation measures to the Annual Advance licensing scheme. Further, a host of measures have also been announced for export-oriented units (EOUs), which account for 10 per cent of the country's exports.

Besides announcing the Government's intent to do away with various export cess levied under different Commodity Board Acts, the Commerce Minister said that all export promotion councils would open a separate cell to involve and encourage youth and women entrepreneurs in the export effort.

Mr Kamal Nath also said that the Target-plus scheme aimed at rewarding incremental exports would continue in the year 2005-06 with such modifications as would be notified, separately for preventing misuse, if any. Notifications to operationalise the target plus scheme announced in the foreign trade policy in August had been issued on Thursday, he added.

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