Financial Daily from THE HINDU group of publications
Saturday, Jun 18, 2005
Financial Daily from THE HINDU group of publications Saturday, Jun 18, 2005 |
|
|
|
|
|
Industry & Economy
-
Exports & Imports Government - Policy New appendix to `Target Plus' scheme irks exporters Our Bureau
Kolkata , June 17 THE Insertion of the new Appendix (15D) to the Target Plus Scheme announced by the Union Commerce Minister, Mr Kamal Nath, in his annual supplement to the Foreign Trade Policy 2004-09, has already ruffled the feathers of merchant exporters. Merchant exporters say that the new condition of "actual user", for imports under the scheme, will not be possible to fulfil. Trade sources told Business Line here that it was still not clear whether the Duty Free Credit Entitlement (DFCE) obtainable under the Scheme would be transferable like DEPB and DFRC (Duty Free Replenishment Certificate). It is pointed out that if this condition is not relaxed, the whole objective of the Target Plus Scheme may be defeated. In Para (v) of the said new Apendix, it is stated that the goods imported under the scheme shall be under "Actual user condition". The Target Plus Scheme is aimed at rewarding incremental exports. According to Mr Pravin Saraf, Director, Saraf Impex (P) Ltd, if the DFCE under the Scheme was kept non-transferable, it would mean that the entire community of merchant exporters holding "Star Export House" status would be deprived of the benefits of the scheme, which was essentially designed to accelerate export growth by rewarding the exporter. He said since merchant exporters handle more than one product group, it was not possible for them to fulfil the `actual user' condition. The objective of the scheme, he pointed out, was to reward high performing Star Export Houses irrespective of whether these were merchant exporters or manufacturer-exporters. Surely, the Government's intention could not be to discriminate between the two categories of exporters. Some of the modifications to the scheme, as suggested by the trade, besides removal of the actual user condition, are deemed export benefits for which payment is received in free foreign exchange, including EEFC (Exchange Earners Foreign Currency) account for calculation of export performance and the provision of revalidation. Mr Saraf said the Federation of Indian Export Organisations (FIEO) has already been urged to take up the matter with the appropriate authorities at the highest level, so that the anomalies are removed and the scheme is made to serve its purpose.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|