The Hindu Business Line : PHD Chamber lists steps for better export performance

The chamber has suggested the Government fix and publish specific charges under different heads for transporting export cargo from place of acceptance to different ports of loading in India.

New Delhi June 25 To improve the competitiveness of exporters, the PHD Chamber of Commerce and Industry (PHDCCI) has sought measures to ensure that banks levy charges on actual basis from exporters.

Banks are levying various kinds of charges on exporters over and above the actual charges incurred by them for sending export bills by courier or speed post, sending any message to any foreign bank by telex, e-mail, Internet and swift message.

All such charges should be recovered on actual basis and banks should not be allowed to make profits out of it, according to the chamber.

Among other issues identified by the chamber that adversely affect the competitiveness is lack of transparency of inland haulage charges (IHC) levied by shipping lines that results in added transaction cost of export consignments.

IHC is a charge payable for internal transportation of cargo by rail from inland container depot to the port of loading.

Various shipping lines levy different IHC, although the place of acceptance of goods and port of loading are the same.

These charges, often, vary even if the same shipment is going to two different countries.

In many shipments, the cost of sea freight for sending shipment to overseas destination is less than the charges an exporter has to pay for transporting the same cargo within India. The chamber has suggested that the Government should fix and publish specific charges under different heads for transporting export cargo from place of acceptance to different ports of loading in India, in order to check the inflated rates being charged by the shipping lines.

Inputs procured locally on "deemed exports" basis for manufacture of finished products meant for physical export, attract Central Sales Tax (CST).

The chamber holds that this is against the established principle and makes local purchase for export purposes costlier and has therefore suggested that local purchases under "deemed exports" be exempted from CST.

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