The new duty drawback scheme of the Central Government is expected to be exporter friendly, saving transaction time and cost, according to Mr Walter D'Souza, Chairman of the Federation of Indian Export Organisations (FIEO), Southern Region.
Speaking at an interactive session at Kanara Chamber of Commerce and Industry (KCCI) here on Friday, he said that this scheme replaced the DEPB (duty entitlement passbook) scheme in October 2011.
Across the spectrum of merchandise exports, the scheme meets the satisfaction of exporters with the exception of a few.
He said that export facilitation in the form of result-oriented incentives for exports is a key determinant of a country's competitiveness in the international market.
Mr D'Souza said that the most important cause for concern is the widening gap of trade deficit, which was at $116.84 billion during April-November 2011 as against $93 billion in the corresponding period of the previous fiscal, registering a growth of 25.63 per cent.
He said that the increase in interest rates (13 times) in the past several months by the Reserve Bank of India (RBI) has added to the woes of the exporters.
This is because the exporters did not factor in this additional burden while entering into long-term contracts.
In response to the efforts by FIEO in this regard, the interest subvention is in place.
This is a welcome measure, he said.
He also urged the Karnataka Government to improve the infrastructure in the State to help boost the growth of exports from the region.
Speaking on the occasion, Mr M.V.S. Chaudary, Commissioner of Customs, Central Excise and Service Tax, Mangalore, said that the Duty Drawback scheme is aimed at encouraging exporters.
He explained the various steps taken by his department to implement the scheme in Mangalore.
Mr T.S.N. Murthy, Deputy Chairman of New Mangalore Port Trust (NMPT), spoke on the occasion.