EXIM Policy 1997 - 2002

          Electronic filing of application is being started on pilot basis for issuance of advance licence at
          Delhi. This will enable the exporter to file his application electronically and receive a response
          through E.Mail. All Status holders will have the facility to collect the hard copy of their licence
          within 24 hours of filing their application. This facility will gradually be extended to all other
          Ports within a prescribed time frame. The objective is to bring about transparency and reduce
          physical interface between the exporter and the DGFT. This would also result in ensuring time
          bound sanction of licences.

          DUTY EXEMPTION SCHEME MADE FLEXIBLE

          A provision for annual advance licence has been made to reduce the avoidable interface
          between the exporter and the DGFT. This facility would provide necessary flexibility in the
          import of duty free inputs. The exporter would now be able to import any prescribed inputs as
          per input-output norms right through the year without approaching DGFT. The licence would
          be issued without stipulation of minimum value addition.
          In such cases where input-output norms are not fixed, licences can be obtained from all the
          Port Offices on the basis of self-declaration. They will not have to await the decision of
          RALC/ZALC for fixation of adhoc norms. The items and quantities permitted against such
          licences would be subject to subsequent fixation of norms by the SALC.
          To promote exports to Russia, the value addition norm for export to this country has been
          reduced from 100% to 33%.

          BENEFIT OF ZERO DUTY EPCG SCHEME EXTENDED TO OTHER SECTORS

          Threshold limit for EPCG Zero-Duty Scheme for several sub-sectors under the Chemicals,
          Plastics and Textiles sectors has been brought down from Rs. 20 crores to Rs. 1 crore.
          No additional Customs Duty would be charged on import of Capital Goods under Zero-Duty
          EPCG Scheme in Marine and Electronics Sectors.

          GEMS & JEWELLERY - ADDITIONAL FACILITIES

          Having achieved the leadership position in the cut and polished diamond sector, a new thrust
          for jewellery and studded jewellery sector has been provided through the following measures :

          Import of consumables required for the Gems and Jewellery industry has been allowed to the
          extent of 1% of fob value of the exports of the previous year.
          Personal carriage of jewellery has been permitted.
          The limit of exports of sample of Rubber, Wax and Silver models has been increased from
          Rs.10000/- to Rs.100000/- per year.
          Import of jewellery for repairs/re-making for re-export has been allowed.
          Export of jewellery through courier service has been permitted.
          A new concept of diamond imprest licence for import of cut and polished diamonds for mixing
          with cut and polished diamond and export with 10% value addition has been incorporated.

          EOU/EPZ - FURTHER RATIONALISATION

          Net foreign exchange earning as a percentage of exports (NFEP) requirement for the units
          operating in EPZ and EOUs has been made uniform at 20%. However, for Hardware Units,
          Bio-technology and Toys Sectors, this NFE requirement has been reduced to positive NFEP.
          The entitlement of DTA sale has been increased to 50% of the fob value of the preceding
          year.
          The procedures for operation of the units in the EPZ and EOUs have been simplified
          considerably and a number of operations have been permitted on the basis of self certification.
          The EOU/EPZ units shall have the option to supply the goods to bonded warehouse for
          exports.

          EXPORT OF SERVICES - A NEW BEGINNING

          A new Chapter has been added in the Policy recognising the importance of export of services
          and the potential in the Sector. Apart from extending all possible facilities applicable to
          merchandise exports, the threshold limit for recognition as Service Export House etc. has been
          pegged at 1/3rd of the level prescribed for merchandise exports.

          EXPORT HOUSE/ TRADING HOUSE/ STAR TRADING HOUSE/ SUPER STAR
          TRADING HOUSE - ENCOURAGEMENT TO SMALL SCALE SECTOR EXPORT

          In an attempt to encourage export from the Small Scale Sector, the exports made by Small
          Scale Sector manufacturer exporters will be given triple weightage for the purpose of
          recognition as EH/TH/STH/SSTH.

          All such exporters who attain Export House/Trading House/ Star Trading House/ Super Star
          Trading House for three successive terms or more shall be eligible for Golden Status
          Certificate which would enable them to enjoy all the benefits in perpetuity irrespective of their
          actual performance in future.

          INVOLVEMENT OF STATES IN EXPORT PROMOTION

          A Scheme is being evolved to involve the State Governments in the export promotion effort
          particularly for encouraging agro-exports. Assistance for infrastructure development for exports
          would be broadly linked to export performance of each State.
 
 
          OMBUDSMAN

          For on the spot solutions to the problems faced by exporters, an institutional mechanism,
          'Ombudsman' , is being put in place. To begin with it will be made operational in Mumbai and
          later on similar arrangement will be considered at other major ports as well.
 

          OTHER STEPS
 
          Provision has been made to recognise the national service rendered by exporters by issuing
          green cards to exporters exporting 50% of their production with a minimum of Rs. 1 crore per
          year entitling them to various facilities.

          In line with the facility of free imports of components for textile garment sector, leather
          garment and handicraft exporters have been allowed duty free import of inputs to the tune of
          2% of the FOB value of exports during previous year.
          Rationalisation of DEPB rates has been done to account for the revisions in Customs duty and
          the surcharge thereon.

          Pre-export DEPB credit entitlement increased from 5% to 10% of previous year's export
          performance.
          A number of Ports added for availing facilities under the Duty Exemption Scheme, including
          DEPB.
          The admissible limit for import and export of samples to promote export has been considerably
          relaxed. Export of samples marked 'Not for Sale' has been allowed without any limit. In other
          cases, export of samples upto US $ 10,000 per consignment has been allowed. Limit of import
          of bonafide technical and trade samples appearing in restricted list has been increased from Rs.
          3000/- per consignment to Rs. 1,00,000/- per consignment.
          To promote export of branded products, a beginning has been made by providing benefit of
          SIL to all such exports.
          Appreciating the problems of exporters in their inability to fulfil export obligations undertaken
          in the past, an additional period for fulfilment of past obligations has been granted both for
          EPCG and Advance Licence holders.
          Export Oriented Units (EOUs) relating to Agriculture/Hotriculture etc. have been allowed to
          install equipments/inputs/consumables in the farmers' fields, outside the EOU.
          Branded products exported under various Schemes allowed to be reimported to the extent of
          5% of FOB value of the preceding year's export subject to the refund of export related
          benefits.

          INTEGRATION WITH GLOBAL ECONOMY

          To ensure easy access to inputs and to integrate with the global economy as many as 894
          items have been added to the free list of imports. 414 additional items have been put in the SIL
          list of imports.
 

          FREE TRADE ZONES

          Free Trade Zones will become operational from 1.7.99. Units in free trade zone shall be
          permitted to carry out any manufacturing or trading activities. They shall not be subjected to
          any predetermined value addition, export obligation, input-output/wastage norms. They shall
          be treated as outside the Customs territory of the country and the Customs shall be manning
          only entry and exit points. Sale in the DTA will be permitted on payment of full Customs duty.