ANNOUNCEMENT 01 Jan 2011

In January 2011, the government of India announced a general change in export conditions.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 01 Jan 2011 | Removal date: open ended
Still in force

Export-related non-tariff measure, nes

The Task Force on Transactions Cost set up by the Department of Commerce to identify and suggest ways to achieve improvement in efficiency of our export processes, has completed its work. Twenty one suggestions made by the Task Force have already been implemented. Action on remaining two will be taken in next few months. This will mitigate transactions cost by about Rs. 2,100 crore. The following measures have been suggested:

  1. Upgradation plant quarantine laboratory testing facilities at Delhi, Mumbai, Chennai and Bangalore Air Cargo complex to enable faster export clearance of perishable goods.
  2. Second shift to be made operational at Mumbai, Chennai and Trivandrum airports to expedite issuance of phyto-sanitary certificates. In addition, online facility for issuance of phyto-sanitary certificate to be made operational.
  3. Import of raw materials for leather industry should be allowed at Kanpur and Jalandhar in addition to existing locations at Mumbai, Kolkata, Chennai, Delhi, Bangalore and Hyderabad. For this purpose necessary facilities may be set up by Animal Quarantine Certification Services (Department of Animal Husbandry) at Kanpur and Jalandhar.
  4. Charges being levied by the airport operator for xcourier export cargo are very high and need to be rationalized in line with the general cargo rates.
  5. Advance authorization under Ad-hoc norms to be issued without the present requirement of submission of Chartered Engineer Certificate.
  6. Ad-hoc norms ratified by Norms Committee should be made applicable to all earlier cases for the same export product for other advance authorizations issued within one year of date of ratification.
  7. For issue of Import License for Restricted items, the requirement of submission of Proforma Invoice should be removed.
  8. For issue of Export License for Restricted items (except for SCOMET items), the requirement of submission of Proforma Invoice should be removed.
  9. In the present EDI environment where DEPB EDI shipping bills are transmitted by Customs to DGFT through online message exchange, submission of hard copies of DEPB EDI shipping bills for issuance of DEPB scrip should not be insisted, except in exceptional cases.
  10. Grant of MDA assistance for participation in international fairs / exhibitions should be made company-specific and not individual specific.
  11. Clubbing of Annual Advance Authorisation with Advance Authorisation should be allowed.
  12. Better EDI facilitation to be provided by DGFT i.e.
    - offline software for filing advance authorization and EPCG applications on DGFT server,
    - online status holder application facility;
  13. Since factory and transportation operations are usually roundclock, a shift-wise working system should be developed for customs and excise officials especially to cater to import /export workload on weekends. This can be done initially, on a trial basis, for some identified locations.
  14. For faster import/export clearances and decongestion at Ports, more firms should be enlisted under Accredited Client Programme (ACP) of Customs. For this, eligibility criteria for ACP should be relaxed e.g. issue of Show Cause Notice for procedural irregularities should not be a criteria for ineligibility under ACP. In addition, Risk Management System (RMS) of Customs should include, export status of the firm i.e Export House/ Trading House etc. as one of the risk parameters in the RMS module.
  15. Scheduling of factory stuffing inspection should be provided online by Excise and a single factory stuffing permission should be provided by Customs which will be valid for all Custom Houses.
  16. A large number of cases exist where unutilized CENVAT credit has not been refunded to the exporter by the Excise. Clear procedures and guidelines need to be prescribed by CBEC for grant of refund of credit balance lying in CENVAT Credit (beyond a period of 3 months); and a system of monitoring where refunds are not granted on time may be institutionalized.
  17. Requirement of Mate receipt by Central Excise for establishing actual date of export should be dispensed with.
  18. Banks charge a high penal interest for export payments\received beyond due date. Moreover, the penal rate is charged for the entire period from the date of shipment whereas it should be charged for only the delayed period asper the terms of payment.
  19. Processing charges levied by banks for annual renewal of limits are
    very high and need to be reduced.
  20. Banks need to lower charges being levied as booking and cancellation charges against every booking of FOREX with them.
  21. Contrary to instructions being issued by RBI, additional charges are being levied by banks while releasing pre-shipment credit in foreign currency. In addition, pre-shipment credit in foreign currency to MSME export sector may be made available on a priority basis.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A