| GOVERNMENT
REGULATIONS |
| Industry lauds exim policy |
|
The changes brought
about in the new Exim policy are welcome as measures like setting up of
special economic zones (SEZ), allowing import of second hand machines
and duty-free replenishment licence scheme will all rejuvenate the
morale of the Indian textile industry. |
| l
EPCG scheme
extended to all sectors and capital goods. l Import under EPCG scheme allowed without any threshold limit on payment of 5% duty. l Reintroduction of replenishment licence scheme. Merchant-exporter/manufacturer-exporter will be allowed to import inputs without payment of basic customs duty, surcharge and special additional duty. l SIL to be discontinued after April 2001. Second-hand capital goods less than 10 years old allowed to be imported without licence. Export obligation enhanced by 50%. l Special advance licence and transferable advance licence abolished. Transferable quantity based advance licences to be replaced with REP licences. l Units exporting more than 50% of their turnover to be declared public utilities. |
| Special Economic Zone
(SEZ) units to be allowed import of capital goods and raw material duty
free, including from the DTA; SEZ units to be granted full flexibility
for export production. |
| l
SEZ units' sales in DTA zones will be permitted only on payment of full
applicable customs duties and
additional duties without any concession l States to be granted Rs. 250 crore for creation of export infrastructure. l Removal of quantitative restrictions on 714 items, which includes 47 textile items. l Tariff commission to be strengthened. |