IAS Mains General Studies Sample Answers

The main thrust of Export-Import Policy 2002 - 07 is on creating a frame-work for enhancing India’s export capability. In the light of this statement outline the salient features of EXIM Policy 2002-07.

A five year Exim policy was announced in March, 2002. To exporters a number of concessions have been offered, focusing sharply on SEZs, Agri exports, industrial clusters etc. To push export growth rate to 12% these concessions aim at. The aim of this policy is to take India’s share to 1% from the current 0.6% in the world trade.

SOPs for SEZs are as follows:

• Banks exempted from CRR and SLR

• SEZs can now access foreign funds at cheap global interest rates.

• SEZs exempted from central sales tax.

• SEZs permitted to setup overseas Banking units.

SOPs for Agri exports:

• Abolition of Quantitative restric-tions from every crop except Onion and Jute.

• Transport subsidy for fruit, vegetable, poultry, and dairy products.

• 20 Agricultural Export Zones (AEZs) for promotion of agricultural goods export has been established.

• Scheme of “Advanced Licence” for exports was introduced.

• “Export House” series is constituted for Latin American, African and Latin American exporters.

• Abolition of Duty Exemption Entitlement Certificate (DEEC) book.

• Apart from the above measures adoption of a new 8 digit commodity classification for exports and imports to reduce classification dispute between commerce and custom department and exporters.
   

• SOPs for cottage & handicraft:

  • Export norms eased in cottage and handicraft for duty remission and export house status for those who export Rs. 5 crore annually.

  • Zero duty import of rough diamond, abolition of licensing for such import etc.

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