In March 2002, a five year Exim Policy was announced. A number of concessions have been offered to exporters focusing sharply on SEZs, Agri exports, industrial clusters, etc. These concessions aim at pushing export growth to 12%. The aim is to take India’s share in world trade to 1% from the current 0.6%.
SOPs for SEZs are following: Special incentive for existing 14 SEZs.
i. SEZs permitted to setup overseas Banking units.
ii. SEZs can now access foreign funds at cheap global interest rates.
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iii. Banks exempted from CRR and SLR.
iv. SEZ exempted from central sales tax. For Agri Exports:
v. QR to go except for Onion and Jute.
vi. Transport subsidy for fruit, Vegetable, Poultry and Dairy products. 20 Agri export zones (AEZ) for farm goods, processed products.
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vii. To capture new markets in African countries.
viii. Farms exporting to the markets would be given export house status on export of Rs. 5 crore.
ix. Similar programme for Russia and Latin America.
x. Apart from the above measures adoption of a new 8 digit commodity classification for exports and imports to reduce classification
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xi. dispute between commerce and custom department and exporters.
xii. Abolition of duty exemption entitlement certificate (DEEC) book, a practice since 1975, in view of a lot of rent seeking activities between exports and compact officials.
xiii. In cottage and Handicraft export norms eased for duty remission and export house status for those who export Rs. 5 crore annually.
xiv. In Gems and Jewellery – Zero duty import of rough diamond, abolition of licensing for such import etc.