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.
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.
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
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.