EXIM POLICY, 2003-2004

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The new Export-Import (Exim) Policy for 2003-2004, released on Marxh 31, looked beyond the conventional merchandise for the first time by laying stress on the sunrise services sector such as entertainment, health care, tourism and professional services, besides giving a push to agri-exports.

The Policy, released by Commerce and Industry Minister Arun Jaitley, has identified agri-exports as one of the main drivers of exports growth set to touch the 50 billion mark for 2002-2003, clocking a growth of 16.76%.

Placing heavy bets on the services, the policy has allowed duty free import for this sector having a minimum foreign exchange earning of Rs. 10 Lakh. The duty free import entitlement will be 10% of the average foreign exchange earned in the preceeding three years. However, for the hotels, it will be 5% of the average foreign exchange earned in the preceeding three years. The service sector can make use of this faciloty for import of office equipment, professional equipment, spares and consumables.

Highlights of the Policy

Duty-free import facility for services sector.
Boost to healthcare, entertainment, professional services & tourism.
Corporates to sponser agri-export zones.
DEPB rates for agri products to factor in input costs.
EPCG scheme made more flexibile.
Special focus on textiles, auto spares, gems & jewellery, drugs, hardware as potentail high growth sectors.
Codification of SEZ rules to facilitate investment.
Development of 10 new export clusters.
Priority to EDI to cut transaction costs.
Simultaneous notifications by DGFT and CBEC.