FIEO hails changes in Mid-Term review of Foreign Trade Policy 2015-20

Posted by Daily Shipping Times on 07-12-2017        Tweet

NEW DELHI: Welcoming the Mid-Term Review of the Foreign Trade Policy, Shri Ganesh Kumar Gupta, President, FIEO said that the 2% increase in the MEIS rates for labour intensive sectors such as leather, carpets, handicrafts, tools, marine, medical & scientific products and services such as accountancy, architecture, legal, education, hotel and restaurant will provide much needed respite to these sectors which are facing huge competitiveness from other countries.

The trust based system for the grant of Advance Authorization for no norms cases for exporters registered as Authorised Economic Operators(AEO) marks a new beginning of reliance on trade and will encourage exporters to apply for AEO Scheme which facilitate customs clearance both in India as well as abroad.

Mr Gupta said that the creation of new Logistics Division in the Department of Commerce and decision to develop National Logistics Information Portal for online logistics market player will go a long way to reduce the logistics cost in India which will also be supplemented by the initiative on Trade Facilitation Agreement and e-Way Bill introduction under GST.

FIEO complimented the Minister for adopting the twin strategy to promote new and sunrise sectors along with employment intensive sectors. This will help the Country to create substantial employment but at the same time put its imprint into new areas of exports.

The new Agricultural Export Policy to provide the stable and open exports for long term is the need of the hour said FIEO Chief . India should take a lead in organic exports and encourage States to get them certified as organic as has been done by Sikkim already.

Mr Gupta said that procedural simplification to replace IEC by PAN ; increase in the validity of the scrips from 18th months to 24 months; reintroduction of ARO facility for supply against Advance Authorization / EPCG / EOU; relaxation in export of free of cost samples from 1% to 2% of average exports in preceding 3 years with a ceiling of Rs.2 crore would also mitigate the hardship of the exporters and hassles related to its compliances.

FIEO, however, suggested that Government should gradually extend the MEIS to other sectors of exports since they are also facing numerous challenges in exports. A one-time relaxation to meet Export Obligation may be provided to the industry so that they can escape the penal provisions, which will be disruptive and will provide an opportunity to add to exports besides providing employment.