Procedural Simplifications

 A] DUTY EXEMPTION SCHEME : As suggested by the Trade and Industry, instead of number of schemes like Quantity Based Advance Licence (QBAL), Value Based Advance Licence (VABAL), Special VABAL Schemes in respect of Electronics, Engineering, Ready made Garments, Pharmaceuticals and Pass Book Scheme, the new EXIM Policy has only two schemes i.e. Advance Licensing Scheme corresponding to QBAL and a new scheme known as Duty Entitlement Pass Book Scheme (DEPB).

DEPB Scheme incorporates the concept of the old Pass Book but with simplified procedures and greater coverage and transparency in the matter of giving credit entitlements. The entitlement rate will be pre-determined so that the exporters at the time of exports can do their costing accordingly. It is a transparent scheme and does away with any discretion to the Licensing Authority or Custom Authority and can be availed on Pre-Export/Post-Export basis.

This scheme is very easy to operate and the exporter has to come to the Licensing Authority only once for getting the credit under post export DEPB. This should help the exporter to a great extent as there were many complaints of delay in getting credit under the old Pass Book Scheme.

Trade and Industry had requested for extension of old Pass Book Scheme to  other ports. Accordingly, DEPB has been extended to all the ports for which Advance Licences facility is available.

Trade and Industry had asked for making the credit under the old Pass Book Scheme, transferable. Under DEPB, the credit can be transferred within the same port of Registration. This Scheme covers both Manufacturer Exporter as well as Merchant Exporter.

B] Gem and Jewellery Schemes : Under the Gem & Jewellery REP Scheme, third party exports have been allowed so that the small exporters are able to market their products in the international market and are able to claim REP licences based on disclaimer certificate from the third party.

The facility of bulk licence for import of rough diamonds has been further liberalized and now the bulk licence holder can import from any source and not necessarily from DTC London.

C] Net Foreign Exchange Earning : The definition of Net foreign Exchange earning for getting recognition as EH/TH/STH/SSTH, for claiming SIL on NFE basis and for discharging Export Obligation under Zero Duty EPCG Scheme, has been made simpler and unambiguous. Only the value of licences issued excluding the value of Special Import Licences and EPCG licences will be deducted from the FOB value of exports to arrive at NFE.

 Export & Import - Exim Policy - Other Simplifications

Inter-face with DGFT has been reduced considerably as can be seen from the following measures: The export obligation period under Advance Licence has been enhanced from 12 months to 18 months and similarly the validity of the Advance Licence has been enhanced from 12 months to 18 months. Hence the exporter gets more time for export and import automatically without coming to DGFT for extension.

In case the exporter is not able to complete exports even in this enhanced period, provision has been made for extension of export obligation period by Regional Licensing Authority to the extent of 6 months on payment of penalty@ 1% of unfulfilled export obligation value. This will also provide an incentive to the exporter to complete export obligation within the original period of 18 months. Jigs, Tools, Fixtures, Moulds, Tackles, Computer Hardwares and Instruments imported for the purpose of jobbing under DES can now be retained on payment of Customs Duty without the permission of Advance Licensing Committee if the item imported is not in the Negative List of Imports.

The value limit for Advance Licence under production programme basis has been enhanced from 25% of average FOB value of his exports to 100% of average FOB value of his exports so that the exporter could obtain Advance Licence in one go for his requirement and does not have to come to Regional Licence Authority time and again.

The financial powers of Regional Licensing Authority for issuance of licence  where input-output norms have already been fixed and for issue of EPCG licences has been enhanced so that the parties could get the facility at the nearest point. Exporters of Gem & Jewellery earlier had to complete the exports within 90 days in outright purchase basis or Replenishment Scheme or within 60 days under Loan Scheme and his period could be further extended by 30 days.

The time period under all these categories has been enhanced by 30 days straight away without any provision of further extension so that the exporter does not have to come to DGFT for getting extension. Counter-Assistance System in the Headquarters DGFT and all the Regional Licensing Offices will be further strengthened and Head of the Office will be personally responsible for streamlining the Counter-Assistance System inrespect of every scheme under EXIM Policy so that delays do not occur in processing applications under the various EXIM Policy Schemes.

Wherever exporters cannot file their claims for incentives under EXIM Policy because of genuine reasons, a facility has been provided to consider such applications which have been submitted late but not later than six months of the specified last date, by applying a cut of 10% on their entitlement. This will do away with the need to request for relaxation of the Policy and Procedures for accepting late applications.

Every attempt has been made to clearly specify the operational requirements under various schemes to avoid the need for seeking clarifications. Need to submit a large number of documents with every application has been reviewed and the minimum number of documents prescribed. Besides, the repetitive nature of information sought in every application has been dispensed with and application forms have been greatly streamlined and rationalised to elicit only the barest essential information required for giving exporters the benefit of EXIM Policy Schemes.