Amendments in Foreign Trade Policy as response to issues raised during FIEO open houses
After the announcement of Annual Supplement to Foreign Trade Policy on 11th April 2008, FIEO organized Open House meetings with DGFT at Guwahati, Hyderabad, Chandigarh, Gandhidham, Mumbai and Jalandhar. In a response to the issues raised during these open houses, a number of changes and clarifications have been incorporated in Foreign Trade Policy. Some of these are:
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Maintenance of average export by exporters on account of third party export under EPCG has been done away with, vide a clarification issued on 7.7.2008.
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Vide PN No.39 dated 4.7.2008, it has been clarified that exports made against an EPCG authorization, which has not been redeemed, shall not be counted for calculating the average export performance for the purpose of subsequent EPCG authorization.
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Vide PN No.48 dated 8.7.2008; the confusion relating to import of spares/tools under EPCG has been clarified.
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Vide PN No.48 dated 8.7.2008; the need for submitting EO details electronically for EPCG authorisations has been done away with.
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The applicability of provisions under Para 5.4 (v) has been clarified through Policy Circular Nos. 15 and 16 dated 4.7.2008.
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Vide Policy Circular No.17 dated 4.7.2008, provisions relating to submission of multiple applications and part payments for claiming deemed export benefits under Para 8.3.1 of HBP Vol. 1 have been clarified.
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Vide Policy Circular No.9 dated 5.6.2008, procedure for payment of interest on delayed refund of deemed export drawback/terminal excise duty/CST has been notified.
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Vide Public Notice No.45 dated 7.7.2008, applications received after 12 months from the prescribed data of submission but not later than 2 years from the prescribed date, shall be admissible for benefits with a further cut of 10%.
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Vide PN No.47 dated 8.7.2008; a provision has been made where an applicant can change the port of registration of his duty credit scrip before registration with customs.
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Vide PN No.46 dated 7.7.2008; the applicability of VKGUY on handloom carpets has been clarified.
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Vide PN No.40 dated 4.7.2008; the provision for export of goods from the premises of sub-contractor has been made.
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Vide PN No.21 dated 2.6.2008, a provision has been made that for project supplies and the time limit for filing representations against the decision of Norms Committee has been increased to one year from the date of communication of the decision of the NC.
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Vide PN No.42 dated 4.7.2008, a provision has been made for permitting import of fuel under licences issued in terms of Paragraph 4.7 of HBP Vol. 1.
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Vide PN No.44 dated 4.7.2008; a provision has been made for revalidation of DFIA issued during the period 1.5.2006 to 31.3.2007, even if endorsed with transferability.
"Delay in submission of bills of entry, the biggest culprit"
Dwell time studies are carried out by Jawaharlal Nehru Custom House to monitor the time taken for clearance of import cargo on the basis of real time data from the Customs EDI System which handles the processing of import entry documents (bills of entry) till the final clearance of cargo. The data is averaged for every month.
For the month of May 2008, the data showed total average time as 326 hours (14 days). The contribution by Customs processing, which covers assessment and examination of goods, is about 23 hours, which represents 7% of the total time taken. The major time element, as per the study, is due to delay in submission of the bills of entry by the importers which is 184 hours (8 days), followed by time taken for payment of duty which is 93 hours (3 days) and thereafter for registration with the Customs for inspection / examination of the goods which is 48 hours (2 days).
The Customs department claims to have reduced processing time through a series of trade facilitation measures such as automation at various steps, risk management, operation of second shift of customs examination and part delivery of cargo.
The office of Chief Commissioner of Customs, Mumbai claims to have taken proactive measures
to reduce the dwell time for importers. It says: "E-payment of customs duty has been introduced to reduce the time taken by importers from assessment to payment of customs duty. A pilot project of mandatory e-payment for top 50 importers has been initiated."
Simplification of Maharashtra State Stamp Duty on imports has also helped in reducing dwell time by 2 days. On the other hand, delay in filing bills of entry (8 out of 14 days approx. 57% of dwell time) by importers is a major contributor of increased dwell time.
Waiver of customs assessment and examination under ACP (Accredited Client Programme) for
direct delivery of imports is also being pursued, claims the Customs. It advises trade & industry
to expedite filing of bill of entry and subsequent payment of duty to reduce dwell time further.
FIEO seeks comment on the study at priyasafaya@fieo.org.
