'Export items should be made more competitive'

NEW DELHI: The Federation of Indian Export Organisation (FIEO) on Sunday suggested certain measures to render exports competitive including ensuring of changes in the Target Plus Scheme, introduction of Zero Duty EPCG scheme and advance transferable licence and change in MDA guidelines.

"Since exports were imperative to earn foreign revenue, it is important to render them globally competitive for which the key requisite was to allow continuation of the DEPB up to six months from the date of announcement of the new scheme.

"This would enable the exporters do their costing for export orders to be finalised for making shipment between April to September 2005," FIEO President O P Garg said in a statement.

He also suggested that exporters be allowed the option to claim benefit on Net Foreign Exchange (NFE) FOB basis which, if done, would encourage exporters to use indigenous materials.

The benefit obtained under the Target Plus Scheme should be transferable so that number of exporters, particularly the merchant exporters, who are not be able to fully utilise the credit, could be compensated.

Garg suggested that the government allow import of capital goods under EPCG Scheme at zero duty and exemption from 4 per cent additional duty of customs may be given to all ITA-1 items when imported under the scheme.

Besides the FIEO chief also suggested introduction of transferable advance licence, grant of drawback and export fits for input obtained under Target Plus and Duty Free Credit entitlement scheme, waiver of maintaining export performance under EPCG Scheme, changes in MDA guidelines and simplification of Status Grant Certificate, the release added.