Coupled with the plunging polymer prices in the international markets and an increasing number of companies facing anti-dumping duties from the European Union, exporters are seeking cover through changes in the exim policy to meet challenges of the new millenium.

In its latest `Suggestions on Exim Policy' to director general of foreign trade (DGFT) NL Lakhanpal, The Plastic Export Promotion Council (Plexconcil) has said "as we enter the new millenium and with the birth of the World Trade Organisation new threats and opportunities are going to emerge...The emerging scenario, therefore, demands framing of proper policies to keep us out of the various threats. However, our ingenuity will lie in framing policies that will be consistent with the WTO as far as possible."

According to the council, the plastic industry being a thrust area enjoys a highexport potential. However, complex procedures, at times beyond understanding of a common exporter, dissuade manufacturers/ entrepreneurs from entering export activities. Changes in policies and procedures having a direct impact on the profitability of the business compel exporters to divert their efforts to the potential domestic market and ignore the export markets.

Lack of proper attitudes and approach in interpreting the policies and procedures (ignoring spirit and concept of policy formulation) also force exporters to shy away from exports. Conflicting objectives of the ministry of commerce (to accord highest priority to exports) and the department of revenue (to accord highest priority in curbing loss of revenue ) have a net effect of hampering progress on the export front.

As regards the Export Packing and Credit Guarantee (EPCG) scheme, it is important to include the industry under the zero duty window. This will facilitate building of exportable surplus and achieving the economies of scale.

Incase of shortfall in export obligations the bank guarantee/LUT /customs bond should be forfeited to the extent of the shortfall in export obligations. If due credit is given for the exports made under the scheme and forfeiting BG/LUT/ Customs bond to the extent of the shortfall, the scheme will be more effective.

Creation of fast track import clearance facilities for imports against advance licences will facilitate exports to a great extent and the risks of shortfall in the plastic sector are extremely high in view of the dynamic variation in plastic raw material prices (having direct bearing on the export realisation).

Further, export inputs should be free of all taxes, procedure for making export inputs tax free should be free of all hassles and policy initiatives to build exportable surplus in the plastic industry which does not enjoy any comparative advantages and achieving of economies of scale plays a major role in achieving global competitiveness.

As regards the duty exemption scheme, the councilfeels that DEPB rates relating to generic descriptions should not be restricted only to Chapter 39 of the ITC (HS). The reasons behind this restriction is not understood because the earlier input/output norms and the related value-addition did recognise these items under the generic descriptions. The plastic sector is still in its infancy and driven by the SSI sector. Therefore, DEPB rate fixation limit of Rs 20 crore for new product needs to be scrapped. The criteria of Rs 20 crore limit for fixation of DEPB rate for plastics sector is extremely high hence the limit should be done away with.Export products made of combination of two or three plastic raw materials should be covered under the DEPB scheme.Advance license/imported material should be automatically transferable after completion of export obligation and redemption as this will result in procedural simplification.Lastly, promotion of plastic industrial parks dedicated to supply of plastic products for exports will facilitate high export growth ratefor plastics.