NEW DELHI, April 29: The government proposes to shift 300 more items from the restricted to the special import licence (SIL) list in the 1997-2002 export-import policy under the first phase of the plan for lifting the quantitative restrictions on imports. The transfer, expected soon, is in keeping with India's commitment to the World Trade Organisation (WTO) and represents the first year of the plan spanning three years from 1998-99.In the remaining two years, that is 1999-2000 and 2000-2001, the 300 items will be put in the free list (open general licence). At the end of this period, roughly 1,000 items will have been shifed to the free list.
The second phase, involving a further period of three years, will start from 2001-2002 and by then the transfer of all restricted items to the OGL list will have been completed. The phase-out plan has been accepted by all countries, excepting the US, and India is going to file its written reply in the WTO against the US which had filed a petition before the disputesettlement body of the WTO a few months ago. Simultaneously, bilateral talks are on with the US to persuade it to accept the plan.
Excluding the 300 items, the government has already shifted roughly 7,800 items from the restricted to the OGL list. Import of items against OGL will attract customs duties ranging from 30-40 per cent.
Explaining the position, Director-General of Foreign Trade NL Lakhanpal told The Financial Express that the procedure adopted by the government was to shift items from the restricted to the SIL list first and to the free list later.
He said the transfer from the restricted to the SIL list would provide some incentive to the exporters by way of a hike in the SIL premium and protection to domestic industry. Adding of more items to the SIL would result in an increase in the premium SIL commands in the market.
Lakhanpal maintained that if India were to be integrated with the global economy, it had to lift all quantitative curbs on imports and resort to tariffs to preventexcessive imports and thereby protect the domestic industry. He said of the 436 items, 227 had been transferred from the SIL to the free list and 99 items from the restricted to the free list, following changes in the Exim policy announced on April 13. Included in the transfer was about 100 items shifted in a similar manner in January this year.
In 1996-97, about 460 items were transferred in a similar manner in keeping with the commitment to the WTO, Lakhanpal said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
