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Monday, June 1, 1998

Capexil's 30-point agenda for export growth 

Kohinoor Mandal  
May 31: The Chemicals & Allied Products Export Promotion Council presented a 30-point agenda to the union government for an export of 20 per cent during the current financial year.

The report has categorically listed the problems of the rubber industry, which includes tyres and tubes, canvas footwear, carbon black and styrene butadiene rubber, glass and ceramics, iron ore fines, plywood and publishing industry.

It has also pointed out various loopholes in export procedures, delays in announcement of DEPB rates and has asked for the inclusion of a number of items in the standard input-output norms.

In 1997-98, exports from Capexil members witnessed a growth of around 4.7 per cent as it went up from Rs 8,188.36 crore in 1996-97 to Rs 8,574 crore. In 1995-96, the export turnover was Rs 7,449.94 crore.

Capexil has asked to increase the DEPB rates on automobiles tyres and tubes from 17 per cent to 26 per cent.

"The rate of credit under DEPB at 17 per cent of free on board (f.o.b) value in respect of autotyres and tubes is considered inadequate in so far as providing 100 per cent duty remission on inputs required for manufacture of said item. Against this background, the auto tyre industry strongly feels that the rate of credit under DEPB on automobile tyres and tubes may be raised from the level of 17 per cent to 26 per cent," the report noted.

It has also sought the inclusion of tyre and tubes in the tariff concession list of South Asian Preferential Trade Agreement.

Regarding the likely imposition of safeguard duties on carbon black and styrene butadiene rubber, the export promotion council has requested the union ministry of commerce to exempt the exporting rubber products' units from it.

For the glass industry, Capexil has urged the government to reduce import duty on soda ash from 30 per cent and 10 per cent and has also suggested re-introduction of furnace oil subsidy.

An officer of Capexil said, "Glass and ceramics industries are highly fuel intensive, so the government must give relief on thefuel cost. We have requested the government either to reintroduce the furnace oil subsidy scheme or include furnace oil in the standard input-output norms with the provision for procuring the item from the public oil sector companies at international prices."

Capexil has urged for a national policy on leasing, renewal and quantum of royalty and deed rent for granite mining as the restrictive mining lease policy adopted by certain state governments has affected the granite industry.

The report also notes: "Raw magnesite is a mined material. It has wrongly been classified in the dead burnt magnesite which is a finished product and is being levied customs duty of 40 per cent plus zero to five per cent for import of ores."

Regarding text book exports to Africa, the export promotion council has suggested that the item be included in the group-B list of Exim Bank for long term credit.

Capexil has suggested a three pronged strategy for the turnaround of the plywood industry, which is suffering from a strongrecessionary trend.

  • To allow flexibility in the import licences under the Duty Exemption Entitlement Credit after exports are made. Alternatively allow the industry to adjust for payment of central excise to the extent of duty exemption now available for veneers.

  • To raise excise duty exemption limit to Rs 100 lakhs from Rs 300 lakhs.

  • To advise the state government to reduce tax rates.

    Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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