The association has also suggested fast-track clearance through customs for titanium dioxide. This is a regularly imported item and the usual route takes around three to five days for clearance through customs. If the clearance is expedited, it will bring savings in the container detention charges and demurrage.

Further the association has claimed CENVAT on white cement being the intermediate product in the paint industry. Raw material imports, irrespective of Indian substitutes, accounts for approximately 60 per cent of the total consumption of paints in the industry. At present, the basic customs duty on the above raw material is levied at the highest rate of 35 per cent. This has an adverse effect on the cost structure of paint production given the fact that the import basket forms 60 per cent of the total consumption. Further, the import duty on all organic and inorganic chemicals should be brought down substantially below the duty of finished paints.

Many units in the paints industry manufacture exterior cement paints for which white cement, falling under Central Excise Tariff Heading Chapter 25, is required as an input. Prior to Budget 2000-2001, white cement was subjected to a levy of excise duty of 34 per cent, which was fully modvatable.

However, the 2000-01 budget has imposed a levy of special excise duty of 8 per cent which cannot be claimed as CENVAT. According to the second schedule of the Central Excise Tariff Act, the special excise duty has been generally imposed on goods meant for ultimate consumption where the option of claiming CENVAT does not arise. Since white cement is used in the manufacture of new products in paint industry, it should not be subjected to an 8 per cent special excise duty rather CENVAT on white cement be introduced.

IPA has also suggested that products like thinners and powder coatings manufactured by paint manufacturing companies should be brought under the MRP system.

In the Central Excise Act, there is no provision for time-bound determination of provisional assessments. The association has suggested that a time period be statutorily fixed for completion of provisional assessments.