Highlights of the Exim Policy

Following are the highlights of Exim Policy released on Monday, March 31, 2003:

• Duty free import for services with forex earnings of at least Rs 10 lakh (Rs 1 million).
• Corporates encouraged to sponsor agri-export zones.
• DEPB rate for agro products, factor in input costs like fertiliser.
• Duty-free import entitlement for status holders having incremental growth of more than 25 per cent.
• Annual advance licence facility for status holders.
• Input-output norms for status holders within 60 days.
• Free movement of professional equipment in STPI.
• 100 per cent depreciation to computers and peripherals for 3 years.
• Hardware admissible for duty free import.
• Diamond and jewellery dollar account for exporters' deal.
• Upgradation of infrastructure in export clusters.
• Export obligation period to be allowed to sick units for rehabilitation.
• Quantitative restrictions on 69 import items and 5 export items withdrawn.
• Sales from domestic tariff area to SEZs to be treated as export.
• Foreign bound passengers to be allowed to take goods from SEZs to promote trade.
• Domestic sales by SEZ units exempted from SAD.
• SEZ units can capitalise import payables.
• SEZ units allowed to sell through exhibitions,
  duty free shops and shops set up abroad. 
• Duty free goods for operation of SEZ units.
• EOUs to be only net positive forex earners with no export performance requirement.
• Export/import through parcel/courier by EOUs allowed.
• Gems and jewellery EOUs entitled to advance domestic sales.
• Utilisation period of raw materials for EOUs increased to three years.
• EPCG scheme allowed import of capital goods for production and post-production facilities.
• Import of spares allowed under the EPCG scheme.
• Export obligation of 50 per cent for higher product chains done away with.
• Capital goods up to 10 years old allowed under the EPCG.
• Facility for provisional DEPB rate introduced.
• DEPB rates rationalised.
• Standard input output norms for 403 new products notified.
• Value addition under DFRC scheme reduced to 25 per cent.
• High priority accorded to EDI implementation programme to minimise transaction cost.
• Actual user condition for import of second hand capital goods up to 10 years old dispensed with.
• Penal interest rate reduced to 15 per cent for old cases of default.
• Restriction on export of warranty spares removed.