Exim Policy outlines hardware exports as thrust area

Outlining hardware exports as a major thrust area, government on Monday announced that supplies of all items under the information technology agreement from electronics hardware technology park units to the domestic tariff area would qualify for export obligation.

"To give a boost to the electronic hardware industry, we are modifying the EHTP scheme to allow counting of all 217 ITA-1 items for fulfillment of their export obligations", Union Commerce and Industry Minister Arun Jaitley said while unveiling the Exim Policy 2003-04.

In the software sector, the policy has said procedures and formalities applicable to the status holder amongst software technology park units would be simplified.

This is expected to facilitate free movement of laptop, computer and other equipment and provide flexibility to the software professionals.

To promote growth of software exports in embedded programmes, hardware for embedding up to the value of 10,000 dollar will be allowed to be imported duty-free and permitted to be disposed of after testing subject to certification of STPI.

In order to allow both hardware and software sectors to remain updated, the policy has allowed 100 per cent depreciation over a period of three years to computer and computer peripheral units in EOU, EHTP, STP and SEZ units.