The Society of Indian Automobile Manufacturers (SIAM) has urged the government to dispense with the customs verification of duty entitlement pass book (DEPB) licences issued by the directorate-general of foreign trade (DGFT) to reputed manufacturer-exporters.
In a presentation before the DGFT, the association has said that a post-clearance audit, if necessary, is preferable to the current system of customs verification of the DEPB licences.
Regarding exclusion of Ambassador cars from all industry duty drawback rates, SIAM says this has been done without valid reasons.
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The association has, therefore, urged DGFT to allow duty drawback for Ambassador cars and has submitted data to support its demand.
With regard to the export promotion capital goods scheme, SIAM has sought abolition of the requirement of providing bank guarantee in case of new companies having no export record if they have signed a memorandum of understanding with the government.
It has also urged a mechanism to fix brand rates within 45 days of the date of the application to avoid delays.
Regarding exports, SIAM has called for a suitable mechanism for drawback of sales tax, octroi and other local taxes on export products.
It has acknowledged that the decision to move to vale-added tax with effect from April 1, 2000, will facilitate quantification of the incidence of taxes.
Mooting consideration of rupee exports for discharge of obligation, the association has urged DGFT to consider turnover of exports to neighbouring countries Nepal and Bhutan in rupees, besides to Russia under the rupee debt repayment scheme, for discharge of export obligations.
It has called for permitting clearance of goods against deemed export orders without payment of duty in line with clearance to 100 per cent export-oriented units.
Other points made in the SIAM presentation are:
l Restore deemed export status for sale to diplomatic missions, embassies and United nations to enable Indian automobiles to compete with imports.