GCCI calls for simplifying terms for trading units

The Gujarat Chamber of Commerce and Industry (GCCI) has called for simplifying the terms for setting up of trading units for exports/imports.

This is part of the Chamber's recommendation to Union commerce minister Kamal Nath with relation to soon-to-be-announced national foreign trade policy (NFTP).

"Setting up of merchant exporter/importer trading units should be allowed freely, without insisting on the size or investments. The trading units will be able to generate large volumes through re-export of duty-free stocks of imported goods, merchandising trade of goods (buying from one country and directly selling it to another country without physically importing to India)," GCCI president Chinubhai Shah said.

The Chamber has also made suggestions regarding trading units in SEZs, setting up of port-based and free trade zone-based warehouses abroad, performance-based market development assistance, performance-based duty credit capital goods (both new and second hand) entitlement to all exporters.

According to the Chamber's recommendations, the Union commerce ministry should provide grants-in-aid and long-term funding to the Central Warehousing Corporation (CWC) and public sector and private sector entities for setting up tie-ups or subsidiaries at strategic locations abroad to provide warehousing facilities for Indian importers and exporters.

The Chamber has also demanded market development assistance for regular exporters with specified turnover for foreign travel, participation in trade fares, exhibitions, litigation, arbitration, warehousing expenses, maintenance of offices and representatives abroad based on past export performance.

This may include an entitlement for reimbursement of such specified costs and expenses, within the overall performance based limits.

GCCI has also sought performance-based duty credit capital goods (both new and second hand) entitlements to all exporters.

"All exporters who nominate their supporting manufacturer should be allowed performance-based new and second hand capital goods, spares, tools and office equipment, duty credit entitlements at a percentage of the exports," said Shah.