Marine food exporters to save Rs 60 crore: cess withdrawal

The marine products export industry can save at least Rs 60 crore annually following the withdrawal of export cess in the recently announced foreign trade policy.

This along with other concessions will be a boon to the industry, which has been hit by the tsunami disaster.

According to officials of the Seafood Exporters Association of India (SEAI), the industry had to pay export cess of 0.8 per cent and the withdrawal of this would have its own effect on exports.

The liberal change in the Export Promotion Capital goods Scheme (EPCS) will enable the industry to import more capital goods.

As most export-oriented units are in the small scale industries sector, the reduction in duty will be a definite advantage.

Export traders told Business Standard that allowing duty-free import of goods worth 1 per cent of the total export would also help the industry.

The duty-free cover will apply to specialised packing materials, oils and chemicals for processing.

Kerala will have a definite advantage by the changes in the policy.

Aroor, a place near Kochi where most of the seafood processing units of the state are located, had been declared as a town of excellence.

Duty-free import of capital goods has been allowed for investment purpose in towns of excellence and this will help the all round development of around 50 km coastal belt of Kerala, stretching from Aroor to Kochi.

SEAI puts off national stir

The SEAI has decided to keep in abeyance their proposed nationwide agitation, according to A J Tharakan, president.

The decision was in tune with the statement issued by the commerce minister, Kamal Nath, that an immediate solution would be found regarding the admissibility of export under 80 HHC by the Income tax authorities.

The controversial issue of tax liability on sale of DEPB licence has been referred to the prime minister's economic advisory council which would give its recommendations within a month, he said.

The re-opening of past assessments by the Income tax authorities will be kept in abeyance till the council gives its recommendations.