Texprocil hails Exim policy

 He said the continuation of export promotion schemes like the duty entitlement passbook (DEPB), advance licence, export promotion capital goods (EPCG) and the assurance that these schemes would continue until VAT is fully implemented would lend stability to the policy and encourage exporters to enter into long-term contracts.

 He said the decision to dispense with the duty entitlement exemption certificate (DEEC) book under the advance licensing scheme would considerably simplify the procedures for exporters, while discharging export obligations.

 Kannan hoped that the extension of the income tax concession, exemption from CST for supplies from domestic tariff areas (DTA), setting up of overseas banking units, and exemption from external commercial borrowings restrictions to units set up in the special economic zones, would attract foreign investments in textiles and clothing.

 While welcoming the retention of the scheme of 100 per cent export oriented units (EOUs) in the Exim policy, Kannan said the government should have granted similar status to all units, that were exporting over 50 per cent of their production. This would have created a level-playing field among EOUs and DTA-based manufacturing units.