The commerce ministry, in defense of the export schemes initiated by the director general of foreign trade (DGFT), has issued a note saying that revenue loss due to duty exemption schemes is negligible.
According to the note, the department of revenue has reported that during 1993-95, duty to the tune of Rs 14,668 crore was foregone for imports against advance licenses issued by the DGFT under this scheme. Against the said amount, the foreign exchange earned was equivalent to Rs 56,197 crore, which works out to nearly four times the duty foregone.
Further, the note points out that against export obligations worth Rs 89,488 crore fixed for the period 1991-95, export obligations to the extent of 96.5 per cent was fulfilled. However, it admits that during 1991-95 there were 12,704 advance licenses where export obligation was not fulfilled to the extent of Rs 10,942 crore.
The note also says that regional licensing authorities have been asked to monitor advance licenses on a monthly basis and initiate action against defaulters.
About Rs 204 crore has been collected towards customs duty with penal interest at 24 per cent for regularising exports where the export obligation could not be fulfilled from 1130 licenses. Special import licenses have been surrendered to the extent of Rs 202.5 crore towards unfulfilled export obligation.
Further, it has also been decided that no further incentives in the form of licenses will be issued to exporters who have not fulfilled export obligation in their earlier advance licenses. The note also points out that during 1991-95, 1,23,493 advance licenses were issued for import to the extent of Rs 36,206 crore with an export obligation of Rs 89,488 crore. Of these, 14,021 were surrendered or cancelled.
Meanwhile, export commissioner Anil Swarup has denied media reports that the BJP-led government is not making any special effort to target multinational corporations in terms of meeting export obligations or other commitments.
Swarup told Business Standard that no such move has been initiated. Export monitoring, he said, is a routine exercise and all companies are monitored. The Pepsi case is an old one and has not been targetted specifically now. It is an ongoing case. Media reports are all nonsense and are sensationalising the issue, he added, denying any knowledge of cases against liquor companies.
Swarup pointed out that earlier governments too had kept track of the export obligations of both domestic and foreign companies. The revised auto policy with car makers, he said, was a fallout of the failure of these companies to meet export obligations.
