The Federation of Indian Export Organisations (FIEO) has urged the government to allow import of all consumer goods through the special import licence (SIL) route before removing the restrictions altogether.
According to the apex body, the government could consider pruning the restricted list on consumer goods import by placing a few items under the negative list in the five year policy to be announced before March 31.
At present, more than 3,000 tariff lines are governed by quantitative restrictions and a majority of items under the list are consumer goods, including confectionery, chocolates and cameras, FIEO says in a note submitted to the commerce ministry.
Recently, the United States and the European Union have stepped up their demand, asking India to phase out all the quantitative restrictions it had imposed for balance of payment (BoP) reasons.
Though finance minister P Chidambaram had disclosed that the restrictions would be phased out soon, the high-powered delegation from EU which is holding negotiations with the government wanted the barriers to go within a period of two years.
FIEO has also said the stop-go approach for agro-based commodities should be avoided as the present system was not conducive to the exporters for developing and sustaining an export market. The export body has suggested that sectors such as hi-tech products, computer software and hardware, agro-based and marine products, garment, gems and jewellery, engineering goods and drugs and pharmaceuticals should get priority in the policy.
This will enable the country to achieve an export turnover of $100 billion by the turn of the century, FIEO said, adding gems and jewellery exporters be allowed to operate like any other duty free advance license holders.
FIEO has also called for the setting up of a national level committee on exports under the chairmanship of the Prime Minister so that all ministries concerned could discuss and decide on important issues covering export.
According to FIEO, the notifications issued by the commerce ministry and director general of foreign trade (DGFT) should be honoured by all departments and agencies related to trade.
