no: 1001/03-12-2003

The remarkable part of the new Exim Policy is the unexpected co-operation between the commerce and finance ministry on the task of export promotion. For the first time, the related customs notifications will be available on the CBEC web site on 1 April. Further, the department of revenue seems to have lowered its guard on the sensitive subject of loss of revenue. As  a measure of compatibility, the drawback rates, normally released in June after the Parliament clearance of the Finance Bill, will be released on 1 April along with the Exim Policy to make life easy for exporters.

A quick analysis of the engineering sector DEPB rates shows that the figures following the inclusion of SAD in the rate list have been largely maintained in the new schedule inspite of reduction in the peak duties from 30 percent to 25 percent. Sensitive items like CR steel sheets are, however, down by three percent to 18 percent from the previous rate of 21 percent. The government is keen to protect exports which are threatened by the uncertainties of the attack on Iraq.