CHEMEXCIL suggests steps to double India's exports in 3 years

The Pharmaceuticals and Cosmetics Export Promotion Council (CHEMEXCIL) has made a few suggestions to the government for doubling India's exports in the next three years.

The Pharmaceuticals and Cosmetics Export Promotion Council (CHEMEXCIL) has made a few suggestions to the government for doubling India?s exports in the next three years.

In a letter to the Department of Chemicals and Petrochemicals (DCPC) and the Department of Commerce, CHEMEXCIL made the following suggestions:

1. Continuation of DEPB (duty entitlement passbook) Scheme.
2. Continuation of zero Export Promotion Capital Goods (EPCG) Scheme which is expiring on March 31, 2012.
3. To cover organic chemicals of Chapter 29 of tariff classification for benefits under focus product scheme.
4. Import of catalyst for replacement charge be permitted again under EPCG scheme.

According to CHEMEXCIL, removal of DEPB would not lead to any kind of significant revenue saving for the government.

?The DEPB scheme should be continued for the whole of policy period 2009-14. In case this is not agreed, at least the continuation of DEPB scheme should be linked to introduction of GST in the country,? it said.

The council also requested that the validity period of licenses issued under zero duty EPCG scheme may be increased from 9 months to ideally 36 months or at least up to 24 months.

CHEMEXCIL said that extension of focus product scheme to all chemicals listed under Chapter 29 of tariff classification will definitely help in achieving the export target of USD 18 billion by the industry by 2013-14.

On permission for import of catalyst for existing plant and machinery, it said this is necessary as catalyst is an important capital expenditure for the chemical industry.