Federation of Indian Export Organisations (FIEO)'s President FIEO Shri O.P.Garg stated that industry was expecting the same from quite sometime, reacting to recent increase in the Drawback rates.
He added that such increase may not provide stability as after three month new exercise will begin again subsequent to the Union budget 2006.
He suggested that DOR should factor the changes in international price of inputs and provides a mechanism for its adjustment during the year also.
President stated that however, the recent hike in rates will increase competitiveness of Engineering, Textiles and Sports goods industry.
Shri Garg also lamented the delay in issuing customs notification allowing adjustment of additional customs duty under Duty Free Entitlement Certificate (DFEC) Scheme for status holders despite availability of similar facility under DEPB and Target Plus facility. It took more than 8 month to resolve the issue. The delay has affected the imports under DFEC scheme for exports and domestic production.
Even the announcement made in the Railway budget regarding privatising rail container facility to break the monopoly of CONCOR remains only on paper. He observed that the government has not come even with the policy guideline and they are approaching next Railway Budget. So is the fate of freight corridor. Garg also informed that such delays besides irking private entrepreneur also cast doubts about seriousness of such announcements.
President FIEO included that the Government should quickly resolve issue of FBT and service tax for exporting industry rather than waiting for the next Budget as these levies are affecting the competitiveness and marketing of Indian products.
Federation of Indian Export Organisations (FIEO) is an Apex export promotion organisation of India. It provides the content, direction and thrust to India's expanding international trade.
Federation of Indian Export Organisations
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