The Board of Trade (BoT) headed by Union Minister of Commerce, Industry and Textiles Anand Sharma Friday met trade bodies and reviewed the country's export performance before the finalization of annual supplement to the Foreign Trade Policy (FTP) which will be disclosed during the first week of April.
"The BoT discussed the impact of rupee fluctuation, rising interest rates and uncertain economic conditions in western markets on the countryâ€™s exports," said an official from the commerce ministry.
The high-level Board of Trade (BoT) meeting was represented by major Central ministries such as finance, external affairs, micro and small and medium enterprises (MSMEs) and export councils.
In a proposal presented by the apex body of apparel exports, Apparel Export Promotion Council (AEPC) has made submission for increasing the garment exports to USD 30 billion in next three years.
Chairman AEPC, Dr. A Sakthivel, in the proposal presented to Minister Sharma, urged to allow duty credit scrip @ 5 percent of garment exports for the export performance in the year 2012 -13, for issuance of duty credit scrip from the year 2013 -14 and onwards. Chairman thanked Sharma for removing excise duty on Fabric/ Readymade garments.
Sakthivel proposed for encouraging garment exporters to accelerate in venturing manufacturing of garment of fabrics, both for knitwear & woven and issuance of Duty Credit Scrip at the rate of 5 percent to garment exporters for the exports made from the year 2012-13 onwards in the 12th Five Year Plan Period on Actual User Basis.
The government is unlikely to achieve its export target of $360 billion for 2012-13. On account of the proposal for FTP, he has recommended that the scheme announced in FTP may be extended by 3 years up to the year 2015-16, so that exporters can plan their marketing strategies on long term basis.
Non-traditional markets need to be tapped & to reduce the dependence on EU/USA. In traditional countries like EU and US, duty scrip may be increased from 2 percent to 3 percent. Under Status Holder Incentive Scheme, the duty scrip may be increased from 1 percent to 2 percent.
Expansion of Market Linked Focus Product Scheme to certain countries like Singapore, Turkey, Taiwan, Norway, Canada, Hong Kong, Russia, Switzerland, Korea, UAE, and Malaysia. Incremental growth achieved in Apr-Dec 2012 over Apr-Dec 2011 may be qualified for incremental scrip. Thereafter the same benefit may be given for entire year till 2015-16 for the incremental growth achieved in previous year, suggests council.
Early finalization of FTA with EU, to announce all the benefits in FTP for the year 2013 -14 and 2014 -15 and 2015-16 (for three years), duty Scrip @ 5 percent on FOB value of exports to countries like Latin America, Australia and New Zealand, where freight charges to FOB are very high, Zero duty EPCG Scheme to be extended for the year 2013 - 14 to 2015 -16 are the other proposed measures submitted by the council.