PROCEDURAL SIMPLIFICATION AND RATIONALISATION MEASURES –
FOREIGN TRADE POLICY 2004-2009
Date : 31 Aug 2004
Location : New Delhi
The Foreign Trade Policy 2004-09 announced by Shri Kamal Nath, Union Minister of Commerce & Industry, today announced the following procedural simplification and rationalisation measures:
All exporters with minimum turnover of Rs. 5 crores and good track record shall be exempt from furnishing Bank Guarantee in any of the schemes, so as to reduce their transactional costs.
All goods and services exported, including those from DTA units, would be exempt from Service Tax.
Validity of all licences/entitlements issued under various schemes has been increased to a uniform 24 months.
Number of returns and forms to be filed have been reduced. This process would be continued in consultation with Customs & Excise.
Enhanced delegation of powers to Zonal and Regional offices of DGFT for speedy and less cumbersome disposal of matters.
Time bound introduction of Electronic Data Interface (EDI) for export transactions. 75% of all export transactions to be on EDI within six months.
DGFT shall be a business-driven, transparent, corporate oriented organisation.
Exporters can file digitally signed applications and use Electronic Fund Transfer Mechanism for paying application fees.
All DGFT offices shall be connected via a central server making application processing faster. DGFT HQ has obtained ISO 9000 certification by standardising and automating procedures.
Co-acceptance/ Avalisation introduced as equivalent to irrevocable letter of credit to provide wider flexibility in financial instrument for export transaction.