The Hindu : Kerala News : Major incentives in draft export policy

Online edition of India's National Newspaper
Sunday, Jun 27, 2004

Kerala

Kerala

Major incentives in draft export policy

By C. Gouridasan Nair

THIRUVANANTHAPURAM, JUNE 26 . The Kerala Government has unveiled an array of incentives, including green channel facility for containers at sales tax check posts and introduction of Commercially Important Person (CIP) Cards for 100 per cent Export Oriented Units (EOUs) and Gold Cards for major exporters to U.S., in its draft State Export Policy.

The draft policy, aimed at raising Kerala's share in Indian exports from the present 3 per cent to 10 per cent by 2007, also promises several other measures such as establishment of a permanent exhibition centre for display and promotion of exportable commodities from the State, declaration of Ambalapuzha and Cherthala taluks in Alappuzha as Special Economic Zones for the coir industry, modification of the tax structure to bring cashew units under the 4 per cent slab and reimburse the purchase tax paid for raw nut purchases, establishment of food processing industrial units under the Kerala Industrial Infrastructure Development Corporation (Kinfra) and preparation of a `need-based revival package' for ailing export oriented units.

The draft policy document has been prepared on the basis of suggestions given by the Industrial Development Finance Corporation (IDFC), Federation of Indian Exporters' Association (FIEO) and the proposals put forward by the managing director of Agreenco and representatives of Group of Technopark Companies (GTech) and Seafood Exporters' Association at a workshop on State Export Policy held in Kochi on March 20. Kerala's exports amounted to Rs. 7,679 crorers during 2002-'03, according to estimates made by the Cochin Chamber of Commerce and Industry based on data from the Kochi Port, a measly sum when seen against the backdrop of the total Indian export turnover of Rs. 2,55,137 crores during the year. The national export turnover had risen to Rs. 2,83,604 crores in 2003-'04.

The CIP Cards for 100 per cent EOUs would facilitate hassle-free clearance of export/import consignments from all State agencies and departments, especially at check posts. The cards would be issued to exporters with green channel facility with the Customs and Central Excise Department and those who satisfy a set of criteria, including annual export turnover of Rs. 1 crore during the previous three years and prompt payment of taxes by self-assessment.

The CIP Card would entail the holder minimum inspection and speedy clearance by all departments of the State Government. Trucks carrying cargo of card-holders would have minimum inspection at check posts and would not be detained. They would get statutory forms on demand without rationing and speedy clearance and approvals from all the State departments for licence/permission/compliance/renewals. Only the jurisdictional officers would make surprise visits to such organisations. Otherwise, all visits would be with prior intimation. A senior officer would verify information before any such inspection.

The cards would have three years' validity. The card-holders would be given unique computer-generated identification code. There would be quarterly meetings between CIP cardholders and the Government department heads chaired by the Principal Secretary, Industries, with the Secretary, Taxes, acting as convener. The CIP card-holder would give self-certification/affidavit in lieu of the relaxations/exemptions availed.

The Gold Cards would be issued to entrepreneurs who have an annual export turnover of 25,000 U.S. dollars. They would be eligible for preferential treatment in allotment of industrial land and building for starting units in Kinfra parks and other designated industrial areas. The Government would arrange for 0.5 per cent discount on insurance premium on commodity exported with select insurance companies. The cardholders would be eligible for space at subsidised rates in the State Warehousing Corporation godowns for storing export-import cargo.

The green channel facility would ensure that containers with Excise/Customs seals would not be opened. Transport of export cargo in ISO standard containers would be exempt from weight restrictions.

The draft export policy also promises establishment of gem and jewellery parks in Thrissur and Kozhikode, steps to convert Kerala into an investor-friendly eco-tourism and Ayurveda treatment destination and support for setting up a full-fledged research and development laboratory for adaptive research on cashew products.

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