The Hindu : Business : Roadmap drawn for cut in customs duty

Online edition of India's National Newspaper
Wednesday, Jan 12, 2005

Business

Business

Roadmap drawn for cut in customs duty

By Our Special Correspondent

BANGALORE, JAN. 11. The Commerce Ministry has indicated that the downward trend in customs duty would continue for a couple of years to reach ASEAN levels. The roadmap for the cut in customs duty had been chalked out and the proposals would be reflected in the budget proposals.

Announcing this at the Coffee Board export awards function here today, the Commerce Secretary, S. N. Menon, said that to make Indian businesses competitive, a slew of proposals had been thought of, including seeking from the government withdrawal of the export cess, particularly on coffee. To help companies reduce their transaction costs, the Commerce Ministry had commenced the process of interconnectivity between various departments such as customs, central excise, airports and banks.

As for setting up of 38 Special Economic Zones (SEZs) across the country, Mr. Menon said that in principle clearance had been given and a legislation should be in place shortly.

Increasing globalisation, he said, had forced the Government to look towards greater reforms and joint study cells had been set up with China, Japan, South Africa and other countries.

The department was in the process of negotiations with the World Trade Organisation (WTO) on aspects related to manufacturing and the service sectors.

Mr. Menon said that the growth in the infrastructure sector had been impressive and it was anticipated that the next three to four years, foreign direct investment would be to the tune of $150 billion.

Making a presentation on trends in the international coffee market, Radhakrishnan of the Coffee Board said that global production for 2005-06 (crop year) had been estimated at 106 to 108 million bags and consumption would be around 113 to 114 million bags.

The major countries of production were Brazil, Vietnam and India.

There had been an increase in export earning from Indian coffee touching Rs. 1,158 crores in 2003-04, up from Rs. 1,051 crores in the previous year.

The Coffee Board export awards were bagged by Allanasons, Mumbai (categories — green coffee; speciality coffee; Middle East market; and European Union markets); Nestle India, Gurgaon (Instant coffee; and Russian Federation and CIS markets); Madhu Jayanthi International, Bangalore (U.S. market); and Ramesh Exports, Bangalore (Far East markets) for 2002-03 and 2003-04 respectively.

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