However even Hegde had to admit that the export growth rate during the period April to January this year is just 0.41 percent far below the 15-20 percent growth rate which was the target set by me, even though in rupee terms the growth reached 12 percent. But on the same breathe while talking about the second generation of reforms suggested for withdrawal of quantitative restrictions on imports.He said this while addressing a press conference on the occasion of exim policy announcement .

Giving reasons Hegde said that the reasons for this disappointing performance are not difficult to explain. Many parts of the world have continued to face recession during the year and the situation in South East Asia did not improve as expected.What is more depressing is the fact that owing to fierce competition for the countries,which witnessed a massive devaluation of their currencies,there has been and drop in the unit value of exports and this has been a real setback to us..

This has not prevented Govt going full throttle on imports and in its notification on this regard it has been said that the inexcercise of powers conferred under section 5 of the Foreign Trade(Development and regulations)act,1992, the central government made amendments in the classifications of export and imports item ,1997-2002 and then gave the list of those items which hereafter can be importable on under special import license (SIL) shall be importable on surrender of SIL equivalent to three times the value of imports except in those cases where the requirements of surrender of SIL is more than three times of the value of imports. Among the items are whole milk, butter milk, natural honey, tomatoes ,fresh or chilled, carrot and turnips, radishes fresh or chilly salad beet root fresh or chilled,horse raidish,other roots fresh and chilled, cucumbers and gherkins or chilled, peas, beans, other legiminoud vegetables,green chilly,mushrooms, spinach, pumpkins, beans,onions,sweet corn, mixtures of vegetables, dehydrated garlic, dehydrated garlic flakes, bananas,including plantians,fresh or dried.pineapples, guavas, mangoes fresh, mangoes sliced dried, grape fruit,saffron stigma saffron, stama, and many other common things.

Hedge further declared that provision has been made for recognizing the national service rendered by exporters by issuing green cards to exporters exporting 50 percent of their production with a minimum of RS one crore per year entitling them to various facilities. Similarly,exporters who have attained export house/trading house/ star trading house/ super star trading house status for three successive terms shall be given golden status certificate which would entitle them to all the benefits accruing from such status in perpetuity regardless for variations in their performance in the subsequent years thus obviating the need for them to apply for such status from tit tot time.

Hegde also announced various concessions for the exporters like pre-export DEPB credit entitlement has been increased from 5 percent to 10 percent of previous years export performance with a view to imparting a greater flexibility of operations.

Secondly, to enable development of new products and exploration of new markets, the admissible limit for import and export of samples has been considerably relaxed.

The threshold limit of zero duty export promotion council guarantee schemes has been brought down from Rs.20 crore to Rs.one crore for chemicals .plastics and textiles sectors.

No additional customs duty would be charged on import of capital goods under zero duty EPCG scheme in Marine and Electronic sectors becaus in modvating of this duty in these sectors is not possible. Duty free import of consumables upto certain limits has been allowed for the gem and jewellery,handicrafts and leather sectors to enable the exporters to achieve higher unit value realization.

Hegde said that having achieved the leadership position in the cut and polished diamond sector , a new thrust for the jewellery and studded jewellery sector has been provided through various relaxation’s including the permission for import of jewellery for re-export after repairs /remaking. Value addition norm for the rupee exports to Russia had been reduced from 100 percent to 33 percent. Provision has been made for issue of licensees on self-declaration basis in such cases where no input-output norms exist.
The commerce minister further said that in view of the problems faced by the exporters unfulfilling export obligations ,it has been deiced to extend the period for fulfillment of past obligations both in respect of advance licenses as well as EPCG.The applicants will have to furnish bank guarantees covering the duty involved with interest thereon.

Hegde said that in order to make the exports truly a national effort, he has been pursuing his proposal for a plan scheme involving an allocation of Rs.500 crores by way of grants to the states for complementing and strengthening export infrastructure and in particular giving a boost to agro-exports.