Marine exports to get a prop

The annual supplement to the foreign trade policy is expected to contain sops for the marine sector whose exports have been falling since the beginning of fiscal 2004-05.

Marine exports have been adversely impacted by the anti-dumping duty imposed by the United States, and later by the tsunami.

"We are examining measures through which the marine sector could be allowed easier import of technology and equipment," a commerce department official told Business Standard.

"One of the options being examined is to allow the sector to import at zero duty or concessional duty under the export promotion capital goods scheme," he added.

Officials pointed out that such sops would encourage the marine sector to also diversify in areas such as tuna exports, which are under-exploited.

To increase tuna exports, the ministry is seeking to import mono filament longline system for fishing, at a concessional rate of 5 per cent against 30 per cent import duty at present. The system is highly efficient and cost-effective but is not manufactured in India.

Some of the other items for which the ministry is seeking concessional duty includes import of fish finder, and global positioning systems and marine radio for installation on small and mechanised fishing boats, refrigerated transport units, and a refrigerated sea-water system.

India's marine exports registered a decline of nearly nine per cent during April-December to $ 938.88 million compared with $ 1031 million during the corresponding period the previous year.

The decline in export during the first two quarters of the previous fiscal was higher at over 12 per cent to $549.45 million against $625.21 million the previous year.

Export Oriented Units are also expected to be benefited by simplification of procedures. "We are following up some of the issues we had raised with the finance ministry at the time of the Budget. We expect some procedural anomalies to be addressed," an official said.

While North Block has shot down the plea to allow exemption from service tax for 100 per cent export oriented units, the ministry is looking into the fact that there is at present no provision for refund of service tax in case of EOUs which are manufacturing non-excisable goods.