No.14/005/106/2004
Sept 1, 2004
All Members of the Council
Dear Members,
Sub: National Foreign Trade Policy 2004-09
As members are aware, a new National Foreign Trade Policy was unveiled on Aug 31, 2004 by Shri Kamal Nath, Hon'ble Union Minister for Commerce & Industry. The new Policy, which is first of its kind, is extremely comprehensive giving clear-cut directions for economic growth as well as national development. The Policy aims to double India's share in the global trade in the next five years and spur economic growth through employment generation.
Broadly, the policy attempts to create an atmosphere of trust and transparency with the industry through simplifying import/export procedures, bringing down the transaction costs, full neutralization of import duties etc
As far as specific measures for leather sector are concerned, the Policy identified leather sector as one of the thrust sectors requiring special focus initiatives. Accordingly, the leather sector has been provided with package of sectoral initiatives, to name a few, enhancing duty free import of embellishments & trimmings including packaging materials from 1% to 3% of previous year's FOB export value, exempting Basic Customs duty on import of effluent treatment machinery, CVD exemption on furskins, exempting lining and interlining materials from CVD under duty free scheme for leather garments etc.
As this juncture, it is pertinent to mention here that besides repeatedly representing the policy support measures required for the sector to senior officials in the Ministry of Commerce & Industry, the Council also made an exclusive presentation to the Hon'ble Commerce Minister on June 24, 2004. It is a matter of satisfaction to note that many of our suggestions have now been covered under this special package.
A note giving important highlights of the National Foreign Trade Policy is attached herewith for your reference. The full text of the Policy and Procedures, and related Appendices, are available in the DGFT website
www.dgft.delhi.nic.in
Members may please note the above, and avail the various schemes and support measures enshrined in the new Policy. As regards duty free import schemes, the Council shall issue a separate circular as and when the relevant Notifications are issued.
With best wishes,
Yours sincerely,
S Audiseshiah
Executive Director
Highlights of the National Foreign Trade
Policy 2004 - 09
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