Export of organic brown sugar may be allowed in new Trade Policy

The export of organic brown sugar is likely to be allowed in the Trade Policy 2011-12 with a view to encourage its production in the country. However, the Ministry of Industries has supported this proposal only to the extent of two percent of annual production of sugar, saying that its export would not in any way affect the local market, sources told Business Recorder on Saturday.
According to sources, these proposals were part of a presentation given to the Prime Minister during last week on the coming trade policy. Since all sorts of sugar export is banned, there has been demand for export of high value organic brown sugar, which is typically less processed and often comes in the form of raw sugar.
As export of all kinds of pulses are currently banned, except re-export of the imported pulses, in order to ensure that locally produced pulses are not exported under the garb of imported pulses, complete ban on re-export of imported pulses has been proposed to be imposed in the trade policy.
As per other salient features of the policy, export of liquor is also expected to be allowed, by non-Muslim enterprises to non-OIC countries. It is pertinent to mention that all intoxicants, including liquor, are banned for exports since long. Since there is domestic production of liquor to cater to the needs of non-Muslims living in the country, the surplus production can be exported to earn valuable foreign exchange.
Units registered under DTRE are unable to import input items listed Appendix-B (Restricted Items- importable after fulfilling certain conditions) whereas other importers can do so after fulfilling the conditions mentioned therein. It is proposed to extend the same facility available to the normal importers to DTRE users as well with the same conditions.
The presentation further said that import of only "raw materials" is allowed from India under temporary importation scheme for manufacturer of export items. On the other hand, Temporary Importation Scheme notified vide FBR SRO 492(I)/2009 also allows import of "accessories" for export-oriented textile/leather sectors like button, zipper and hangers .As the word "raw materials" in Appendix-G creates restriction, it has been proposed that the facility may also be extended to include above mentioned "accessories" to facilitate exporters for temporary import-cum-re-export of these items.
At present, import of auto scrap is banned. In view of some reports that under the garb of steel scrap, auto scrap is being imported, the present description ie "Auto Scrap" appearing in the list of second hand/used condition banned for import may be amended to read as "Auto Parts (including serviceable auto parts imported as steel scrap)" to check import of used auto parts under the garb of steel scrap.
The changes brought in the Import Policy Order from time to time have prospective effect. There are numerous judgements of the superior courts whereby it has been propounded that the amended Import Policy Order cannot be applied on such imports where goods were shipped prior to the amendment in IPO. The import policy however, does not mention the same, resulting in arising of disputes.
With a view to avoid such disputes and to have transparency, it has been proposed that "the changes/amendments brought in the Import Policy Order from time to time will not be applicable to such imports where Bill of Landing and Letter of Credit has been issued/established prior to the date of amending notification".
Import of second-hand/used ambulances is allowed when donated by any organisation/ individual to a charitable or non-profit organisation trust or hospital provided they fulfil certifiable standards and have minimum ten years' useful life. It has been proposed that a condition "disposal before ten years from the date of import will be subject to payment of duty/taxes as payable at the time of import" may be added in the Para to avoid misuse of the ambulances as commercial vehicles after import.;
Current TP provides that import of automotive engine oils of quality level (API) SC/CC and above and automotive gear oils of (API) GL-4 and above shall be imported by commercial importers, lubricants blending companies, lube/oil marketing companies and refineries. Ogra being regulatory authority has proposed that import of such lubricants should only be allowed to importers having valid registration with the Authority under the Rules. It has been suggested in the trade policy that IPO may be amended accordingly and procedure prescribed.
Certain IT equipment like routers, hubs, servers etc are listed in Appendix-C (items banned for import in second hand/used condition). It needs to be reviewed and all kinds of computer-related equipment be removed from there as (a) Appendix-C is basically machinery items for protection of local industry and (b) used IT equipment is nowadays moved around by companies frequently.
The trade policy has also suggested some items to be included in the list of importable goods from India, in consultation with the Ministry of Industries. These include Empty Aluminium alloy milk cans, Accessories for leather bags and footwear, Jigs and dies for vehicles, cotton linters, fungicides for leather industry, other chemicals for leather industry, textile spinning machines, cone/bobbin winding machines, reeling machines, power looms, sewing, darning or embroidery needles, Fly ash for cement industry only, thermo plastic rubber sole, traction motors and their spares, printed books of all kind and plastic strip.