Highlights of the Amendments to the EXIM Policy announced on 31st March 1995

• Zero-duty import of capital goods in cases where theCIF value exceeds Rs 20 crores.
• Back to Back Inland Letter of Credit to enable Advance License holder to source his inputs from domestic suppliers.
• Expansion of the category of "Deemed Exports" to include supplies made to EPCG licence holders and projects in the Power, Oil and Gas sectors.
• Enchancement of the EPCG Scheme.
• Expansion of theAdvance Licence Scheme.
• Negative List of Imports has been pruned. It now contains 3 prohibited items, 65 restricted items and 7 canalised items.
• List of items importable under Special Import Licence has been expanded from the erstwhile list of 42 items to 75 items.
• OGL expanded from 43 items to 75 items.
• Diamond and Gems Schemes have been liberalised.
• "Consumer Goods" has been redefined to include consumer durables and accessories thereof, but excluding components, spares and parts.Hence, components, spares and parts of consumer durables are now freely importable. This will not include consumer goods in the CKD/SKD condition.
• Imports of gifts will no longer require a Customs Clearence Permit.
• Private Bonded Warehouses will be permitted anywhere in the country, including EPZs.
• The system of Advance Customs Clearence Permit has been abolished. Hereafter goods, including second hand capital goods, may be imported for the purpose of jobbing, repairing, servicing, restoring, reconditioning and renovation on execution of a bond/gurantee which will be redeemed on export.
• Reserve Bank of India will be the single window for clearing applications for setting up joint ventures or wholly owned subsidaries abroad.

Centre for Monitoring Indian Economy, Bombay
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Last updated: May 1995.