The Export Trade Policy 2004-'09 unveiled by the union minister of Commerce here on Tuesday has given special priority to the Biotechnology Parks in the country. Heeding to the recommendations from the Department of Biotechnology, the government has announced that Parks will enjoy all facilities that are applicable to 100 per cent Export-Oriented Units.

According to the policy, the application of biotechnology would pay rich dividends in terms of new products and technologies and in order to harness this frontier of science, there is a need to establish Biotechnology Parks in the country which would get all the facilities of 100 per cent Export-Oriented Unit.

The Bio-Technology Parks (BTP) would be notified by the DGFT on the recommendations of Department of Biotechnology. In the case of units in the BTP, necessary approval/permission under relevant provisions will be granted by designated officer of the Department of Biotechnology, the Policy has indicated.

Though there is no special mention about pharmaceutical industry per se, the schemes intended to rejuvenate export growth are expected to bring in rich dividends to them as well. The government has introduced a new scheme called 'Target Plus' to accelerate growth of exports.

As per the scheme, exporters who have achieved a quantum growth in exports would be entitled to duty free credit based on incremental exports substantially higher than the general actual export target fixed. (Since the target fixed for 2004-05 is 16 per cent, the lower limit of performance for qualifying for rewards is pegged at 20 per cent for the current year). Rewards will be granted based on a tiered approach. For incremental growth of over 20 per cent, 25 per cent and 100 per cent, the duty free credits would be 5 per cent, 10 per cent and 15 per cent of FOB value of incremental exports.

The Foreign Trade Policy also talks about procedural simplification and rationalisation measures. As per the new announcement, all exporters with minimum turnover of Rs 5 crore and good track record shall be exempt from furnishing Bank Guarantee in any of the schemes, so as to reduce their transactional costs. All goods and services exported, including those from DTA units, would be exempt from Service Tax. Similarly validity of all licences/entitlements issued under various schemes has been increased to a uniform 24 months.

The number of returns and forms to be filed has been reduced. This process would be continued in consultation with Customs & Excise. Enhanced delegation of powers to Zonal and Regional offices of DGFT for speedy and less cumbersome disposal of matters has also been spelt out.

Time bound introduction of Electronic Data Interface (EDI) for export transactions is another new attraction. 75 per cent of all export transactions to be on EDI within six months, the minister informed.

The professionalisation of Directorate General of Foreign Trade is another significant development. The minister has informed that DGFT shall be a business-driven, transparent, corporate oriented organisation. Exporters can file digitally signed applications and use Electronic Fund Transfer Mechanism for paying application fees. All DGFT offices shall be connected via a central server making application processing faster. DGFT HQ has obtained ISO 9000 certification by standardising and automating procedures. Similarly, co-acceptance/ Avalisation introduced as equivalent to irrevocable letter of credit to provide wider flexibility in financial instrument for export transaction.

According to pharma industry representatives, there are going through the fine print to see if their demands on EOUs have been met. It is known that the minister has expressed willingness to make any further additions to the policy to make exports more attractive for knowledge-based industries like drug industry.