The union ministry of commerce is planning to ask all export promotion councils in the country to identify various transaction costs incurred by the exporters in their specific areas of interest. The intention is an attempt to help exporters avoid all such transaction costs to make exports more compatible.

Hinting this at an open house organised by the Basic Chemicals Pharmaceuticals and Cosmetics Export Promotion Council (Chemexcil) here last week, Gopal K Pillai, acting Director General of Foreign Trade (DGFT) said that the government is determined to see that the industry is exporting only products and not "taxes and other transaction costs." The open house was meant to analyze the just announced Foreign Trade Policy 2004-'07.

The DGFT pointed out that in the coming months the Central Government would, with the concurrence of all related ministries, ensure that the definition of "manufacture" for exports will be the same in all relevant Acts and Rules. "The definition of "manufacture" given in the Export Trade Policy will be the same in all relevant laws and rules very soon. Notifications will be issued by concerned ministries to ensure that the definition remains the same thereby minimizing the chances of varying interpretations among different departments," he added.

The DGFT also stressed on the focus given by the government in developing free trade areas and warehousing zones in various parts of the country. The meeting was attended by Satish Wagh, chairman, Chemexcil and S K Jindal, chairman, North Zone, Chemexcil among others. Those present in the open house included senior officials from Departments of Commerce and Customs, representatives from foreign embassies and members from the exporting community.