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garment industry, essential commodities and the industrial unit with
100 percent foreign direct investment (FDI). Yesterday, the cabinet
committee on Economic Affairs at a meeting, with Finance Minister AMA
Muhith in the chair, approved the three-year import and export
policy. The policy allowed imports of raw materials and capital
machinery for the garment industry without opening letter of credits
(L/C). To keep commodity prices stable, essentials and raw materials
of industries with 100 percent FDI are also allowed without L/C
opening. In the case of importing powdered milk, a certificate that
ensures that the item is melamine-free should be attached to the
import documents. Additionally, the private sector will be allowed to
import telecommunication equipment, fulfilling some conditions. In
the export policy, the number of thrust sectors -- agro-products and
agro-processing commodities, light engineering goods, shoes and
leather products, pharmaceutical products, software and ICT products
and home textiles -- has been increased from six to seven, adding the
sea-going ship building industry. The number of special development
sectors has been increased to eleven from nine, adding ceramic,
melamine and plastic goods. The previous export policy included cash
incentives for the thrust and special development sectors. But the
new export policy will also include cash incentives for the emerging
sectors. The export policy emphasised setting up accredited testing
laboratories to ensure a high quality of products. To increase the
export of pharmaceutical products, the ceiling for sending specimens
has been increased to $ 30 ,000 from $ 10 ,000 annually. The
proposed policy allowed exports of petroleum and petroleum products
like naphthalene, furnace oil, lubricant oil, bitumen, condensate,
MTT and MS, with a no objection certificate from the energy and
mineral resources division. Earlier, these were exportable without
any condition. The proposed change will prioritise domestic demand.
The government, a facilitator in expanding trade, is taking necessary
steps to gradually liberalise and ease the trade policy in the light
of WTO rules. The import system is also being liberalised gradually
and the tariff rate has been set at the lowest possible level. The
cabinet committee was also told that productivity of domestic
industrial units has to be increased in order to maintain the present
growth of export. Improved and diversified commodities and markets
also have to be emphasised.
