SME
News, Friday, Jan 27, 2012 10:56:59 AM IST
NEW DELHI: Aerospace
and defence exports are expected to touch $2 billion during this present fiscal
year, according to the industry body Associated Chambers of Commerce and
Industry of India (ASSOCHAM).
With
almost 18% growth in the first three quarters of 2011-12, the aircraft exports
consisting of component parts was at almost $1.31 billion as compared to $1.11
billion in the reporting period of previous fiscal, said ASSOCHAM.
The parts and components have made 96%
of the overall aerospace exports, highlighting the country's manufacturing
capability in aerospace sector oriented towards tier I, II and III suppliers as
compared to aircraft Original Equipment Manufacturers (OEMs).
The industry body has demanded
exemption from the input tax and levies for their contractors and
sub-contractors by the issue of customs and excise duty exemption certificates
in regard to the Defence Public Sector Undertakings (DPSUs).
The special Chemicals, Organisms,
Materials, Equipment and Technologies (SCOMET) chapter 5 and 6 needs to be
populated, and India Harmonised Code System (ITC-HS) description of Defence and
Aerospace is not adequate.
There is also requirement to link
SCOMET codes to the items listed in the Defence Procurement Procedure (DPP)
export of which is considered to be offsetable. Apart from this, there is
absence of proper definition for defence product which is imperative for
Aerospace and Defence (A & D) sector to be able to access policy support and
incentives for the exports.
The present rate of indirect taxes on
Maintenance, Repair and Operations (MRO) activities are high making them
uncompetitive since the customs duty is exempted on the parts imported for MRO
of aircraft.
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