Union Budget expectations

The regulatory clearances required, if simplified, would go a long way in improving India’s ranking in Ease of Doing Business.  Secondly, Customs staff are posted on cost recovery at express terminals. Customs clearance is a sovereign function and cost recovery of staff posted at terminals should be waived off. Customs have issued a notification providing norms for such waivers in April 2013.

However this has yet not been implemented. We hope the government would implement this to lower transaction costs for our exporters and importers.

Specific to this year’s budget we hope the limit for exports of samples and import of duty free samples are increased. The existing value threshold for inbound shipments under courier mode is INR 10,000 for gifts and samples. The existing value limits were determined in 1998 while notifying courier regulations on the then prevailing currency exchange rates of major countries.

There has been a steep depreciation in INR exchange rate as against USD, EURO and other key currency rates of other countries over the last decade. In view of the frequent depreciation in INR exchange rate and international practice, we request for enhancement of value limit for import shipments under courier mode. Similar, the value limit for export shipments also be enhanced from the current value limits of gifts which is INR 25000 and bonafide commercial sample from  INR 50,000.