Subject NOT available

click here for IIIF manifest

REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 188] NEW DELHI, TUESDAY, DECEMBER 21,1965/AGRAHAYANA 30,1887

Separate paging is given to this Part in order that it may be filed

as a separate compilation.

MINISTRY OF COMMERCE

RESOLUTION

New Delhi, the 21st December 1965

COMMITTEE TO REVIEW THE WORKING OF EXPORT PROMOTION

COUNCILS

No. 11 (33) 65-EAC—Following a recommendation of the Estimates Committee of the Lok Sabha in their 48th Report, a Committee was appointed to review the working of Export Promotion Councils. The composition of the Committee was as follows: —

Chairman

(1) Shri Prabhu V. Mehta, Director Calico Dyeing and Printing Mills Pvt. Ltd., Bombay.

Members

(2) Dr. D. Banerjee, Director and Technical Adviser, National Rubber Manufacturers Limited, Calcutta.

(3) Shri H. D. Shourie, Director-General, Indian Institute of Foreign Trade, New Delhi.

( 1491 )

(4) Shri M. K. K. Nayar, Managing Director, Fertilisers and Chemicals,

Travancore.

(5) Shri V. M. Srikumaran Nayar, Joint Chief Controller of Imports anfi

Exports, Madras.

(6) Dr. Earn Gopal Agrawal, Deputy Secretary, Federation of Indian Cham-

bers of Commerce and Industry, New Delhi

Member Secretary

(7) Shri B. N. Nair, Deputy Director (Export Promotion), Bombay.

2. The Committee reviewed the working of Export Promotion Councils in nil aspecta, with particular reference to: —

(a) Progress achieved by the Export Promotion Councils in membership, raising of finances, implementation of promotion measures and cr""- tlon of institutional arrangements;

(b) The directions in which the scope of the working of the Councils should

be enlarged; and

(c) Co-ordination and co-operation among Export Promotion Councils aod

related, matters.

3. The Committee obtained the views of various interests in the form of replies to questionnaire and also recorded oral evidence in many cases. After detailed discussions, the Committee submitted its report to the Government containing several recommendations. A list of the recommendations is annexed.

4. Broadly, the Committee recommended the setting up of Commodity Boards for Cashew, Mica, Schellac, Spices and Tobacco; the introduction of uniform nomenclature for membership of the Councils; representation to the State Gov- ernments and Central Government on the important bodies of the Councils; pre- paration of a five-year budget for five-year programme of work; consumer-ortent- ed publicity in all possibne ways; briefing of delegations going abroad. Other recommendations aim at improvement in the working of existing institutional arrangements of the Councils and gearing up their activities to achieve the tasks ahead!

5. Government have since considered the Report in connection with the Export Promotion Councils and Commodity Boards and accept the following recommenda- tions:—

1, 3, 4, 7, 12—15, 18—58, 58—66, 70—76, 78—81, 84, 87—93, 95—101, 103, 105,

and 106.

8. The following recommendations have been accepted with some modifications as Indicated in the Annexure:—

16, 68, 69, 82, 83, 85, 86, 102 and 104.

7. The following recommendations have been referred to a Technical Conrtmit- tee and to Specialised Agencies for further examination: —

2, 6, 8—11, 17, 67, 77 and 94.

8. Only two recommendations—5 and 57 have not been found acceptable. Recommendation No. 5 relates to formation of Commodity Boards for Mica, Shel- lac, Spices, Tobacco and Cashew. With regard to the formation of Boards for Mica. Shellac, Spices and Tobacco, Government are of the opinion that the exist- ing institutional arrangements are adequate. With regard to formation of a Board for Cashew, Government have decided to constitute a Development Council for the present and to review its working after one year.

As regards recommendation No. 57, Government are of the opinion that pre- inspection work involving penal aspects would conflict with promotional activities of Export Promotion Councils. Government, therefore, feel that Expo: t Inspec- tion Council for agencies like Agricultural Marketing Adviser should carry oat prainspection work.

ORDER

Ordered that the Resolution be published in the Gazette of India and a copy thereof communicated to all concerned.

ANNKXURE

Gist of recommendations

Decision of Govt. of India thereon SL No.

i

2

3

Accepted.

8-1 Export Promotion Councils need to be strengthened particularly bearing in mind the export targets for the Fourth Plan and the steps that have to be taken both in the matter of releasing expor- table surpluses and for meeting the growing world competition.

Referred to the Technical Committee. 8-2 Export Promotion Councils should con- tinue to be registered under the Com- panies Act, but they should get exemp- tion from some of the irksome provi- sions of the Act.

Noted.

*-9 The procedure for amendment of the constitution of the Councils should be made simpler and where the concur- rence of die Ministry of Commerce is needed, no delays should occur.

Accepted in principle.

In the interest of democratic functioning of the Councils, a provision should be made for conciliation or similar proce- dure so that resort to legal remedies may be minimised.

8-3 Commodity Boards should be formed for cashew, mica, shellac, spices and to- bacco.

Government have examined the recommenda- tion and have decided that there appear* t" be no need for the formation of commodity boards in respect of Mica, Shellac, Spicet, and Tobacco, as prcsont institutional arrangements are adequate. With regard to Cashew, the Government have decided to constitute a Development Council for the present and to review its working after one year.

Referred to the Technical Committee. 8-6 The task of enrolling new members has to be done with a good deal of care and responsibility. An occasional analysis should alao fee made about the export performance, achievement and allied matters of the existing members.

Accepted.

i -7 To the extent possible, there should be a uniformity in the nomen- clature of th" types of membership; the Councils should consider prescribing a lower fee for small-scale manufactu- rers and exporters.

Referred to the Technical Committee.

A positive move forward should be made for making it obligatory for all those who are registered with the Councils to be- come their members.

Referred to the Technical Committee, "-s>: By convention, the eligibility of members to serve on the Committee of Administra- tion should generally be limited to two consecutive terms, A voluntary accep- tance of this procedure is feasible and desirable.

I-10

Referred to the Technical Committee.

Wherever necessary, an appropriate repre- sentation be given to various interests in the Councils such an by reservation of seats for different commodity groups.

in

Referred to the Technical Committee.

The practice of nominating officials as Chairmen of the Councils should yield place to the election of chairmen ex- cepting where it might be considered absolutely necessary to nominate an official or a non-official as a chairman for an initial period or where there are overriding or compelling reasons to make an official or i non-official nominee as president during a particular year or period.

8 13

Accepted.

To the extent possible, it should be en- sured that one person docs not con- tinue to remain chairman for years to- gether, and certain healthy convention* should be established.

8-i3

It should be left to the Councils to decide the number of Committees. This recommen- dation is for guidance

Most of the Councils should have separate committees for (a) Finance, Administra- tion and Programme; (b) Registration J and Memberships; (c) Export As- sistance; (d) Publicity and Exhibition; (e) Quality Control and Complaints; (f) Development and Technical mat- ters.

To avoid the plethora of Committees Accepted.

4-i4

which have been constituted, a review should be made by the Councils them- selves so as to amalgamate various committees under the above heads,

Accepted.

*-X5

To achieve a greater degree of commodity specialisation the panels of the Councils should be given a greater degree of au- tonomy in formulating recommenda- tions and they should be provided with • proper secretarial assistance. The r&- nels should also have appropriate re- presentation on the Committee of Administration,

The Councils could frame the Service Rulea 8-l6

themselves.

Appropriate recruitment rules should be evolved and proper Model Service Rules framed by the Councils. Tht Question should be Btudied afresh by the Federation of Indian Export Orga- nisations.

This is already covered by the recommenda- S-I7

tions at 8 - n,

There should be a judicious bifurcation of the developmental and administrative functions; the developmental aspect should be the major concern of the chief executive of the Council, who might be designated as Executive Director.

Accepted

g-i8 The Export Promotion Councils should concern themselves most actively and vigorously with problems of product development as also in the major task of locating exportable surpluses.

Accepted

8-19 It would be desirable for the Councils to draw up in advance suitable training pro- grammes and to take advantage of the facilities that are available.

Accepted

8-20

It is desirable to make regional offices more autonomous and to give regional commit- tees greater responsibility. The re- gional offices must be manned properly and efficiently so as to render full assistance and guidance to the exporters of the region.

8-21

Accepted

While the policy of Branch expansion should not be pushed forward too far3 a joint re- gional office should be opened at Bombay for the cashew, marine products and spices Export Promotion Councils and certain other offices opened by other Councils.

In certain cases, it would be useful to ap- Accepted

S'22

point accredited agents or correspondents instead of opening fulfledgcd foreign offi- ces in the very beginning. Yet in cer- tain other cases, instead of opening new offices, frequent visits by the officers can be more rewarding. Where a foreign office exists^ it should be better equipped and reoriented to the sale of Indian pro- ducts and for creating market oppor- tunity. The foreign officer should be as little desk-bound as possible.

Accepted

e-23

Evejy Council should have a regular progra- mme of (•') Advertisements and features articles in newspapers; (it) Radio talks; (""'O Seminars; and (iv) Participation in joint exhibitions at important centres in the country.

8-24

Accepted

Special brochures should be prepared in non-technical language and often in re- gional languages and a comprehensive mailing list prepared to govern their dis- tribution.

There should be a continuous process of Accepted

"'25

obtaining basic information in respect of each country. For this purpose every Councils should establish a point of con- tact in that country.

8-26

Accepted

Arrangements should be made with the India Government Commercial Repre- sentatives that information about tenders with the requisite Tender forms should be furnished to the councils. A reason- able sum should be made available to the Commercial Representatives for purchase of the Tender fbrms.

Accepted

••27

Councils should have in their possession full information about the production, do- mestic consumption, exports, prices, quality, raw material supplies and other particulars about the commodity under their charge. This infromation supple- mented by the information collected from the markets in foreign countries from competing sources of supply in other countries should give the Council a com- plete and integrated picture of the inter- national trade in that commodity, against which background the Councils would have to evolve its promotional policies.

Accepted

Every Council should regularly publish a Hone oull;tin, containing a synthesis of all the above information.

Accepted

It should be the business of the Councils to locate a manufacturer or an exporter who can export those types of goods in respect of which trade enquiries have been re- ceived by it and to persuade him to send quotations.

It will be necessary in the interest of ob- Accepted

• •3D

taining a picture about the export potan- tialofconmoiityfor each of the Councils to conduct Market Surveys in many noiir traditional markets.

Accepted!

t-31

The Councils should have a fairly good idea of what it wantB to know, before launch- ing a Market Survey project.

Accepted

1-32

Particular care has also to be devoted to the selection of the agency to conduct a mar- ket survey. The ultimate choice should be left to the Council.

Accepted

• 33

Government's contribution prescribed in the Code of Grants-in-aid towards Market Surveys to be conducted dvring the next 5 years may be raised from 662/3%

upto 100%.

Accepted

• 34

Early steps should be taken to publish the Mirkct Survey report and distribute it free among its members, and on payment basis to nin-memberB. Also a detailed examination of the report should be un- dertaken by the Councils' Secretariat so as to highlight the points which require attention.

Accepted

• •35

Where the examination reveals promising possibilities the Council should prepare a oraject and include it in its programme of work.

Generally Accepted

1-36

E7ery Council should interest itself in the developmental activities of the commodi- ties with which it is concerned, where such product has an export possibility and persuade the producer concerned to pro- duce the requisite type of product and ex-

^WMfcJtafc.ty TH*tM*ffTT* Q7 WWA VtTlACBUMWAUr r^

port it. It should maintain close liaison, take the help of the Government agency concerned with the development of the commodity to achieve this object, where its own direct effort with the manufacturer does not produce results.

Accepte

• • 37 Operational projects which syntheslse va- rious factors like objectives,, class of per- sons towards whom the project should be directed, the m:Jia, timing, finance, implementing, cjordinating and assessing aijjncies should ba drawn up by each Coun- cil.

I38

Accepted

Mijor efforts will have to be made through specialised publications catering to the needs of particular groups. Special bro- chures may have to be prepared keeping in mind the clasi of persons among wlwra the brochure will be circulated and the contents arranged accordingly so as to be of interest to that class of persons. In several departmental stores, physical demonstrations arc occasionally conducted by enterprising local businessmen. The project snould provide for participation in such demonstrations. Hotels, restaurants and other eating establishments should also be made use of m popula- rising many ot the f jod products sought to be exported. Exhibition of special films dealing with the commodity may be arranged to follow such demonstrations. The project could also be extended to embrace the various trainees in different fields. It may be possible to invite engi- neers and mechanics from foreign coun- tries for training in some of the factories in India BO that on their return, they br- ing familiar with Indian machines; would be more inclined to include them in their itinerary.

It should be ensured that the goods are avail- A ccepted

• •39

able on the shelves when the programme is in full swing. Also, better publicity is likely to be secured when the project co- incides with other events like an Exhi- bition or the visit of an important per- sonage.

••40

:ceptcd

In preparing the project, it would be Ac aadvisable to take the help of a specialised agency. The implementation of the pro- ject could be enuueted to this agency itself. India Government Commercial representatives in the country concerned may be requested to wa ch the progress of the implementation and to assess its effects so that the Council could modify the programme from time to time depend- ing upon developments.

8-41

Accepted

G s i s u n ir oriented publicity aimed at a class of consumers likely to be interested in conmodities falling within the pur- view of different Councils is very often necessary partly to create an image of India as a producer of a whole range of connodities and partly to ensure that one group of consumers are not approach- ed by several agencies from India. Consumer oriented Publicity covering the commodities falling within the juris- diction of different councils should be one of the functions of the F.I.E.O.

8-42

Accepted

Instead of tiking disjointed steps or steps calculated to meet an immediate need, a programme of general publicity ranging over the whole spectrum of such measures would being better results.

8-43

Accepted

The publicity of programme of the Council may consist of a Foreign Journal, Com- modity pamphletBj folders, catalogues and points of sale literature.

8-44

Accepted

Every Council should take advantage of the facility afforded by the external services of All India Radio to broadcast talks on Indian prdoucts. All IndiaRadio should translate these talks and rebroadcast them in Its foreign language broadcasts. Similar broadcasts should be made by the India Government Commercial Re- presentatives from the local stations in the countries to which they are accredited.

Accepted

8-45 Advertisement by Indian firms in Commer- cial programmes In foreign countries may be permitted, provided such advertisement Is made In the local languages of those countries. Reserve Bank should automa- tically grant nece""ary foreign exchange for this purpose on the recommendation of the Councils.

Accepted

8-46 Bach Council should produce a colour musical film on the important products under its purview for exhibition to selected audience.

A good starcast feature film with a Accepted

• ' 47 ]

background of India's industrial develop- ment or Indian plantations might be accepted for broadcast on the T.V. in several countries.

Accepted

*-48 Each Council should prepare what arc termed as 'Motivation material' consisting of gift packets of products, articles like table pepper grinder, cigarette Jigher, and arti- cles like desk calenders, ashtrayB, pen- holders etc.

Accepted

"-4S>

The Councils should become members of the Indian Council of Trade Fairs and Exhibitions. Each Council should as far as possible arrange to exhibit Its pro-

ducts in that section of the exhibition allotted to similar products rather than cjllcct and show several widely different products under one roof.

Accepted

S - 53 Etmution in special shows normally pro- duce a more direct impact while the effect of participation In general shows is ex- pected to be of long range value. These being complementary to each other the Councils should devote equal attention to thd special exhibitions as to general shows.

D^lijitions should be directed towards Accepted

8-51

aja-trdditional markets, where a previous market survey has shown the existence of a gnji potential for developing exports. In 80 far as traditional markets are concerned the Council should send sales teams.

Accepted

8-52 Before a delegation is stnt adequate pre- paratory work should be done by the Councils not only in properly selecting the personnel but also in briefing them about the various relevant factors, which are necessary to make the mission a suc^ CMS.

T n: u a ' i :r of persons on a delegation Accepted

8-53

not be too many. The Councils should be given co uplete discretion in the choosing of the members of delegations provided that such choice is made at a formal session of the Committee of Administration of the Council, Certain guide lines should be followed by the Councils in this respect.

Accepted

8-54 A drill should be adopted for the purpose of briefing the members of the delegations ; the work of the delegation abroad, and the follow-up action thereon.

Accepted

"-55 Councils should endeavour to invite one or two teams a year from abroad for the pur- pose of studying India's export capacities in particular commodities, to make actual purchases or to satisfy themselves of the quality of Indian products.

It should be the endeavour of every Council Accepted

l -56

to open one or two offices abroad, depend- ing upon the potential for expansion in those markets. Every Council should draw up in consultation with the Institute of Foreign Trade a programme for briefing and training these officers and for provid- ing refresher course periodically.

As far as possible, prcshipment inspection

• •57

It is felt that pre-inspection work Involve* also a penal aspect which will conflict with pro -national activities of Export Promotion Councils which need not therefore under- take this work. The Export Inspection Council or agencies like Agricultural Marketing Adviser could carry "ut pre-in"pectlon work.

operations should be done by the res - pective Councils themselves. Even where owing to the initial in-cxperience of the Councila mechanism for Supper- vlsion of the Councils work by other agencies has been prov ided, the time has now come for the supervision to be withdrawn. All actitivites includ-

J#P """" 0A?1PT" Q* IW"A ESTR^QJWfltf*£ PjUfT J H^ "] 3 1

ing pre-shipment inspection in respect of tobacco, spices and cashew shouk be exclusively undertaken by the Boards suggested by the Committee.

• ••38

Accepted

Every Council should become a member - of the Indian standards Institution and should be assigned an important role in the work of drawing up the specifica- tions.

Accepted

8'39

Publicising quality control measures is a very important aspect of export promo- tion which should be given greater attention than hitherto. The respond sibility for conducting such publicity should rest with the different Export Promotion Councils.

Acapted

I "C Export Inspection Act should be resorted to whenever compulsory export ins- pection is decided upon by Govern- ment.

Accepted

1 61 Each proposal for export assistance should be carefully analysed in consultation with technical authorities before the Council send up its recommendations to Government.

Accepted subject to final responilbi itw being [8-62

that of the licensing author;ue*.

In respect of the 1 mplementation of the Export Assistance Schemes, the Coun- cils should assume more responsibility than what they are doing now. Con- curcnt with the enlargement of the res- ponsibility of th Councils, arrange- ments should be made to ensure that every application is scrutinised by the Secretariat of the Council against a che- ck sheet which should be drawn up for this purpose with the help of the licen- sing authorities.

Each Council should prepare card index Accepted

1-63

of all their members and registered ex- porters and obtain information per- iodically from receipicnts of import en- titlement licences that the foreign ex- change in respect of exports made has been brought into the country and the relevant banker's certificate obtained within the stipulated period of six months. Special care must be taken to pujlaue the cases where advance li- cences, have been granted under export assistance scheme. E.F. Councils must have a close liaison with the cus- toms authorities for a random cheeking of exports of spnsitive items and to special destinations including free poi ts. Liaison should also be established with the Reserve Bank in the matter of cxa- minatipn of the problems of receipt and •nd on back remittance of foreign ex- change for iten}8 wher export assistance scheme operate.

Accepted.

••64

Council should, in the process of adminis - tration of these schemes build up suffici-- ent knowledge from past experience so as to be able on the one hand to recom- mend changes in the extent of assistance and the items to be licensed and on the other to educate the applicants in pre- paring their applications and docu- ments in proper order and shape. Such knowledge should also be used to detect cases of over-invoicing and unr- der invoicing.

Accepted.

t-"5

Councils should recommend whether an all-Industry rate of drawback should be fixed for a commodity or whether rates should be fixed for diffcient brands of that commodity. Councils should maintain up-to-date copies of draw back notifications, circulate both the schedules of the drawback notifications containing the entries relevant to the exporters, circulate amendments con- cerning all the relevant items, and re- circulate corrected schedules to mem- bers every year. Councils should also play a more positive role in assisting exporters and acquainting them with the procedure of draw-back.

Sane tVDe of assitance should be rendered

t-66

Accepted.

by the Councils to exporters in the mat- ter of preparing data for negotiations of shipping freight concessions with the conference lines.

This is under consideration of the Indiift "-"7

Council of Arbitration.

A more systematic approach to settle coTi-nerclal disputes on the lines indi- cated should be made. Wherever pos- sible a standard contract form for use by the exporters should be adopted or at least a clause relating to arbitration pro- vided for inclusion in the respective contracts.

••68

The basic budget and the progr amme of

; work should be prepared by the Councils, Five-year budget should aho be accompa- nied by Five-Year Programme of work on broad lines.

for 2 to 3 years depending upon the tt- port product.

The five year programme may be divided into yearly programmes partly for the purpose of getting the yearly budget a^tr-oved and partly fo 1502 THE GAZETTE OF INDIA EXTRAORDINARY [PA*T 1-SEC. 1] 2 I 3

Accepted (as read with recommendauuu

No. 8-68s

8-69 Contd.]

In view of the fact that the intention is not ) to make further changes in the programme during the year, all correspondence rela- ting to the Council's activities in the different spheres should be canalised through the Commodity Section, so that the latter having regard to the financial resources of the Council and the prog- ramme of work of the Council could process the ideas which emanate from other branches before the Councils are asked to take interest in the matter.

Generally accepted

8 -70 The Councils should have not only a ma- chinary for implementing the programme but also a machinery to watch its progress and accordingly a "performance audit" should be undertaken by each Council. A separate machinery should be set up by each Council for this purpose directly responsible to tho executive Vice-Chalr- man.

Accepted

•8-7i The promotional and developmental as- pects of each Council need to be stren- gthened, the financial base adequately established and operational strength ensured in tho administration, especially against the extended scope of the co- ordinated working envisaged with the Federation of Indian Export Organisations and the different Government Agencies.

J-72

This recommendation should "1"" be read alongwith recommendation at 8-87. Government agree that la addition to tho present audit of the Ac- counts of tho Councils, there should be a " performance audit ".

'Adeqato control should bi exercised by the Councils in tho administration of funds for specified purposes and certain standard norms of expenditure followed. The present type of Audit should be extended to ensure constant and con- tiaous check over expenditure under different heads In relation to the perfor- mance. Workload at different points should be assessed from time to time.

Accepted

S'73

Regarding the categories of members and 3ie differentiation of membership fees, it would be appropriate for the Federa- tion of the Indian Export Organisations to go into the question in detail to see whether and to what extent any unifor- mity may be attempted in these fields among the Councils.

Accepted

8-74

Membership should be broad-based to in- clude the manufacturers and exporters of the particular group of items and, where ever applicable, only those who are full- fledged registered members of the Coun- cil should get the benefit of export assis- tance from the Council.

Accepted in principale.

H'73

The contributions from Market Develop- ment Fund should be liberalised, parti- cularly in the earlier stages for generating greater effort.

8-76

Accepted.

Where there is no export assistance scheme in operation, the rates of service charges may be suitably adjusted upwards in the interest of netting higher revenue.

Sufficient funds should be provided to the Referred to the Technical Committee. 8-77

Cotton Textiles Export Promotion Council] and other Councils on as independent basis as possible. As regards the scale of preshipment inspection levies, they should generally be within the range of o-i to o-3 per cent ot the F.O.B. value of exports so as not to constitute an undue burden on exports. Adequate matching grants should be provided by Government in all cases.

8-78

The recommendation is noted by Govera-

ment.

The proceeds realised from the agricultural cess, if it is not abolished, should be given to the concerned Export Promotion Coun- cils and such of the Commodity Boards, whose formation the Committee has re- commended.

Accepted.

8-79

It is necessary to establish a pattern of ex- penditure conductive to the growth of the Councils vis-a-vis achievements of targets as planned.

8-80

Accepted.

The Councils should adhere to the principles of judicious expenditure of funds because Governments grants are involved. Each Council should review its bye-laws framed under its rules and regulations for this purpose in accordance with the approved budgets. There is also need for having a certain degree of uniformity in the matter of delegation of financial powers in the various Councils.

8 81

Most of the Councils have adopted unifor- mity pay scales in the lower posts. The recommendation is generally accepted.

It is desirable to have some uniformity in pay scales etc. in the lower posts commensurate •with the emoluments available in compet- ing commercial organisations or commer- cial houses and bearing in mind the regio- nal differences in pay scales which exist in different parts of the country.

8-82 There should be a segregation of routine administrative matters from the purely developmental aspect of the organisation. Wherever circumstances so warrant, the Council should be allowed to frame their budget on the basis that expenditure on administration in India might go up to 45% of the total.

This Ministry feels that the expenditure on administration excluding expendi- ture on specific projects and capital expenditure should not be more than 33 per cent of the total expenditure of the Council. The budget pro- forma suggested by the Prabhu Mehta Committee will be suitably amended. This recommendation should be read with recommendation at 8-85.

8-83

In order to increase the revenue from publi- cations and advertisements receipts, the Councils should distribute the publications judiciously and create an increased interest on the part of exporters to advertise in the journals brought-out by the Councils.

This recommendation is generally accept- able. Government feel that all pub- lications except those meant for distri- bution abroad should be priced. The Councils may distribute these publica- tions free of cost to such Government Departments, Organisations, members etc. as each Council may decide. Pub- lications should be as far as possible be self-financing.

Noted.

8-84

The relationship between the expenditure on direct promotional activities and export performance has to be properly established by each Council.

3.85

This is covered by recommendatioa at 8 '62.

Government should " bear increasingly the grant on expenditure on direct ex- port promotional activities. Revenue from membership fees and service charges could be utilised by the Councils to meet the direct administration expendi- ture in India.

This is covered by recommendation at i'6t.

i'-ss

Regarding the preparation of the Budget ' and its approval by Government a detail- ed plan of action has been suggested. This includes the framing of budgets on a five yearly basis, its approval by a Standing Committee etc. A model standard budget proforma has also been djrawn up.

This is covered by recommendatioa at %"^2.

The audit should not be confined to the ' financialside of the programme but should also evaluate every item of expenditure against the objective of achieving the planned export targets.

Accepted.

8.88 It is obviously necessary that coordination . should continue to be strengthened bet- ween the Councils and the various Sections of the respective Divisions of the Ministry of Commerce.

Accepted.

S-89

The meeting of the Chairman and Secreta- ries of the E. P. Councils should be held every six months and it would be desirable to convene one or two meetings in a year in the other important towns, like Bombay, Calcutta, Cochin and Madras.

•S.90

Noted.

In view of the great importance of stimu- ] latihg export promotion effort at the level of the States, certain measures to be taken by State Governments and the Councils have been indicated.

8-91

Noted.

In view of the useful work that is being ] done by the Port Export Promotion Ad- visory Committee, the Export Promotion Councils which have their head offices or local regional offices in the towns concerned should take continuing in- terests in the working of these Com- mittees.

The Federation of Indian Export Organi- Noted.

8-92

sations (FIEO) has an important role to play in the export effort of the country and active steps should be taken to"see that it starts functioning effectively very soon.

pW t-Wfo 1] Tttft GAZETtt OF WD1A MTKAtJWiiNXltY iftg

Noted

" •"

L

[

There should be a regular exchange of publications between export Promolior Councils and selected institutions such as the Federation of Indian Chambers of Commerce and Industry, the Associated Chambers of Commerce and the All In- dia Manufacturer's Organisation It misfit also be advantage to the Councils to associate a representative of specialised Associations in their Committees.

Referred to the Technical Committee.

i-94

The Chairman or the Executive Director of an Export promotion Council should be an ex-offldo member of the concerned Development Council or the other spe- cialised body and the Chairman or a nominee of that body should be the ex- offlcio member of the concerned Export Promotion Council.

"7PS

Accepted

There is need for intensification of efforts to house all Export Promotion Councils •nd or their Regional Offices in one build- i ng in each major centre, and similar efforts to locate foreign offices of some Ex- port Promotian Councils in the same premises in a foreign city.

8 0S

Generally accepted

There is need for the continuance of the •ystcm of posting joint directors and deputy directors at the various posts of the Ministry of Commerce and the •trengthening of their organisations.

Generally accepted

""97

The principles governing the forrriation of new Councils should include the value of exports, intensity of the problems faced by the commodity concerned in the export market, extent of competition, growth possibilities of the export of the product etc.

8-98

Generally accepted

The questipn of taking promotional mea- sures in respect of commodities not now covered by the Councils, Commodity Boards and other organisations should be examined from time to time by the Federation of Indian Export Organisations with a view to suggesting the linking of particular commodities to an existing Organisations or to suggest the formation of new E, P. Councils.

8 "

This Ministry would welcome such, ini- tiative from the Federation of Indiut Export Organisations.

TTie Federation of Indian Export Organi- sations should identify the commodities in respect of which coordinated effort is required and where more than one Coun- cil is concerned, to make suggestions to Government from time to time to evolve suitable procedures for making the product available and use in another industry at international prices.

8-JOO

Accepted

It would be desirable to constitute panels under each Council covering individual products to give a sense of participation to every exporter in the field. Taking the Engineering Council as an illustra- tion it is suggested inter alia that panels should be constituted at centres where the industry is concentrated ; these should work more or less on autonomous basis ; proper arrangements should be made for representation of these interests in the Regional Committee as also the working Committee of the main Coun- cil ; the Regional Committee should have a greater degree of autonomy and should directly receive from the Ministry of Commerce all communications re- lating to the scheme administered by them. Arrangements have also been sug- gested for processing of suggestions regarding revision of export assistance scheme, sending of delegations, general publicity etc. by the panels or regional Committee.

8-ioi

Accepted

The need for product specialisation is im- perative in engineering goods and it is possible that circumstances might warrant the setting up of separate babodies to look after the specific interest of certain products or group of products.

8-102

Starting of new non-official organisation for the purpose of giving assistance to joint ventures etc. is not considered necessary at present in view of the ex- isting organisation arrangements.

The orginisational base for giving guidance and assistance to entrepreneurs and expor- ters for establishment of Joint ventures and for promoting exports of capital equipment and services should be streng- thened. To supplement the work at the Government level for this purpose a separate non-official organisation should be created.

Accepted

8-103 As regards the expansion of the activities it is stressed that the Councils should concern themselves in projecting India's image as a steady supplier ot quality goods through appropriate coor- dinated joint publicity programmes etc. and be a reliable storo house of informa- tion.

If there should be need, Export Promo- 8-104 Tho suggestion for setting up an Export Industries Materials Corporation uii^r the aegis of certain Councils should be pursued.

tion Council, may constitute cor- porate bodies by raising funds from the trade for handling imported as well as local raw materials for al- location to export industries. Tho administration of the corporate bodies will vest with the Councils,

8-ios

Government would welcome suggestion s- in this regard from the Export Promo- tion Councils,

Some of the Councils should concern them- selves with the problems of price control and stabilisation.

[ftwr >-4tn.' 1] tttX GAZETTE OF INDIA IXTRA€HtetT*XsJt 1507

8 106

Accepted.

Certain other direction iiuch as greater interest in problems of packaging, pur- poseful effort in studying the possibili- ties of exporting finished products, ins- pection of goods sent for exhibitions abroad or for display in showrooms, ex- tension of quality control schemes bet- ween collection and dissemination of itatistical and other information in con- junction with the DGCI&S etc. have also been suggested.

A. C. BANERJEE, Jt. Secy.

i5o8 nacjarm or itmu trnuauwAiT jr"r "-"" 11

P*MT >-*•. y -rat* "utorm "r H IM acrM"i"K4w i""f

PRINTED IN INDIA BY THE GENERAL MANAGER. GOVERNMENT OF TNDIA PRISS.

MW DSLHI ANT PUBLISHED BY THS MANAQEH OF FUBUCATIONfl, DIIJtL 1 0 69