EPCG - the great Indian initiative to build its economy - a great way to tempt entrepreneurs - a bright future into torture!
Welcome aboard to Indian Customs - where a hundred odd agencies are involved and another hundred odd regulations along with a fat budget for the beggars - our Customs officials. Now actually that gives me another topic to discuss and elaborate whole heartedly - misuse of powers by our government authorities.. may be some other time?
Going back, EPCG an abbreviation (ever wondered that the word abbreviation is very long?) for Export Promotion Capital Goods scheme. Means you import goods at flat 5% customs duty (thankfully the cess is done away with). Sounds awesome and tempting right? But you see the scheme says Export... obviously thats not all! You got to export - bring some foreign exchange and make our nation ah-so-proud! You will but naturally be contributing to our Balance of Trade in the process... and earn a title of being called an Exporter! But hey hey hey! Exporting under EPCG is an obligation (as they righfully call it) and not an option or an alternative to something!
So anyway, now that we call our country "a liberalised economy" I formally introduce you to the most "Idiotic and Unliberalised economic system topped with multiple instances of harassment by our Government servants ( I rightly call them beggars)" Well, if you thought Importing stuff to India requires permission, you may just be wrong. Export requires more tension and just saying bye bye to your money! You not only have to get permission but also pay our beggars to earn our living... sounds silly? Thats the fact!
The only difference between a roadside beggar and government beggars - their power. And if you don't give them "dakshina" (a hindi word for charity), they will harass you till you are on the road asking for dakshina! Worst still, you need to generate this illegal money in your business (and trust me if you are an innocent citizen, you'll have no clue what next). And not to be forgotten, generating this illegal money is obviously ILLEGAL... but that's perfectly Okay with our beggars. They actually want us to be illegal ... can I say illegal promotion audit? Or hey, Illegal Promotion rampage? IPR!!! (Sorry, the intellectual property rights should seek another abbreviation for itself!) Our Acts and Regulations have given the Government discretionary powers to do as they please to earn their living at the cost of the public. Actually despite huge tax collections, no money is left for any development, let alone paying good wages to the beggars! Various authorities penalise the country men for defaults, do they ever penalise the tax authorities or the government officials for defaults? I wish I could use my citizenship power, walk upto P C Chidambram's house and say "hey big guy, com'on shell out all your money and not to forget your brains too else I'm gonna harass you!" If you just questioned why brains - Well when intelligent people can't use their brains productively (like Bin Laden), its better to have them not use at all! Atleast it would save our billion population from headaches! I wonder if asprin or crocin sale has gone up ever since Congress has come in power.
So well I started out with EPCG and ended up with our beggars! Back to the point, so first getting this EPCG license involves a rocket scientist to fill up their ultra hi-tech form. And even though its online, you need to submit a hard copy (without which you're doomed!) God save our wanna-be-paperless-economy! So here are a few small time beggars you have to deal with. Next, they will never approve your application without asking for a couple of more undertakings and bla bla bla... Please visit DGFT site for more details!
All right! So you got the license after 2 months of hard work and now you get a peaceful sleep! Ever wondered how peacefully a farmer sleeps after a day of toil? So now you are excited about your equipment and you start gearing up for payments and opening a LOC (not that this job is more comforting, but we'll skip it for the moment!) You've received your Invoices, Bill of Lading, Certificates and everything else in some million copies (of which you again make a thousand copies!) You catch hold of a clearing agent - you obviously cannot clear this stuff yourself even if you carried the law book and followed every word of it. The clearing agent does his stuff and then demands you a fat ransom!! You go flat! Seeing stars in the day? Oh the beggars won't clear your stuff unless you give them dakshina! Well you think I work in this business, I am paying for my equipment and who is he to stop me? But Alas! You're in India!
Next.. the equipment comes, and you're excited (forgetting the past)! Next comes your Excise guy! He's the best! If you don't entertain him, he will default you under some rubbish section of Excise Act and presto! You're behind the bars! Its like the magical fairy with her magical wand! I sometimes wonder if I can give them a nice big bowl (may be tupperware's?) for begging? So there you break your head once again Generating Illegal money for our loved ones! Did you just think where do you get time to do productive work then? Or how do the big corporates manage? Well, you may just think that big corp won't be hassled, but the reality is far from this fact. They are also troubled but no one is made aware... It happens with the top management!
Oh yes! If you've forgotten what happens with the export then?First you need permission. Next, for every consignment you export, even if you are on Jupiter ( I wish all the beggars are sent there), you will have to send an intimation to the beggars " hey big boys, some cocaine just left my place. Will you kindly sign this copy of invoice and send it back to me?" No exaggeration!!!!!!! At the end of the year again, you need to file a return telling them you exported this this this to so and so people for so much money. Which again has to be approved!
Effectively, even if I export a needle I need two full time employees just filling forms, maintaining registers and of course entertaining our beggars! Just so much for being an Entrepreneur! So much for growing and so much for living life!
So if you want to live peacefully, start saving up illegal money for our beggars! Do you still have your piggy bank? May be you can find it in your cellars or old suitcase? And those guys barge in, call for a ligh game of treasure hunt and let them go for your piggy! Hope it farts in their nose!
PS : A lot many other beggars of our country have been left out in this discussion. Hope to catch up on them soon! Feeling nostalgic!