New India to felicitate export-focused start-ups and SMEs with 500 policies

India’s largest non-life insurer company, New India Assurance will be going to issue 500 policies on ATA (Admission Temporaire/Temporary Admission) Carnet to push export-focused start-ups and SMEs in the country.

Indian government, which recently said to have scrapped 1,200 complex laws for ease of doing business for Indian start-ups, now helping SMEs and export-focused start-ups with ATA Carnet certification.

The prime objective of the policy is to facilitate insurance cover for start-ups and SMEs in lieu of cash deposits or bank guarantees against the ATA Carnet certificate. It is a system that offers advantages to all concerned stakeholders: the customs authorities and the trading community, i.e., individuals, enterprises, trade organizations.

"We have plans to issue 500 insurance policies on ATA Carnet to start-ups and SMEs, over the next one year and the same will be available for sale from August 1," a New India official said to Moneycontrol.

Facilities under ATA Carnet certification:

1. One can make advance customs arrangements at a predetermined cost
2. Can visit several countries
3. Can use ATA Carnet for several trips during its one-year validity
4. Return to your home country with your goods without problems or delays

The ATA simplifies the customs procedures and clearances without paying duty or a bank guarantee for temporary import into a member- country and the international guarantee chain provides reciprocal guarantees assuring customs administrations that duties and taxes due in case of misuse will be paid.

Also read:Modi govt scrapped 1200 laws to promotes entrepreneurship

In India, Federation of Indian Chambers of Commerce and Industry (FICCI), is appointed as National Guaranteeing & Issuing Association for ATA Carnets.

"The proposed ATA Carnet policies will be reinsurance driven as 94 per cent of risk is covered under it by a reinsurer," the New India official said, adding "the premium to be charged for such policies is 3.5 per cent of the value of the goods being covered".