Q.4:- List and explain various incentives and schemes that the government has evolved for promoting the country’s export.
Major export promotion measures are as follows
(i) Duty Drawback Scheme Excise and customs duties paid on export goods are refunded to exporters on production of proof of exports of these goods to the concerned authorities.
(ii) Export Manufacturing Under Bond Scheme This facility entitles firms to produce goods without payment of excise and other duties if the firms give an undertaking (i.e., bond) that they are manufacturing goods for export purposes and will export such products on their production.
(iii) Exemption from Payment of Sales Taxes and Income Tax Goods Meant for Export Purposes are not Subject to Sales Tax Exemption from income tax is available only to 100% Export Oriented Units (100 % EOUs) and units set up in Export Processing Zones (EPZs)/Special Economic Zones (SEZs) for select years.
(iv) Advance Licence Scheme It is a scheme under which an exporter is allowed to duty free supply of domestic as well as imported inputs required for the manufacture of export goods.
(v) Export Promotion Capital Goods Scheme (EPCGS) The main objective of this scheme is to encourage the important of capital goods for export production. This scheme allows export firms to import capital goods at very low rates of customs duties subject to actual user condition and fulfillment of specified export obligations.
(vi) Scheme of Recognizing Export Firms as Export House, Trading House and Superstar Trading House The government grants the status of export house, trading House, star trading house to select export firms based on achieving a prescribed average export of performance in past select years and assistance is given to them in marketing their products globally.
(vii) Export of Services In order to boost the export of services, various categories of service houses have been recognized on the basis of the export performance of the service providers.
(viii) Export Finance Finance is made available at concessional rates of interest to the exporters. Pre-shipment finance is provided to an exporter for financing the purchase, processing, manufacturing or packaging of goods for export purpose. Post-shipment finance is provided to the exporter from the date of extending the credit after the shipment of goods to the export country.
(ix) Export Processing Zones (EPZs) Export processing zones are industrial estates usually situated near seaports or airports with an objective to provide an internationally competitive duty free environment for export production at low cost. EPZs are now converted to Special Economic Zones (SEZs) which are free from all rules and regulations governing imports and exports units except relating to labour and banking.
(x) 100% Export Oriented Units (100 per cent EOUs) The 100%. Export oriented units scheme was introduced in early 1981 adopting the same production regime as EPZs but a wider option in location. EOUs were established with a view to generating additional production capacity for exports by providing an appropriate policy framework, flexibility of operations and incentives.