The Commerce Ministry has relaxed certain norms like doing away with mandatory warehousing requirement for export-oriented units (EoUs) and software and electronic hardware technology parks.The move is aimed at promoting out-bound shipments and manufactured products from EoUs, software technology parks of India (STPIs) and electronic hardware technology parks (EHTPs). Also Read - Ola to offer free oxygen concentrators to the needyAlso Read - Samsung Galaxy S20 FE Long-term Review
The Directorate General of Foreign Trade (DGFT) has also eased conditions for the existing EHTP and STP units to avail tax exemptions in the case of conversion or merger of EOU unit and vice versa. Delta ID’s iris software to make Aadhaar authentication more secure. In a notification, DGFT said an EoU which is into agriculture, aquaculture, horticulture and poultry may be permitted to remove specified goods in connection with its activities for use “outside the premises of the unit”.
Earlier, it was allowed only for outside the bonded area. DGFT has said this through a notification amending the foreign trade policy (2015-20). The EoU scheme, which was introduced in December 1980, had allowed manufacturing units in export processing zones to enjoy 100% tax exemption on profits from overseas sale and duty-free import of raw material.
Sterlite tech’s Elitecore software deployed at 22 Sarovar Hotels & Resorts’ Properties As the scheme had a sunset clause, the tax benefits were stopped from March 2010. This scheme was utilized by SMEs for setting up their units for the purpose of exports. Later, a committee had suggested steps, including tax incentives, to revive these units. The scheme includes EoUs, EHTPs and STPs.
The decision takes on significance as the country’s exports after rising for the first time in 19 months in June shrank again in July. It contracted 6.84% due to decline in shipments of engineering goods and petroleum products.