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TMI BlogExport Promotion Schemes [Part 2]X X X X Extracts X X X X X X X X Extracts X X X X ..... Export Promotion Schemes [Part 2] X X X X Extracts X X X X X X X X Extracts X X X X ..... cts and services. These units are provided with certain incentives and concessions to encourage exports. Legal Framework: * Foreign Trade (Development & Regulation) Act, 1992 * Customs Act, 1962 * Foreign Trade Policy (FTP) Key Features: * EOUs are allowed to import capital goods and raw materials without paying customs duties, subject to export obligations. * They are exempt from various indirect taxes like VAT, excise duty, and service tax on goods/services used for manufacturing goods for export. * EOUs are also eligible for duty drawbacks and other export promotion benefits like Drawback of Customs Duties and Exemption from Excise Duties. Eligibility: * Units must export 100% of their production. * Exporters are requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to fulfil specified export obligations over a given period. 2. STPI (Software Technology Parks of India) The Software Technology Parks of India (STPI) is a scheme initiated by the Indian government to promote the export of software and IT services from India. It is an exclusive zone for IT/ITES (Information Technology/Information Technology Enabled Services) companies. Legal Framework: * Software Technology Parks of India (STPI) Scheme * Foreign Trade Policy (FTP) Key Features: * Tax incentives like 100% income tax exemption for the first 5 years and 50% for the next 5 years. * No import duties on computer hardware and software used in the development of IT services. * The focus is on IT/ITES export, and STPIs allow units ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to access infrastructure and bandwidth facilities. Eligibility: * IT/ITES companies setting up operations within the designated STPI locations. * Units must meet the export obligations to remain eligible for benefits. 3. EHTP (Electronic Hardware Technology Park) EHTP is similar to the STPI, but it is designed to promote the export of electronic goods, hardware, and components. Legal Framework: * EHTP Scheme under the Ministry of Electronics and Information Technology (MeitY) * Foreign Trade Policy (FTP) Key Features: * Provides duty-free imports of capital goods, raw materials, and components required for the manufacturing of electronic products. * EHTP units are also eligible for income tax exemptions similar to the benef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its available under the STPI scheme. * The focus is on the manufacturing of electronic hardware, including electronic components, assembly, and circuit boards. Eligibility: * Electronic hardware manufacturers and exporters setting up units in EHTP zones. * Units must export 100% of their production to maintain eligibility. 4. FTWZ (Free Trade and Warehousing Zones) A Free Trade and Warehousing Zone (FTWZ) is a special economic zone focused on providing warehousing, storage, and distribution services for goods meant for re-export. Legal Framework: * SEZ Act, 2005 * Foreign Trade Policy (FTP) Key Features: * FTWZs are similar to SEZs but are focused on logistics, warehousing, and trade facilitation. * Goods stored in FTWZs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can be freely imported and re-exported with minimal customs procedures. * Importers can store goods in FTWZs without paying customs duties, which are only levied when goods are moved into India's domestic market. Eligibility: * Importers, exporters, and logistics providers engaged in warehousing and re-exporting goods. * The FTWZ is open to both domestic and international companies. 5. SEZ (Special Economic Zone) A Special Economic Zone (SEZ) is a geographically designated area where businesses can operate with special tax, duty, and regulatory exemptions to promote economic activities like export, manufacturing, and services. Legal Framework: * SEZ Act, 2005 * Foreign Trade Policy (FTP) * Customs Act, 1962 Key Features: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * Income Tax Exemptions: 100% tax exemption on export income for the first 5 years, 50% for the next 5 years, and 50% of the reinvested profits for the next 5 years. * Customs Duty Exemption: Exemption on duties for imported raw materials, capital goods, and consumables. * Regulatory Relaxations: Simplified procedures for obtaining approvals and permits. Eligibility: * Manufacturers, traders, and service providers involved in export activities. * The business must meet export obligations to maintain SEZ status. 6. BTP (Bio-Tech Park) A Bio-Tech Park is a special zone designed for businesses in the biotechnology sector to carry out research, development, and commercialization of biotech products. Legal Framework: * Department o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Biotechnology (DBT) - Ministry of Science and Technology, Government of India. * SEZ Act, 2005 (if the park operates as an SEZ) Key Features: * Provides incentives like tax exemptions, duty-free imports, and research funding to biotech companies. * Offers infrastructure for laboratory research, product development, and commercial manufacturing of biotech products. * Focuses on biotechnology, including pharmaceutical research, bio-manufacturing, and genetic research. Eligibility: * Companies in the biotech sector involved in research, development, and commercialization of biotechnology products. 7. Food Parks Food Parks are dedicated areas for the food processing industry to set up units that can benefit from infrastructure, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... common services, and fiscal incentives. Legal Framework: * National Food Processing Policy * Ministry of Food Processing Industries (MoFPI) Key Features: * Provides access to modern infrastructure like cold storage, processing units, packaging, and distribution facilities. * Companies in food processing are eligible for incentives like capital investment subsidies, interest subsidies, and tax exemptions. Eligibility: * Food processing units involved in the production, processing, packaging, and export of food products. 8. PCPIR (Petroleum, Chemicals, and Petrochemicals Investment Region) PCPIRs are special zones created for the development of the petroleum, chemicals, and petrochemicals industries. Legal Framework: * Minis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... try of Chemicals and Fertilizers, Government of India * Petroleum, Chemicals, and Petrochemicals Investment Region (PCPIR) Policy Key Features: * Provides fiscal incentives like tax holidays, duty exemptions, and other incentives to promote investments in the petroleum, chemicals, and petrochemicals sectors. * Focuses on developing infrastructure for petrochemical industries and attracting both domestic and foreign investment. Eligibility: * Petroleum, chemicals, and petrochemicals manufacturing units can apply to set up operations within a PCPIR. Conclusion These zones and schemes, including EOUs, STPIs, EHTPs, FTWZs, SEZs, BTPs, Food Parks, and PCPIRs, provide various benefits and incentives for different industries in India, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... primarily focusing on export promotion, industrial growth, and foreign investment. The legal framework supporting these initiatives includes Foreign Trade Policies, the Customs Act, and sector-specific guidelines issued by the government and relevant ministries. X X X X Extracts X X X X X X X X Extracts X X X X
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