EOUs, STPs, EHTPs and BIOTECH Ps (EPC)

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EOUs, STPs, EHTPs and BIOTECH Ps (EPC)

  1. 1. PROMOTIONAL MEASURES UNDER FTP Pooja Yende 13020241 132 Jimit Vora 13020241 144 Swanand Maholkar
  2. 2. INTRODUCTION ON EOU • Introduced on 31st December 1980,by Ministry of Commerce. • Purpose: to boost exports by creating additional production capacity • Notification No. is 52/2003 DUTY FREE IMPORTS ALLOWED UNDER EOU SCHEME: • CAPITAL GOODS • SECOND HAND CAPITAL GOODS • GOODS FOR REPLACEMENT • RE-IMPORT OF GOODS REPAIRED ABROAD
  3. 3. INTRODUCTION ON EOU • Decision are taken by Board Of Approvals(BOA) ,under Ministry of Commerce. • EOU’s are licensed to manufacture goods within the bonded premises. – Period of bond is 5 years (extendable for another5 years with the permission of development of commissioner)
  4. 4. ELIGIBILITY CRITERIA • EOU can be set up by any entrepreneur for manufacturing of goods and also for rendering services. • EOU can be set up for repair, reconditioning ,re-engineering also. • EOU unit is required to achieve only positive NFE over a period of 5 years.
  5. 5. DOCUMENTS REQUIRED FOR EOU UNITS • Letter Of Permission (LOP) • Private Bonded Warehouse (PBW) (sec 58). • Inbound Manufacturing Sanction Order (IMSO)(Sec 65). • B-17 bond with B.G (Bank Guarantee). • B-17 block transfer from division/Procurement Certificate. • Legal Agreement for 100% EOU units. (LUT)
  6. 6. PROCEDURE FOR EOU • Application for registration to Deputy/ Asst. Commissioner of customs at port of import. Accompanied with following documents : – All import document, Copy of LOP, Green card. • The B/E should filled and assessed at the place of import documents. • B-17 block transfer should be debited for movement of goods (Procurement Certificate in case if unit is located outside i. e not within the city limits) • After all clearance formalities goods shall be sent to bonded premises of the EOU. • Inspector will inspect the goods to ensure their quality, marks and numbers etc and issue there-warehousing certificate. •
  7. 7. Recent Policy Changes in the EOUs Scheme • Procurement and export of spares/components up to one and half percent of the FOB value of exports will be allowed to the same consignee/buyer of the export article within the warranty period. • In order to facilitate the smooth functioning of the EOU units, the Development Commissioners will fix time limits for finalizing the disposal of matters relating to EOUs. • New units engaged in export of Agriculture/Horticulture/Aqua-Culture products have been now allowed to remove capital goods inputs to the DTA farm on producing bank guarantee equivalent to the duty foregone on the capital goods/input proposed to be taken out. • The EOU units in Textile Sector are allowed to dispose off the left over material/fabrics up to 2 per cent of Cost Insurance Freight (CIF) value of imports, on consignment basis. Recognizing that settling the accounts for every consignment is complex and time consuming it has been decided to allow disposal of left over material on the basis of previous year's imports.
  8. 8. SOFTWARE TECHNOLOGY PARKS OF INDIA
  9. 9. Software Technology Parks of India • For the promotion of Software exports from the country, the Software Technology Parks of India was set up in 1991 as an Autonomous Society under the Department of Electronics and Information Technology. • The services rendered by STPI for the Software exporting community have been statutory services, data communications servers, incubation facilities, training and value added services. • STPI has played a key developmental role in the promotion of software exports with a special focus on SMEs and start up units. • The STP Scheme has been extremely successful in fostering the growth of the software industry. The exports made by STP Units have grown many folds over the years.
  10. 10. Software Technology Parks of India • The STPI Scheme is lauded as one of the most effective schemes for the promotion of exports of IT and ITES. The 52 STPI centres that have been set up since inception of the programme have given a major boost to IT and ITES exports. • The strength of the scheme lies in the fact that, it is a virtual scheme, which allows, software companies to set up operations in the most convenient and cheapest locations and plan their investment and growth solely driven by business needs. • STP Scheme is a pan India Scheme, which has centres spread across India, Currently there are 4,000 export units registered with STPI. • As per 2011-12 data, the 52 STPI centres in the country registered exports worth Rs 2.26 lakh crore in 2011-2012 which increased to Rs 2.42 lakh crore in 2012-13.
  11. 11. ADVANTAGE OF BECOMING A STP UNIT • STP units can avail of following advantages under STP scheme : – Custom duty exemption – Excise duty exemption – Central Sales Tax reimbursement – Equipment can also be imported on loan or lease basis. • A company can set up STP unit anywhere in India. • All the imports of Hardware & Software in the STP units are completely duty free. All relevant equipment/goods including second hand equipment can be imported (except prohibited items)
  12. 12. CHARGES FOR STP REGISTRATION • Application processing fees and three years advance annual service charges considering your pojected export turnover. • Application processing fees: ` 2500/• Service charges on the basis of projected exports : Below Rs. 50 lakhs per annum Rs. 15000.00 per annum Rs. 50 lakhs to Rs. 3 crores per annum Rs. 50000.00 per annum Above Rs. 3 crores per annum Rs. 100000.00 per annum
  13. 13. WHO CAN BECOME A STP MEMBER AND HOW ? • Following can become a STP member : – An Indian company – A subsidiary of foreign company – A branch office of foreign company • In order to become a certified member unit under STP scheme, approval from the competent authority i.e. Director, STPI is required. • After approval procedure, STP unit has to sign Export Obligation Agreement under STPI and approach the Assistant Commissioner of Customs for bonding your office area under Section 58 & 65 of Customs Act 1962.
  14. 14. ACTIVITIES PERMITTED UNDER THE STP SCHEME • Development of enterprise application software • Development of Technology Software • Any other category of Software development • IT enabled services.
  15. 15. CHENNAI: Nearly 1,000 software exporters have withdrawn their registration from Software Technology Parks of India (STPI) in the last two years. Exporters pressed the exit button after a March 2011 government directive which withdrew tax sops to software exporters. STPI scheme, introduced in 1991, was meant to incentivise and encourage software exports in the country. However, when tax exemptions went away, firms started moving out. "Situation is not that grim. In around the same period 200 new firms, many of them product companies, joined STPI. The new National Policy on Information Technology (NPIT) and one on Electronics are expected to boost the sector," said Omkar Rai, Director General of STPI. Currently there are 4,000 export units registered with STPI. As per 2011-12 data, there were 52 STPI centres in the country. These centres registered exports worth Rs 2.26 lakh crore in 2011-2012 which increased to Rs 2.42 lakh crore in 2012-13. These units are still exporting through STPI as it is still the licensing authority for exports. Many of them might move to Special Economic Zones (SEZs) to avail of benefits there but the really small ones among them may find it hard to negotiate, said Rai.
  16. 16. ELECTONIC HARDWARE TECHNOLOGY PARKS
  17. 17. SIIB TIMES FOREIGN TRADE POLICY - SMITA SANTOKI ELECTRONIC HARDWARE TECHNOLOGY PARK Something about EHTP For encouraging exports of electronic hardware items including hard disk drives, computers, television, etc., such parks have been developed by the Ministry of Communications & Information Technology. An Electronic Hardware Technology Park (EHTP) may be an individual unit by itself or a unit located in an area designated as EHTP Complex. As in the case of STP Scheme, the EHTP Scheme is also administered by the Ministry of Communications & Information Technology. An EHTP can also be set up by the Central Government, State Government, public or private sector undertakings or any combination of them.
  18. 18. BENEFITS to EHTPs • Free Import of duty capital goods, raw materials, components and other related inputs (excluding prohibited items list). • EHTPs are duty free and bonded areas and customs exemptions are extended accordingly. • An EHTP is exempted from the payment of corporate income tax up to 2014 and also central sales tax reimbursement. • An EHTP may gear up to 100 per cent foreign equity. • An EHTP unit may be setup for both software and hardware in an integrated manner.
  19. 19. BENEFITS to EHTPs • No restrictions on External Commercial Borrowings. • Full Freedom for sub-contracting. • Exemption from payment of Central Excise Duty on goods procured from DTA on goods manufactured in India. • Units will be allowed to retain 100% of its export earning in the EEFC account. • Allowed to sell products manufactured by them up to a limit of 90% instead of existing 75%. • EOUs will now be allowed CENVAT Credit facility for the component of SAD and Education Cess on DTA sale.
  20. 20. The government is likely to soon announce measures to revive investor interest in Export Oriented Units (EOUs), a move that will help boost shipments overseas and contain current account deficit. CAD touched a record high of 4.8 per cent of GDP in 2012-13. During April-August, India's exports grew by 3.89 per cent to USD 124.4 billion. After expiry of tax benefits for the EOUs, the government in 2011 had set up a committee under the chairmanship of S C Panda, Development Commissioner, Noida SEZ, to revamp the scheme in sync with the changing business environment and gel with the Special Economic Zones. The committee had recommended 32 measures which included host of tax incentives like exemption from customs duty, central excise and service tax. "However, the government is unlikely to provide any kind tax incentives to EOUs. The government is mulling to provide investment-linked incentives to these units ," the official said, adding that "things will be finalised in about 10 days". Officials from the Commerce and Revenue department have already held several rounds of meetings on the recommendations of a committee to revamp the 30-year old EOU scheme. "We are considering several steps including simplification of procedures for EOUs. The steps will help in making EOUs more investors friendly as investments in these units have declined over the period," a senior official in the commerce ministry told PTI. Besides, revival of these units would help boost India's exports and reduce CAD, the difference between the inflows and outgo of foreign exchange. Economic Times, 27th sept 2013 The committee had suggested several procedural simplifications and steps to reduce transaction cost in order to arrest the declining trend in setting up of EOUs and their exports. The EoU scheme, introduced in December 1980, had allowed manufacturing units in the Export Processing Zones to enjoy 100 per cent income-tax exemption on profits from overseas sale and also duty free import of raw material. As the scheme had a sunset clause, the tax benefits were stopped from March 2010. This scheme was immensely used by SMEs sector for setting up their units for export purpose. The objective was to encourage additional production capacity in manufacturing sector by attracting foreign investment and create employment in the country. Besides, it had also suggested rationalisation of administrative mechanism for setting up an EOU, setting up warehousing facilities outside the unit premises and sharing of facilities among EOU/STP/EHTP/SEZ unit. Apart from EOUs, the scheme includes Electronics Hardware Technology Parks (EHTPS) and Software Technology Parks (STPS). Till 2009-10, 2,586 EOUs, 8,121 STPs and 144 EHTPs were operating in the country. EOUs had made export of goods and services worth Rs 84,135 crore, besides exports from STPs and EHTPs of Rs 2,05,505 crore and Rs 8,028 crore respectively in 2009-10
  21. 21. BIO-TECHNOLOGY PARKS
  22. 22. INTRODUCTION • Biotech Park is a special form of industrial park that specialized in biotechnology. • Biotechnology is a fast emerging sector and is expected to play a key role in the new economy • Realising the immense potential of biotechnology, India began its initiatives in this sector in the 1980s.
  23. 23. GOVERNMENT BODIES • The Department of Atomic Energy (DAE), the Department of Biotechnology (DBT), the Department of Science and Technology (DST) and the Department of Scientific and Industrial Research (DSIR) are the government bodies. • The Indian biotechnology industry registered an annual growth rate of 36.55 percent over INR 3,475 crores in 2003-04 • Biotech Park and Incubation Centers have been established at Lucknow, Uttar Pradesh and Shapoorji Pallonji Biotech Park, Genome Valley, Hyderabad (Andhra Pradesh)
  24. 24. INTERNATIONAL BIOTECH PARKS • International Biotech Park Ltd. is a 81 acre Park dedicated to Biotechnology in the field of Life Sciences, Chemical, Pharmaceutical, Biotech products and processes. IBP is the largest developed biotech park in India which provides space for R & D as well as for manufacturing purposes. • There is also a 25 acres of notified Special Economic Zone for Biotechnology products and processes. Currently 75% of the project has been developed and occupied by leading pharmaceutical and biotechnology companies
  25. 25. BENEFITS TO BTPS • Contributes 20% of Industrial output • Strength in Research & Development sector • State of the art Educational Facilities • Annual exports from units in IBPL - Rs. 200 crores • Total number of employees in the park - 1300 • Packaged Effluent Treatment plant
  26. 26. International Biotech Park at Pune set to expand Promoters plan to add 150 acres more to existing facility
  27. 27. BIBLIOGRAPHY http://commerce.nic.in/trade/national_ftpp.asp http://rahulchaitanya.wordpress.com/2008/08/05/sez-stp-ehtp-eou-bio-tech-park-in-india/ http://www.fieo.org/view_section.php?id=0,30,155,633 http://www.eximguru.com/exim/indian-customs/customs-manual/stp-ehtp-scheme.aspx http://dgft.gov.in/exim/2000/policy/ftp-plcontent-1011.htm http://www.ieport.com/foreign_trade_policy_2009-2014/highlights-2009.htm http://www.thehindubusinessline.com/ http://www.scribd.com/doc/45010697/

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