Zone/Project Related schemes

The Government’s goals under these programs are to boost foreign exchange profits, encourage domestic and foreign investment for export promotion, and create jobs in the nation.

The following programs permit the establishment of units by entities who desire to export their entire production of products and services:

  • EOU (Export-Oriented Unit) Scheme:
  • EHTP (Electronics Hardware Technology Park) Program,
  • Scheme for Software Technology Parks (or “STP”), or
  • BTP (Bio-Technology Park) Scheme

When an entity intends to export all of its goods and services, it is permitted for those units operating under the aforementioned Schemes to produce items, including repairs, remaking, reconditioning, and service provision. These programs do not cover trading units.

The primary characteristics of the Scheme are as follows:

  • One may import and/or purchase without paying customs tax, IGST, or GST compensation from a bonded warehouse in the DTA or from an international exhibition hosted in India.
  • The restriction on the DTA selling entitlement cap has been eliminated.
  • Transfer between units is permitted with payment of the necessary duties and taxes.
  • The Customs Authorities must permit the clearance of exported goods that the importer finds to be defective, damaged, or returned.
  • Second-hand items can now be imported for free with the intention of repairing, refurbishing, reconditioning, or reengineering them.
  • For replacement articles that are prohibited or on the SCOMET list, exporting replacement goods has been made easier.

All types of items may be exported by an EOU/EHTP/STP/BTP unit, with the exception of those that are expressly forbidden by the ITC, and these units must generate positive net foreign exchange earnings. Units using these Schemes receive a number of advantages. This is a list of just a few of them:

  • No permit is required for imports.
  • Customs duties on the import of capital items, raw materials, etc. are waived.
  • Up to 100% of foreign direct investment is permitted.
  • Income-tax Act deductions.
  • Scheme for single-window clearance and approval.
  • payment of the goods-and-services tax.

How SalahKaro Helps !!

  • Our team of experts can help clients in the following ways because they are familiar with the various Foreign Trade Policy schemes:
  • To participate in the Schemes.
  • Evaluate the client’s business to determine which Scheme would be most advantageous to it.
  • Examine the benefits offered by the Scheme to the client and the procedures for claiming them.
  • The process of preparing and submitting an application under the Schemes.
  • Assistance with various Schemes compliances.

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