The Export Promotion Council for EOUs and SEZs (EPCES) plays a pivotal role in bolstering India’s export landscape by providing a suite of financial and tax benefits to Export Oriented Units (EOUs) and Special Economic Zones (SEZs). These incentives are meticulously designed to enhance the competitiveness of Indian exporters on the global stage.

Understanding EOUs and SEZs

Export Oriented Units (EOUs) are entities established with the primary objective of exporting their entire production. They are granted special licenses to operate under favorable conditions that promote exports.

Special Economic Zones (SEZs), on the other hand, are designated areas within a country that possess distinct economic regulations differing from the rest of the nation. These zones are crafted to attract foreign investments and boost exports by offering a conducive business environment.

Financial and Tax Benefits Extended by EPCES

EPCES offers a comprehensive array of incentives to EOUs and SEZs, aiming to reduce operational costs and foster export growth:

1. Duty-Free Import/Procurement: Units can import or procure domestically, without paying duties, goods required for their development, operation, and maintenance. This encompasses raw materials, capital goods, and other essential inputs.

   Sez India

2. Income Tax Exemptions: SEZ units benefit from a 100% income tax exemption on export income for the first five years, followed by a 50% exemption for the subsequent five years. Additionally, they can avail a 50% exemption on the ploughed-back export profit for the next five years.

3. Goods and Services Tax (GST) Exemptions: Supplies to SEZs are zero-rated under the IGST Act of 2017, ensuring that these units are exempt from GST, thereby reducing the tax burden.

4. Single Window Clearance: To streamline operations, EPCES provides a single window clearance system for both Central and State-level approvals, expediting the establishment and functioning of units.

5. Market Access Initiative (MAI) Scheme: EPCES offers financial assistance through the MAI Scheme to member participants in trade fairs and exhibitions abroad. This initiative aids in exploring new markets and promoting export-oriented activities.

   EPCES

6. Refund of Duties and Taxes on Export Products (RoDTEP) Scheme: The RoDTEP scheme has been extended to SEZs and EOUs, effective from March 2024 for EOUs and July 2024 for SEZs. This scheme refunds embedded non-creditable central, state, and local levies paid on inputs to exporters, thereby enhancing their competitiveness.

Impact on Export Growth

The incentives provided by EPCES have significantly contributed to the growth of India’s exports. EOUs and SEZs have been instrumental in diversifying the export basket, enhancing product quality, and penetrating new markets. These units have also attracted substantial foreign direct investment (FDI), leading to technology transfer and employment generation.

Altus Exports: Empowering Indian Manufacturers

Altus Exports is dedicated to assisting Indian manufacturers in expanding their global footprint. By partnering with us, manufacturers can leverage our extensive network and expertise to navigate international markets effectively. We offer comprehensive support, including market research, compliance assistance, and logistics management, ensuring a seamless export process.

To explore partnership opportunities, Indian manufacturers can visit our Manufacturer Partnership page. Here, detailed information is available on how to collaborate with us to achieve mutual growth and success in the global marketplace.

Conclusion

The financial and tax benefits provided by EPCES to EOUs and SEZs have been pivotal in driving India’s export growth. By understanding and leveraging these incentives, exporters can enhance their competitiveness and contribute to the nation’s economic development. Collaborating with partners like Altus Exports further amplifies these efforts, ensuring sustained success in international markets.