News Highlights:
- The Department of Commerce is implementing the Trade Infrastructure for Export Scheme(TIES) to assist Central and State Government agencies in creating appropriate infrastructure for the growth of exports.
- Under the scheme, financial assistance in the form of grants-in-aid is provided to Central/State Government owned agencies (or their Joint Ventures with major stake-holding by them) for setting up or upgrading export infrastructure in States/UTs.
Trade Infrastructure for Export Scheme (TIES):
- About:
- The Trade Infrastructure for Export Scheme (TIES) is a centrally sponsored scheme focused on enhancing export competitiveness.
- The scheme focuses on export infrastructure, creating better logistic processes, providing first-mile and last-mile connectivity, maintaining and enhancing quality, and enforcing strict regulations for export projects.
- Union Ministry of Commerce and Industry launched the Trade Infrastructure for Export Scheme (TIES) in 2017.
- The scheme replaces the centrally sponsored project that was in existence until 2015, which was called the Assistance to States for Infrastructure Development of Exports (ASIDE).
- Objective:
- The objective of TIES is to assist individuals or organizations who are engaged in infrastructure projects.
- The scheme focuses on the creation of multiple facilities like Border trading posts, quality-testing units, certification labs, export warehousing and packaging, cold storage provisions, trade promotion centres, dry ports, allocation of Special Economic Zones for trade activity, and ports/airports cargo terminals.
- The scheme also promises to separately fund studies related to Export logistics, including identification of sector-specific infrastructure, gap identification, mapping of assets, and other logistical processes.
- The objective of this study is to enable export-related activities to be fast-tracked and made efficient.
- The extent of Financial Assistance:
- The Central Government assistance for infrastructure creation will be in the form of grant-in-aid, normally not more than the equity being put in by the implementing agency or 50% of the total equity in the project.
- In the case of projects located in North Eastern States, Himalayan States, including UT of J&K, Ladakh, this grant can be up to 80% of total equity.
- Approved projects:
- Establishing the Main Exhibition Building (Phase-II) at the Trade cum Permanent Exhibition Center in Imphal Manipur.
- Establishing the Trade Promotion Centre at Minto Hall, Bhopal, Madhya Pradesh.
- Expansion of Chennai Trade Centre in Chennai, Tamil Nadu.
Export Promotion Schemes:
- Merchandise Exports from India Scheme:
- MEIS was introduced in the Foreign Trade Policy (FTP) 2015-20; under MEIS, the government provides duty benefits depending on product and country.
- Rewards under the scheme are payable as a percentage of realised free-on-board value (2%, 3% and 5%) and MEIS duty credit scrip can be transferred or used to pay several duties, including the basic customs duty.
- Service Exports from India Scheme:
- It was introduced in April 2015 for 5 Years under the Foreign Trade Policy of India 2015-2020.
- Earlier, this Scheme was named as Served from India Scheme (SFIS Scheme) for Financial Year 2009-2014.
- Under it, incentives are given by the Ministry of Commerce and Industry to Service Exporters based in India to promote the export of services from India.
- Remission of Duties or Taxes on Export Product (RoDTEP)
- It is a fully automated route for Input Tax Credit (ITC) in the GST (Goods and Service Tax) to help increase exports in India.
- ITC is provided to set off tax paid on the purchase of raw materials, consumables, goods or services used in manufacturing goods or services. This helps in avoiding double taxation and the cascading effect of taxes.
- It was started in January 2021 as a replacement for the MEIS, which was not compliant with the rules of the World Trade Organisation.
- The tax refund rates range from 0.5% to 4.3% for various sectors.
- The rebate must be claimed as a percentage of exports’ Freight On Board value.
Pic Courtesy: Freepik
Content Source: PIB