Latest news with #EOUs
Fibre2Fashion
25-06-2025
- Business
- Fibre2Fashion
India extends export obligation for QCO-free VSF imports to 18 months
India has extended the export obligation period for imports of viscose staple fibre (VSF) exempted from the Quality Control Order (QCO) to 18 months, following consistent demands from the textile industry. The move is expected to ease the burden on exporters who import QCO-exempted VSF and are required to re-export the same. The Confederation of Indian Textile Industry (CITI) has welcomed the decision. According to industry sources, the government has allowed Export Oriented Units (EOUs), Special Economic Zone (SEZ) units, and Advance Authorisation holders to import VSF without adhering to the QCO under pre-import conditions. Under the Advance Authorisation scheme, exporters are typically granted 18 months to re-export duty-free imported raw materials. While this timeline was initially applied to QCO-exempted imports as well, it was later shortened to 180 days. India has extended the export obligation period for QCO-exempt viscose staple fibre (VSF) imports to 18 months, restoring the original timeline after industry appeals. This move benefits EOUs, SEZs and Advance Authorisation holders by easing pressure on re-export requirements. CITI welcomed the decision, citing it as a significant relief for exporters and a step towards smoother QCO implementation. Exporters had urged the government to restore the original 18-month period. Responding to the appeal, the government has now agreed to reinstate the extended timeline. 'We are delighted that our request for a relaxation in the export obligation period has been accepted by the authorities,' CITI chairman Rakesh Mehra said. 'The step will prove immensely beneficial for companies as they will now get more time to discharge their export obligations.' He pointed out that CITI has been working closely with the authorities on the issue of quality control orders (QCOs) to ensure their effective implementation. Fibre2Fashion News Desk (KUL)
The Hindu
11-06-2025
- Business
- The Hindu
Centre to wield quality control ‘stick' to drive exports
The Indian government is not keen on providing further subsidies to export-oriented sectors of the economy, according to a senior government official. Instead, the government is going to follow a more 'carrot and stick' approach where quality control orders (QCOs) are going to increasingly be used to push Indian industry to become internationally competitive, while all non-subsidy help will be provided to them in terms of land acquisition and other regulatory hurdles. 'The government has taken a call that just giving subsidies has not really worked in boosting India's exports,' the official said. 'There is an issue with the quality of the product as well. That's why we are now focussing on QCOs to ensure that our exports meet the minimum quality standards.' 'The government is not inclined to provide more subsidies to sectors than it already has,' the official added. 'But all the non-subsidy help that we can provide will be provided, like easing land acquisition, or any other regulatory issues they come to us with.' However, The Hindu has also learnt that the issue of providing subsidies for the production of rare earth batteries in India has come up for discussion in the government, in light of the supply crunch due to China banning the export of these products. QCOs are regulations that state that products manufactured, imported, sold in India, or manufactured for exports, must meet minimum quality standards as laid out by the Bureau of Indian Standards (BIS). As of March 2025, various central ministries had notified a total of 187 QCOs covering 769 products. There has been a debate in India on whether QCOs are helping or hurting. According to the government, including Commerce Minister Piyush Goyal, QCOs are the path to enhancing India's export competitiveness. However, Niti Aayog Vice Chairman Suman Bery has said that QCOs are a 'malign intervention' to stop imports from certain countries, but that would actually end up hurting India's MSMEs. The government has provided some relief for certain export categories that rely on inputs from abroad. 'To ensure competitiveness of Indian exporters, exemptions from mandatory QCOs are available for imports intended for export production under specific schemes, such as advance authorisations, by export oriented units (EOUs), and in Special Economic Zones (SEZs),' the Minister of State for Textiles Pabitra Margherita said in a reply to the Lok Sabha in March 2025. The government's stance on subsidies runs against what some industries have been demanding. The Federation of Indian Mineral Industries (FIMI), for example, on Tuesday released a report in which it called for an upfront subsidy of ₹10,000-15,000 per kWh on the purchase of alternate fuel Heavy Earth Moving Machinery (HEMM) for mining applications. 'One of the primary barriers to e-truck adoption is their high upfront cost, with electric trucks and other HEMMs currently priced at nearly three times that of their diesel counterparts,' FIMI noted in its report. 'Such price disparity discourages potential buyers.'
Fibre2Fashion
27-05-2025
- Business
- Fibre2Fashion
India to restore RoDTEP benefits for AA, EOU & SEZ exports from June 1
Government of India has reinstated Remission of Duties and Taxes on Exported Products (RoDTEP) scheme benefits for Advance Authorisation (AA) holders, Export-Oriented Units (EOUs), and Special Economic Zone (SEZ) units. Applicable from June 1, 2025, the move aims to strengthen India's export competitiveness and ensure parity across all exporter categories. These benefits had earlier lapsed on February 5, 2025. Their restoration signals the government's ongoing commitment to boosting merchandise exports by offsetting unrefunded embedded duties and taxes. Since its launch on January 1, 2021, the WTO-compliant scheme has disbursed over ₹57,976.78 crore (~$6.8 billion), the Ministry of Commerce & Industry said in a press release. Indian government has reinstated RoDTEP benefits for AA holders, EOUs and SEZ units from June 1. The move aims to enhance export competitiveness and ensure parity across exporter categories. Earlier withdrawn in February 2025, the scheme has disbursed over ₹57,976.78 crore (~$6.8 billion) since 2021. For FY26, ₹18,233 crore is allocated to support a wide range of HS lines via a digital platform. For FY26, ₹18,233 crore has been earmarked to support exports under 10,780 HS lines for Domestic Tariff Area and 10,795 HS lines for AA/EOU/SEZ segments. The scheme is operated through a fully digital platform to ensure transparency and ease of access for exporters. Fibre2Fashion News Desk (KD)
Time of India
27-05-2025
- Business
- Time of India
Govt allocates Rs 18,233 cr under RoDTEP scheme for exporters for 2025-26
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: The government has allocated Rs 18,233 crore under the export benefit scheme RoDTEP in the current financial year for over 10,750 product categories, an official statement said on Tuesday. As of March 31, 2025, total disbursements under the RoDTEP scheme have crossed Rs 57,976.78 government also said that the benefits under the scheme for exports of goods manufactured in special economic zones and export-oriented units are restored from June 1 this the Remission of Duties and Taxes on Exported Products (RoDTEP), various central and state duties, taxes, and levies imposed on input products, among others, are refunded to exporters. The current RoDTEP rates are in the range of 0.3-4.3 per cent."For the Financial Year 2025-26, the government has allocated Rs 18,233 crore under the scheme. The support will cover 10,780 HS lines (or product categories) for Domestic Tariff Area exports and 10,795 HS lines for Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and units operating in Special Economic Zones (SEZs) exports, ensuring broad-based coverage for diverse sectors of the economy," the commerce ministry since January 1, 2021, the scheme is designed to reimburse exporters for embedded duties, taxes, and levies that are not otherwise refunded under any other existing is compliant with World Trade Organization (WTO) norms and implemented via a comprehensive end-to-end digital platform to ensure transparency and efficiency."The reinstatement of RoDTEP benefits for special export categories reflects the government's continued commitment to creating a conducive, competitive, and compliant export ecosystem that drives India's long-term trade growth," it on the move, economic think tank GTRI said the government did not allow RODTEP benefits for these groups for exports made between February 5 and May 31, 2025."The government's stop-and-start approach to RoDTEP undermines the scheme's purpose," Global Trade Research Initiative (GTRI) founder Ajay Srivastava RoDTEP is a WTO-compliant way to refund embedded duties paid by exporters, its repeated withdrawal for AA holders, EOUs, and SEZs creates serious uncertainty, he said."Exporters struggle to price products or plan long-term deals when they cannot rely on steady refunds. While the reinstatement of benefits is welcome, it raises a bigger issue: why were they cut off mid-cycle at all? To position India as a stable and competitive export hub, the government must ensure uninterrupted RoDTEP coverage for at least five years," he said.
New Indian Express
27-05-2025
- Business
- New Indian Express
Govt reinstate duty remission scheme for SEZs
Operational since 1st January 2021, the RoDTEP scheme is designed to reimburse exporters for embedded duties, taxes, and levies that are not otherwise refunded under any other existing scheme. The scheme intends to compensate all central, state and local taxes levied on the exported products. RoDTEP is compliant with World Trade Organization (WTO) norms and is implemented via a comprehensive end-to-end digital platform to ensure transparency and efficiency. The commerce ministry informed that total disbursements under the RoDTEP scheme have crossed Rs. 57,976.78 crore as of 31 March 2025, underscoring its significant role in supporting India's merchandise exports. For 2025–26, the Government has allocated Rs. 18,233 crore under the scheme. 'The reinstatement of RoDTEP benefits for special export categories reflects the government's continued commitment to creating a conducive, competitive, and compliant export ecosystem that drives India's long-term trade growth,' says the commerce ministry. However, Ajay Srivastava, founder, Global Trust Research Initiative (GTRI), the government's stop-and-start approach to RoDTEP undermines the scheme's purpose. 'Although RoDTEP is a WTO-compliant way to refund embedded duties paid by exporters, its repeated withdrawal for AA holders, EOUs, and SEZs creates serious uncertainty. Exporters struggle to price products or plan long-term deals when they cannot rely on steady refunds,' he says.
