Federal government Announces Relief Package For Exporters

After witnessing a huge contraction in export orders for recent months, Indian micro, small and medium enterprises (MSMEs) in the export sector has decided to receive much needed relief.

In an make an effort to reduce the economic pressure, the United Progressive Alliance (UPA) led government recently unveiled a special package worth Rs 325 crore to relief to the export segment. This move is certainly going to benefit the employment-intensive export sectors such as leather, gems & jewelery and fabrics.

Under the Udyog Aadhar New Registration in India package, procedural formalities for claiming duty drawback refund and refund of terminal excise duty already been simplified to help MSME exporters prune high transaction service fees.

Measures like quick settlement of duty credit scrips to be issued ahead of this realization of export proceeds and extension of scrips for import of even restricted items after payment of duty is expected to facilitate greater position.

In order encourage trade facilitation, the government has also extended a provision minimize export obligations using the decline in exports.

Export incentives for items like technical textiles, stapling machine and handmade carpets have been provided during the recently announced export package deal.

The de-linking of grant of benefit under the obligation entitlement pass book (DEPB) scheme is another incentive that would help the MSME export segment tide over the crisis.

In order to promote trade facilitation, the government has also extended a provision to reduce export obligations in line with decrease in exports.

Export incentives for such things as technical textiles, stapling machine and handmade carpets have also been provided within the recently announced export stimulus package.

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