NEW DELHI: The Export Promotion Council for EOUs and SEZs (EPCES) on Friday said that the manufacturing exports from Special Economic Zones (SEZs) have decreased around 45% on-year till June even as software and service exports grew 5%.
Manufacturing exports from the units were Rs 41,699 crore till June compared to Rs 75,346 crore in the same period last year. Software and services exports rose to Rs 1.11 lakh crore till June 2020 from Rs 1.05 lakh crore last year.
India’s exports contracted 10.2% in July at $23.64 billion while imports dipped 28.4% to $28.47 billion.
The council suggested that as part of Atmanirbhar Bharat mission, SEZs and export-oriented units (EOU) should be allowed to manufacture goods and supply them to domestic market without any import duties. At present import duties are imposed on all supplies from SEZ units to domestic market. It also said that these goods manufactured in SEZ and EOUs and supplied to domestic market should be treated as exports as import substitution.
“These imported goods may include defense products, health products and other non-essential goods, which can be identified,” the council said in a statement on Friday.
It sought permission for job work by SEZ units for units in domestic area for better capacity utilisation especially during the ongoing pandemic, exemption for manufacturing units from payment of lease rentals and integration of SEZ online with ICEGATE system of Customs.
Citing uncertainty about incentives under Merchandise Exports from India Scheme (MEIS), the council said that benefits under the MEIS and Rebate of State and Central Taxes and Levies (RoSCTL) schemes should be extended to apparel/ garment sector for exporters in SEZ and EOUs.
“It will be difficult for the exporters to properly price their products now which would be exported post December 31, 2020,” EPCES said.
The government has capped the benefits under the MEIS at Rs 2 crore per exporter on exports made between September 1-December 31, 2020 without changing the coverage of the scheme and the applicable rates. It also said that the new Import Export Code (IEC) obtained on or after September 1 will be ineligible to submit any MEIS claim for exports, and the ceiling would be subject to a downward revision to ensure that the total claim doesn’t exceed the allocated Rs 5,000 crore for the period.