Page 238 - DECO303_INDIAN_ECONOMY_ENGLISH

Unit 14: Tertiary Sector in the Indian Economy

5. Phased Manufacturing Programme: PMP, as per which organisations were needed to Notes
substitute all the imported portions with Indian parts in a stated period, was abolished.
6. Trading House: In 1991, the policy permitted export houses and trading houses to import
a broad range of items. The government also allowed the setting up of trading houses
with 51% foreign equity for the reason of promoting exports. Under the 1992-97 trade
policy, export houses and trading houses were offered the advantage of self-certification
under the advance license system, which allows duty free imports for exports.

7. Export Oriented Units (EOUs), Electronic Hardware Technology Parks (EHTP), Software
Technology Parks (STPs) and Bio-Technology Parks (BTPs): The units undertaking to
export their whole production of goods and services (excluding permissible sales in
Domestic Tariff Area {DTA}), may be establish under the Electronics Hardware Technology
Park (EHTP) Scheme, Export Oriented Unit (EOU) Scheme, Software Technology Park
(STP) Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods, involving
repair, reconditioning, re-making, reengineering and rendering of services. Trading units
are not included under these schemes.
An EOU/EHTP/STP/BTP unit may import and/or procure, from Domestic Tariff Area
(DTA) or bonded warehouses in DTA/international exhibition organised in India, without
payment of duty, all kinds of goods, involving capital goods, required for its activities,
offered they are not banned items of import in the ITC (HS). Any permission needed for
import under any other law shall be applicable to these goods. Units shall also be allowed
to import goods including capital goods needed for sanctioned activity, free of cost or on
loan/lease from clients. Import of capital goods will be on a self-certification basis.

Notes Goods imported by a unit shall be in actual user condition and shall be utilized for
export production. State Trading regime shall not apply to EOU manufacturing units.

EOU/EHTP/STP/BTP units may import/procure from DTA, without payment of duty,
certain specified goods for creating a central facility. Software EOU/DTA units may use
such facility for export of software.
8. Free Trade & Warehousing Zones: The Free Trade & Warehousing Zones (FTWZ) shall be
an exclusive category of Special Economic Zones with an emphasis on trading and
warehousing. The goal of FTWZ is to create trade-related infrastructure to enable the
import and export of goods and services with freedom to conduct trade transactions in
free currency. The scheme envisions the creation of world-class infrastructure for
warehousing of several products, state-of-the-art equipment, transportation and handling
amenities; commercial office-space, water, power, communications as well as connectivity;
with one-stop clearance of import and export formality and to help the integrated zones as
‘international trading hubs’. These Zones would be set up in the adjacent regions to seaports,
airports or dry ports so as to provide easy access by rail and road.
9. Deemed Exports: Deemed Exports depict those transactions in which goods supplied do
not leave country, and payment for such supplies is gained either in Indian rupees or in
free foreign exchange. Below mentioned categories of supply of goods by main/
subcontractors shall be considered as “Deemed Exports” under FTP, offered goods are
manufactured in India:
(i) Supply of goods against Advance Authorisation/Advance Authorisation for annual
requirement/DFIA;

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