A Reference to SEZs or Special Economic Zones in any country
Recently, trade barriers and trade embargoes has caused a lot of pain in the world that has drawn an attention to WTO on the trade imbalances of any country. Here are some pointers that can create a new trade path.
- Compensation for unrelated indirect taxes paid by exporters can have an exemption on imports, higher freight rates, market development costs, for a variation of products across the entire gamut. Basically, it entitles any country to introduce allowances for greater taxes paid, mainly indirect.
- Duty Drawback System in lowering of tariffs for products, which reimburse exporters for tariffs paid on domestically produced inputs which enter into export production, leading to the dilution of excise duties on inputs to lower the cost of production. The duties that are levied also depend on the type and group of products exported.
- Replenishment of licences leading to an Import Entitlement Scheme for processing imported raw materials and other components necessary for export production. Granting import licences, fetching import premium, can affect pro rata basis for the value of exports affected.
- EOUs or Export Oriented Units can set up Export Processing Zones or EPZs to provide almost non-free trade agreement to make export quality products competitive in the world market. EOUs are understandings to create units for exports which serve SEZs.
- IPRS or International Price Reimbursement Scheme for steel, aluminium and iron-ore, including basic chemicals as potash, manganese and bauxite needed for construction can obtain non-domestic tariffs optimal to the savings against imports, for local use. Basic construction goods can cater to internal needs based on demands.
- Fiscal Concession of Exports can take two forms- related to the payment of indirect taxes or direct taxes, and the tariff fees based on the payment of direct and indirect taxes, with a export house catering to better rebates for higher income and indirect taxes and subsequent dilution of direct taxes.
- DDS or Duty Drawback Compensation to create the regime of cash compensatory support that seeks to reimburse indirect fares that are not refunded through DDS or Duty Drawback Scheme. The second type of compensation can be incorporated in income tax provisions, whose earnings from exports can be partially exempted from income tax or taxed at a significantly lower rate.
- Export Promotion Councils would essentially undertake market research, commodity pricing, area survey, internal commutation, leading to trade delegation and teams to an active participation of trade fairs, to establish branches outside any country to market goods, services or products.
- EPZs and 100 percent of EOUs would provide almost free trade environment for marketing goods, specific to a local host in a region, not imposing trade barriers abroad for non-trade protectionism, albeit free trade is just a concept imminently.
- Blanket Exchange Permit Scheme can be introduced by the host government, to give a major thrust to the country’s export promotion drive, where exporters were allowed to utilize 10-15 percentage of their foreign exchange earned to undertake promotion activities, with a shield provided for special products, goods or services for exchange of trades under special clauses.