Sops unveiled for exporters

Measure

Finance ministry
package

Commerce ministry
suggestions

Duty Drawback

Enhanced by up to 3% age points

Enhance by 5% age points

Interest on Pre- and Post-shipment credit

Reduction by
2%age points

Reduction by 5%age points
to a flat 6%

EEFC account

No action taken

Make it interest bearing

Arrears on TED and CST reimbursement

Monthly and quarterly
ceiling scrapped,
Rs 600 crore allotted

Release extra funds and|clear pending requests

Service tax
exemption

No action taken

Notification should
be issued

 While the benefits of the lower interest rates on pre- and post-shipment credit will be applicable to all small and medium exporters, who account for nearly 90 per cent of the community, nine sectors including textiles, toys and ready-made goods will also be eligible for it. The relief will be available from April 1, 2007 to December 31, 2007.  Rates for duty drawbacks