export incentives

export incentives

the financial assistance given to domestic firms by the government as a means of promoting EXPORTS and assisting the country's balance of payments. Export incentives include direct subsidies to lower export prices (EXPORT SUBSIDY), tax concessions (remission of profits earned on exports), credit facilities (cheap export finance) and financial guarantees (provision for bad debts, etc.). Export incentives are often viewed as an

‘unfair’ trade practice by other countries and frequently result in retaliatory action being taken by them. See COUNTERVAILING DUTY, BEGGAR-MY-NEIGHBOUR POLICY.

References in periodicals archive ?
Tim Brightbill, a trade lawyer from Wiley Rein LLP in Washington representing the industry, said in March that Chinese exporters get double-digit subsidy margins based on the number of programs supporting their domestic industry, including discounted land, electricity, raw materials, grants, discounted loans and export incentives.
In October 2016, the Cabinet of Ministers approved the procedure for paying export incentives to persons involved in the export of non-oil products.
Containers - Pixabay CAIRO - 5 August 2019: The government will pay back LE1.5 billion worth of overdue incentive amounts to exporters every three months so that the annual total hits LE 6 billion in fulfillment to the new export incentives program agreed upon with concerned entities early in July.
The performance of exports in FY2019 has not been promising despite the number of export incentives. This may be due to the slow pace of global trade especially the trade war between US-China that has created uncertainty in trade flows.
However, this has been largely offset by the generous export incentives provided including larger export rebates, withdrawal of import duties on inputs of raw materials and intermediate goods and, more recently, the issuance of promissory notes against refunds due along with subsidies on gas and electricity consumed.
To fire the four engines of consumption, investment, government spending and exports, it is essential to reduce income tax burden and expand the scope of investment allowance to all sectors including services sector, mining, electricity generation, infrastructure service providers, agriculture and agro-processing sector, said Kirloskar, adding that there is a need for higher export incentives to help Indian exporters address the cost disadvantage in global markets.
He is of the opinion that carpet exporters can be supported duly with granting export loans, considering facilities for repayment of these loans, offering export incentives and facilitating trade relationship with other countries.
THE Export Marketing Bureau (EMB) of the Department of Trade and Industry (DTI) offers free accreditation of exporters under the Export Development Act's (EDA) export incentives provision.
Export incentives under MEIS increased in respect of certain agricultural items:
Abbas noted that Egypt's current presidency of the African Union will stimulate the exports of the construction sector to Africa, adding that the ministry seeks to provide export incentives to support the sector.
The main export incentives in India are: special tax deduction for approved export promotion expenses, drawback of tariffs and excise taxes, preferential grant of import licenses, special foreign exchange allocations for raw materials and components, and tax credit certificates.
There is also a need to end the culture of writing cheques for exporters in the name of export incentives without first creating exportable surplus.

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