UP becomes first state to introduce Excise Export Policy

Uttar Pradesh has become the first state in the country to introduce an Excise Export Policy for three financial years to enhance ethanol exports and boost investment in potable liquor manufacturing to make its presence felt in the international market.

The state cabinet approved the policy to fulfil the following objectives:-

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– Increase production of ethanol and other related products for export based on local agriculture-related grains and fruits to industries.

– To encourage industrial investment for potable liquor exports and to expand ancillary sectors such as distilleries, packaging, logistics and export services, thereby generating significant direct and indirect employment and thereby enriching the state’s economy.

– To strengthen the position of Uttar Pradesh in international markets by increasing the volume of export of potable liquor.

-To try to establish Uttar Pradesh as a catalyst for increasing the foreign exchange reserves of India.

Officials said here on Thursday that to promote exports, the rates of bottling charges, export pass fees, franchise fees and special fees have been reduced to the minimum level for exports equivalent to 25 per cent of the beverage capacity prescribed under the Excise Export Policy.

Besides, the provisions for brand registration and label approval for liquor brands intended for export have been relaxed, and the fee rates have been reduced to a minimum.

In accordance with the provisions of the policy, the export duty on molasses-based ENA within the country has been reduced to Rs 0.50 per bulk litre.

Lastly, provisions have also been made for distilleries to manufacture heritage wines for export, as well as to allow tasting taverns and retail sale.