Exporters Corner
MAJOR GOVERNMENT SCHEMES FOR EXPORT PROMOTION IN INDIA:
I. Schemes run by Director General of Foreign Trade (DGFT):
1) Merchandise Exports from India Scheme (MEIS Scheme): Under this scheme, an incentive of 2% to 5% of the FOB value of exports to any country in the world is provided to the merchant as well as manufacturer exporters. For details and to apply, please visit: https://www.dgft.gov.in/CP/?opt=meis
2) Service Export from India Scheme (SEIS Scheme): Under this scheme, an incentive of 3% to 7% of Net foreign exchange earnings is provided to services exporters of notified services in India. It requires the service providers to have an active Import-Export Code (IEC Code) with minimum net foreign exchange earnings of 15,000 USD to be eligible to claim under the scheme. For details and to apply, please visit: https://www.dgft.gov.in/CP/?opt=seis
3) Duty exemption scheme:
(i) Advance Authorisation Scheme (AAS): This scheme allows duty-free import of raw materials required for the production of export goods. For details and to apply, please visit: https://www.dgft.gov.in/CP/?opt=adnavce-authorisation
(ii) Duty-Free Import Authorisation (DFIA Scheme): This scheme is a post-export Advance Authorisation Scheme. It allows duty-free import after the export is made. For details and to apply, please visit: https://www.dgft.gov.in/CP/?opt=adnavce-authorisation
4) Duty Remission schemes:
(i) Duty Drawback (DBK) Scheme: In this scheme, duties of customs & central excise that are chargeable on imported and indigenous materials used in the manufacture of exported goods are refunded back. For details, please visit: https://aepcindia.com/system/files/pdf/Duty%20Drawback_0.pdf
(ii) Scheme for Rebate on State and Central Taxes and Levies (RoSCTL Scheme): This scheme is only applicable to the Apparels & made-up Industry. It gives a refund of State and Central Taxes and Levies such as VAT on transportation fuel, Captive Power, Mandi Tax, Electricity Duty. Etc. For details and to apply, please visit: https://www.dgft.gov.in/CP/?opt=rosctl
5) Export Promotion Capital Goods Scheme (EPCG Scheme): Under the EPCG Scheme, Manufacturer exporter or a merchant exporter tied with a supporting manufacturer can import capital goods/machinery required for pre-production, production & post-production of export goods at 0% duty. For details and to apply please visit: https://www.dgft.gov.in/CP/?opt=epcg
6) EOU Scheme: The EOU scheme aims to provide a favourable ecosystem to the companies indulging in 100% exports by giving them certain waivers and concessions in compliance and taxation matters, thereby making it easier for them to conduct business. The major benefits of the EOU Scheme are –No Import duties while procuring raw materials or capital goods, faster custom clearance facilities, it can be set up anywhere in the country, unlike an SEZ unit. For details, please visit: http://dgftcom.nic.in/exim/2000/policy/hbppol1/2009-2010/chap06.htm
7) Transport and Marketing Assistance Scheme (TMA Scheme): Under this scheme, freight cost of Indian Agricultural Products up to a certain amount is reimbursed by the Govt. For details and to apply, please visit: https://www.dgft.gov.in/CP/?opt=tma
8) Deemed Export Benefits: Deemed Export supplies are entitled to get any/or all of the following benefits –(a) Advance Authorisation/DFIA; (b) Deemed Export Duty Drawback; (c) Refund of terminal excise duty. Following supplies are considered as Deemed Exports –(a) Supply of goods against Advance Authorisation / Advance Authorisation for annual requirement /DFIA; (b) Supply of goods to EOU / STP / EHTP /BTP Units; (c) Supply of capital goods against EPCG License. For details, please visit: http://dgftcom.nic.in/exim/2000/policy/chap-08.htm
9) Star Export House/Status Holder Certificate: This is a kind of recognition/certification given by the Govt. of India to eligible exporters who have achieved certain export turnover/performance. Star export house holders / Status holders are eligible for certain privileges like faster customs clearances, exemption from compulsory negotiation of documents through banks, exemption from furnishing bank guarantee required for various export promotion schemes, it also helps to get GR Waiver, preference in the payment of Import duties., etc among a lot of other benefits. For details, please visit: http://dgftcom.nic.in/exim/2000/policy/chap-03.htm
II. Schemes run by RBI:
1. Gold Card Scheme: This Scheme provides for a credit limit for three years, automatic renewal of credit limit, additional 20% limit to meet sudden need of exports on account of additional orders, priority in PCFC, lower charge schedule and fee structure in respect of services provided by Banks, remeislaxed norms for security and collateral etc. A Gold Card under the Scheme may be issued to all eligible exporters including those in the small and medium sectors who satisfy the pre-requisite conditions laid by individual Banks. For details, please visit: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=11605&Mode=0
2.InterestEqualizationscheme(IES): Also known as an Interest subvention scheme provides pre and post-shipment export credit to exporters in rupees. The Scheme provides 5% Interest support to all manufacturers in the MSME Sector and 3% support to all exporters (including Merchant exporters and large scale industries) in respect of the identified 416 tariff lines. For details, please visit: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11887&Mode=0
III. Schemes by Uttar Pradesh Export Promotion Bureau Uttar Pradesh:
The following are the schemes run by the Uttar Pradesh Export Promotion Bureau. For details, and to apply, please visit https://epbupindia.in/
1. MDA Scheme: The scheme aims to encourage exporters (including MSME exporters) to access and develop overseas markets. The scheme offers funding for participation in international fairs, study tours abroad, trade delegations, publicity, etc.
2. Freight Subsidy scheme: This scheme gives assistance against expenses incurred on freight charges for sending goods for exports, through State ICD/CFS upto the gateway port
3. Air Freight Subsidy scheme: This scheme gives subsidy on Export Cargo sent by Air Cargo Complex in U.P. (Amausi, Lucknow and Babatpur, Varanasi) at the rate of 20% of freight charges or 50/-per Kg. whichever is less. upto the limit of 2.00 lacs per unit per annum.
4. Assistance to States for Developing Export Infrastructure and Allied Activities (ASIDE) scheme is formulated to involve the States in the export effort by providing assistance to the States Governments for creating appropriate infrastructure for the development and growth of exports.
5. State Export Award: Given by Govt of U.P. to Outstanding exporters of the State in each of 25 specified categories. Application form available with DC, DIC office/ EPB office/ EPB website.
IV. GST refund benefits for exporters: Exporters are given a host of preferential facilities under the GST Act:
(i) LUT Bond Facility–Exporters can export goods without paying any GST by obtaining a letter of undertaking/bond.
(ii) IGST Refund–Exporters can export goods “on payment of GST” and claim the refund of the same from the Customs Department.
(iii) 1% GST benefit for Merchant Exporters.–Merchant exporters/traders can obtain goods meant for export from the domestic supplier at a 0.1% concessional GST rate. This reduces the burden of GST & solves the working capital issues for merchant exporters to a great extent.
V) NIRVIK Scheme
This Scheme provides higher insurance cover, reduced premium for small exporters, and a simplified claim settlement process. It is primarily an insurance cover guarantee scheme that provides a cover of up to 90% of principal and interest as against the current credit guarantee of only up to 60% loss. The cover will include both the pre and post-shipment export credit. This scheme will ensure that the foreign and rupee credit interest rates will stay below 4% & 8% respectively. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1601493
VI. Schemes by APEDA:
The Agriculture & Processed Food Products Export Development Authority (APEDA) provides various incentives to the exporters in terms of financial assistance, infrastructure development, market development, etc. These schemes can be found out from the following links:
1. The details of the scheme for Financial Assistance can be found out from the following link: https://apeda.gov.in/apedawebsite/trade_promotion/Development_of_Infrastructure.htm
2. The details of the scheme for Financial Assistance can be found out from the following links: https://apeda.gov.in/apedawebsite/trade_promotion/Financial_Assistance_Schemes-Archive.htm
3. The details of the scheme for quality development can be found out from the following link: http://apeda.gov.in/apedawebsite/trade_promotion/Quality_Development1.htm
4. The details of the scheme for market development can be found out from the following link: http://www.apeda.gov.in/apedawebsite/trade_promotion/Market_Development1.htm
5. The details of the scheme for transport assistance can be found out from the following link: http://apeda.in/agriexchange/Market%20Profile/one/SCHEMES_FOR_TRANSPORT_ASSISTANCE.aspx
VII. Scheme by export promotion councils:
Market Access Initiative (MAI Scheme): Individual exporters get benefit through their respective Export Promotion Councils in two areas :a) Reimbursement of Airfare for International Events –Maximum of Rs. 70,000/-(Individual ceiling) (Rs.1,00,000/-for LAC countries) and b) Statutory compliances in the buyer Country –Maximum ceiling of Rs. 50 Lakh per annum per exporter on a 50-50% sharing basis. For details, please visit: https://www.epch.in/index.php?option=com_content&view=article&id=275&Itemid=367
http://www.fisme.org.in/export_schemes/DOCS/B-1/MARKET%20ACCESS%20%20INITIATIVE%20SCHEME.pdf
Important Links:
1) Website of Director General of Foreign Trade:
2) Website of Agriculture & Processed Food Products Export Development Authority:
https://apeda.gov.in/apedawebsite/
3) Website of Federation of Indian Export Organization (FIEO):
4) Link to various export promotion councils in India:
https://www.fieo.org/view_section.php?lang=0&id=0,34,551
5) Website of export promotion Bureau, UP