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Export Benefits

PROMOTIONAL SCHEMES

In the Foreign Trade Policy 2015-20, under Export from India Schemes, there are two Schemes for exports of merchandise and services viz.:

 

(i) Merchandise Exports from India Scheme (MEIS); and

(ii) Service Exports from India Scheme (SEIS)

 

The objective of MEIS is to offset infrastructural inefficiencies and associated costs involved in export of goods/products, which are produced/ manufactured in India, especially those having high export intensity, employment potential and thereby enhancing India’s export competitiveness. Similarly, the objective of SEIS is to encourage export of notified Services from India. 

 

Some of the main features of these Schemes are as under:
 




MEIS






The MEIS Entitlement would be 2% / 3% / 5% / 7% of FOB value of notified goods exported to notified markets [based on three distinct categories framed and covered in Appendix 3B] in free foreign exchange or FOB value of exports as given in the Shipping Bills in free foreign exchange, whichever is less.






Country Groups - Category A: Traditional Markets (30) - European Union (28), USA, Canada. Category B - Emerging & Focus Markets (139), Africa (55), Latin America and Mexico (45), CIS countries (12),Turkey and West Asian countries (13), ASEAN countries (10), Japan, South Korea, China, Taiwan and Category C: Other Markets (70).






SEZ






Units located in SEZs have also been made eligible for MEIS & SEIS benefit.


 






Services Sector






Export of goods through Courier or Foreign Post Offices using e-Commerce (as notified in Appendix-3C) of FOB value only uptoRs. 5,00,000/- per consignment are entitled for rewards under MEIS.






Under SEIS, Service providers of notified services (under Appendix 3D) will be eligible for rewards in the form of duty credit scrips @ 5% and 7% on the net foreign exchange earned from notified services (w.e.f. 05.12.2017).






Only services provided in the manner/mode specified at Para 9.51 (i) & (ii) are eligible, i.e. Supply of a ’service’ from India to any other country (Mode 1-Cross border trade) and Supply of a ’service’ from India to service consumers of any other country (Mode 2- Consumption abroad).






Minimum net free foreign exchange earnings of USD 15,000 in the preceding year is the eligibility criteria. For Individual Service Providers and Sole Proprietorship minimum USD 10,000/-.






Duty Credit Scrip






Basic Custom duty paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback benefits.






As per Trade Notice No. 11 dated 30/06/2017, under the GST regime, the Duty Credit Scrips cannot be used for payment of IGST, GST and Compensation cess in inputs and CGST/SGST/IGST, GST and Compensation cess for domestic procurement






Duty Credit Scrip issued on or after 01.01.2016 under Chapter 3 shall be valid for a period of 24 months from the date of issue and must be valid on the date on which actual debit of duty is made.






MAI






Market Access Initiatives (MAI) Scheme to act as a catalyst to promote exports on a focus product- focus country approach, so as to evolve specific markets and products through market studies/surveys.


 

 

STATUS HOLDER

Status Holder Scheme is for business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade.

An applicant shall be categorized as status holder on achieving export performance during the current and previous three financial years (for Gems & Jewellery Sector the performance during the current and previous two financial years shall be considered for recognition as status holder) as under:





Status Category






Export Performance FOB/FOR


(as converted) Value


(in US $ million)






One Star Export House






3






Two Star Export House






25






Three Star Export House






100






Four Star Export House






500






Five Star Export House






2000


 
  
Privileges of Status Holders

A Status Holder shall be eligible for privileges as under:





Provision for self-declaration





Authorisation   and   Customs   Clearances   for   both imports   and   exports  may   be   granted   on   self-declaration basis;





Input-Output Norms





Input-Output norms may be fixed on priority within 60 days by the Norms Committee





Banking related provisions





Exemption from furnishing of Bank Guarantee for schemes under FTP, unless specified otherwise anywhere in FTP or HBP





Exemption from compulsory negotiation of documents through banks. Remittance / receipts, however, would be received through banking channels





Two star and above





Two star and above Export houses shall be permitted to establish Export Warehouses as per Department of Revenue guidelines.





Three star and above





Three Star and above Export House shall be entitled to get benefit of Accredited Clients Programme (ACP) as per the guidelines of CBEC (website:http://cbec.gov.in).





Preferential treatment in handling of consignments





The status holders would be entitled preferential treatment   and   priority   in   handling   of their consignments by the concerned agencies.





Provision for self certification of manufactured goods





Manufacturers who  are  also  status  holders (Three Star/Four Star/Five Star) will be enabled to self-certify their manufactured goods (as per their IEM/IL/LOI) as originating from India  with a  view to qualify  for preferential  treatment  under  different  preferential Trading agreements(PTA),  Free Trade  Agreements (FTAs),   Comprehensive  Economic Cooperation Agreements (CECA)  and Comprehensive  Economic Partnership Agreements (CEPA). Subsequently, the scheme may be extended to remaining Status Holders.





Manufacturer exporters who are also Status Holders shall be eligible to self-certify their goods as originating from India as per para 2.108 (d) of Hand Book of Procedures.





Freely exportable items





Status holders shall be entitled to export freely exportable items (excluding Gems and Jewellery, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit of Rupees One Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower.





Export of Pharma Products





For export of pharma products by pharmaceutical companies, the annual limit would be 2% of the average annual export realization during preceding three licensing years.





In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes. The annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years. Such free of cost supplies shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme. 

 
 
DUTY EXEMPTION/REMISSION SCHEME.

This Scheme enables exporters’ duty free import of inputs for export production, including replenishment of input or duty remission. 
 
The Duty Exemption Scheme consists of the following:
 

 



Advance Authorisation (AA) (including Advance Authorisation for Annual Requirement)











Allow duty free import of input, physically incorporated in export product, on the basis of Standard Input Output Norms (SION) or Self Declaration. Minimum 15% value addition is required to be achieved. Period for fulfillment of export obligation is 18 months from the date of issue of Authorization.


 



Duty Free Import Authorisation (DFIA)











Issued to allow duty free import of inputs and is exempted only from payment of Basic Customs Duty. Additional Customs Duty/Excise Duty paid may be adjusted as CENVAT credit. Value addition required 20%.

 
 
EPCG SCHEME  
 
EPCG Scheme allows import of capital goods for pre-production, production and post-production at Zero customs duty. As per Trade Notice No. 11 dated 30.06.2017 under GST Regime, no exemption from payment of IGST and Compensation Cess would be available for imports under EPCG. However, as per Notification No. 57/2015-20 dated 20.03.2019, Capital goods imported under EPCG scheme for physical exports are also exempt from whole of the Integrated Tax and Compensation Cess leviable thereon upto 31st March, 2020.

DUTY DRAWBACK OF CUSTOMS

The scheme is administered by Department of Revenue. Under this scheme products made out of duty paid inputs are first exported and thereafter refund of duty is claimed in two ways:

i) All Industry Rates :   As per Schedule

ii) Brand Rate          :   As per application on the basis of data/documents


TOWNS OF EXPORT EXCELLENCE (TEE)

Selected towns producing goods of Rs. 750 crores or more are notified as TEE on potential for growth in exports and provide financial assistance under MAI Scheme to recognized Associations.


INTEREST EQUALIZATION SCHEME

The Government announced the Interest Equalisation Scheme @ 3% per annum for Pre and Post Shipment Rupee Export Credit with effect from 1st April, 2015 for 5 years available to all exports under 416 tariff lines [at ITC (HS) code of 4 digits] and exports made by Micro, Small & Medium Enterprises (MSMEs) across all ITC(HS) codes.  With effect from November 2, 2018, the rate of Interest Equalisation for MSME has been increased to 5%.  The Scheme has also been extended to Merchant Exporters who can avail the benefit @ 3% for all exports under 416 tariff lines w.e.f. January 2, 2019.  


GOLD CARD SCHEME

The Gold Card Scheme was introduced by the RBI in the year 2004. The 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, relaxed 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.


REBATE OF STATE AND CENTRAL TAXES & LEVIES (RoSCTL) SCHEME

The objective of the scheme is to rebate all embedded State and Central Taxes/levies suffered by exporters in exporting made-up articles & garments. The rebate will be provided in the form of transferable / sellable duty credit scrips (licences) based on FOB value of exports in free foreign exchange by DGFT for exports made from 07.03.2019.


TRANSPORT AND MARKETING ASSISTANCE FOR SPECIFIED AGRICULTURE PRODUCTS SCHEME

(TMA) scheme aims to provide assistance for the international component of freight and marketing as well as to mitigate disadvantage of higher cost of transportation of export of specified agriculture products to specified destinations/countries due to trans-shipment and to promote brand recognition for Indian agricultural products in the specified region.


CUSTOMS

Facilities like 24X7 customs clearance, single window, self - assessment of customs duty, prior filing facility of Bill of Entry etc. are available to facilitate exports.



 

 
 
Export Benefits