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. 

MEIS has since been withdrawn w.e.f. 1st January, 2021. A new Scheme called Remission of Duties and Taxes on Exported Products (RoDTEP) has been introduced which shall refund the embedded duties suffered in export goods. For details, please Click Here.  The FAQs on RoDTEP can be viewed here (CLICK HERE)

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).

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

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

Services Sector

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 year of rendering service is the eligibility criteria. For Individual Service Providers and Sole Proprietorship minimum USD 10,000/- in the year of rendering service.

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.


 

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 Authorization

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.

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 Advance Authorisation. However, as per Notification No. 33 dated 28.09.2021, imports under Advance Authorisation have been exempted from IGST and Compensation Cess till 31.03.2022.

Special Advance Authorization Scheme for export of Articles of Apparel & Clothing Accessories has been introduced for duty free import of fabric, subject to the specified conditions.

Under Self Ratification Scheme, eligible exporter, on self-declaration and self-ratification basis, can apply for an Advance Authorisation where there is no SION/valid Adhoc Norms for an export product and where SION has been notified but exporter intends to use additional inputs in the manufacturing process. 

 

Imports under Advance Authorization would now also be exempted from Transition Product Specific Safeguard Duty and Countervailing Duty.

Advance Authorization for annual requirements would only be issued for items notified in SION and it shall not be available in cases of adhoc norms.

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%.

DFIA will be exempted only from payment of Basic Customs Duty and minimum value addition of 20% will be required to be achieved.

Duty Free Import Authorization (DFIA) will be issued only on post export basis separately for each SION and each Port and it will not be issued for an export product where SION prescribes ’Actual User’ condition for any input.

Exports under DFIA shall be made from a single Port and Regional Authority shall issue transferable DFIA with a validity of 12 months from the date of issue. No further revalidation shall be granted by Regional Authority.

Duty Drawback Scheme

The scheme is administered by Department of Revenue which has two components viz-a-viz: All Industry Rate (AIR) and Brand Rate. It comes under Duty Remission Scheme. Under the Scheme, Duty Drawback as per specified rates in Schedule of All Industry Rate of Drawback is granted. Exporter has the option to avail the benefit by getting fixation of Brand Rate on an application in the prescribed format.

Rebate on State and Central Taxes and Levies (RoSCTL)

The Scheme was notified by the Ministry of Textiles on 07.03.2019 to be implemented by DGFT. The Scheme will rebate all embedded State and Central Taxes/levies for meant for exports of made-up articles & garments. Under the RoSCTL, the benefit to exporters shall be given by DGFT in the form of transferable duty credit scrips.


 
 
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. 33/2015-20 dated 28.09.2021, 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, 2022.


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.


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