Latest Export Promotion Schemes or Export Incentives in India

Indian Foreign Trade Policy – Duty Exemption schemes and Export Incentives!

For a developing country like ours, India, poor infrastructure, cost of credit, and the other associated costs bring down poor export performance.

Alas! The cost of export goods in India is too high in bars. Of course, the government had to consider ways to make up for the deficit once it realized the importance of export and their causes. And, Hereafter, India’s different Duty exemption schemes, and export incentives come into the picture.

Today, we are here to learn them all. So let’s start!

Merchandise Export From India Scheme (MEIS) –

Under this scheme, the exporters will likely enjoy an incentive of 2-5 percent on the export FOB value without considering the annual turnover! However, you must remember that the incentive value would vary depending on the export product.

Benefits under MEIS for any item/tariff line /HS Code listed in Appendix 3B, Table 2 (MEIS Schedule) were available only up to 31.12.2020;

Service Export from India Scheme (SEIS) –

With the pursuit of encouraging & maximizing notified service export from India, SEIS took the stage and listed all those services under eligibility that already exist in appendix 3D/3E/3X.
Do you know that this scheme offers a 3-7 percent incentive on the Net Foreign Exchange Earnings? That’s right!
Please refer to the below link for more details of this scheme: –
https://www.enrichservices.in/dgft-best-service-exports-from-india-scheme-consultants.html

Status Holder Certificate or Star Export House –

This certificate will be issued based on the export performance of the exporter. Following are the Categories of the Status holder certificates: –

In this regard, a status holder can enjoy – 1) A GR Waiver, 2) A Faster Custom Clearance, 3) Preferences in the payment method of import duties, 4) An Exemption from compulsory documentation via banks, etc.

Scheme for Rebate on State & Central Taxes and Levies (RoSCTL) –

This scheme, only applicable to the Apparel industry & other made-up industries included in Chapters 61, 62, and 63 of ITC, aims to allocate refunds of the taxes & levies charged by a state or central government.

Rebate of Duties & Taxes on Export Products Scheme (RoDTEP) –

This scheme emerged as a replacement for the old MEIS scheme to comply with WTO norms. Rates under RoDTEP notified vide Appendix 4R w.e.f. 01.01.2021.
It seeks to refund the taxes & levies, all of that was kept hidden and not refunded earlier under any of the incentive schemes.
Here,
The application process for this scheme is more or less like the MEIS scheme only. However, with a different set of incentive percent!

Advance Authorization Scheme (AAS) –

The introduction of this scheme is more associated with the allowance of duty-free imports, particularly of the raw materials that are requisite for producing export goods. In other words, you get the opportunity to receive raw materials from foreign countries at 0 percent duty only when the items are necessary for manufacturing export goods.
You can avail following types of Advance Authorisations: –
(i) As per Standard Input Output Norms(SION)notified(available in Hand Book of Procedures);
(ii) On the basis of self-declaration as per paragraph 4.07 of Handbook of Procedures.
(iii) Applicant-specific prior fixation of the norm by the Norms Committee
(iv) On the basis of Self Ratification Scheme in terms of Para 4.07A of Foreign trade policy.

Duty-free Import Authorization Scheme (DFIA) –

Similar to the Advance Authorisation scheme, the purpose of deriving duty-free imports of raw materials remains to stand!
But,
Contrary to the AAS scheme, this one is a post-export scheme where duty-free import is allowed only when the export of goods is complete.
If you are ready, file for the scheme at the DGFT office!

Export Promotion Capital Goods Scheme (EPCG) –

The main agenda behind implementing such a scheme is to boost the country’s manufacturing competitiveness by facilitating the import of capital goods or machinery for the production of quality goods & services.
Even if you are a service exporter earning in foreign currencies, you are eligible to apply for this scheme.
But,
Indeed, with a condition!
And,
That is to export quality goods & services, retaining six times the value of the duty saved by six years from the license issued date!
An exporter can also avail of Post Export EPCG Duty Credit Scrips by paying the full amount of applicable duties, taxes, and cess in cash. Basic Customs duty paid on Capital Goods shall be remitted in the form of freely transferable duty credit scrip(s) similar to those issued under Chapter 3 of FTP, in this scheme.

EOU/EHTP/STP/BTP Schemes –

Are the ones having a 100 percent export company? Then, enrolment in this scheme stands valid for you!
The export-oriented units scheme introduced in 1981 increases exports from India by rendering a favorable ecosystem with waivers & concessions in taxes.
There lays a faster customs clearance provision & that is to set it up anywhere in the country.

Transport & Marketing Assistance Scheme (TMA) –

This scheme, introduced in 2019, is meant only for agricultural products, precisely those incorporated in Chapters 1 to 24 of ITC. Thus, marine & plantation products are both included in this category.
Herein, you shall derive a reimbursement of the freight cost up to a certain amount via direct bank transfer.
That is how the agricultural exports of India turn competitive in the global market!

Deemed Export Benefits –

Perhaps, this is a versatile scheme where the government, from time to time, decides on giving a benefit to the domestic manufacturers & exporters following a specific situation. As a result, you, as an exporter, can enjoy a level-playing field in the global market.
Deemed exports shall be eligible for any / all of the following benefits in respect of manufacture and supply of goods, qualifying as deemed exports, subject to terms and conditions as given in HBP and ANF-7A:
(a) Advance Authorisation / Advance Authorisation for annual requirement /DFIA.
(b) Deemed Export Drawback.
(c) Refund of terminal excise duty for excisable goods mentioned in Schedule 4 of Central Excise Act 1944 provided the supply is eligible under that category of deemed exports and there is no exemption.

Scope of enrich professional services

Enrich Professional Services: Here To Help!
Hi.
We are Enrich Professional Services, your guide to deriving the best suitable export incentive schemes in India. Yes. We are one of the top DGFT consultants in India!
We can help assess your entire business functioning and give you a detailed insight into all eligible export benefits in India your company can claim!
We can help derive maximum export incentives to your company’s pocket, that too, within the policy framework!
So,
If you have any queries, do not hesitate to fill out the form given below & get in touch with us.
You can also drop your views & comments about the various export incentive schemes in India right below. Your opinions are valuable to us!