Central Government Schemes

Central Government Schemes

The National Foreign Trade Policy provides several promotional measures to boost India’s exports through its schemes dedicated to assisting its exporters. These schemes aim at empowering the Indian exporters through financial assistance, infrastructural support and skill development thereby increasing their competitiveness in the international market. A brief of these measures is as follows:

RoDTEP is based on the globally accepted principle that taxes and duties should not be exported, and taxes and levies borne on the exported products should be either exempted or remitted to exporters. This scheme has been introduced after the discontinuation of the MEIS w.e.f. 1st January 2021. The MEIS scheme provided incentive of 2% to 5% of the FOB value of exports to any country in the world is to the merchant as well as manufacturer exporters. The new RoDTEP Scheme aims to refund all those hidden taxes and levies, which were earlier not refunded under any export incentive scheme.

For details, please visit:
https://www.dgft.gov.in/CP/?opt=RoDTEP

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
  • 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
  • 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

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

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 and to apply, please visit:
http://dgftcom.nic.in/exim/2000/policy/hbppol1/2009-2010/chap06.htm
Exporters are given a host of preferential facilities under the GST Act:
  • LUT Bond Facility - Exporters can export goods without paying any GST by obtaining a letter of undertaking/bond.
  • IGST Refund - Exporters can export goods “on payment of GST” and claim the refund of the same from the Customs Department.
  • 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.

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

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

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

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

This 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. The Scheme is administered by Department of Commerce (DoC).

For details, please visit:
http://dgftcom.nic.in/exim/2000/policy/hbppol1/2009-2010/chap03.htm

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 largescale industries) in respect of the identified 416 tariff lines.

For details, please visit:
https://aepcindia.com/system/files/pdf/Interest%20Equalisation%20Scheme.pdf

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
  • Exporters of gems and Jewellery can import / procure duty free (excluding Integrated Tax and Compensation Cess leviable under Section 3(7) and 3(9) of customs Tariff Act) input for manufacture of export product.
  • Gems and Jewellery exporters shall be allowed to export cut and polished precious and semi-precious stones for the treatment and re-import as per customs rules and regulations.
    For details, please visit:
    http://dgftcom.nic.in/exim/2000/pol/Chap-08.htm

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, remeis laxed 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

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 link:

https://apeda.gov.in/apedawebsite/trade_promotion/Financial_Assistance_Schemes-Archive.htm