Exporters are regarded as an initiator of economic growth in the wake of liberalization and structural reforms in the economy. In current times India is witnessing a slowdown in exports with its traditional partners. Under these situations, we need to set in motion strategies, innovators and policy measures with export incentive schemes which can enable the growth of exports under several different sectors as well as in newer markets. The export incentive schemes are devised by the Ministry of Commerce keeping focus to develop certain sectors/products or to reimburse the high cost of freight for exports to certain market.
Under the Foreign Trade Policy, various schemes are providing promotional measures in India to increase exports with the objective to offset infrastructural inefficiencies and associated costs involved to provide exporters a level playing field. Various export promotion schemes are mentioned below:
Foreign trade policy has introduced the MEIS scheme in order to provide incentives to the exporters of goods. Merchandise Exporter (including SEZ Units and EOU Units not availing Direct Taxation benefits) is covered under the scheme which is eligible for rewards in the form of ‘Duty Credit Scrips.
The SEIS Scheme i.e. "Service Export from India Scheme" was introduced under the Foreign Trade Policy (FTP) to provide incentives to exporters of Notified services. The incentive under SEIS is at the rate of 3% and 5% of the Net Foreign Exchange earned from Notified Services.
Under the duty exemption and remission schemes enable you to the duty-free import of inputs for export production with export obligation. This export incentive scheme consists of:-
Under this scheme of advance authorisation duty-free import of inputs are allowed which are physically incorporated in the export product with minimum 15% value addition. AA have a validity of 12 months for making imports and a period of 18 months for the fulfilment of Export from the date of issue.
Exporters having past export (for at least 2 years) are sanctioned to Advance Authorization for the Annual requirement and only issued for items having SION.
DFIA is issued in order to allow duty-free import of input with a minimum requirement of 20% and are exempted only from the payment of basic customs duty.
Under this scheme product made out of duty paid inputs first exported and
thereafter refund of duty is claimed which are administered by Department of
Revenue in two ways:
i) All Industry Rates: As per Schedulebr
ii) Brand Rate: As per application on the basis of data/documents
Under EPCG scheme import of capital goods at zero customs duty is allowed under export incentive scheme for producing quality goods and services to enhance India’s export competitiveness and also allow you import of capital goods for pre-production and post-production.
Export Oriented Unit Scheme is a unique scheme under which facility of Customs Act, Central Excise Act, and Foreign Trade Policy are combined and the scheme is crafted to provide maximum benefit to the exporter. These are required to fulfil compliances and procedure under Customs Act, Central Excise Act, Foreign Trade Policy, and rules/regulation made thereunder.
Interlink Capital helps you to identify the benefits of export incentive scheme under Exim policy by analyzing the company data and requirement which can be the most suitable for the organization. We also assist you in complying requirements for availing these scheme. The benefits of these schemes are granted subject to certain conditions and submission of various prescribed documents. We assist clients to understand these conditions and help prepare the correct set of documents which will entitle them to the benefit. We also help clients to prepare the applications, submissions, liaison with the authorities so as to get these benefits liquidated.
In Market Access Initiative (MAI) Scheme, financial assistance is provided for export promotion activities on focus country, focus product basis to EPCs, Industry & Trade Associations, State Government Agencies and Indian Commercial Missions abroad to do market surveys, publicity campaigns, participate in International Trade Fairs, set showrooms/ warehouses etc.
In Marketing Development Assistance (MDA) Scheme, financial assistance is provided by MOC through EPCs and trade promotion organizations to exporters having an annual export turnover up to Rs. 30 Cr to participate in trade fairs, buyer-seller meets abroad or in India, export promotion scheme seminars in form of travel grants to travel to focus areas.