EXPORT INDIA SCHEME

MEIS scheme for exporters was introduced in recent Foreign Trade Policy of India 2015-20 by consolidating previous different schemes such as Vishesh Krishi Gram Udyog Yojana (VKGUY), Focus Product Scheme (FPS), Agri-Infrastructure Incentive Scrip), Market Linked Focus Product Scheme (MLFPS) etc with modification. MEIS scheme extends benefits to more than 5000 export items and the duty credit scrips helps exporters in payment of Customs Duties for import of inputs or goods, payment of excise duties on domestic procurement of inputs or goods, payment of service tax on procurement of services, payment of Customs Duty and fee etc.

The foreign Trade Policy of India 2015-20 introduced SEIS (Service Exports from India Scheme) for service exporters by modifying SFIS scheme of previous years by benefiting all service providers of India including foreign brand of Indian Companies. Detailed articles about SEIS have been written in this web blog, you may click here to read.

You may  also contact concerned trade promotion council and commodity board for more details.

Advance Authorization Scheme (AA scheme):As per foreign trade policy of India, inputs are allowed to import without duty payment for export purpose. The licensing authority fixes value addition on export products not below 15%. A stipulated period to import is allowed and validity for export obligation. For more details, contact nearest DGFT office (Director General of Foreign Trade, Government of India). I have mentioned a short note on Advance Authorization Scheme in this web blog separately, you can click here to read. Advance Authorization for annual requirement is also issued for items having standard input output norms those exporters having past export performance, minimum preceding two financial years.

Duty paid inputs against exported products is refunded to exporters in the form of Duty Drawback. If the rates of such items are scheduled under Drawback schedule, the amount of drawback is refunded accordingly. If not scheduled, a separate application has to be filed to fix Brand Rate. Detailed articles on Duty Drawback and Brand rate are available in this web blog with method of claim. Procedures to claim duty drawback

If Duty Drawback rate has not been mentioned in schedule, exporters can approach concerned authority for Brand rate. The detailed article is available in this website, click here to read : What is Brand rate? Procedures to claim Brand rate

Service tax refund paid is reimbursable on specified output services used for export of goods at specified all industry rates fixed time to time by the authority.

DFIA (Duty Free Import Authorization) scheme is the export scheme introduced by DGFT by clubbing DEEC (Advance License) and DFRC to support exporters for free import of inputs. I have written a separate updated article in detail about Duty Free Import Authorization (DFIA). You may click here to read.

DEPB (Duty Entitlement Pass Book) scheme is another export incentive scheme in India. At present, DEPB can be claimed post export. Import customs duty credit is allowed to exporters to neutralize the customs import duty against export of goods. Also read Can DEPB/DEEC bill can be converted to Drawback

Export Promotion Capital Goods (EPCG) scheme helps exporters to import capital goods with zero import duty for the purpose of production of export products with a commitment of export obligation period with licensing authority. Certain rate of relaxation is allowed to sell in local market after fulfilling export obligation. A detailed article about EPCG (Export Promotion Capital Goods) can be read in this website. How does EPCG work? EPCG under new Foreign Trade Policy 2015-20 Difference between EPCG and ECGC

Rebate of duty paid on excisable goods exported or duty paid on the material used in manufacture of such export goods may be claimed. Also read: Procedure for Central Excise Clearance Under Claim of Rebate

Excisable goods are exempted to pay export excise duty with simple procedures with central excise department. Necessary registration of premise, factory or warehouse is required to be completed with concerned central excise department by executing bond. Click here to read Central Excise clearance procedures

Deemed Export transactions are those transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian rupees or in free foreign exchange. You may go through this link to know in detail about Deemed Exports. Deemed exporters get benefit of refund of excise duty paid on final products, Duty drawback, imports under DEEC scheme, Special import licenses based on value of deemed exports etc. 

Income tax exemption to exporters are allowed by government in different categories. You may contact your nearest Income Tax Department to know latest updated information on income tax exemptions to exporters in India.

No sales tax is required to pay for exports. The facility is extended to the suppliers of goods for export also. Value Added Tax (VAT) is also exempted for export goods. The details of such exemption of sales tax / VAT is available with the concerned Sales Tax Department. 

Trade Agreement between countries promote exports each other by providing different special schemes to exporters. 

Post office clearance facility is also available for exporters who would like to export/import clear the goods in India. Read more: 

Many financial assistances with different schemes are given to exporters to boost exports in India. Pre Shipment Credit in Foreign Currency (PCFC) and in INR, Packing Credit loans, Supplier’s credit, Buyer’s credit, Post shipment Finance, short term and long term finance, Finance for special export projects, Working capital finance, Capital Equipment Finance, Fund for export consultancy and technological services, different guarantees for exports like Advance Payment Guarantee, Performance Guarantee, Retention Money Guarantee, Guarantee for customs, central excise and other government and private agencies etc. Banks also provide financial assistance to Export Oriented Units (EOU), Special Economic Zones (SEZs), Corporates, STPs, EHTPs, FTZs, MSMEs etc. Bank also provides Line of Credit mechanism for export of projects, equipment, goods and services from India.

Authorized banks also provide exporters to open Foreign currency account in the form of EEFC (Exchange Earners Foreign Currency) to help them in handling foreign currency easily without local currency fluctuation and to eliminate currency conversion charges. Many other services are also provided to exporters in India by authorized banks to boost exports for favourable balance of payments.

Export Credit Guarantee Corporation (ECGC) protects exporters in covering credit risk of overseas buyers. Click here to read more.

FIEO also plays a major role in promoting exports in India by assisting exporters in various ways.

Chamber of Commerce at different parts of the country and Federation of Indian Chamber of Commerce and Industry (FICCI) help exporters in various ways to promote exporters in earning foreign currency to strengthen economy.

The support from Exporters Organization formed privately also plays a major role in sharing practical problems facing by industry and helps to find solutions. Such exporter’s association takes up their issues with government time to time, so as to enable the government to introduce new policy or to amend existing one.

Assistance to States for Infrastructural Development for Exports (ASIDE) has been introduced by Central Government with an objective to involve States / Under Takings in export effort by providing assistance to the State Governments or State Under Takings Administrations for creating appropriate infrastructure for development and growth of exports.

India government declared a list of towns of export excellence where specialized export products are promoted. Click here to know towns of export excellence

Exporters and manufacturers from special region such as Sikkim, Jammu and Kashmir etc. are given specific benefits by government. The exporters can contact the related government agencies for more details.

Export units holding special status are also eligible for different exports benefits from government modifying time to time.

There are many schemes available for Micro Small and Medium Enterprises (MSME) and SSI (Small Scale Industries) including scheme to promote exports. You may approach concerned office. Benefits to MSME

Export Units in Free Trade Zones can enjoy zero excise duty on goods manufactured for export purpose. Import customs duty is exempted for import of components used for manufacturing export goods. Domestic Tariff Area (DTA) sales up to certain rate is allowed.

Advantages like Single point contact service, income tax benefits, DTA sales up to certain limit and many other export benefits can be enjoyed for units of Electronic Hardware Technology Park (EHTP)

Many advantages like Foreign equity permission, income tax benefits, DTA sales up to certain limit and many other supports can be enjoyed for the units under STP.

Import of second hand capital goods, re export of capital goods, income tax benefits, DTA sales up to certain limit and many other government assistances can be enjoyed by Export Oriented Units.

income tax benefits, re export of capital goods, DTA sales up to certain limit and many other conveniences can be enjoyed from different government and non-government agencies to BTP.

income tax benefits, re export of capital goods, DTA sales up to certain limit and many other export advantages can be availed for Agri Export Zone (AEZs)

income tax benefits, re export of capital goods, DTA sales up to certain limit and may other export supports can be enjoyed by Electronic Hardware Technology Parks (EHTPs).

Government provides many benefits to Special Economic Zones in India to create an internationally competitive and smooth working environment for exports and thereby economic development of the country. Some of the advantages enjoyed by SEZ are single window clearance, free import of goods, exemption of customs duty for import of capital goods, consumables, raw materials, spares etc, reimbursement of CST, 0% income tax for 5 years, Foreign Direct Investment, exemption on MAT, Service Tax, DDT, CST, Service Tax, External commercial borrowing facility etc. and many more.

  scheme is introduced under Foreign Trade Policy 2015-20 to encourage export of notified Services from India.

Instead of Indian Service providers the term SEIS reads as SERVICE PROVIDERS LOCATED IN INDIA.

The rate of SEIS scheme under Foreign Trade Policy 2015-20 is based on net foreign exchange earned on services. The reward issued as duty credit scrip, would no longer be with actual user condition and will no longer be restricted to usage for specified types of goods but be freely transferable and usable for all types of goods and services tax 3 debits on procurement of services / goods. Debits would be eligible for CENVAT credit or drawback.

The present rates of reward are 3% and 5%. The list of services and the rates of rewards would be reviewed after 30.9.2015.

SEIS, Service Exports from India Scheme

Here we discuss about SEIS, Services Exports from India Scheme introduced as per Foreign Trade Policy of India 2015-2020 from 1st of April 2015 to 31st of March, 2020.

SEIS, Services Exports from India Scheme under Foreign Trade Policy of India 2015-20 is a modification of SEIS, Served from India Scheme under Foreign Trade Policy 2009-14.

The SEIS Scheme shall come into force with effect from the date of notification of this Policy, i.e. the rewards under SEIS shall be admissible for exports made/services rendered on or after the date of notification of this Policy.

The below mentioned export benefits, schemes, financial assistance and other support to exporters in India by government and other different agencies could be withdrawn or modified. The actual beneficiaries may reconfirm with the concerned authorities whether such export benefits are valid.