Export Financial benefits, Export incentives and supports
Wednesday, January 04, 2017     Category : Export incentives and benefits


Export Benefits and Incentives in India


How does exports benefit to exporters in India? What are the financial assistance to exporters? Advantages of Exports in India? What are the different government schemes to exporters? How does bank help exporters financiallyFinancial assistance,benefits and supports to Exporters in India? Different financial schemes and other supports of Export Promotion Councils. Who are the organizations and agencies supporting exporters in India and how?


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financial assistance and other support to exporters in India by government and other different agencies could be withdrawn or modified.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.


EXPORT FROM INDIA SCHEME


MEIS (
Merchandise Exports from 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. I have written detailed articles about MEIS scheme in this web blog and you may read in detail here.

 

 


SEIS (
Service Exports from India Scheme)

 

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.

 


ASSISTANCE FROM TRADE PROMOTION COUNCILS AND COMMODITY BOARDS

Trade promotion council of different products and commodity boards helps exporters with various financial schemes and other service assistance. Market Development Assistance (MDA), Market Assistance Initiative (MAI), Financial support to attend Trade Fairs, various information supports etc. are some of them.  Click here for details.

 

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

 


DUTY EXEMPTION AND REMISSION SCHEME FOR EXPORTERS:

 

 


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.


Export Duty Drawback of Customs, Central Excise and Service Tax

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


Brand rate under Duty Drawback for Exporters

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


Rebate of Service Tax through all industry rates for Exporters

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.

 


EXPORT BENEFIT OF DUTY FREE IMPORT AUTHORIZATION

 

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, ANOTHER ADVANTAGE TO EXPORTER

 

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


EPCG SCHEME TO PROMOTE EXPORTS

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


CENTRAL EXCISE REBATE OF DUTY FOR EXPORTERS

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


CENTRAL EXCISE DUTY EXEMPTION ON EXPORTS

 

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 BENEFITS

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. Click here to learn more about Deemed Exports


INCOME TAX BENEFITS FOR EXPORTERS

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.

SALES TAX / VAT EXEMPTION TO EXPORTERS

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. Read more How to get exemption of Sales Tax under exports     Is sales tax applicable on shipments effected under high sea sales   How does CENVAT Credit work?

 

 

Trade Promotion Programme, Focus LAC

 

 

BILATERAL TRADE AGREEMENTS BENEFITS TO EXPORTERS

Trade Agreement between countries promote exports each other by providing different special schemes to exporters. Click here to read about Bilateral Trade Agreements Difference between Multilateral Trade Agreements and Bilateral Agreements


POST OFFICE CLEARANCE FACILITY TO EXPORTERS

Post office clearance facility is also available for exporters who would like to export/import clear the goods in India. Read more: Procedures to claim under MEIS scheme under Export of goods through courier or foreign post offices

 


BANK ASSISTANCE FOR EXPORTERS

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.

 

 


ECGC (EXPORT CREDIT GUARANTEE CORPORATION)

 

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


FEDERATION OF INDIAN EXPORTERS ORGANISATION

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


EXPORT SUPPORT FROM CHAMBERS OF COMMERCE

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.


EXPORT ASSISTANCE FROM INDUSTRIES’ ASSOCIATIONS

 

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.


CENTRAL ASSISTANCE TO STATES FOR EXPORTS (ASIDE)

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.

 

TOWNS OF EXPORT EXCELLENCE (TEE)

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

 


BENEFITS TO SPECIAL GROUP OF EXPORTERS

 


BENEFITS FOR EXPORTERS FROM CERTAIN REGIONS

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 benefits to units having ISO 9000 (series) / ISO 14000 (series) / WHOGMP / HACCP / SEI CMM level-II and above status

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


SSI/MSME BENEFITS

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 benefits to Free Trade Zones (FTZ)

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.


Export Advantages for
Electronic Hardware Technology Park (EHTP)

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)


Export benefits for
Software Technology Parks

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.


Advantages to 100% Export Oriented Units (EOUs)

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.


Export benefits to Bio Technology Park (BTP)

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.


Export merits for Agri Export Zone(AEZs)

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)


Advantages of Electronic Hardware Technology Parks(EHTPs)

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).

 


Export supports to Special Economic Zones

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.

 



This post explains: How does exports benefit to exporters in India? What are the financial assistance to exporters? Advantage to exporters in India? What are the different government schemes to exporters? How does bank help exporters financially? Different financial schemes and other supports of Export Promotion Councils. Who are other organizations and agencies supporting exporters in India and how?

The above 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.

 

Would you like to add more information on this post about export financial benefits and other assistance to exporters in India? Share below your comments




 

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Comments

 
Jan Says :
Sunday, June 26, 2016
This article is great for exporters
Trilok Shah Says :
Thursday, July 14, 2016
What are the export benefits - cash incentive and import replenishhment licence againstg export of Zinc Oxide. Pl.send reply to eMail add.
D.murrali Says :
Friday, July 22, 2016
Dear Sir I am MANIFACTUR of PIN MAILER FROM BANK TO THEIR CUSTOMER to ENCASh PAYMENT FROM THE ATM THIS PRODUCT COMES UNDER PAPER PRODUCTS IS THEIR ANY BENIFETS PLEASE CONFORM 2 PVC COATED PAPER COVERS IS THEIR ANY BENIFIT FOR IT
rajkumar Says :
Monday, August 01, 2016
Dear Sir, Hs Code 39, Please share me the list of documents fully line wise for exporting material either by exporter directily or by me directily Please mail me
vikram sehgal Says :
Friday, August 05, 2016
Dear sir ,i am manufacture & developer of car accessories .Till today i am doing indirect export,now i want to export directly.plz help me or mail me.thanks
Nitin Khandelwal Says :
Wednesday, August 10, 2016
I am Interested in Import & Export Business & want to explore the business opportunities in the suggested industry. I am from Finance Background & had worked with MNC Bank for last Seven Years & from the last three years providing Financial Consultancy for various Companies in Delhi & NCR We have already got IEC in our Company. If you could share the further details like in which industry (Presently Profitable) ,Initial Capital to be infused ,Approximate Margins, Pros & Cons of the Business.
Vishal Thakkar Says :
Friday, October 07, 2016
Do manufacturer exporter or processor exporters gets some additional incentive then a merchant exporter
G VASUDEVA RAO Says :
Thursday, October 20, 2016
Sir, We are the merchant exporters of milk from Visakhapatnam to Singapore. We were given to understand that central government is encouraging merchant exporters by offering incentives on the quantum of business they have done, through EBRC. Please let us know the present status of incentives, in force or not.
K M Vasudevan Says :
Sunday, November 20, 2016
I have some experience in export marketing field and looking for an opening for which I am approaching you with a hope that you will be able to assist me. I am sending my proposal by seperate email. (titled as EXPORT MARKET DEVELOPMENT ASSOCIATION. (EXPORT MARKETING CONSULTANCY
Joseph Says :
Monday, November 21, 2016
I've gone through your export related documentation in http://howtoexportimport.com.I've one doubt. Hope you will reply me.I'm new to export and got an order from USA. But it's not the product my company manufacture in Bangalore. We identified one company in Mumbai who can provide the items for export. They give best price if they can avoid excise duty and other export benefits if any.They want to export directly which we are against. We want to do it as a merchant export to protect the identity of our customer from them.1. Is it possible to do it? When we execute Bond/ARE-1 etc, do we need to mention the customer name and address in those forms? Will the manufacturer comes to know from any documents we give to them for avoiding excise duty?2. How can I make sure they will not know my customer details?Also, is it possible to give all export benefits to them so that I can get the best price from them? I'm not 100% sure, but I feel, they are registered under Export Promotion Facility. 3. I want to ship directly from Mumbai, without bringing it to Bangalore. Hope, there will not be any issues in that. They have given FOB price, so my worry is still about how to hide the customer details?
RP Singh Says :
Monday, April 17, 2017
how can i export garlic in abroad.
Neha Jain Says :
Thursday, April 27, 2017
hi. we run a business which is 95% imports and selling in the indian market and 5% is exports - we are currently not claiming any duty drawbacks or other financial incentives for our exports business. need advice on that. we have 2 types of exports and need information specific to that a) product A is imported - all duties are paid and then it is reexported as it is without any changes. Can we get duty drawback or any other financial incentives for this? b) product a,b,c are imported. Product E is made using a,b,c and product d which is sourced in india. Can we get duty drawback or any other financial incentives for this we want a situation where we pay entire customs duty at the time of import but when we export we get the refunds wherever permissible c) we are exporting to srilanka and bangladesh - any special privileges for this?
navin Krishnasamy Says :
Friday, May 26, 2017
I sell apartments and plots in Chennai. NRI Tamilians ie Indians buy and pay in dollars. Am I eligible for incentive? If so how much?
vasavi ramana Says :
Tuesday, June 13, 2017
If we despatch the non excisable products from warehouse, could we avail duty drawback/ Export incentives. Or else should we export only from manufacturing facility
Nitin Says :
Sunday, July 02, 2017
Two questions. 1.post gst bond is in existence with sez dc. Does it require a new one with inclusion of igst scope? 2.services rendered to sez. Service provider will charge and then sez will avail ITC to get zero rated or vendor will not charge mentioning his lut or bond number. Comment
Nitin Says :
Sunday, July 02, 2017
Two questions. 1.post gst bond is in existence with sez dc. Does it require a new one with inclusion of igst scope? 2.services rendered to sez. Service provider will charge and then sez will avail ITC to get zero rated or vendor will not charge mentioning his lut or bond number. Comment
sagar mane Says :
Sunday, July 30, 2017
How can i export onion to abroad
 

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