GOVERNMENT EXPORT

PROMOTION SCHEMES

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 BASICS
1. Government is not paying promotion schemes in
cash, it is given by way of certificate. Different kind of
certificates are used in different ways.

2. The certificate is transferable. Therefore, if there is no

use for exporter, he can sell the same in the market
who requires the same by transferring on buyers
name.

3. The system is now online for applying and

transferring too.
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 HOW TO CHECK GOVERNMENT EXPORT PROMOTION SCHEMES
ON PARTICULAR EXPORT

• http://www.indiantradeportal.in/
• Put HS /ITC(HS) Code or product
• Choose appropriate HS code then click on ‘export’
• Choose appropriate HS code then click on ‘next’
• Choose country ‘next’
• Choose appropriate HS code then ‘Next’
• You will get ‘MEIS, Duty Drawback, Interest
Subvention, TMA’ benefit

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 PIEM - 2020
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 HOW TO CLAIM GOVT. BENEFIT
1. MEIS can be applied within 12 months from LEO (Let Export order) date.

2. Procedure to apply:
a. http://dgft.gov.in/CP/
b. services
c. Ecom application
d. Online Ecom application
e. Select the promotion scheme you want to apply, and proceed
accordingly.
f. For guidelines click on "Click here for help", select promotion scheme you
need help for. The full guide line will appear how to apply etc.
g. Print online application; submit the same this to port authority from
where you want to import for registration with them.
http://dgftcom.nic.in/ecom_help.html

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 1. EXPORT PROMOTION SCHEMES

• Foreign Trade Policy 2015-20 {Extended up to

2021} provide promotional measures to boost
India’s exports.

• Brief of these measures are as under:

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 1.1 EXPORTS FROM INDIA SCHEME

i. MEIS – Merchandise Exports from India Scheme – Click

• Under this scheme, exporter is granted “freely

transferable, duty credit certificate”; on ‘Realized FOB’
value of exports (this keeps on changing from time to
time)

(Contd…)
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 WHAT IS MEIS
• Duty Credit Scrip are provided for exports to
offset the disadvantage faced by exporters
with regard to freight costs, transport hurdles
and other disabilities. They are like voucher
which can be used to pay import duties.

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 MEIS VIS. RoDTEP
• MEIS is extended up to 31.12.2020.
• MEIS is not as per WTO compliance, hence it is
going to be discontinued from 1.1.2021 and may
replaced by RoDTEP.
• Under the World Trade Organisation (WTO) rules,
certain duties like VAT (value added tax), central
excise duties, state taxes on power, fuel used for
transportation, electricity duties, oil, water, and
education cess are allowed to be refunded, which
are not getting exempted or refunded under any
other existing mechanism.
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 1.1 EXPORTS FROM INDIA SCHEME

Such duty credit certificate can be used for payment of

Payment of:

(i)Basic and Additional Customs Duty for import of inputs or

goods

(ii) Payment of CGST on domestic procurement of inputs or

goods

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 1.1 EXPORTS FROM INDIA SCHEME

DGFT guidelines areas: Export of goods through courier or

foreign post office of FOB value up to Rs 5 Lakhs per
consignment using e-commerce shall be entitled to MEIS. If
the value of exports is more than Rs 5,00,000 per
consignment then MEIS reward would be calculated on the
basis of FOB value of Rs 5 Lakhs only
1. Handicraft
2. Handloom
3. Books
4. Leather items
5. Toys
6. Customized fashion garment

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 II. SERVICE EXPORTS FROM INDIA SCHEME
Below is as per old foreign Trade Policy 2015-20.

For year 2020-21 This is under consideration for export from

1.4.2020.

Eligibility: Duty Credit Scrip

Type of Service Provider Minimum Net Free Foreign
Exchange in the year of rendering
service
Individual and Sole Proprietorship USD 10,000/-

All Others USD 15,000/-

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II. SERVICE EXPORTS FROM INDIA SCHEME
TYPES OF SERVICES SECTORS :
1. ACCOUNTING/AUDITING AND BOOK KEEPING SERVICES
2. ADVERTISING SERVICES
3. ARCHITECTURAL SERVICES
4. CONSULTANCY SERVICES
5. DISTRIBUTION SERVICES
6. EDUCATIONAL SERVICES
7. ENTERTAINMENT SERVICES INCLUDING AUDIO-VISUAL SERVICES
8. ENVIRONMENTAL SERVICES
9. HEALTHCARE SERVICES
10. HOTEL AND TOURISM SERVICES
11. LEGAL SERVICES
12. MARITIME TRANSPORT
13. MARKETING RESEARCH AND PUBLIC OPINION POLLING
SERVICES/MANAGEMENT SERVICES
14. PRINTING AND PUBLISHING
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II. SERVICE EXPORTS FROM INDIA SCHEME

• Service providers are eligible for freely

transferable duty credit certificate of net
foreign exchange earned.

• Application of SEIS shall be made online for a

Financial Year on Annual Basis in ANF 3B:
• https://dgft.gov.in/sites/default/files/ANF-3B.
pdf

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 DUTY EXEMPTION SCHEMES

• Advance authorization (AA) scheme :

I. Duty free import of inputs are allowed, that are
physically incorporated in the export product, with
minimum 15% value addition & incase of gems and
jewelry it is 4%
II. Normally have a validity period of 12 months for the
purpose of making imports.
III. A period of 24 months for fulfillment of export
obligation from the date of issue.
IV. Issued both to manufacturer and merchant exporter.
V. Such imports are exempted form IGST
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 DUTY EXEMPTION SCHEMES

• Duty Free Import Authorization (DFIA)

Scheme
• DFIA is issued to allow Duty Free Import of
Inputs, with a Minimum Value Addition
Requirement of 20%.
• DFIA shall be Exempted only From the
Payment of Basic Customs Duty.

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 DIFFERENCE BETWEEN
ADVANCE AUTHORIZATION & DFIA
(1) Advance Authorization is issued generally
before export.
• DFIA is issued after export.
(2)AA is subject to actual user condition even after
export obligation
DFIA is transferable.
(3) The minimum value addition for
AA is 15%
DFIA is 20%
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EPCG SCHEME (EXPORT PROMOTION CAPITAL GOODS)
(i.e. Machinery)
• Zero duty EPCG scheme.
• Under this Scheme Import of Capital Goods at Zero
Custom Duty is Allowed For Producing Quality Goods
and Services to Enhance India’s Export
Competitiveness.
• Import under EPCG shall be Subject to Export Within
Six years on 6 times of Duty (All custom duties + GST)
Saved. (i.e. if cost of machinery is 1 crore and duties
paid are Rs. 10 lakhs then =
Rs.10 lacs x 6 times = Rs. 60 lakhs Export to be within
6 years)
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 DUTY DRAWBACK
• The Duty Drawback Scheme is rebate of duties
or taxes chargeable on any imported /
excisable materials and input services used in
the manufacture of export goods.

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 TRANSPORT AND MARKETING ASSISTANCE (TMA)

• The Scheme covers freight and marketing assistance for

export by sea & air

• This is for some specified agriculture, marine and

plantation products from HS code 01 to 24, to the
permissible countries, as specified from time to time.

• Export of price ‘FOB’ is not covered under this scheme.

• Export under LCL cargo is also not covered.

• For more details visit : http://dgft.gov.in/sites/default/files/E

%20noti%2058.pdf
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 MARKET ACCESS INITIATIVE (MAI) SCHEME

• Under the scheme, financial assistance is provided for export promotion

activities on focus country, focus product, industry & trade associations,
etc.

• The activities are like:

 Market studies/surveys,
 setting up of showroom,
 participation in international trade fairs,
 publicity campaigns,
 brand promotion,
 testing charges for engineering products abroad, etc.
 Details of the scheme is available at
http://commerce.gov.in/writereaddata/UploadedFile/MOC_636546562282394611_Market_Access_Initiative%20_Scheme_2018.pdf

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 MARKETING DEVELOPMENT ASSISTANCE
(MDA) SCHEME
• Financial assistance is available for exporters
having an annual export turnover up to
Rs. 30 crore for trade fairs, buyer seller meets
organized by EPC’s (export promotion
councils/trade promotion organizations.)

MDA guidelines available

http://tourism.gov.in/sites/default/files/RevisedguidelinesMDA31.03.2017.PDF

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 STATUS HOLDER SCHEME

• Upon achieving prescribed export

performance, status holders are eligible for
various non-fiscal privileges as prescribed in
the foreign trade policy 2015-20 (extended up
to 31.3.2021)

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 STATUS HOLDER
EXPORT HOUSE AS PER DGFT
NEW POLICY 2015 – 20 (Extended
up to 31.3.2021)

The criteria for export

performance for recognition of
status holder have been Export Performance FOB / FOR
changed from Rupees to US (as converted) Value (in US$
dollar earnings. The new million) during current & Previous
criteria is as under:- 5 Status 2 years
category

EQ. in INR. In crors

Status US$ in million (APPX)
One Star Export House 3 20
Two Star Export House 25 150
Three Star Export House 100 600
Four Star Export House 500 3000
Five Star Export House 2000 12000

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 GRANT OF DOUBLE WEIGHTAGE
The exports by IEC holders under the following
categories shall be granted double weightage for
calculation of export performance for grant of status.

(i) MSME as defined in Micro, Small & Medium Enterprises

Development (MSMED) Act 2006.

(ii) Units located in Agri Export Zones.

(iii) Manufacturing units having ISO (Int’l Standard Organisation),

BIS (Bureau of Indian Standards)
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 PRIVILEGES OF STATUS HOLDERS
• Authorization and Customs Clearances for
both exports and import may be granted on
self-declaration / Assessment of custom duties
basis;
• Exemption from furnishing of Bank Guarantee
for Schemes under FTP, unless specified
otherwise anywhere in FTP or HBP;
• Exemption from compulsory routing of
documents through banks

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• Compiled and edited by: iiiEM Global Training Pvt. Ltd.
• Visit us at: www.iiiem.in
• Edition: 2020

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