India Entry & Business Startup Consultings

Export Benefit Schemes

Indian economy is the world’s most quickly expanding economy and playing a prominent role in international trade through a large number of exports and imports. As a part of the economic reforms Government of India has taken various initiatives to improve the condition of exports to other countries. 

The Foreign Trade Policy launched on 1 April 2015 introduced slew measures by providing a framework for increasing exports of goods and services, generation of employment, and increasing value addition, in keeping with the ‘Make in India’ vision of the Hon’ble Prime Minister. The policy has incorporated various export-friendly innovations and simplifications which included simplification and merger of reward schemes, introducing new schemes for the promotion of Merchandise and Services exports, incentivizing e-commerce exports, encouraging procurement of capital goods from indigenous manufacturers under the EPCG schemes, etc. The policy also envisages helping: 

  • Exporters leverage benefits of GST, 
  • Closely monitoring export performances, 
  • Improving ease of trading across borders, 
  • Increasing realization from India’s agriculture-based exports and 
  • Promoting exports from MSMEs and labor-intensive sectors.

A summary of export benefit schemes introduced by the government under the above-mentioned policy is as follows: 

  • Services Exports from India Scheme (SEIS): Under this Scheme, the rewards are given by way of duty credit scrips to exporters of services at the specified rates on net foreign exchange earned. 
  • Merchandise Exports from India Scheme (MEIS): Under this Scheme, the rewards are given by way of duty credit scrips to exporters of services at the specified rates. The incentive under this Scheme is calculated as a percentage of the realized FOB value exports in free foreign exchange or FOB value of exports as per shipping bills in free foreign exchange. 
  • Remission of Duties and Taxes on Exported Products (RoDTEP): This Scheme has been introduced by the government to replace MEIS. 
  • Export Promotion Capital Goods (EPCG): Under this scheme the import of capital goods for pre-production, production, and post-production is allowed at zero customs duty. 
  • Duty-Free Import Authorization (DFIA): DFIA is issued to allow duty-free import of inputs that are used for the production of the export product.
  • Advance Authorization: An Advance Authorization scheme is issued to allow duty-free import of goods that are physically incorporated in export products based on Standard Input Output Norms (SION) or Self Declaration.

How ASC Helps in Export Benefit Schemes

Our team of professionals understands the business and regulatory environment in India and stays constantly abreast with the various policies offering incentives or benefits issued by the Government of India. We have extensive experience in advising our clients on how to claim the various incentives offered by the Government under various schemes. 

We assist our clients in the following manner:

  • Advisory on the eligibility for claiming incentives under the Government policy,
  • Identification of services eligible for various export incentives,
  • Computation of amount of export benefits.
  • Providing start-to-end service in an effectively structured format to cut down the operational timeline.
  • Preparation and filing of the application for claiming export benefits in the required forms;
  • Following up with the DGFT till the time export benefit is actually claimed.
     
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