India Entry & Business Startup Consultings

Product Export Benefits

The Foreign Trade Policy 2015-20 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 various incentives schemes offered by the Policy includes the following:

Merchandise Exports from India Scheme (MEIS): 

MEIS introduced by Foreign Trade Policy 2015-20 replaced five other schemes viz. (i) Focus Product Scheme, (ii) Focus Market Scheme, (iii) Market Linked Focus Product Scheme, (iv) Agri. Infrastructure Incentive Scheme, and (v) Visesh Krishi Gramin Upaj Yojna, introduced by the earlier foreign trade policy. Under this Scheme, the rewards are given by way of duty credit scrips to exporters of services at the specified rates. Such scrips are valid for a period of 24 months from the date of issue and are freely transferable. 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 with effect from 1st January 2021. Under this scheme, the central, state, and local duties/taxes will be refunded and the same will be credited in an exporters ledger account with customs. This credit can be used to pay Basic Customs Duty on imported goods. 

Export Promotion Capital Goods (EPCG)

The import of capital goods for pre-production, production, and post-production at zero customs duty is allowed under this scheme. The objective of was EPCG Scheme is to facilitate the import of capital goods and enhance India’s manufacturing competitiveness by producing quality goods.  

Duty-Free Import Authorization (DFIA)

DFIA is issued to allow duty-free import of inputs such as fuel, oil, energy sources, etc which are used for the production of the export product. DFIA is exempted from payment of Basic Customs Duty and a minimum of 20% of value addition is required to be achieved. 

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. Herein 15% of value added is at least required to be achieved.

How ASC Helps in Product Export Benefits

Our team of professionals understands India's business and regulatory environment 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 products/goods 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.
  • Assistance in making timely compliances under any scheme availed by the exporter.
     
Let’s Talk Now !

Need more information on any of our services?

SUBSCRIBE OUR NEWS LETTER