Export promotion schemes in India

1. Export Promotion schemes
Anish J Parashar
Deputy Commissioner
NACIN Vadodara

2. MEIS Licenses pan India

3. ADVANTAGE-CONVERGING MULTIPLE BENEFITS INTO ONE
DRAW BACK -WTO NON COMPLIANT

4. Changes in the chapter 3 benefits of
EXIM Policy

5. Merchandise Exports from India Scheme (MEIS
Scheme)
• The objective of the Merchandise Exports from India Scheme (MEIS) is to
promote the manufacture and export of notified goods/products from India.
• Funds Allocated – 40,000 Cr. Annually (Approx)
• Under the MEIS Scheme, an incentive of 2% to 5% of the FOB value of exports is
provided to all the exporters (merchant as well as manufacturer exporter),
irrespective of their annual turnover.
Y

6. The export of products notified/listed in Appendix 3B is only eligible for MEIS
benefits.
There are more than 8000+ products that are eligible.
There is no restriction of Country, i.e. eligible products exported to any country
in the world can avail the MEIS Scheme.
MEIS rate of incentives differs from product to product.

7. • Application for MEIS scheme is to be filed electronically to the jurisdictional
DGFT office
• MEIS incentives are not given in the form of cash or Bank transfer. It is given
in the form of duty credit scrips also known as MEIS licenses. These licenses
can be used for payment of Import duties or can be sold in the open market at
a discounted rate.
• MEIS is soon to be replaced with the new RoDTEP Scheme. However,
shipments till December 2020 or March 2021 can still claim MEIS benefits

8. MEIS BENEFITS
ForMEIS
Benefits
Exporters who are exporting the products that are notified in the Appendix 3B – MEIS
Schedule
SEZ Units & EOU Units are also eligible to claim benefits under the MEIS Scheme
There is no minimum turnover criteria to claim MEIS
Goods exported through e-commerce platforms via courier are also eligible.
Country of origin of the exported products should be India, re-exported products are
not eligible.

9. Am I eligible for this scheme?
Yes,
if your export
product is covered
under Appendix 3B,
PERIOD
MEIS benefits can
be claimed for
backdated exports
as well, up to the
last 3 years from the
application date.
then
you can apply for
the MEIS scheme.
This Photo by Unknown Author is licensed under CC BY

10. Rebate of Duties & Taxes on Export Products (RoDTEP
Scheme)
WTO Compliant
The new RoDTEP Scheme
will replace the old MEIS
Scheme in a phased
manner
The entire application
process will more or less
remain the same as the
MEIS
The List of eligible products
& the rate of benefit under
the new RoDTEP Scheme is
still not finalized.

11. Scheme to subsume hidden taxes
The RoDTEP scheme aims to
refund all those hidden
taxes and levies, which were
earlier not refunded under
any export incentive
scheme, For example:
Central & state taxes on
the fuel (Petrol, Diesel,
CNG, PNG, and coal
cess, etc) used for
transportation of export
products
Toll tax & stamp duty on
the import-export
documentation. Etc
The duty levied by the
state on electricity
used for
manufacturing
1.Mandi tax levied by
APMCs.

12. Procedure For RoDTEP Scheme Application
•The new RoDTEP Scheme is similar to the existing RoSCTL Scheme (Rebate of
State and Central Taxes and levies), or we can also say that RoSCTL is the
earlier version of RoDTEP.
•An application shall be filed online using Class 3 Individual type Digital
signature Certificate on ICEGate website(https://www.icegate.gov.in/).
•Relevant Shipping bills shall be linked with the online application by the
Exporter/Applicant.
•The refund under RoDTEP Scheme would be in the form of duty credit
which will be transferable, or it may be in the form of electronic scrip which
will be maintained in the electronic ledger. The implementation of the process will be done
with the help of end to end digitization.

13. Documents required for RoDTEP Scheme
Application

14. Rate of Remission Under RoDTEP Scheme
•It will be calculated as
a percentage on Free
on Board (FOB Value).
The finance Ministry of
India has formed a
panel to determine the
RoDTEP rates
On 31st December
2020, the Finance
Ministry of India issued
a Press Release to give
a quick start to the
RoDTEP Scheme from
1st January 2021.

15. Service Export from India Scheme (SEIS
Scheme)
•The objective of Service Exports from India Scheme (SEIS) is to encourage and maximize export of
notified Services from India.
•Service Exports also provides valuable foreign exchange to the country, therefore there is a need to
motivate service exporters as well.
•Under the SEIS Scheme, an incentive of 3% to 7% of Net foreign exchange earnings is provided to
services exporters of notified services in India.
•It requires the service providers to have an active Import-Export Code (IEC Code) with minimum net
foreign exchange earnings of 15,000 USD to be eligible to claim under the scheme.
•Services listed in Appendix 3D are only eligible to claim the rewards.
•Similar to the MEIS scheme, rewards under the SEIS Scheme are given in the form of freely transferable
duty credit scrips.
•An application under the SEIS scheme is to be filed electronically to the jurisdictional DGFT office

16. MODES OF SERVICES EXPORT

17. Who is eligible for the SEIS Scheme?

21. Ineligible categories under the SEIS Scheme

22. List of documents required for the SEIS Scheme
• Importer Exporter Code (IEC Code)
• Application form ANF-3B (Aayat Niryat Form)
• CA Certificate
• Statement showing the nexus between Invoices and FIRC’s (Table No 4)
• Write up of Services
• Self–Certified copy of invoice and FIRC’s
• DGFT Digital Signature Certificate (DSC)
• RCMC Copy
• Necessary Declarations

23. Procedure for applying under SEIS Scheme?
• Please visit DGFT website - www.dgft.gov.in
• Click on Services -> Online Ecom Application.
• A new tab will open on your browser. Here now go towards SEIS for 2017-2018 &
2018-2019. You will need to attach a DSC and then login with your credentials,
and then the form will open in front of you.
• After selecting an option, you have to fill the details and submit the form.
• If you are exporting more than one Service, you have to follow the classification
as per the Appendix 3D and show the “Service Category Information” in the ANF
3B form

24. Some Important points to note:

25. Chapter 4 benefits EX-IM Policy

26. Duty Exemption schemes consist of the following schemes:
•Advance Authorisation Scheme (AAS) (which will include
Advance Authorisation for Annual Requirement).
•Duty-Free Import Authorisation (DFIA Scheme).
Whereas, The Duty Remission schemes consist of:
•Duty Drawback (DBK) Scheme, administered & implemented by
the Department of Revenue.
•Scheme for Rebate on State and Central Taxes and Levies
(RoSCTL Scheme), notified by the Ministry of Textiles on
07.03.2019, and implemented by the DGFT Office.

27. Advance Authorisation Scheme (AAS)
• Advance License scheme was introduced to allow duty-free import of raw
materials required for the production of export goods.
• It means that one can import raw materials at 0% Import duty if those raw
materials are going to be used in the manufacture of the export products.
• An Advance License can be issued for physical export (including supply to SEZ) &
Deemed Exports as well (For Ex. Supply to EOU units or supply to any AA/EPCG
holder)
• Advance License comes with an obligation to maintain a minimum of 15% value
addition and to export the goods within 18 months from the License issue date.
• The materials imported under the Advance Authorisation Scheme comes with
“Actual User condition”. i.e. It cannot be transferred or sold to any other entity.

28. •You are a manufacturer Exporter and you use a majority of Imported raw
material as compared to local raw materials for production? – YES/NO.
•You are a manufacturer Exporter and using domestic raw materials, but
your raw material is made by a domestic supplier using a majority of
imported materials? – YES/NO.
•You are a merchant Exporter, but your export product is made by your
supporting manufacturer using a majority of Imported raw material as
compared to local raw materials? – YES/NO
•You are a domestic manufacturer and supplying finished goods to SEZ or
EOU Unit or any Advance Authorisation holder using imported raw
materials? – YES/NO.
If your answer to any of the above questions is YES, then the Advance
Authorisation Scheme may be beneficial for you.

29. Listen pl. in brief AA

30. Duty-free Import Authorisation (DFIA Scheme)
• The purpose of this scheme is the same as the Advance License scheme i.e. to allow
duty-free import of raw materials.
• However, unlike the AA, DFIA Scheme is a post-export scheme. It means that duty-free
import is allowed only after the export is made.
• DFIA scheme is applicable to only those products which are covered under the Standard
Input-Output Norms (SION).
• Another important feature of the DFIA Scheme is that the DFIA License is transferable.
It does not come with actual user condition.
• Similar to Advance Authorisation Scheme, this scheme is implemented by the DGFT
office. Below is the image covering all the important points related to DFIA license
issuance.
• Value addition norm 20%

31. if your export product is covered under SION Norms and you
yourself don’t want to import the raw materials duty-free, then you
can take the DFIA License and sell it in the open market.

32. Duty Drawback Scheme (DBK Scheme)
• It is a refund of the duties given by the Govt. This scheme is implemented & monitored
by the Department of Revenue [Customs Department].
• In the DBK scheme, duties of customs & central excise that are chargeable on imported
and indigenous materials used in the manufacture of exported goods are refunded
back.
• The rate of duty drawback for each product is different. You can find the entire Duty
Drawback schedule here. [Subject to changes from time to time as per latest
notification]
• Unlike the other schemes, Duty Drawback is directly credited into the Bank account of
the exporter within 2 months from the shipment date.
• If you are availing the benefit of a GST refund, then you must opt for a lower rate of the
Duty Drawback.
• DBK can be clubbed with any other export promotion scheme, but it cannot be clubbed
with the Advance Authorisation scheme or DFIA Scheme.
• if your export product is covered under the Duty Drawback Schedule then you are
eligible for it. You need to register your bank account and other details with the
Customs department prior to your shipment.

33. Scheme for Rebate on State and Central Taxes and
Levies (RoSCTL Scheme)
• The old RoSL scheme was replaced by the new RoSCTL Scheme from 07.03.2019.
• RoSCTL scheme is only applicable to the Apparels & made-up Industry covering
Chapters 61, 62 & 63 of ITC (HS).
• It gives a refund of State and Central Taxes and Levies such as VAT on transportation
fuel, Captive Power, Mandi Tax, Electricity Duty. Etc.
• It is implemented by the Directorate General of Foreign Trade (DGFT) and rewards are
given in the form of MEIS like duty credit scrips.
• The RoSCTL scheme will be soon merged with the new RoDTEP Scheme for all sectors.
• if your export product is of the Apparels & made-up Industry coming under Chapters
61, 62 & 63 of ITC (HS), then you can claim benefits under the RoSCTL scheme for
shipments after 07.03.2019. An application has to be made electronically to the
jurisdictional DGFT office.

34. Export Promotion Capital Goods Scheme (EPCG Scheme)
• The objective of the EPCG Scheme is to facilitate the import of capital
goods/machinery for producing quality goods and services and enhance India’s
manufacturing competitiveness.
• Under the EPCG Scheme, Manufacturer exporter or a merchant exporter tied
with a supporting manufacturer can import capital goods/machinery required for
pre-production, production & post-production of export goods at 0% duty.
• Application to get an EPCG License must be made to the jurisdictional DGFT
office.
• The Service exporters earning in foreign currencies are also eligible to apply for
an EPCG License. Various service exporters can take the benefit of the EPCG
scheme to reduce capital costs. Service Exporters like Hotels, Travel & Tour
Operators, Taxi Operators, Logistics Companies, Construction Companies can
utilize the EPCG Scheme by importing capital goods/equipment at 0% duty.
• EPCG scheme comes with an export obligation. The obligation is to export
goods/services worth 6 times the duty saved value in a period of 6 years from the
License issue date.

37. EOU/EHTP/STP/BTP Schemes
• If you are a 100% exporting company, then you have an option to register yourself
under the EOU Scheme [Export-oriented Units]
• The EOU scheme was introduced in 1981, with an aim to increase exports from India.
• The EOU scheme aims to provide a favourable ecosystem to the companies indulging in
100% exports by giving them certain waivers and concessions in compliance and
taxation matters, thereby making it easier for them to conduct business.
• The major benefits of the EOU Scheme are – No Import duties while procuring raw
materials or capital goods, faster custom clearance facilities, it can be set up anywhere
in the country, unlike an SEZ unit.
• An application has to be made to the Board of approval to set up an EOU unit.
• The minimum investment in plants & machinery required is 1 Cr with exemptions to
certain sectors.
• Around 2011-12, the EOU scheme became less prominent due to the removal of tax
benefits given to it under the Income Tax Act.

38. Important Notifications/Circulars and
observations
• Cir.no 50/2018 dated 6.12.2018
• To avail basic custom duty exemption EOU need to follow the procedure under
the Customs(Import of Goods at Concessional Rate of Duty)Rules 2017.
• IGST and Compensation cess are exempt up to 31.3.2021.
• No exemption from GST on procurement from DTA.
• Specified procedure for refund of GST by supplier or EOU as the case may be.

39. Deemed Export Benefits
• The Objective of these benefits is to provide a level-playing field to the domestic
manufacturers in certain specified situations, as may be decided by the Government
from time to time.
• Following supplies are considered as Deemed Exports – (a) Supply of goods against
Advance Authorisation / Advance Authorisation for annual requirement /DFIA;
• (b) Supply of goods to EOU / STP / EHTP /BTP Units;
• (c) Supply of capital goods against EPCG License.
• Deemed Export supplies are entitled to get any/or all of the following benefits – (a)
Advance Authorisation/DFIA; (b) Deemed Export Duty Drawback; (c) Refund of terminal
excise duty.
• Deemed Export benefits are implemented by the DGFT office.

40. Star Export House / Status Holder Certificate

41. •Star export house holders / Status holders are
eligible for certain privileges like faster customs
clearances, exemption from compulsory negotiation
of documents through banks, exemption from
furnishing bank guarantee required for various export
promotion schemes, it also helps to get GR Waiver,
preference in the payment of Import duties., etc
among a lot of other benefits.
•An application to get the star export house category
for your company has to be made to the jurisdictional