Export promotion schemes in India provide incentives to boost exports and obtain foreign exchange. The government offers various schemes granting incentives like duty exemptions, duty drawbacks, and import authorization allowing duty-free imports of inputs. These schemes aim to make exporting more profitable and help industries compete internationally. Key schemes discussed include Duty Exemption/Remission Scheme, Duty Entitlement Pass Book, Duty Free Replenishment Certificate, Duty Free Import Authorization, and Deemed Exports.

1. EXPORT
PROMOTION
SCHEMES

2. Definition of export promotion
■ Export promotion has been defined as “those public policy
measures which actually or potentially enhance exporting
activity at the company, industry or national level”.
■ Although many forces determine the international flow of
goods and services, export promotion is one of the principal
opportunities that government have to influence the volume
and types of goods and services exported from their areas of
jurisdiction.

3. ■ Exports are given priority in India and enjoy lot of incentives.
The government of India has framed several schemes to
promote exports and to obtain foreign exchange.These
schemes grants incentives and other benefits.The
documentation and procedures are diverse with each
incentive provided.
■ If exporter does not pay adequate care and attention at the
time and stage of export shipment in providing complete and
adequate information in the documents in a proper way, their
claims for export incentives will adversely affected.
■ It is essential to the exporters to plan carefully in respect of
incentives, even at the time of shipment, though their
benefits are available only after completion of the shipment.

5. Need for export promotion
■ A business become more remunerative when either one is able to cut
down one’s cost or one is in a position to increase one’s revenue or also
when one is able to increase one’s profits after tax.
■ The objective of export promotion measures are to make exporting a
more remunerative business than it was in the absence of these
measures.
■ Another main goal of the export promotion is to prepare the “potential”
industries for competition with the foreign markets.

6. Export and import incentives
■ Following are the incentives provided by government for export and
import in India.
– Duty exemption scheme
– Duty drawback
– Served From India Scheme (SFIS)
– VKGUY Scheme
– Status Holder Incentive Scrip (SHIS)
– Agri-infrastructureScrip
– Focus Market Scheme (FMS)
– Focus Product Scheme (FPS)
– Market Linked Focus Product Scheme (MLFPS)

8. 1. Duty Exemption Scheme
■ The duty exemption scheme enables import of inputs required for
export promotion
■ The duty remission scheme enables post replenishment/remission of
duty on inputs used in the export product.
■ These schemes are mostly available on those imported product, which
will be latter on used for manufacturing of goods meant for export.
■ This not only stimulates the industrial growth and development, but
also brings the foreign currency during the final export process.
Following are some of the important import incentives offered by the
Government of India

9. 1. Preferential Rates
2. Deemed Exports
3. Duty Entitlement Pass Book/DEPB Scheme
4. Duty Free Replenishment Certificate – (DFRC)
5. Duty Free ImportAuthorization - DFIA

10. i. Preferential Rates
– Import incentive under preferential rate is only applicable for the import of
goods from certain preferential countries such as Mauritius, Seychelles and
Tonga provided certain conditions are satisfied.
– The certificate of origin is very important in order to avail the benefits

11. ii. Duty Entitlement Pass Book /DEPB
Scheme
■ DEPB is basically an export incentive scheme
■ The objective of DEPB scheme is to neutralise the incidence of basic custom
duty on the import content of the export product.
■ DEPB allows the exporter to import raw materials, intermediates, components,
parts, packaging materials etc. except those items mentioned as restricted item
for imports in ITC (HS) classification of export and import items.
■ The rates of import duty credit under DEPB scheme are given in the Hand Book
of ProceduresVol.1.
■ Merchant exporter and manufacture exporter are eligible for DEPB on the post
export basis

12. iii. Duty Free Replenishment Certificate -DFRC
■ Under the Duty Free Replenishment Certificate schemes, import
incentives are give to the exporter for the import of inputs used in the
manufacture of goods without payment of basic customs duty.
■ Duty Free Replenishment Certificate (DFRC) was replaced by the Duty
Free Import Authorization (DFIA)

13. iv.Duty Free Import Authorization - DFIA
■ A Duty Free Import Authorisation is issued to allow duty free import or
inputs which are used in the manufacture of the export product and
fuel, energy, catalyst etc. which are consumed or utilised in the course
of their use to obtain the export product.

14. v. Deemed Exports
■ Deemed Export is a special type of transaction in which the payment is
received before the goods are delivered.
■ The payment can be done in Indian Rupee or in Foreign Exchange
■ As the deemed export is also a source of foreign exchange, so the
government of India has given the benefit duty free import of inputs.

15. 2. Duty Drawback
■ Duty Drawback is the special rebate given under the Section 75 of Indian
Customs Act on exported products or materials. It means the rebate of
duty chargeable on imported material or excisable material used in the
manufacturing of goods in and is exported.
■ The exporter may claim drawback or refund of excise and customs
duties being paid by his suppliers.The final exporter can claim the
drawback on material used for the manufacture of export products.
■ Drawback is not allowed on inputs obtained without payment of
customs or excise duty.
■ In part payment of customs and excise duty, rebate or refund can be
claimed only on the paid part.
■ Duty drawback rates or concession are only applicable on products
which are used in the processing of goods manufactured in India and
then exported to foreign countries.