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EXPORT PROMOTIONS 
SCHEMES 
U.KALPANADEVI 
II – MBA 
MICHAEL INSTITUTE OF 
MANAGEMENT
REWARD / 
INCENTIVE 
SCHEMES IN 
DGFT
Served From India Scheme(SFIS) 
Objective is to accelerate growth in export of services so as to create a powerful and 
unique ‘Served From India’ brand, instantly recognized and respected world over. 
All Indian service providers, who have free foreign exchange earning of at least Rs. 10 
lakhs in preceding financial year /current financial year shall qualify for Duty Credit 
Scrip. 
Duty Credit scrip may be used for import of any capital goods including spares, 
office equipment and professional equipment, office furniture and consumables.
VISHESH KRISHI AND GRAM UDYOG YOJANA (VKGUY) (SPECIAL 
AGRICULTURE AND VILLAGE INDUSTRY SCHEME) 
Objective of VKGUY is to promote exports of: 
1. Agricultural products 
2. Minor Forest products 
3. Gram Udyog products 
4. Forest Based products
FOCUS MARKET SCHEME (FMS) 
Objective is to offset high freight cost and other externalities to select international 
markets with a view to enhance India’s export competitiveness in these countries. 
The following categories of export products / sectors shall be ineligible for Duty Credit 
Scrip, under FMS scheme: 
a. Supplies made to SEZ units b. Service Exports c. Diamonds and other precious 
stones, d. Gold, silver, platinum and other precious metals, e. Cereals, Sugar, Milk, f. 
Crude/Petroleum oil. 
New Markets have been added under Focus Market Scheme. These includes 16 new 
markets in Latin America and 10 in Asia-Oceania. 
The incentive available under Focus Market Scheme(FMS) has been raised from 2..5% 
to 3%.
FOCUS PRODUCT SCHEME (FPS) 
Objective is to incentivise export of such products which have high export 
intensity/employment potential, so as to offset infrastructure inefficiencies and other 
associated costs involved in marketing of these products. 
The incentive available under Focus Product Scheme(FPS) has been raised from 1.25% 
to 2%. 
A large number of products from various sectors have been included for benefits under 
FPS. 
These includes, Engineering products, plastic, technical textiles, project goods, 
vegetable textiles & certain Electronic items.
Market Linked Focus Products Scrip (MLFPS) 
MLFPS promotes exports of products of high export intensity but which have a low 
penetration in countries. 
MLPFS has been greatly expanded by inclusion of products. Products include 
Pharmaceuticals, Synthetic textile fabrics, value added rubber products, value added plastic 
goods, knitted & fabrics, glass products, certain iron and steel products, & certain articles of 
aluminium among others. 
Also extended for certain new products like auto components, motor cars, bicycle and its 
parts, and apparels among others. 
Benefits to these products will be provided, if exports are made to 13 identified markets.
Duty Exemption & Remission Schemes 
Duty Exemption Schemes enable duty free import of inputs required for export production. 
Duty Exemption Schemes consists of 
a. Advance Authorisation Scheme 
It is issued to allow duty free inputs which are physically incorporated in export product. 
b. Duty Free Import Authorisation(DFIA) Scheme. 
It is issued to allow duty free inputs which are required for production of export product. 
Duty Remission Schemes consists of 
a. Duty Entitlement Passbook (DEPB) Scheme 
DEPB holder shall have option to pay additional customs duty in cash as well. 
b. Duty Drawback (DBK) Scheme.
Export Promotion Capital Goods(EPCG) Scheme 
Zero duty EPCG scheme allows import of capital goods for pre production, 
production, post production. 
Import duty under the EPCG scheme is being reduced from 5% to 3%, in order to 
promote modernization of manufacturing and services exports. 
Foreign Trade Policy 2009-2014 the interest subvention scheme of 2% will 
continue to be effective till March 31,2013. 
For continued technological up-gradation of export sectors, this Scheme has now 
been extended up to 31st March 2013.
Special Focus 
Initiatives
 With a view to continuously increasing our percentage share of global trade and 
expanding employment opportunities, certain special focus initiatives have been 
identified/continued for 
 Market Diversification, 
 Technological Upgradation, 
 Support to status holders, 
 Agriculture, Handlooms, 
 Handicraft, Gems & Jewellery, 
 Leather, Marine, 
 Electronics and IT Hardware manufacturing Industries, 
 Green products, 
 Exports of products from North-East, 
 Sports Goods and Toys sectors.
Market 
Diversification 
• 26 new countries have been 
included within the ambit of Focus 
Market Scheme. 
• The incentives provided under 
Focus Market Scheme have been 
increased from 2.5% to 3%. 
• There has been a significant 
increase in the outlay under 
‘Market Linked Focus Product 
Scheme’.
Technological 
Upgradation 
• EPGC Scheme at zero duty has been 
introduced for certain engineering 
products, electronic products, etc.. 
• To encourage value added 
manufacture export, a minimum 15% 
value addition on imported inputs 
under Advance Authorisation 
Scheme has been stipulated. 
• A number of products including 
automobiles and other engineering 
products have been included for 
incentives under Focus Product, and 
Market Linked Focus Product 
Scheme
Support to status holders 
• The government recognised ‘Status Holders’ 
contribute approx. 60% of India’s goods 
exports. 
• To incentives and encourage the status 
holders, as well as to encourage technological 
upgradation of export production, additional 
duty credit scrip @ 1% of FOB value. 
• This duty credit scrip can be used for import 
of capital goods by these status holders.
Agriculture and 
Village Industry 
• Vishesh Krishi and Gram Udyog Yojana. 
• Capital goods imported under EPCG will be 
permitted to be installed anywhere in AEZ. 
• Import of restricted items, such as panels, are 
allowed under various export promotion schemes. 
• Import of inputs such as pesticides are permitted 
under Advance Authorisation for agro exports. 
• New towns of export excellence with a threshold 
limit of Rs 150 crore shall be notified. 
• Certain specified flowers, fruits, and vegetables 
are entitled to a special duty credit scrip, in 
addition to the normal benefit under VKGUY.
Handlooms & 
Handicrafts 
• Duty free import entitlement of specified trimmings 
and embellishments is 5% of FOB value of exports 
during previous financial year.. 
• Duty free import entitlement of hand knotted carpet 
samples is 1% of FOB value of exports during 
previous financial year. 
• Duty free import of old pieces of hand knotted 
carpets on consignment basis for re-export after 
repair is permitted. 
• New towns of export excellence with a threshold 
limit of Rs 150 crore shall be notified. 
• All handicraft exports would be treated as special.
Gems & Jewellery 
• Import of gold of 8 k and above is allowed under 
replenishment scheme. 
• Jewellery made out of: 
• Precious metals – 2% 
• Gold & Platinum – 1% 
• Rhodium finished Silver – 3% Schemes 
• Cut & Polished Diamonds-1% 
• Duty free import entitlement of commercial 
samples shall be Rs 300,000. 
• Duty free re-import entitlement for rejected 
jewellery shall be 2% of FOB value of exports. 
• Extension in number of days for re-import of 
unsold items in case of participation in an 
exhibition in USA increased to 90 days.
Leather & Footwear 
• Duty free import entitlement of specified 
items is 3% of FOB value of exports of 
leather garments during preceding financial 
year. 
• Re-export of unsuitable imported materials 
such 12 as raw hides & skins and wet blue 
leather is permitted.
Marine Sector 
• Imports for technological upgradation under 
EPCG in fisheries sector (except fishing 
trawlers, ships, boats & other similar items). 
• Marine products are considered for VKGUY 
scheme. 
• A self removal procedure for clearance of 
seafood waste is applicable subject to 
prescribed wastage norms.
Electronics & IT 
Hardware 
Manufacturing 
Industries 
• Expeditious clearance of approvals required from 
DGFT shall be ensured. 
• Exporters/Associations would be entitled to utilize 
MAI & MDA Schemes for promoting Electronics and 
IT Hardware Manufacturing industry exports.
Sports Goods & Toys 
• Duty free import of specified specialised 
inputs allowed to the extent of 3% of 
FOB value of preceding financial year’s 
export. 
• Applications relating to Sports Goods & 
Toys shall be considered for fast track 
clearance by DGFT. 
• Sports Goods & Toys are treated as 
special focus products and entitled to 
higher incentives.
Green Products & 
Technologies 
• India aims to become a hub for production 
and export of green products and 
technologies. 
• Focus would be on items relating to 
transportation, solar and wind power 
generation and other products as may be 
notified which will be incentivized under 
Reward Schemes. 
• FPS benefit extended for export of “Green 
products” and for exports of some products 
originating from the North East.
 Every Authorisation shall be valid for prescribed period of validity and shall 
contain such terms and conditions as may be specified by RA which may 
include: 
(a) Quantity, description and value of goods; 
(b) Actual User condition; 
(c) Export obligation; 
(d) Value addition to be achieved; and 
(e) Minimum export / import price.
THANK YOU!!!!!!!!!!!

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Export promotion schems

  • 1. EXPORT PROMOTIONS SCHEMES U.KALPANADEVI II – MBA MICHAEL INSTITUTE OF MANAGEMENT
  • 2. REWARD / INCENTIVE SCHEMES IN DGFT
  • 3. Served From India Scheme(SFIS) Objective is to accelerate growth in export of services so as to create a powerful and unique ‘Served From India’ brand, instantly recognized and respected world over. All Indian service providers, who have free foreign exchange earning of at least Rs. 10 lakhs in preceding financial year /current financial year shall qualify for Duty Credit Scrip. Duty Credit scrip may be used for import of any capital goods including spares, office equipment and professional equipment, office furniture and consumables.
  • 4. VISHESH KRISHI AND GRAM UDYOG YOJANA (VKGUY) (SPECIAL AGRICULTURE AND VILLAGE INDUSTRY SCHEME) Objective of VKGUY is to promote exports of: 1. Agricultural products 2. Minor Forest products 3. Gram Udyog products 4. Forest Based products
  • 5. FOCUS MARKET SCHEME (FMS) Objective is to offset high freight cost and other externalities to select international markets with a view to enhance India’s export competitiveness in these countries. The following categories of export products / sectors shall be ineligible for Duty Credit Scrip, under FMS scheme: a. Supplies made to SEZ units b. Service Exports c. Diamonds and other precious stones, d. Gold, silver, platinum and other precious metals, e. Cereals, Sugar, Milk, f. Crude/Petroleum oil. New Markets have been added under Focus Market Scheme. These includes 16 new markets in Latin America and 10 in Asia-Oceania. The incentive available under Focus Market Scheme(FMS) has been raised from 2..5% to 3%.
  • 6. FOCUS PRODUCT SCHEME (FPS) Objective is to incentivise export of such products which have high export intensity/employment potential, so as to offset infrastructure inefficiencies and other associated costs involved in marketing of these products. The incentive available under Focus Product Scheme(FPS) has been raised from 1.25% to 2%. A large number of products from various sectors have been included for benefits under FPS. These includes, Engineering products, plastic, technical textiles, project goods, vegetable textiles & certain Electronic items.
  • 7. Market Linked Focus Products Scrip (MLFPS) MLFPS promotes exports of products of high export intensity but which have a low penetration in countries. MLPFS has been greatly expanded by inclusion of products. Products include Pharmaceuticals, Synthetic textile fabrics, value added rubber products, value added plastic goods, knitted & fabrics, glass products, certain iron and steel products, & certain articles of aluminium among others. Also extended for certain new products like auto components, motor cars, bicycle and its parts, and apparels among others. Benefits to these products will be provided, if exports are made to 13 identified markets.
  • 8. Duty Exemption & Remission Schemes Duty Exemption Schemes enable duty free import of inputs required for export production. Duty Exemption Schemes consists of a. Advance Authorisation Scheme It is issued to allow duty free inputs which are physically incorporated in export product. b. Duty Free Import Authorisation(DFIA) Scheme. It is issued to allow duty free inputs which are required for production of export product. Duty Remission Schemes consists of a. Duty Entitlement Passbook (DEPB) Scheme DEPB holder shall have option to pay additional customs duty in cash as well. b. Duty Drawback (DBK) Scheme.
  • 9. Export Promotion Capital Goods(EPCG) Scheme Zero duty EPCG scheme allows import of capital goods for pre production, production, post production. Import duty under the EPCG scheme is being reduced from 5% to 3%, in order to promote modernization of manufacturing and services exports. Foreign Trade Policy 2009-2014 the interest subvention scheme of 2% will continue to be effective till March 31,2013. For continued technological up-gradation of export sectors, this Scheme has now been extended up to 31st March 2013.
  • 11.  With a view to continuously increasing our percentage share of global trade and expanding employment opportunities, certain special focus initiatives have been identified/continued for  Market Diversification,  Technological Upgradation,  Support to status holders,  Agriculture, Handlooms,  Handicraft, Gems & Jewellery,  Leather, Marine,  Electronics and IT Hardware manufacturing Industries,  Green products,  Exports of products from North-East,  Sports Goods and Toys sectors.
  • 12. Market Diversification • 26 new countries have been included within the ambit of Focus Market Scheme. • The incentives provided under Focus Market Scheme have been increased from 2.5% to 3%. • There has been a significant increase in the outlay under ‘Market Linked Focus Product Scheme’.
  • 13. Technological Upgradation • EPGC Scheme at zero duty has been introduced for certain engineering products, electronic products, etc.. • To encourage value added manufacture export, a minimum 15% value addition on imported inputs under Advance Authorisation Scheme has been stipulated. • A number of products including automobiles and other engineering products have been included for incentives under Focus Product, and Market Linked Focus Product Scheme
  • 14. Support to status holders • The government recognised ‘Status Holders’ contribute approx. 60% of India’s goods exports. • To incentives and encourage the status holders, as well as to encourage technological upgradation of export production, additional duty credit scrip @ 1% of FOB value. • This duty credit scrip can be used for import of capital goods by these status holders.
  • 15. Agriculture and Village Industry • Vishesh Krishi and Gram Udyog Yojana. • Capital goods imported under EPCG will be permitted to be installed anywhere in AEZ. • Import of restricted items, such as panels, are allowed under various export promotion schemes. • Import of inputs such as pesticides are permitted under Advance Authorisation for agro exports. • New towns of export excellence with a threshold limit of Rs 150 crore shall be notified. • Certain specified flowers, fruits, and vegetables are entitled to a special duty credit scrip, in addition to the normal benefit under VKGUY.
  • 16. Handlooms & Handicrafts • Duty free import entitlement of specified trimmings and embellishments is 5% of FOB value of exports during previous financial year.. • Duty free import entitlement of hand knotted carpet samples is 1% of FOB value of exports during previous financial year. • Duty free import of old pieces of hand knotted carpets on consignment basis for re-export after repair is permitted. • New towns of export excellence with a threshold limit of Rs 150 crore shall be notified. • All handicraft exports would be treated as special.
  • 17. Gems & Jewellery • Import of gold of 8 k and above is allowed under replenishment scheme. • Jewellery made out of: • Precious metals – 2% • Gold & Platinum – 1% • Rhodium finished Silver – 3% Schemes • Cut & Polished Diamonds-1% • Duty free import entitlement of commercial samples shall be Rs 300,000. • Duty free re-import entitlement for rejected jewellery shall be 2% of FOB value of exports. • Extension in number of days for re-import of unsold items in case of participation in an exhibition in USA increased to 90 days.
  • 18. Leather & Footwear • Duty free import entitlement of specified items is 3% of FOB value of exports of leather garments during preceding financial year. • Re-export of unsuitable imported materials such 12 as raw hides & skins and wet blue leather is permitted.
  • 19. Marine Sector • Imports for technological upgradation under EPCG in fisheries sector (except fishing trawlers, ships, boats & other similar items). • Marine products are considered for VKGUY scheme. • A self removal procedure for clearance of seafood waste is applicable subject to prescribed wastage norms.
  • 20. Electronics & IT Hardware Manufacturing Industries • Expeditious clearance of approvals required from DGFT shall be ensured. • Exporters/Associations would be entitled to utilize MAI & MDA Schemes for promoting Electronics and IT Hardware Manufacturing industry exports.
  • 21. Sports Goods & Toys • Duty free import of specified specialised inputs allowed to the extent of 3% of FOB value of preceding financial year’s export. • Applications relating to Sports Goods & Toys shall be considered for fast track clearance by DGFT. • Sports Goods & Toys are treated as special focus products and entitled to higher incentives.
  • 22. Green Products & Technologies • India aims to become a hub for production and export of green products and technologies. • Focus would be on items relating to transportation, solar and wind power generation and other products as may be notified which will be incentivized under Reward Schemes. • FPS benefit extended for export of “Green products” and for exports of some products originating from the North East.
  • 23.
  • 24.  Every Authorisation shall be valid for prescribed period of validity and shall contain such terms and conditions as may be specified by RA which may include: (a) Quantity, description and value of goods; (b) Actual User condition; (c) Export obligation; (d) Value addition to be achieved; and (e) Minimum export / import price.