The document discusses various export promotion schemes and fiscal incentives in India. It outlines schemes that provide duty exemptions or remissions on imports of inputs for export production, including Advance Authorizations, Duty Free Import Authorizations, and Duty Entitlement Passbook schemes. It also discusses duty drawback schemes that provide refunds of import duties on raw materials. Other topics covered include Export Promotion Capital Goods scheme, excise duty refunds, income tax exemptions, and marketing assistance available to exporters in India.

1. UNIT V
Export
IncEntIvEs

2. Dear MIBians
• Lets discuss the aim and objectives of
export incentives ?
• What are all the different type of schemes
are available ?
• CASE STUDY OF INDIA

3. The 1992 -97 Mantra in India
• India’s external Trade policy
[laid down the foundation of
globalization of Indian economy].
• Initiating liberalization and making
Indian industries to face
competition from foreign MNCs

4. Just EXPLORE
•IMPORT is a source to
encourage EXPORT
•How to document the
statement

5. Support which Indian exporters GET
• JUST see your FTP [2009-14]
EPCG[ Export Promotion Capital Goods
Scheme]
Introduced in 1992-97 EXIM policy.
To enable exporter to import capital goods.
Export obligation !! i.e EXPORTER required
to guarantee exports of certain minimum
value, which is multiple of the value of
capital goods imported.

6. Advance Authorizations Scheme
• Allow duty free imports of inputs,
which are physically incorporated in
exports.[ in addition fuel, oil, energy,
catalysts, which are used to discover
export products.
• Up to 10% of CIF value of authorization
are allowed under this scheme.

7. Duty free import authorization[DFIA]
• DFIA is issued to allow duty free
imports of inputs, fuel, oil,
energy sources, catalyst which
are required in export
production.
• This is given based on the SION
-Standard INPUT OUTPUT norms]

8. DUTY remission Schemes
• Duty Entitlement Passbook [ BEPB] : is to
neutralize the incidence of customs duty on
import contents of export product.
• Here Exporter may apply for credit as a specified
percentage of FOB value of exports.
• Such credit may be utilized for payment of
customs duty on freely importable items/ or
restricted items and also on imports under EPCG
Scheme.

9. What is this ?
Export promotion capital goods (EPCG) scheme of
Government of India allows import of capital goods at
concessional duty. In return company should export
some quantity of its production. Indian company
Nippon Dendro Ispat Ltd. Imported capital goods from
Taiwan. Taiwan Company supplied the machine which
reached Mumbai without any damage. But from
Mumbai to Pune transit, the machinery vehicle met an
accident to cost to damage to machinery. The company
could not use the machinery and could not fulfill the
export order. Therefore company will have to increase
export marketing to compensate the loss.

10. DBK[ Duty Drawback Scheme]
• Administered by the Directorate of Drawback,
Dept. of Revenue, Ministry of Finance, Govt. of
India, Jeevan Deep, Parliament Street, New Delhi -
110 001.
• Under this scheme: Exporters are entitled to
claim: 1. Customs duty paid on the import of raw
materials, components, and consumables.
• 2. Central excise duty paid on indigenous raw
materials, components and consumables utilized
in the manufacture if exportable goods.

11. Classification of DBK
• All Industry rates:
• Brand rates
• Special brand rates [ Performa
I,II and III]
• ElGILIBILITY :

12. Claiming DBK
• CLAIMING advance : read
directorate manual
• Execution of BOND:
• Green shipping BILL: TRIPLICATE
COPY accompanied by L/C,
PACKING LIST/ ARE-1 /insurance
cert/special brand rate.

13. Excise duty refund
• Excise duty is a tax by Central government on good mfd
in India. This duty is collected at source, ie. Removal of
goods from factory premises.
• Though exports goods are exempted ///
• But for necessary clearance the following methods are
used:
1. export under rebate
2.Export under bond

14. Rebate/ bond
Procedure for Excise Clearance under Bond / Letter Undertaking// The procedure
under this rule is similar to the one under claim for rebate. This is governed
under Rule 13.
Under this rule, there is no PLA(personal Ledger Account) as no duty
is paid. Instead of payment of duty, the manufacturer exporter
executes bond/letter of undertaking to the amount equivalent to
the excise duty. Bond can be executed with surety or without
surety. Such a bond is to be supported by the bank guarantee to
protect financial interests of excise department. Exporters of the
following categories are allowed to execute bond with surety and
do not have to furnish any bank guarantee or cash security.
Super Star Trading House/Star Trading House /Trading House/Export
House/ Registered Exporters (Registered with relevant Export
Promotion Council)

15. Application for refund claim
• Triplicate copy of the Bill of Entry / Post parcel wrapper / shipping bill / baggage
receipt / purchase invoice (as the case may be).
• 2. Letter from the importer / buyer / exporter (in case the applicant is an agent)
• 3. Duty Challan / other document as evidence of duty payment.
• 4. Signed working sheet for the amount of refund claimed.
• 5. Customs attested invoice and packing list.
• 6. Bill of Lading / Airway Bill.
• 7. Documents for establishing the applicant’s eligibility to receive the refund amount
in terms of the proviso to sub-section (2) of Section 27 of the Act (for e.g. CA
certificate), including documents for the purposes of section 28C and 28D of the Act.
(wherever applicable).
• 8. Contract and Purchase Order.
• 9. Order-in-Original / in revision / in appeal / any other order. (wherever applicable).
• 10. Short delivery certificate from custodian.
• 11. Short shipment certificate from supplier.
• 12. Survey report. (wherever applicable).

16. • 13. Insurance claim settlement certificate. (wherever applicable).
• 14. Catalogue / technical write up / literature. (wherever
applicable).
• 15. Bills for freight / insurance/other charges. (wherever
applicable).
• 16. Certificate of Origin. (wherever applicable).
• 17. Inventory list (for e.g. in case of refund of duty on bunkers on
reversion of a vessel to foreign-run).
• 18. Modvat / Cenvat credit certificate from Central Excise
authorities (for e.g. in case of refund on account of export duty).
• 19. Any other document considered necessary in support of the
claim

17. Central Tax Exemption
•Sce.5 of CST act,1956: “ Any
dealer who is registered with
sales tax authority can claim
exemption in terms of sales
made by him outside India//
for H

18. What are those forms F,C ,H and all?
• "C" Form is issued by buyer who is registered dealer. If the buyer
issues "C" form, he can purchase goods at concessional rates in
the inter-state sale. C Form can be issued only by a registered
dealer to another registered dealer. It can be issued, generally,
only in respect of raw materials, packing materials goods covered
by the certificate of registration of the issuing dealer.
• "F" form is evidence to provide that goods are sent in stock
transfer basis and not on sale. The consignment agent/ branch
receiving is required to issue "F" form to the selling dealer.
• "H" Form is issued when the buyer buys the goods for export. If
buyer issue "H" form, the selling dealer is not required to charge
or pay any CST on the transaction

19. NO TAX PAYABLENo tax is payable under this Act on –
Any transaction of sale in the course of export out of the territory of India. [Section 5(1)].
Sale in the course of import or sale effected by transfer of document of title to the goods
before it crosses the custom frontier of India popularly known as "High Seas Sale".
[Section 5(2)]
Sale of goods to the exporter for the purpose of complying with pre-existing export order
or agreement against Form H. [Section 5(3)]
Any subsequent sale, during inter-state movement of goods, effected by transfer of
documents is exempted if the sale is made to a registered dealer, provided the
prescribed declarations are obtained from the supplier and the purchaser of such goods.
[Section 6(2)]
Inter-State sale of goods to any foreign diplomats/mission/consulates/United Nations, etc.
against Form J. [Section 6(3)]
Inter-State stock transfer against Form F. [Section 6A]
Sale of goods to:
(a) Developer of SEZ; (b) Unit situated in SEZ against Form I [Section 8(6)]
Sale of goods to notified persons against Form "J" [Section 8(4)]

20. Exemption from service tax
• Levi able only on taxable services
supplied within India except Jammu
and Kashmir / read Export service
rules 2005::: all those services
exported outside the territory of
India are exempted from service tax

21. Octroi Exemption
EXEMPTION FROM OCTROI [EXPORT ROMOTION] RULES 1976.
Every claim for exemption from Octroi under these Rules
must be supported by an application for exemption in
triplicate in form 'EP, ' annexed to these Rules and duly
filled in and signed by a Registered Exporter or by a
Custom House Agent who may be Authorised to sign
such 'EP' From under the condition of the Bond or by a
person holding power of attorney from under the
condition of the Bond or by a person holding power of
attorney from a registered exporter, and no such
application shall be entertained unless it fulfills the
following conditions.

22. Forms to be used by tax-payers.
FormRemarksADeclaration-cum-application to pay Octroi, to be filled in by the importer
at the time of import.
( Rules 4, 6, 8 & 12 of Levy of Octroi Rules. )BImport Octroi Bill - Receipt showing
Octroi Collected.
( Rules 4, 6, 8 &12 of Levy of Octroi Rules. )C (Front)
C (Back)Octroi Export Note for use in case of export by Sea.
(Rule 4, Refund of Octroi Rules). Also in case of export by Air.CCOctroi Export Note
for use in case of export by Road.
( Rule, 29(g), Refund of Octroi Rules. )D (Front)
D (Back)Application for refund on account of export.
( Rule, II (a) Refund of Octroi Rules.)ERefund Receipt.
[ Rule, 11 ( c ), Refund of Octroi Rules. ]EP (Front)
EP (back)Application for exemption in respect of
articles imported for export to Foreign Countries.
(Rule, 5-A, Export Promotion Rules. )

23. FISCAL INCENTIVES
A) Exemption from Income Tax : to promote
export –just dilute IT act, 1961.
Ten Year Tax holiday to newly established
industrial undertakings in FTZs, Electronic
hardware , Techno parks, software techno9logy
parks (Sec.10 A)
15 years Tax holiday for SEZ ( Sec.10AA)
10 YEARS for 100% EOUs
Wood based handicrafts ( sec. 10 B)

24. Marketing Assistance
• MDA- Market development Assistance [ EPCs,
commodity boards, FIEO
• MAI- market Access initiative [ survey/ field
study]
Supply of Raw Materials:
Indian Raw material assistance centre
Back to back inland L/C

25. Marketing Development Assistance (MDA)
The Ministry of Commerce and Industry has
a scheme of MDA, which was launched in
1963 with a view to stimulate and diversify
the export trade, along with the
development of marketing of Indian
products and commodities abroad. The
MDA is utilized for: Market research,
commodity research, area survey and
research; Participation in trade fairs and
exhibitions;

26. MDI………..
Export publicity and dissemination of
information; Trade delegation and study
teams; Establishment of offices and branches
in abroad; Grant-in-aid to Export Promotion
Councils and other approved organizations
for the development of exports and the
promotion of foreign trade; and any other
scheme which is generally aimed at
promoting the development of markets for
Indian products and commodities abroad.

27. Market Access Initiative (MAI)
The Ministry of Commerce and Industry has introduced
the MAI in April 2001 with the idea that the
Government shall assist the industry in R&D, market
research, specific market and product studies,
warehousing and retail marketing infrastructure in
select countries and direct market promotion
activities through media advertising and buyer-seller
meets. Financial assistance shall be available under
the scheme to EPCs, industry and trade associations
and other eligible activities, as may be notified from
time to time. A small allocation of Rs 42 crore has
been made for 2002-03.

28. Central Assistance to States
The State Governments shall be encouraged to fully
participate in encouraging exports from their respective
States. For this purpose, a new scheme “Assistance to
States for Infrastructural Development for Exports” (ASIDE)
has been initiated which would provide funds to the States
based on the twin criteria or gross exports and the rate of
growth of exports from different States. Eighty per cent of
the total funds would be allotted to the States based on
the above criteria and remaining 20 per cent will be utilized
by the Centre for various infrastructure activities that cut
across State boundaries, etc. A sum of Rs 49.5 crore has
already been sanctioned for 2001-02 and further a sum of
Rs 330 crore has also been approved for 2002-03. The State
shall utilize this amount for developing complementary and
critical infrastructure.

29. Towns of Export Excellence
• A number of towns in specific geographical locations have
emerged as dynamic industrial locations and handsomely
contributing to India’s exports. These industrial cluster-
towns have been recognized with a view to maximiing their
export profiles and help in upgrading them to move up the
higher value markets. A beginning is being made to consider
industrial cluster towns such as Tirupur for Hosiery, Panipat
for Woollen Blankets and Ludhiana for Woollen knitwear.
Common service providers in these areas shall be entitled
for EPCG Scheme, funds under the MAI scheme for creating
focused technological services, priority assistance for
identified critical infrastructural gaps from the Scheme on
Central Assistance to States. Units in these notified areas
would be eligible for availing all the Exim Policy Scheme.

30. Special Economic Zones (SEZ)
• The Government of India had announced an SEZ
scheme in April 2000 to promote India’s exports.
Four Export Processing Zones (EPZ), namely Noida
(UP), Falta (West Bengal), Chennai (Tamilnadu), and
Viskhapatnam (Andhra Pradesh) have been
converted into SEZs from 1 January 2003. There are
seven EPZs in the country. In addition, three formal
approvals and 14 in-principle approvals have been
granted for the establishment of SEZs in private,
state, and joint sectors. Policy initiatives taken to
promote SEZs include duty-free import/domestic
procurement of goods for development…………

31. ….operation and maintenance of SEZs and SEZ
units, external commercial borrowing up to
$500 million in a year without any maturity
restriction through recognized banking channels
and a facility to set up overseas banking units in
SEZs. The SEZ units have also been getting
exemption from central sales tax on sales made
from the domestic tariff area to SEZ units and
exemption from service tax to SEZ units and
developers.

32. Duty Drawback on Goods Exported
Under this Duty Drawback scheme export products
get relief of incidence of customs and excise
duties paid on raw materials and components
used at various stages of production. It is defined
as “rebate of duty chargeable on any imported or
excisable material used in the manufacture of
goods exported from India. Duty Drawback is
admissible for exports irrespective of mode of
export, i.e. whether despatched by Sea, Air, Land
Customs or by Post.

33. WOW… institutions
• IIFT
• EPCs
• EICs
• Indian Council of Arbitration
• FIEO
• EXIM
• What not

34. WHY DON’T you present ??
•Is there any special
documentation for
DEEMED EXPORTS

35. DFIA [ duty free import authorization]
• EOUs
• Software Techno Parks
• Electronic Hardware TECHNO parks[ EHTPS]
• Bio- Tech parks
• Supply of goods
• Supply of Infrastructure
• Supply of projects
• What not ??

36. Hey! Deemed exporter
• You enjoy
Advance authorization – duty free
authorization
Deemed export drawback
Exemption from Terminal excise duty
where – you deal international
competitive bidding

37. TOWN of export Excellence
•Why don’t you
remember some right
now
•Why are the called as
Town of export
excellence