Export promotion Schemes

FOREIGN TRADE POLICY 2015 - 2020

SIMPLIFICATION & MERGER OF REWARDS SCHEME – NEW POLICY

EXPORTS FROM INDIA SCHEME

1. Merchandise Exports from India Scheme (MEIS)

2. Service Exports from India Scheme (SEIS)

MERCHANDISE EXPORTS FROM INDIA SCHEME (MEIS)

Earlier there were 5 different schemes a) Focus Product Scheme. b) Market linked Focus Product Scheme. c) Focus Market Scheme. d) Agri. Infrastructure Incentive script.

e) VKGUY.

Now all these schemes have been merged into a single scheme, namely Merchandise Export from India Scheme (MEIS)

Groups of products supported under MEIS and country groups are at Annexure-1

2. SERVICE EXPORTS FROM INDIA SCHEME (SEIS)

SFIS has been replaced with SEIS.

SEIS shall apply to Service Providers located in India instead of Indian Service Providers.

SEIS provides for rewards to all service providers of notified services who are providing serviced from India, regardless of the constitution or profile of service provider.

The list of services and the rates of rewards under SEIS are at Annexure -2.

The rate of rewards under SEIS would be based on net foreign earnings.

2. SERVICE EXPORTS FROM INDIA SCHEME (SEIS)

SEIS Duty credit script would no longer be with actual user condition

SEIS Duty credit script would no longer be restricted to usage for specified types of goods.

SEIS is freely transferable.

SEIS would be usable for all types of goods and service tax debits on procurement of service/ goods.

Chapter - 3 incentives (MEIS & SEIS) proposed to extend units located in SEZs.

CONDITIONS of MEIS & SEIS Duty credit scrip's to be freely transferable and

usable for payment of custom duty, excise duty and service tax.

Goods imported against these scrip's would be fully transferable.

These Duty credit scripts would be usable for payment of customs duty for import inputs/ goods including capital goods EXCEPT ITEMS LISTED IN APPENDIX 3A.(log on to google for details)

Scrip's can be used for excise duty payment on domestic procurement as per DoR notification.

CONDITIONS of MEIS & SEIS

Payment of service tax on procurement of services as per DoR notification.

Basic Customs duty paid in cash or through debit under DCS can be taken back as DBK as per DoR Rules, if inputs so imported are used for exports.

BOOST TO “MAKE IN INDIA”

Reduced EO for domestic procurements under EPCG.

Specific Export obligation under EPCG scheme (6 time of duty saved in 6 years time) in case of CG are procured from indigenous manufacturers, which is 90% has been reduced to 75% in order to promote domestic capital goods manufacturing industry.

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EXPORT PROMOTION SCHEMES

Duty Exemption / Remission Scheme.

Duty Free Import Authorization (DFIA).

Export Promotion Capital Goods Scheme ( EPCG).

EOUs, EHTPs, STPIs & BTPs.

Deemed Exports.

DUTY EXEMPTION SCHEME Duty Exemption schemes consist of:

A) Advance Authorisation

B) Duty Free Import Authorisation.

Duty Remission Scheme: DBK Scheme

ADVANCE AUTHORISATION SCHEME Advance Authorization can be issues either

to a Manufacturer exporter or Merchant Exporter tied to supporting manufacturer.

Advance Authorization shall be issued for Physical exports including export to SEZ

Intermediate supplies

Supply of goods to the categories mentioned in Para 7.02 ( AA, EPCG, EOU, STPI etc )

ADVANCE AUTHORISATION SCHEME Authorization is issued to allow duty free import

of inputs.

Authorization is issued for inputs in relations to resultant product.

Authorization is issued as per standard input Output Norms (SION).

Or on the basis of self delcaration.

Advance Authorization can be issued for annual requirement also.

CONTIONS : A A SCHEME Minimum Value addition required to be

achieved is 15%. Value addition could be less than 15%

are given in Appendix 4D. In case of Tea, minimum value addition

shall be 50%. Advance Authorization shall be issued

with actual used condition basis. Validity period for import shall be for 12

months from the date of issue.

EXPORT OBLIGATION – AA SCHEME Export obligation fulfilment period is 18

months.

In case of turnkey projects in India under deemed export category, EO period shall be contracted duration of the project or 18 months which ever is more.

EO for items falling under defence, military store, Aerospace and nuclear energy shall be for 24 month.

DUTY FREE IMPORT AUTHORIZATION

ELIGIBILITY Duty Free Import Authorisation shall be

issued on post export basis. Merchant Exporters shall be required to

mention name and address for supporting manufacturers of the export product on the export documents.

Application shall be filed for concerned Regional authority.

VALUE ADDITION Minimum value addition shall be

required to be achieve is 20%. Higher value addition has been

prescribed in Appendix 4C.

EXPORT PROMOTION CAPITAL GOODS ( EPCG ) SCHEMES EPCG scheme allows import of CG for

pre-production, production and post production at Zero customs duty.

Import of CG for project import Notified by Central Board of Excise & Customs is also permitted.

EO under EPCG scheme is 6 time of duty saved to be completed in 6 year time.

EPCG shall be valid for import for 18 months.

Second hand CG shall not be permitted for import under EPCG scheme.

DOCUMENTS REQUIRED FOR PROCESS OF EPCG LICENCE. Digital Signature certificate ( e-token) REMC ( Registration Cum Membership

Certificate from Export promotion council. Industrial License issued by Department of

Industries and Commerce. Excise Registration Certificate/ Service Tax

Registration Certificate. Proforma Invoice Catalogues of CG proposed to import. Chartered Accountant Certificate for the

previous 3 Financial Years export turnover. Chartered Accountant certificate for Nexus.

POST EXPORT EPCG DUTY CREDIT SCRIP. Post export EPCG duty credit scrip shall

be available to exporters who intend to import CG on full payment of applicable duties in cash and choose to opt for this scheme.

All provision of the existing EPCG scheme shall apply insofar are not inconstitent with the scheme.

DEEMED EXPORTS. Supply against AA & DFIA Supply of goods to EOU, STP, EHTP &

BTPs Supply of CG against EPCG

Authorisation. Supply of Marine freight containers are

exported out of India within 6 months. DEEMED EXPORT BENEFITS Advance Authorisation Deemed Export DBK Refund of terminal excise duty

DRAWBACK“Drawback” in relation to any goods manufactured in India & exported, means the rebate of duty or tax, as the case may be, chargeable on any imported materials or excisable materials used as input services in the manufacture of such goods.

Requirements: Copies of Invoice, packing list, export contract,

insurance certificate. Copy of ARE-1 (If applicable). Declaration under Rule 12(1)(a)(ii) of Duty Drawback

Rules that no separate claim for rebate of duty/service tax has been made.

Brand rate declaration, whenever required. Checking & drawing of samples, in case drawback is

more than Rs. 1 lakh per consignment.

DRAWBACK

Section 74 ibid.

Imported Goods on re-export on which import duties are paid ( if re-exported with in 18 months from the date of duty (DBK rate as per the table).

Section 75 of the Customs Act,1962.

All industry rate Brand Rate Special brand rate

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DBK Appraiser

DBK Assistant Commissioner

DBK > RS.1 Lakh

Yes

No

Scroll Generation Scroll to Bank

PROCESSING OF DRAWBACK- All Industry Rates (AIR) -

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Registration of Brand Rate Claim

DBK Assistant Commissioner for marking the Shipping Bill to DBK

Appraiser

PROCESSING OF DRAWBACK- Brand Rates (BR) -

Letter from the Jurisdictional Central Excise

Commissionerate fixing the Brand Rate

DBK Appraiser

DBK > Rs.1 LakhDBK Assistant CommissionerYes

Scroll Generation

Scroll to Bank

No

EXPORT ORIENTED UNITS (EOU)

Export Oriented Undertakings (EOU) can import inputs & capital goods without payment of customs duty. They can procure indigenous inputs and capital goods without payment of excise duty. Their final product should be normally exported, but they are allowed to sale part of their production within India, which is termed as ‘DTA’ sale i.e. ‘Domestic Traffic Area’.

Requirements: Invoice, packing list. EOUR range certified shipping bill copy. Cargo should be sealed by the EOU unit.

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