Export assistance

Export assistance means Monetary, tax or legal incentives or any other

support designed to encourage businesses to export certain types of goods or
services. A government providing export incentives often does so in order to
keep domestic products competitive in the global market. Types of export
incentives include tax exemption on profits made from exports.

Importance of Export Assistance:
Export assistance make domestic exports competitive by providing a sort of
kickback to the exporter. The government collects less tax in order to deflate
the exported good's price, so the increased competitiveness of the product in
the global market ensures that domestic goods have a wider reach. This level
of government involvement can also lead to international disputes that may
be settled by the World Trade Organization (WTO).
It motivates the Exporters to Export more.
More Exports brings FOREX inflow.
It helps in improving BOP condition.

Documents for Claiming Export Assistance:
These are some common documents which are required to avail export
assistance by the government:
1. Registration-cum-Membership Certificate (RCMC)
2. CERTIFICATE OF CHARTERED ACCOUNTANT (CA) /COST AND WORKS
ACCOUNTANT (ICWA)/ COMPANY SECRETARY (CS)
3. Export Promotion Copy of shipping Bill
4. Bank Certificate of Exports and Realization

Registration-cum-Membership Certificate (RCMC)

"Registration-cum-Membership Certificate" (RCMC) means the certificate of
registration and membership granted by an Export Promotion Council or other
competent authority as prescribed in the Policy or Handbook (Vol.1).
According to the Foreign Trade Policy, a Registration-cum-Membership
Certificate (RCMC) is required for exporters in order to avail benefits under the
policy. Holding the certificate can also help exporters in availing benefits with
respect to Customs and Excise.

Any person, applying for:

a) An Authorisation to import / export, (except items) listed as
Restricted items in ITC (HS)
or

b) Any other benefit or concession under FTP shall be required to furnish
RCMC granted by competent authority in accordance with procedure
specified in HBP v1 unless specifically exempted under FTP. Certificate
of Registration as Exporter of Spices (CRES) issued by Spices Board
shall be treated as Registration-Cum-Membership Certificate (RCMC)
for the purposes under this Policy.

Registering Authorities issuing RCMC:

a) While obtaining RCMC, an exporter has to declare his main line of
business in the application. The exporter is required to obtain RCMC from
the Council which is concerned with the product of his main line of
business.


b) A status holder has an option to obtain RCMC from Federation of Indian
Exporters Organization (FIEO).


c) In case an export product is not covered by any Export Promotion
Council/Commodity Board etc., RCMC in respect thereof is to be obtained
from FIEO. Further, in case of multi product exporters, not registered
with any EPC, where main line of business is not discernible, the exporter
has an option to obtain RCMC from Federation of Indian Exporters
Organization (FIEO).


Application:

An exporter may, on application given in Appendix 19A, register and
become a member of EPC. On being admitted to membership, applicant
shall be granted forthwith Registration-cum-Membership Certificate (RCMC)
of EPC concerned, in format given in Appendix-19B. In case an exporter
desires to get registration as a manufacturer exporter, he shall furnish
evidence to that effect.

(b) Prospective / potential exporters may also, on application, register and
become an associate member of an EPC.

Validity Period of RCMC
RCMC shall be deemed to be valid from 1st April of licensing year in which it
was issued and shall be valid for five years ending 31st March of licensing
year, unless otherwise specified.

Intimation Regarding Change In Constitution
In case of change in ownership, constitution, name or address of an
exporter, it shall be obligatory on part of RCMC holder to intimate such
change to registering authority within
a period of one month from date of such change. Registering authority,
however, may condone delays on merits.


De-Registration
Registering authority may de-register an RCMC holder for a specified period
for violation of conditions of registration. Before such de-registration, RCMC
holder shall be given a show cause notice by registering authority, and an
adequate and reasonable opportunity to make a representation against the
proposed de-registration. Upon deregistration, concerned EPC shall intimate
the same to all RAs.


CERTIFICATE OF CHARTERED ACCOUNTANT (CA) /COST AND WORKS
ACCOUNTANT (ICWA)/ COMPANY SECRETARY (CS)
It is the document certified by the CA/CS that the records and documents
furnished by the applicant firm or company is verified & examined.
Following are the records and documents which are verified by CA/CS:
a) Statutory documentations under Customs Act 1962 and Excise Act 1848,
Service Tax Act, Foreign Trade (Development & Regulation) Act 1992;

b) Export Order / Contract, Shipping Bills, Bill of Lading (and / or Airways
Bills / PP Receipts), Customs / Bank attested Invoices, Forward Inward
Remittance Certificates (FIRCs) and Bank Certificates of exports and
realization, GR declaration and connected books of accounts;

c) FIRCs, Certificate from international credit card companies.
And also certify that export proceeds for shipments during last three years plus
current year are not outstanding beyond prescribed period as permitted by RBI.


Export Promotion Copy of shipping Bill
Exporter gets all benefits under exports from different government export
promotion agencies only on the basis of export promotion shipping bills and
other proof of export. In other words, among shipping bills, Government
agencies accept only EP copy of shipping bill as a proof of export.
After movement of goods out of country by shipping carrier either by air or sea,
the carrier files EGM (export general manifest) with customs mentioning details
of goods moved as per specified format. EGM filing is a legal and mandatory
requirement as per customs rules. The details of vessel or aircraft in which the
cargo moved, Shipping bill number and other details of goods are mentioned in
the EGM.
Once after filing EGM by shipping carrier who carried goods, the exporter or his
customs house agent approaches concerned customs officials to release EP copy
of shipping bill. Once after satisfying on the export of goods mentioned in
shipping bill after verifying with Export General Manifest (EGM), the customs
official approves and confirms export by releasing EP copy of shipping bill.
This export promotion copy of shipping bill is used by exporters to produce at
different government agencies for claiming export benefits along with other
export document like BL/AWB etc.



Bank Certificate of Exports and Realization
Bank Realisation Certificate (BRC) is issued by a bank after realisation of
export proceeds in the country. It is an important document required for
claiming benefits under various FTP schemes. In addition, BRC data is
used by VAT, Income tax and Drawback departments.

With the introduction of electronic BRC system, banks will issue and
transmit BRCs electronically to DGFTs server replacing the manual mode
of obtaining and submitting BRC. The revised process flow with technical
guidelines is available on the DGFTs websitedgft.gov.in under the e-BRC
icon.

E-BRC system allows Transmission of realization of export proceeds
details from banks to DGFT in electronically secured format. The system
has been made mandatory with effect from 17th August, 2012.
E-BRC data is also of use to different ministries/departments of Central
Government and State Governments who have expressed interest in
obtaining this data from DGFT.