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1. EXPORT PROMOTION SCHEMES -

Foreign Trade Policy 2015-20 and other schemes provide promotional measures to boost Indias exports with the
objective to offset infrastructural inefficiencies and associated costs involved to provide exporters a level playing field.
Brief of these measures are as under:

1.1Exports from India Scheme

i.Merchandise Exports from India Scheme (MEIS)

Under this scheme, exports of notified goods/ products to notified markets as listed in Appendix 3B of
Handbook of Procedures, are granted freely transferable duty credit scrips on realized FOB value of
exports in free foreign exchange at specified rate (2-5%). Such duty credit scrips can be used for
payment of custom duties for import of inputs or goods, payment of excise duty on domestic
procurement, payment of service tax and payment of custom duties in case of EO default.

Exports of notified goods of FOB value upto Rs 25, 000 per consignment, through courier or foreign
post office using e-commerce shall be entitled for MEIS benefit.

ii.Service Exports from India Scheme (SEIS)

Service providers of notified services as per Appendix 3E are eligible for freely transferable duty credit
scrip @ 5% of net foreign exchange earned.

2. DUTY EXEMPTION & REMISSION SCHEMES

These schemes enable duty free import of inputs for export production with export obligation. These scheme consists
of:-

2.1 Advance Authorization Scheme:

Under this scheme, duty free import of inputs are allowed, that are physically incorporated in the export product (after
making normal allowance for wastage) with minimum 15% value addition. Advance Authorization (AA) is issued for
inputs in relation to resultant products as per SION or on the basis of self declaration, as per procedures of FTP. AA
normally have a validity period of 12 months for the purpose of making imports and a period of 18 months for
fulfillment of Export Obligation (EO) from the date of issue. AA is issued either to a manufacturer exporter or
merchant exporter tied to a supporting manufacturer(s).

2.2 Advance Authorization for annual requirement

Exporters having past export performance (in at least preceding two financial years) shall be entitled for Advance
Authorization for Annual requirement. This shall only be issued for items having SION.

2.3 Duty Free Import Authorization (DFIA) Scheme:

DFIA is issued to allow duty free import of inputs, with a minimum value addition requirement of 20%. DFIA shall be
exempted only from the payment of basic customs duty. DFIA shall be issued on post export basis for products for
which SION has been notified. Separate schemes exist for gems and jewellery sector for which FTP may be referred.

2.4 Duty Drawback of Customs/Central Excise Duties/Service Tax:

The scheme is administered by Department of Revenue. Under this scheme products made out of duty paid inputs
are first exported and thereafter refund of duty is claimed in two ways:

i) All Industry Rates : As per Schedule

ii) Brand Rate : As per application on the basis of data/documents

2.5 Rebate of Service tax through all industry rates

Refund of service tax paid on specified output services used for export of goods is available at specified all industry
rates.

3. EPCG SCHEME

3.1 Zero duty EPCG scheme

Under this scheme import of capital goods at zero custom duty is allowed for producing quality goods and services to
enhance Indias export competitiveness. Import under EPCG shall be subject to export obligation equivalent to six
times of duty saved in six years. Scheme also allows indigenous sourcing of capital goods with 25% less export
obligation.

3.2 Post Export EPCG Duty Credit Scrip Scheme

A Post Export EPCG Duty Credit Scrip Scheme shall be available for exporters who intend to import capital goods on
full payment of applicable duty in cash.

4. EOU/EHTP/STP & BTP SCHEMES

Units undertaking to export their entire production of goods and services may be set up under this scheme for import/
procurement domestically without payment of duties. For details of the scheme and benefits available therein FTP
may be required.

5. OTHER SCHEMES

5.1 Towns of Export Excellence (TEE)

Selected towns producing goods of Rs. 750 crores or more are notified as TEE on potential for growth in exports and
provide financial assistance under MAI Scheme to recognized Associations.

5.2 Rebate of duty on export goods and material used in manufacture of such goods:

Rebate of duty paid on excisable goods exported or duty paid on the material used in manufacture of such export
goods may be claimed under Rule of 18 of Central Excise Rules, 2002.

5.3 Export of goods under Bond i.e. without payment of excise duty:

Rule 19 of Central Excise Rules 2002 provides clearance of excisable goods for exports without payment of central
excise duty from the approved factory, warehouse and other premises.

5.4 Market Access Initiative (MAI) Scheme

Under the Scheme, financial assistance is provided for export promotion activities on focus country, focus product
basis to EPCs, Industry & Trade Associations, etc. The activities are like market studies/surveys, setting up
showroom/warehouse, participation in international trade fairs, publicity campaigns, brand promotion, reimbursement
of registration charges for pharmaceuticals, testing charges for engineering products abroad, etc. Details of the
Scheme is available at www.commerce.nic.in

5.5 Marketing Development Assistance (MDA) Scheme

 Financial assistance is available for exporters having an annual export turnover upto Rs. 30 crores for trade fairs,
buyer seller meets organized by EPCs/ Trade promotion organizations. MDA guidelines available
at www.commerce.nic.in

5.6 Status Holder Scheme

Upon achieving prescribed export performance, status recognition as one star Export House, two Star Export House,
three star export house, four star export house and five star export house is accorded to the eligible applicants as per
their export performance. Such Status Holders are eligible for various non-fiscal privileges as prescribed in the
Foreign Trade Policy.
In addition to the above schemes, facilities like 24X7 customs clearance, single window in customs, self assessment
of customs duty, prior filing facility of shipping bills etc are available to facilitate exports.

http://www.indianindustry.com/trade-information/export-incentives.html

Export Incentives

The Government of India has framed several schemes to promote exports and to obtain foreign exchange. These
schemes grants incentive and other benefits. The few important export incentives, from the point of view of indirect
taxes are briefed below:

Free Trade Zones (FTZ)

Several FTZs have been established at various places in India like Kandla, Noida, Cochin, etc. No excise duties are
payable on goods manufactured in these zones provided they are made for export purpose. Goods being brought in
these zones from different parts of the country are brought without the payment of any excise duty. Moreover, no
customs duties are payable on imported raw material and components used in the manufacture of such goods being
exported. If entire production is not sold outside the country, the unit has the provision of selling 25% of their
production in India. On such sale, the excise duty is payable at 50% of basic plus additional customs or normal excise
duty payable if the goods were produced elsewhere in India, whichever is higher.

Electronic Hardware Technology Park / Software Technology Parks

This scheme is just like FTZ scheme, but it is restricted to units in the electronics and computer hardware and
software sector.

Advance Licence / Duty Exemption Entitlement Scheme (DEEC)

In this scheme advance licence, either quantity based (Qbal) or value based (Vabal), is given to an exporter against
which the raw materials and other components may be imported without payment of customs duty provided the
manufactured goods are exported. These licences are transferable in the open market at a price.

Export Promotion Capital Goods Scheme (EPCG)

According to this scheme, a domestic manufacturer can import machinery and plant without paying customs duty or
settling at a concessional rate of customs duty. But his undertakings should be as mentioned below:

Customs Duty Rate

Export Obligation
Time

10%
4 times exports (on FOB basis) of CIF value of machinery.
5 years

Nil in case CIF value is Rs200mn or more.

6 times exports (on FOB basis) of CIF value of machinery or 5 times exports on (NFE) basis of CIF value of
machinery.
 8 years

Nil in case CIF value is Rs50mn or more for agriculture, aquaculture, animal husbandry, floriculture, horticulture,
poultry and sericulture.
6 times exports (on FOB basis) of CIF value of machinery or 5 times exports on (NFE) basis of CIF value of
machinery.

8 years

Note:-

NFE stands for net foreign earnings.

CIF stands for cost plus insurance plus freight cost of the machinery.
FOB stands for Free on Board i.e. export value excluding cost of freight and insurance.

Deemed Exports
The Indian suppliers are entitled for the following benefits in respect of deemed exports:

Refund of excise duty paid on final products

Duty drawback

Imports under DEEC scheme

Special import licenses based on value of deemed exports

The following categories are treated as deemed exports for seller if the goods are manufactured in India:

Supply of goods against duty free licences under DEEC scheme

Supply of goods to a 100 % EOU or a unit in a free trade zone or a unit in a software technology park or a unit

in a hardware technology park

Supply of goods to holders of licence under the EPCG scheme

Supply of goods to projects financed by multilateral or bilateral agencies or funds notified by the Finance

Ministry under international competitive bidding or under limited tender systems in accordance with the

procedures of those agencies or funds where legal agreements provide for tender evaluation without including

customs duty

Supply of capital goods and spares upto 10% of the FOR value to fertilizer plants under international

competitive bidding

Supply of goods to any project or purpose in respect of which the Ministry of Finance permits by notification the

import of goods at zero customs duty along with benefits of deemed exports to domestic supplies

Supply of goods to power, oil and gas sectors in respect of which the Ministry of Finance permits by notification
benefits of deemed exports to domestic supplies
Manufacture Under Bond
This scheme furnishes a bond with the manufacturer of adequate amount to undertake the export of his production.
Against this the manufacturer is allowed to import goods without paying any customs duty, even if he obtain it from
the domestic market without excise duty. The production is made under the supervision of customs or excise
authority.

Duty Drawback
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. In case
of re-import of goods the drawback can be claimed.

The following are Drawbacks:

Customs paid on imported inputs plus excise duty paid on indigenous imports.

Duty paid on packing material.

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.

In case of re-export of goods, it should be done within 2 years from the date of payment of duty when they were
imported. 98% of the duty is allowable as drawback, only after inspection. If the goods imported are used before its
re-export, the drawback will be allowed as at reduced percent.

http://howtoexportimport.com/Export-Financial-benefits-Export-incentives-and-su-4103.aspx