Exports Benefits Schemes

The Government’s goals under these programs are to boost foreign exchange profits, encourage domestic and foreign investment for export promotion, and create jobs in the nation.

Indian exports and imports make up a significant portion of global trade, making it the economy with the fastest rate of growth. The Government of India has implemented a number of efforts as part of economic reforms to better the state of exports to other nations as Export Benefit Schemes.

The Foreign Trade Policy, which went into effect on 1 April 2015, provided a number of initiatives by establishing a framework for boosting exports of goods and services, creating jobs, and improving value addition in line with the Hon’ble Prime Minister’s “Made in India” vision. The policy has incorporated a number of export-friendly innovations and simplifications, including the simplification and merger of reward schemes, the introduction of new programmes for the promotion of goods and services exports, incentives for e-commerce exports, and encouragement of the purchase of capital goods from domestic producers under the EPCG schemes, among other things. Moreover, the Export Benefit Scheme plans to assist:

  • Exporters take advantage of GST benefits,
  • Monitoring closely export results,
  • Enhancing cross-border trading efficiency,
  • Growing awareness of India’s agricultural exports and
  • Encouraging MSMEs and industries with a high labour input to export.

The following is an overview of the export benefit programmes that the government implemented under the aforementioned policy:

  • Under the Services Exports from India Programme (SEIS): rewards are offered to service exporters in the form of duty credit checks at the predetermined rates on net foreign exchange earned.
  • The Merchandise Exports from India Programme (MEIS): offers incentives to service exporters in the form of duty credit checks at predetermined rates. A percentage of realised FOB value exports in free foreign exchange or FOB value of exports as per shipping bills in free foreign exchange is used to determine the incentive under this scheme.
  • Remission of Duties and Taxes on Exported Products (RoDTEP): The government established this programme to take the role of MEIS.
  • Export Promotion Capital Goods (EPCG):Capital goods for pre-production, manufacturing, and post-production can be imported duty-free under the Export Promotion Capital Goods (EPCG) programme.
  • Duty-Free Import Authorization (DFIA): A DFIA is a document that authorises the duty-free import of materials used to make an export product.
  • Advance Authorization: Based on Standard Input Output Norms (SION) or Self Declaration, an Advance Authorization scheme is granted to permit duty-free import of goods that are physically included in export products.

How SalahKaro Helps in Export Benefit Schemes?

Our team of experts is familiar with the Indian business and regulatory landscape and keeps up with all of the government of India’s initiatives that provide incentives or other benefits. We have a lot of expertise helping clients obtain export incentives that the government offers under various programmes.

We assist our clients in the following manner:

  • A warning regarding who is eligible to claim incentives under government policy,
  • Identifying services that qualify for various export incentive programmes,
  • The calculation of export benefits.
  • Delivering a start-to-finish solution in a well-structured manner to shorten the operational timeframe.
  • Preparation and submission of the export benefits claim application in the relevant forms;
  • DGFT contact should be maintained until the export advantage is actually collected.

Service Export Benefits

 The SEIS is a programme that offers incentives to service exporters. Duty credit scrips are used as the incentive under the plan. These duty credit certificates that the department has issued are freely transferable and good for 24 months from the date of issuance.

The main goal of SEIS is to encourage and boost India’s exports of notified services. This plan only applies to services rendered in the manner outlined in FTP 2015-20’s Paragraphs 9.51(i) [Mode 1- Cross Border Trade] and 9.51(ii) [Mode 2- Consumption Abroad].

The company currently receives rewards at rates of 5% and 7% of its net foreign exchange earnings (Net free foreign exchange earnings are calculated as follows: Gross foreign exchange earnings minus total foreign exchange expenses, payments, and remittances).

With the exception of the items listed in Appendix 3A, the received duty credit scrips under SEIS may be used in a variety of ways, including the payment of customs duty, additional customs duty as described under Sections 3(1), 3(3), and 3(5) of the Customs Tariff Act, 1975, safeguard duty, anti-dumping duty, etc. These coins cannot be used to pay taxes like the GST and the education cess. The service exporter must have an active IEC at the time of supplying the services for which the benefits are claimed in order to claim the incentive under this plan.

Legal services, accounting, auditing, and bookkeeping services, engineering services, medical and dental services, R&D on natural sciences, advertising services, management consulting services, technical testing and analysis, tourist guide services, hotels and restaurants (including catering), entertainment services (including theatre, live bands, and circus services, news agency services, educational services, and health services are among the notified services under this scheme. However, foreign exchange earnings that are not attributable to the provision of the specified services will not count towards entitlement. So, any additional income sources that are not connected to the provision of services, such as gifts, receipts for loan repayments, equity or debt participation, or any other inflow of foreign exchange revenues, would all be disqualified.

How SalahKaro Helps in Service Exports Benefits

Our team of experts is familiar with India’s commercial and regulatory landscape and keeps up with all of the government of India’s initiatives that provide incentives or other benefits. We have a lot of experts guiding clients on how to take advantage of the numerous government incentives provided through various programs.

We provide the following services to our customers:

  1. a recommendation about the company’s eligibility to submit an SEIS claim under government policy.
  2. Identifying services that qualify for different export incentives.
  3. Calculation of the quantity of export advantages.
  4. Delivering a start-to-finish solution in a well-structured manner to shorten the operational timeframe.
  5. Preparing and submitting the online application in the relevant forms for collecting export benefits.
  6. Representing the service exporter before the DGFT to offer the justification required to resolve the dispute.
  7. DGFT contact should be maintained until the export advantage is actually collected.
  8. The service exporter received assistance in adhering to the Scheme’s deadlines.

Product Export Benefits

The Foreign Trade Policy 2015–20 has incorporated a number of export-friendly innovations and simplifications, including the simplification and merger of incentive programmes, the introduction of new programmes for the promotion of goods and services exports—the “Merchandise Exports from India” and “Service Export from India Scheme”—the encouragement of e-commerce exports, the promotion of capital goods purchases from domestic producers under the EPCG programme, etc.

The Policy’s multiple export incentive programmes include the following:

Merchandise Exports from India Scheme (MEIS): 

The Foreign Trade Policy 2015–20 replaced five previous programmes with the MEIS (Merchandise Exports from India Scheme), which replaced the Focus Product Scheme, Focus Market Scheme, Market Linked Focus Product Scheme, Agri. Infrastructure Incentive Scheme, and Visesh Krishi Gramin Upaj Yojna. The incentives are granted to service exporters at the predetermined rates under this scheme for the export of goods from India. These vouchers are freely transferrable and good for 24 months after the date of issue. A percentage of the realised FOB value exports in free foreign exchange or the FOB value of exports as per shipping bills in free foreign exchange is used to determine the incentive under this programme for merchandise exports from India.

Remission of Duties and Taxes on Exported Products (RoDTEP)

With effect from January 1, 2021, this scheme has been introduced by the government to replace the merchandise exports from India scheme. The federal, state, and municipal taxes and duties will be reimbursed under this plan and credited to an exporter’s ledger account with customs. To pay the Basic Customs Duty on imported products, this credit may be used.

Export Promotion Capital Goods (EPCG)

This programme permits the duty-free importation of capital items for pre-production, production, and post-production. The EPCG Scheme’s goals are to make capital goods imports easier and increase India’s manufacturing competitiveness by generating high-quality products.

Duty-Free Import Authorization (DFIA)

DFIAs are provided to permit the duty-free import of inputs required in the production of export products, such as gasoline, oil, energy sources, etc. DFIA is free from paying Basic Customs Duty, and a value addition of at least 20% must be achieved.

Advance Authorization

To provide duty-free import of commodities that are physically included in export products based on Standard Input Output Norms (SION) or Self Declaration, an Advance Authorization scheme is granted. In this case, at least 15% of value addition must be realized.

How SalahKaro Helps in Export Incentive Scheme

Our team of experts is familiar with India’s commercial and regulatory landscape and keeps up with all of the government of India’s initiatives that provide incentives or benefits for exports. We have a lot of experts guiding clients on how to take advantage of the numerous government advantages provided by various export incentive programmes.

We provide the following services to our customers:

  • A warning regarding who is eligible to claim incentives under government policy.
  • Identifying items and products that qualify for various export incentive programmes.
  • Calculating the benefits of the export incentive.
  • Delivering a start-to-finish solution in a well-structured manner to shorten the operational timeframe.
  • Preparation and submission of the application in the required forms for claiming benefits under the export incentive scheme.
  • DGFT contact should be maintained until the export advantage is actually collected.
  • Assistance with timely compliance with any plan that the exporter has opted into.

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