Export Incentive Schemes

Promotional Measures give direct incentives to the exporters

  • Market Access Initiatives (for studies, brochures etc.),
  • Marketing Development Assistance for participation in trade fairs etc.
  • Providing services to international market
  • Marketing in difficult markets like certain African, Latin American and CIS markets
  • Marketing difficult products like those from rural areas.
  • Special agricultural products, and rural industrial products.
  • High-Technology Products
  • Achieving quantum growth in exports under Erstwhile Target Plus Scheme

Some of the popular scheme are :

MEIS (Merchandise Export from India Scheme)

Gives a value of 2-5% on FOB from export of goods from India in the form of duty credit script. This scheme will be effective from 01.04.2015

The scripts can only be used for the payment of Basic Customs Duty, Additional Customs Duty specified under Section 3(1), 3(3) and 3(5) of the Customs Tariff Act, Education Cess, Anti-Dumping Duty, Safeguard Duty and Transition Product Specific Safeguard Duty wherever applicable. There are certain terms and conditions attached to this schemes which need to be taken care of on the basis of exporter profile prior to export.

SEIS (Service Export from India Scheme)

Gives a value of 3-5% of the FE earned from export of services from India in the form of duty credit script. This scheme will be effective from 01.04.2015 and will be given on annual basis.

The scripts can only be used for the payment of Basic Customs Duty, Additional Customs Duty specified under Section 3(1), 3(3) and 3(5) of the Customs Tariff Act, Education Cess, Anti-Dumping Duty, Safeguard Duty and Transition Product Specific Safeguard Duty wherever applicable. There are certain terms and conditions attached to this schemes which need to be taken care of on the basis of exporter profile prior to export.

The following schemes have ended on 31.03.2015 but they still have significance

The scripts issued under the below schemes can only be used for the payment of Basic Customs Duty, Additional Customs Duty specified under Section 3(1), 3(3) and 3(5) of the Customs Tariff Act, Education Cess, Anti-Dumping Duty, Safeguard Duty and Transition Product Specific Safeguard Duty wherever applicable. There are certain terms and conditions attached to this schemes which need to be taken care of on the basis of exporter profile prior to export.

SFIS (Served from India Scheme)

Gives a value of 10% of the FE earned from export of services in the previous year in the form of duty credit script.

The scripts can be used for the payment of duties mentioned above at time of procurement of any Capital Goods or consumables related to any service sector business of the script holder, from International as well as domestic sources. Service exporters who are also engaged in manufacturing activity are permitted to use SFIS duty credit scrip for the payment of above duties on imported/domestically procured capital goods including spares related to their manufacturing sector business. Hotels, travel agents, tour operators or tour transport operators and companies owning/operating golf resorts having SFIS scrip can import or domestically procure motor cars, SUVs and all purpose vehicles using SFIS scrips for the payment of above duties. Such vehicles need to be registered for tourist purpose only. In case of Hotels and Restaurants it can be used even for the payment of above duties on import of foods items and liquor.

Is Actual User and non transferable (except within the group)

VKGUY (Vishesh Krishi Gram Udyog Yojna)

The scheme offers a duty credit script equivalent to 5% of previous year”s exports of certain agricultural & forest products. For flowers fruits and vegetable exporters it will be 7%/5% depending upon the benefits they are availing.

The script is transferable to other importers

FMS (Focus Market Scheme)

The scheme incentivizes exports to Certain Latin American, African ,CIS Countries. It offers 3%/4%/5% of the previous years exports in the form of duty credit script, which is transferable.

FPS (Focus Product Scheme)

The scheme incentivises exports of certain items of rural and semi urban origin. It offers 2%/4%/5% of the previous years exports in the form of duty credit script, which is transferable.

For the export of certain Toys and Sports Goods from 1.4.08, a script of up-to 6.25% value is available. For High value added products script of upto 2.5% is available

IEIS (Incremental Export Incentive Scheme)

A new scheme namely Incremental Export Incentivisation Scheme of 2% of incremental FOB for the exports made during 2013-14 vis a vis previous year 2012-13. This scheme is available for exports made to USA, EU and Asia, and 53 other countries in Latin America and Africa.

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