Businesses can claim the benefits of export promotion schemes which aim to facilitate and incentivize exports by providing various advantages to exporters. Exporters can optimize their operations, reduce costs, and enhance their competitiveness in the global market.
1. ADVANCE AUTHORISATION SCHEME - Advance Authorisation is issued to allow duty-free import of inputs (raw materials, consumables, components, packaging materials) which is physically incorporated in export product (making normal allowance for wastage). In addition to any inputs fuel, oil, and catalyst which is consumed/utilized in the process of production of export product, may also be allowed.
2. EXPORT PROMOTION CAPITAL GOODS ( EPCG ) SCHEME – EPCG Scheme allows the Import of Capital goods for pre-production, production and post–production at zero Custom duty.
Capital goods for the purpose of the EPCG scheme shall include:
- Capital Goods including in CKD / SKD condition thereof;
- Computer systems and software which is a part of the Capital Goods being imported;
- Spares, moulds, dies, jigs, fixtures, tools & refractories; and
- Catalyst for initial charge plus one subsequent charge.
3. RODTEP SCHEME - RODTEP stands for the Remission of Duties or Taxes on Export Products Scheme. This scheme provides for rebate of all hidden Central, State, and Local duties/taxes/levies on the goods exported which have not been refunded under any other existing scheme. Under the Scheme, a rebate would be granted to eligible exporters at a notified rate as a percentage of FOB value with a value cap per unit of the exported product, wherever required, on the export of items which are categorized under the notified 8-digit HS Code. Under the Scheme, a rebate would be granted to eligible exporters at a notified rate as a percentage of FOB value with a value cap per unit of the exported product, wherever required, on the export of items which are categorized under the notified 8-digit HS Code.The rebate amount will be issued in the form of a transferable duty credit/electronic scrip (e-scrip), which will be maintained in an electronic ledger by the Central Board of Indirect Taxes & Customs (CBIC).
4. REGISTRATION AS AN EXPORT HOUSE - The objective behind certifying certain exporter firms as “Status Holder” is to recognize such exporter firms as business leaders who have excelled in international trade and have successfully contributed to the country’s foreign trade. Status Holders are expected to not only contribute towards India’s exports but also provide guidance and handholding to new entrepreneurs.
ELIGIBILITY - Export performance threshold for Recognition of Exporters as Status Holders as follows:
Status House Category | Export performance Threshold (In USD Million) |
One Star | 3 |
Two Star | 15 |
Three Star | 50 |
Four Star | 200 |
Five Star | 800 |
This article has been contributed by our member company Kamdar & Kamdar Associates Pvt. Ltd., Mumbai.
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