Export promotion

Advance Authorization Scheme

• As part of this scheme, businesses are allowed to import input in the

country without having to pay duty payment, if this input is for the
production of an export item. Moreover, the licensing authority has
fixed the value of the additional export products to not below than
15%. The scheme has the validity period of 12 months for imports
and 18 months for carrying out the Export Obligation (EO) from the
date of issue typically.
• Advance Authorization for Annual Requirement:Exporters who have a
previous export performance for at least two financial years can avail
the Advance Authorization for Annual requirement scheme or more
benefits.
Export Duty Drawback for Customs, Central Excise,
and Service Tax
• Under these schemes, the duty or tax paid for inputs against the
exported products is refunded to the exporters. This refund is carried
out in the form of Duty Drawback. In case the duty drawback scheme
is not mentioned in the export schedule, exporters can approach the
tax authorities for getting a brand rate under the duty drawback
scheme.
Export promotion
• Service Tax Rebate:In the case of specified output services for export
goods, the government provides rebates on service tax to exporters.
• Duty-Free Import Authorization :This is another benefit the
government has introduced by combining the DEEC (Advance License)
and DFRC to help exporters get free imports on certain products.
Export promotion
Zero duty EPCG (Export Promotion Capital Goods) Scheme
• In this scheme, which applies to exporters of electronic products,
import of capital goods for production, pre-production, and post-
production is allowed at zero percent customs duty if the export value
is at least six times the duty saved on capital goods imported. The
exporter needs to verify this value(Export Obligation) within six years
of issuing date.
Export promotion
• Post Export EPCG Duty Credit Scrip Scheme :Under this export
scheme, exporters who aren’t sure about paying the export obligation
can obtain an EPCG license and pay the duties to the customs
officials. Once they fulfill the export obligation, they can claim a
refund of the taxes paid.
• Towns of Export Excellence (TEE):Towns that produce and export
goods above a particular value in the identified sectors would be
known as towns of export status. Towns will be given this status
based on their performance and potential in exports to help them
reach new markets.
Export promotion
• Market Access Initiative (MAI) Scheme :An effort to provide financial
guidance to eligible agencies for undertaking direct and indirect
marketing activities like market research, capacity building, branding,
and compliances in importing markets.
• Marketing Development Assistance (MDA) Scheme :This scheme aims
to promote export activities abroad, assist export promotion councils
to develop their products and other initiatives to carry out marketing
activities abroad.
Export promotion
Merchandise Exports from India Scheme (MEIS)
• This scheme applies to the export of certain goods to specific
markets. Rewards for exports under MEIS will be payable as a
percentage of realized FOB value.

• Thanks to all these schemes, exports have increased by a right

margin, and there is a favorable atmosphere among the business
community. The government is also upcoming with many other
benefits to strengthen the export sector of the country further.