Month: October 2008

Export incentives are benefits exporters receive from the government as an appreciation for bringing foreign currencies. These are regulatory, monetary, or tax programs to encourage & motivate export business and to compensate for the cost they face during export. Export import business training assists you with every detail of international business. Export plays an important part in a country’s economy and growth.    

How Indian export incentive scene works

Export incentives make overseas trade beneficial. The Indian government collects less tax on products that are exported, so that its price gets cheaper and it reaches globally. These incentives ensure higher reach of Indian products globally and growth of export business. Incentives are changed according to scarcity, availability, and depending on the product. Like if there is more production of a product, the government will provide more incentive on that particular product for export instead of wasting.

 Who Implemented Export Incentives?

 In our country export intensives and foreign trade policy are implemented by the Directorate General of Foreign trade (DGFT) under the ministry of Commerce and Industry. It also deals with ‘’refund issues arising out of export’’ and recommends changes in customs related policies.

Types of Indian Export Incentives- 

There are three types of Indian Export Incentives and these three are further divided into categories-

1 Export from India Scheme-

   It is further subdivided into two parts Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS).

• Under the MEIS scheme, exporters to notified goods to notified markets is rewarded on realised FoB (Free on Board) value of the export in free foreign exchange rates of 2% to 7%. 
• Under the SEIS scheme, eligible exporters receive in the form of duty credit scrips at a rate of 3% to 7% on the net foreign exchange earned. To claim SEIS, exporters must have an IEC and minimum net foreign exchange of $15.000.

2 Duty Exemption/ Remission Schemes-

It is also further divided into five categories-

• Advance Authorisation (AA)- It allows import input in the country without having to pay duty payment, if it belongs for producing export items. This includes oil, fuel, and catalysts. It has a validity of 12 months for import and final product must be exported within 18 months
• Advance Authorisation for Annual Requirement- Under this, exporters can apply for advance authorization on an annual requirement basis. However, this is entitled for only One to Five Star Export Houses.
• Duty-Free Import Authorisation (DFIA)- Under this scheme, aims to refund to exporters on the custom and excise duty paid on raw materials and inputs used in the production of export products.
• Duty Drawback- Under this, the custom and excise duty paid inputs against the exported product is refunded to the exporters. Refunds are credited to the exporter’s bank account within two months of the shipment date.
• Rebate of State and Central Levies and taxes (RoSCTL)- In this, exporters get benefits on made-up articles and garments in the form of duty credit scrips. The maximum rebate rate is 6.05% for apparels and 8.2% for made ups.   

3 Export Promotion Capital Goods Scheme

This is also divided into two parts

• Zero Duty EPCG Scheme- Import of capital goods are allowed at the pre-production, production, and post-production stages at zero custom duty.
• EOU/EHTP/STP/BTP Schemes- Under Export Oriented unit (EOU), Electronics Hardware Technology Park (EHTP), Software Technology Part (STP) and Bio-Technology Park (BTP) scheme, company to export their inventory may set up. 

Importance of Indian Trade Incentives-

• It helps the exporter to deal with high export prices.
• Government provides provisions for covering bad loans.
• Financial grants let you expand your exports.
• It involves duty free import of inputs for export production.
• Low-cost loans.
• Helps in bringing foreign currencies which helps in economic development.
• Encourage more exports and to grow more.

This shows benefits given by the Indian government are so important, encouraging and beneficial for the exports. One gets motivated to work in the export business. Join the export import business course for more details. Give us a visit to know about the export import Industry or Call +91-9898724798.

The Export Oriented Units Scheme was introduced in the year 1980, 31st December. The Root Purpose of this Scheme was to boost Exports from India so that foreign Earning and Employment Opportunities Can be increased. At the time of launching this scheme, due to some major benefits, exporters showed Willingness to set up units with long run commitments.

Business opportunities are like buses: there’s always another one coming. 

– Richard Branson

Basically, the Export Oriented Units Scheme encouraged the Exporters in many ways which is quite a good thing for the whole Country.

Benefits Export Oriented Units:

1) Through EOUs Traders tend to enjoy the speedy clearance Facility.

2) They Can Claim Reimbursement on Paid GST, that’s super good. 

3) One can also claim Input Tax Credit on the Goods & Services  

4) The Best thing is they can claim refund from paid duty on purchase of fuel which are being purchased from domestic oil companies.

5) Either Through Import or domestic sources, EOUs have a permit to procure capital goods or raw materials without paying any duty for purchase. 

The Project should have a minimum investment of Rs.1 crore in Plant & Machinery. But it does apply for biotechnology parks, software technology parks and electronic hardware technology parks. So be Careful here! 

Conclusion: Schemes like this really helps exporters in terms of encouragement. This also put a good impact on the nation’s economy through various reasons such as growth in exports and employment opportunities. This is what contributes to a successful Nation. We must believe that here, a well-established Export Import Training is highly required. Nothing to think about much, digital Exim is India’s best consultancy course in India. Join us today! Call on 9505506333 to kick start your export import journey with us.