After the “Make in India “Concept there are different types of export incentive schemes approved by the Indian Government to provide financial assistance & other benefits to the exporters.
Indian economy is one of the fastest growing economies in the world, and this is the reason Indian Government has created various incentive schemes under economic policies which can boost India’s economic progress and improving the exports is such plan of the Government. The main objective of these schemes is to simplify the export import process and make it easier for the exporters and importers. These benefits given by the Government are the combination of socially independent and liberal policies. The following are the various schemes provided by the Government
- Merchandise Exports From India Scheme (MEIS)
- Service Exports From India Scheme (SEIS)
- Rebate of state and central taxes and levies (RoSCTL)
- Transport and Marketing Assistance (TMA)
- Recently launched Rebate of Duties and taxes on the export Products (RoDTEP)
Merchandise Exports From India Scheme (MEIS):-
Merchandise Exports from India Scheme (MEIS) under the Foreign Trade Policy 2015-20 launched for giving incentives to the goods exporter in the form of duty credit scrips.
The MEIS Scheme provide incentives to the exporters which aims to make indian goods competitive in the global markets by offsetting infrastructural inefficiencies and associated costs and to promote exports of goods from India.
It is the new scheme which replaced 5 similar schemes which were available in the FTP 2014-19 and SEIS replaced the Served from India scheme (SFIS).
Benefits obtained in the form of transferable duty credit Scrips which can be used for the following-
- Payment of Basic customs duty and additional customs duty.
- Payment of Central excise duties on domestic procurement of inputs.
Under the MEIS, benefit is determined as a percentage of the FOB value of exports. The rate of reward is specified in Appendix 3B of FTP which is categorized according to ITC(HS) code.
Under MEIS rate of rewards varies from product to product and are in the range of 2% to 7% for most items.
Suggested: Yuvanestham Scheme
Service Exports From India Scheme (SEIS)
SEIS scheme is the government scheme under which service exporter can claim the benefits of 5% – 7% of the net foreign exchange earned on notified services in the form of transferable duty Credit scrip which can be used for the waiver of import duty or if scrip holder wishes to sell the license he can sell it in open market at discounted rate.
It was introduced on 1st April 2015 under foreign trade policy 2015-20 and which replaced earlier scheme SFIS present in earlier foreign trade policy.
- Foreign Exchange which is not be considered the purpose of incentive
- Foreign exchange earned on the services other than notified services.
- Other sources of foreign exchange which are unrelated to rendering of service such as equity or kind of donations, repayments of loans etc,
Rebate of state and central taxes and levies (RoSCTL) and RoDTEP Scheme:-
In March 2019 Ministry of textile introduced the RoSCTL Scheme followed by the release of the RoSCTL rate list and a CBIC notification on the same scheme. Full form of the scheme is the Rebate of State and central Taxes and Levies (RoSCTL), it is an export incentive scheme in which exporters can avail the benefits in the form of transferable duty Credit Scrip which can be sold in open market at discounted rate. RoSCTL replaces Rebate of state levies (RoSL) scheme which was monetary incentive scheme under which customs would deposit the rebate directly into the account of exporters.
Indian Government approved the discontinuation of MEIS scheme and it has been replaced by the Rebate of duties and taxes on the export products (RoDTEP).
Rebate of state and central taxes and levies (RoSCTL) is the earlier version of RoDTEP which is only made available to the made ups and apparels.
Implementation of RoDTEP Scheme will be done in a phased manners it means whenever the RoDTEP rate for particular products will be notified at the same time MEIS rate will be discontinue for that specific products.
Transport and Marketing Assistance (TMA) scheme:-
TMA scheme is for export of specified Agriculture products. It aims to sustenance the growth of the sectors. Following are the objective of the TMA scheme –
- To expand agriculture sector globally
- To reduce the unnecessary charges bore by the exporters for transportation of agriculture products.
- Make the Agricultural products global brand.
All the exporters under the apposite export promotion Promotion council following the foreign trade policy are eligible to claim the benefits of TMA.
Nature of Assistance:
- Reimbursements are through direct bank transfer
- Rate of compensation will vary on destinations
- Applicable only on EDI ports
- It assist for both freight and marketing exports by sea or air.