Export promotion plays a vital role in boosting a country’s economy by encouraging the export of goods and services. Governments around the world often implement various schemes and policies to support and incentivize exporters. The latest export promotional schemes with their codes, as outlined under the Foreign Trade Policy.

1. Merchandise Exports from India Scheme (MEIS): Under the MEIS, the government provides incentives to exporters of specified goods based on their export performance. The scheme aims to enhance India’s export competitiveness in various sectors. MEIS is classified into different slabs, ranging from 2% to 5%, depending on the nature of the product and the export destination.
2. Service Exports from India Scheme (SEIS): The SEIS focuses on promoting the export of services from India. It provides rewards to service providers based on their net foreign exchange earnings. SEIS covers various service sectors, including business, legal, accounting, research and development, entertainment, and health tourism. The rewards are typically in the form of duty credit scrips, which can be utilized for payment of customs duties.
3. Export Promotion Capital Goods Scheme (EPCG): The EPCG scheme allows the import of capital goods at concessional customs duty rates for the purpose of enhancing the production and quality of export goods. The scheme enables exporters to import machinery, equipment, and technology at reduced duty rates, subject to the fulfillment of export obligations. The EPCG authorization is granted based on the export product category and the projected export performance.
4. Advance Authorization Scheme (AAS): Under the AAS, exporters are permitted to import inputs, raw materials, and components without paying customs duty. The scheme is applicable when the imported goods are to be used for the production of export products. Exporters can obtain an advance authorization certificate from the Directorate General of Foreign Trade (DGFT) by providing necessary details about the intended imports and exports.
5. Duty-Free Import Authorization (DFIA): The DFIA scheme allows duty-free import of inputs, fuel, oil, and catalysts required for the production of goods meant for export. Unlike the AAS, where the imported goods are used for export production, DFIA permits duty-free imports of goods that are entirely consumed or incorporated in the export product. The exporter can obtain a DFIA certificate from DGFT for availing of the benefits.
6. Export-Oriented Units (EOUs): EOUs are industrial units established for the production of goods exclusively for export purposes. These units benefit from various incentives, including exemption from import duties on capital goods, raw materials, and consumables. Additionally, EOUs are granted certain flexibility in labor laws, direct tax benefits, and simplified procedures for exports.

Export promotional schemes play a pivotal role in encouraging and supporting exporters in their endeavors. The schemes discussed above, including the MEIS, SEIS, EPCG, AAS, DFIA, and EOUs, are designed to boost India’s exports by providing financial and logistical support to exporters. It is crucial for businesses to understand these schemes and utilize them effectively to maximize their export potential. By taking advantage of these schemes, exporters can enhance their competitiveness in the global market and contribute to the growth of the country’s economy.

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