Export Promotion Measures in India

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Some of the export promotion measures are listed below. 

Duty-Free Replenishment Certificate (DFRC): DFRC is issued to a merchant exporter or manufacturer exporter for the duty-free import of inputs such as raw materials, components, intermediates, consumables, spare parts, including packing materials to be used for export production. Such a license is given subject to the fulfillment of time-bound export obligations.

Duty Entitlement Passbook Scheme (DEPB): Under the DEPB scheme, an exporter may apply for credit as a specified percentage of the FOB value of exports, made in freely convertible currency. The credit shall be available against such export products and at such rates as may be specified by the Director-General of Foreign Trade (DGFT) by way of public notice issued on this behalf, for import of raw materials, intermediates, components, parts, packaging materials, etc.

Export Promotion Capital Goods Scheme (EPCG): EPCG scheme was introduced by the EXIM policy of 1992-97 in order to enable manufacturer exporter to import machinery and other capital goods for export production at concessional or no customs duties at all. This facility is subject to an export obligation, i.e., the exporter is required to guarantee exports of a certain minimum value, which is in multiple of tit1e value of capital goods imported.

Duty Drawback (DBK): The Duty Drawback Scheme is administered by the Directorate of Drawback, Ministry of Finance. Under this scheme, an   exporter is entitled to claim

  • Customs duty paid on the import of raw materials, components, and consumables
  • Central excise duty paid on indigenous raw materials,  components
  • Consumables utilized in the manufacture of goods meant for export

Excise Duty Refund: Excise duty is a tax imposed by the central government on goods manufactured in India. This duty is collected at the source, i.e., before removal of goods from the factory premises. Export goods are totally exempted from central excise duty. However, necessary clearance has to be obtained in one of the following ways

  • Export under rebate
  • Export under bond

Octroi Exemption: Octroi is a duty paid on manufactured goods when they enter the municipal limits of a city or a town. However, export goods are exempted from Octroi.

 

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