Export promotion schemes offered by GOI

1. EXPORT PROMOTIONS
SCHEMES
U.KALPANADEVI
II – MBA
MICHAEL INSTITUTE OF
MANAGEMENT

2. REWARD /
INCENTIVE
SCHEMES IN
DGFT

3. Served From India Scheme(SFIS)
Objective is to accelerate growth in export of services so as to create a powerful and
unique ‘Served From India’ brand, instantly recognized and respected world over.
All Indian service providers, who have free foreign exchange earning of at least Rs. 10
lakhs in preceding financial year /current financial year shall qualify for Duty Credit
Scrip.
Duty Credit scrip may be used for import of any capital goods including spares,
office equipment and professional equipment, office furniture and consumables.

4. VISHESH KRISHI AND GRAM UDYOG YOJANA (VKGUY) (SPECIAL
AGRICULTURE AND VILLAGE INDUSTRY SCHEME)
Objective of VKGUY is to promote exports of:
1. Agricultural products
2. Minor Forest products
3. Gram Udyog products
4. Forest Based products

5. FOCUS MARKET SCHEME (FMS)
Objective is to offset high freight cost and other externalities to select international
markets with a view to enhance India’s export competitiveness in these countries.
The following categories of export products / sectors shall be ineligible for Duty Credit
Scrip, under FMS scheme:
a. Supplies made to SEZ units b. Service Exports c. Diamonds and other precious
stones, d. Gold, silver, platinum and other precious metals, e. Cereals, Sugar, Milk, f.
Crude/Petroleum oil.
New Markets have been added under Focus Market Scheme. These includes 16 new
markets in Latin America and 10 in Asia-Oceania.
The incentive available under Focus Market Scheme(FMS) has been raised from 2..5%
to 3%.

6. FOCUS PRODUCT SCHEME (FPS)
Objective is to incentivise export of such products which have high export
intensity/employment potential, so as to offset infrastructure inefficiencies and other
associated costs involved in marketing of these products.
The incentive available under Focus Product Scheme(FPS) has been raised from 1.25%
to 2%.
A large number of products from various sectors have been included for benefits under
FPS.
These includes, Engineering products, plastic, technical textiles, project goods,
vegetable textiles & certain Electronic items.

7. Market Linked Focus Products Scrip (MLFPS)
MLFPS promotes exports of products of high export intensity but which have a low
penetration in countries.
MLPFS has been greatly expanded by inclusion of products. Products include
Pharmaceuticals, Synthetic textile fabrics, value added rubber products, value added plastic
goods, knitted & fabrics, glass products, certain iron and steel products, & certain articles of
aluminium among others.
Also extended for certain new products like auto components, motor cars, bicycle and its
parts, and apparels among others.
Benefits to these products will be provided, if exports are made to 13 identified markets.

8. Duty Exemption & Remission Schemes
Duty Exemption Schemes enable duty free import of inputs required for export production.
Duty Exemption Schemes consists of
a. Advance Authorisation Scheme
It is issued to allow duty free inputs which are physically incorporated in export product.
b. Duty Free Import Authorisation(DFIA) Scheme.
It is issued to allow duty free inputs which are required for production of export product.
Duty Remission Schemes consists of
a. Duty Entitlement Passbook (DEPB) Scheme
DEPB holder shall have option to pay additional customs duty in cash as well.
b. Duty Drawback (DBK) Scheme.

9. Export Promotion Capital Goods(EPCG) Scheme
Zero duty EPCG scheme allows import of capital goods for pre production,
production, post production.
Import duty under the EPCG scheme is being reduced from 5% to 3%, in order to
promote modernization of manufacturing and services exports.
Foreign Trade Policy 2009-2014 the interest subvention scheme of 2% will
continue to be effective till March 31,2013.
For continued technological up-gradation of export sectors, this Scheme has now
been extended up to 31st March 2013.

10. Special Focus
Initiatives

11.  With a view to continuously increasing our percentage share of global trade and
expanding employment opportunities, certain special focus initiatives have been
identified/continued for
 Market Diversification,
 Technological Upgradation,
 Support to status holders,
 Agriculture, Handlooms,
 Handicraft, Gems & Jewellery,
 Leather, Marine,
 Electronics and IT Hardware manufacturing Industries,
 Green products,
 Exports of products from North-East,
 Sports Goods and Toys sectors.

12. Market
Diversification
• 26 new countries have been
included within the ambit of Focus
Market Scheme.
• The incentives provided under
Focus Market Scheme have been
increased from 2.5% to 3%.
• There has been a significant
increase in the outlay under
‘Market Linked Focus Product
Scheme’.

13. Technological
Upgradation
• EPGC Scheme at zero duty has been
introduced for certain engineering
products, electronic products, etc..
• To encourage value added
manufacture export, a minimum 15%
value addition on imported inputs
under Advance Authorisation
Scheme has been stipulated.
• A number of products including
automobiles and other engineering
products have been included for
incentives under Focus Product, and
Market Linked Focus Product
Scheme

14. Support to status holders
• The government recognised ‘Status Holders’
contribute approx. 60% of India’s goods
exports.
• To incentives and encourage the status
holders, as well as to encourage technological
upgradation of export production, additional
duty credit scrip @ 1% of FOB value.
• This duty credit scrip can be used for import
of capital goods by these status holders.

15. Agriculture and
Village Industry
• Vishesh Krishi and Gram Udyog Yojana.
• Capital goods imported under EPCG will be
permitted to be installed anywhere in AEZ.
• Import of restricted items, such as panels, are
allowed under various export promotion schemes.
• Import of inputs such as pesticides are permitted
under Advance Authorisation for agro exports.
• New towns of export excellence with a threshold
limit of Rs 150 crore shall be notified.
• Certain specified flowers, fruits, and vegetables
are entitled to a special duty credit scrip, in
addition to the normal benefit under VKGUY.

16. Handlooms &
Handicrafts
• Duty free import entitlement of specified trimmings
and embellishments is 5% of FOB value of exports
during previous financial year..
• Duty free import entitlement of hand knotted carpet
samples is 1% of FOB value of exports during
previous financial year.
• Duty free import of old pieces of hand knotted
carpets on consignment basis for re-export after
repair is permitted.
• New towns of export excellence with a threshold
limit of Rs 150 crore shall be notified.
• All handicraft exports would be treated as special.

17. Gems & Jewellery
• Import of gold of 8 k and above is allowed under
replenishment scheme.
• Jewellery made out of:
• Precious metals – 2%
• Gold & Platinum – 1%
• Rhodium finished Silver – 3% Schemes
• Cut & Polished Diamonds-1%
• Duty free import entitlement of commercial
samples shall be Rs 300,000.
• Duty free re-import entitlement for rejected
jewellery shall be 2% of FOB value of exports.
• Extension in number of days for re-import of
unsold items in case of participation in an
exhibition in USA increased to 90 days.

18. Leather & Footwear
• Duty free import entitlement of specified
items is 3% of FOB value of exports of
leather garments during preceding financial
year.
• Re-export of unsuitable imported materials
such 12 as raw hides & skins and wet blue
leather is permitted.

19. Marine Sector
• Imports for technological upgradation under
EPCG in fisheries sector (except fishing
trawlers, ships, boats & other similar items).
• Marine products are considered for VKGUY
scheme.
• A self removal procedure for clearance of
seafood waste is applicable subject to
prescribed wastage norms.

20. Electronics & IT
Hardware
Manufacturing
Industries
• Expeditious clearance of approvals required from
DGFT shall be ensured.
• Exporters/Associations would be entitled to utilize
MAI & MDA Schemes for promoting Electronics and
IT Hardware Manufacturing industry exports.

21. Sports Goods & Toys
• Duty free import of specified specialised
inputs allowed to the extent of 3% of
FOB value of preceding financial year’s
export.
• Applications relating to Sports Goods &
Toys shall be considered for fast track
clearance by DGFT.
• Sports Goods & Toys are treated as
special focus products and entitled to
higher incentives.

22. Green Products &
Technologies
• India aims to become a hub for production
and export of green products and
technologies.
• Focus would be on items relating to
transportation, solar and wind power
generation and other products as may be
notified which will be incentivized under
Reward Schemes.
• FPS benefit extended for export of “Green
products” and for exports of some products
originating from the North East.

24.  Every Authorisation shall be valid for prescribed period of validity and shall
contain such terms and conditions as may be specified by RA which may
include:
(a) Quantity, description and value of goods;
(b) Actual User condition;
(c) Export obligation;
(d) Value addition to be achieved; and
(e) Minimum export / import price.

25. THANK YOU!!!!!!!!!!!