WHAT WE DO
We can assist you in identifying the feasibility of getting a license, planning, documentation, application preparations, representation and coordination with DGFT and various other ministries and departments, till you finally get the approval/license.
Just write to “consultants@amrutamglobal.com” and our team will get back to you.
A.
RoDTEP Scheme (Remission of Duties or Taxes on Export Products)
RoDTEP stands for Remission of Duties and Taxes on Export Products. It is a new scheme that is applicable with effect from January 1st, 2021, formed to replace the existing MEIS (Merchandise Exports from India Scheme). The scheme will ensure that the exporters receive refunds on the embedded taxes and duties previously non-recoverable. The scheme was brought about to boost exports which were relatively poor in volume previously.
Need for the RoDTEP Scheme
The US had challenged India’s key export subsidy schemes in the WTO (World Trade Organisation), claiming them to harm the American workers. A dispute panel in the WTO ruled against India, stating that the export subsidy programs that were provided by the Government of India violated the provisions of the trade body’s norms. The panel further recommended that the export subsidy programs be withdrawn. This led to the birth of the RoDTEP Scheme, to ensure that India stays WTO-compliant.
Features of the RoDTEP Scheme
Mandi tax, VAT, Coal cess, Central Excise duty on fuel, etc. will now be refunded under this particular scheme. All the items under the MEIS and the RoSTCL (Rebate of State and Central Taxes and Levies) are now under the purview of the RoDTEP Scheme.
The refund will be issued in the form of transferable electronic scrips. These duty credits will be maintained and tracked through an electronic ledger.
Through the introduction of the digital platform, the clearance happens at a much faster rate. Verification of the records of the exporters will be done with the help of an IT-based risk management system to ensure the speed and accuracy of transaction processing.
Under RoDTEP, all sectors, including the textiles sector, are covered, to ensure uniformity across all areas. Additionally, a dedicated committee will be set up to decide regarding the sequence of introduction of the scheme across the various sectors, what degree of benefit is to be extended to each sector, and such related matters.
Want to know the Benefit Rates under RoDTEP Scheme for your Export Product? Just write to “consultants@amrutamglobal.com” and our team will get back to you.
B.
RoSCTL Scheme (The Rebate of State and Central Taxes and Levies)
Overview
The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is eligible for the export of apparel and made-ups only, i.e., Chapter 61, 62 & 63. The RoSCTL scheme is effected from 07.03.2019 to 31.03.2020 as per Para 4.01 (c) of FTP 2015-20. Due to the Covid-19 pandemic, the RoSCTL scheme has been extended till 31.03.2021.
As we know, the USA has filed a complaint against India at the World Trade Organization (WTO). The complaint is that the Indian government gives undue benefits to Indian Exporter under export subsidies like the MEIS scheme, and it is against the WTO rules. Therefore, the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme is a new scheme introduced by the Ministry of Commerce. Currently, RoSCTL scheme is only valid for garments and made-ups (i.e., Chapter 61, 62 & 63). Further, this scheme would be extended to all sectors.
The cabinet approved the RoSCTL Scheme to rebates all state and central taxes for garments and made-ups and replaced the existing scheme, i.e., Rebate of State Levies (RoSL) Scheme, which provides only rebates of state taxes. The Exporter will get RoSL Benefit till 06.03.2019 from customs.
As per Public Notice No. 58/2015-20 Dated 29.01.2020, Merchandise Exports from India Scheme (MEIS) has also been withdrawn for Export items falling under Chapter- 61, 62 & 63, w.e.f, 07.03.2019.
Rebates under the RoSCTL scheme
The RoSCTL Scheme gives a rebate of the state and central taxes. Please find below a list of state taxes and levies that will be refunded along with a List of central taxes and levies that will be refunded under the RoSCTL scheme DGFT.
Want to know the Benefit Rates under RoSCTL Scheme for your Export Product? Just write to “consultants@amrutamglobal.com” and our team will get back to you.
C.
MEIS Scheme (Merchandise Exports from India Scheme)
MEIS was introduced in the Foreign Trade Policy (FTP) for the period 2015-2020. The MEIS was launched as an incentive scheme for the export of goods. The rewards are given by way of duty credit scrips to exporters. The MEIS is notified by the DGFT (Directorate General of Foreign Trade) and implemented by the Ministry of Commerce and Industry.
Duration of MEIS
The MEIS incentives are applicable from 1 April 2015 until the validity of the FTP 2015-20, which is 31 March 2020.
MEIS Incentive
Under the FTP 2015-20, MEIS intends to incentivize exports of goods manufactured in India or produced in India. The incentives are for goods widely exported from India, industries producing or manufacturing such goods to make Indian exports competitive.
MEIS covers goods notified for the purpose of the scheme. The incentives under the schemes are calculated as a percentage, which is 2%, 3%, or 5% of the realized FOB (free-on-board) value exports in free foreign exchange or FOB value of exports as per shipping bills in free foreign exchange. The incentives are allotted through a MEIS duty credit scrip. The ‘free foreign exchange’ will include foreign exchange earned through international credit cards and other instruments allowed by the Reserve Bank of India (RBI).
Background to MEIS
MEIS replaced the various export incentive schemes which gave different types of duty credit scrips namely, Focus Market Scheme (FMS), Focus Product Scheme (FPS), Vishesh Krishi Gramin Udyog Yojana (VKGUY), Market Linked Focus Product Scheme (MLFPS) and Agri Infrastructure incentive scheme. All duty credit scrips issued under the earlier incentive schemes were transferred to the MEIS.
D.
SEIS Scheme (Service Export from India Scheme)
Service Exports from India Scheme (SEIS) aims to promote the export of services from India by providing duty scrip credit for eligible exports. Under the scheme, service providers, located in India, would be rewarded under the SEIS scheme, for all eligible export of services from India. In this article, we look at the Service Exports from India Scheme in detail. Service Exports from India Scheme was earlier termed as Served from India Scheme (SFIS).
SEIS Scheme Eligibility
Service Providers of notified services, located in India are eligible for the Service Exports from India Scheme. To be eligible, a service provider (Company / LLP / Partnership Firm) should have a minimum net free foreign exchange earnings of USD15000 in the preceding financial year to be eligible for duty credit scrips. For proprietorships or individual service providers, minimum net foreign exchange earnings of USD10,000 in the preceding financial year is required to be eligible for the scheme. Also, in order to claim reward under the SEIS scheme, the service provider shall have to have an active Import Export Code (IE Code) at the time of rendering such services for which rewards are claimed.
Duty Credit Scrip
Service providers of eligible services shall be entitled to duty credit scrip at notified rates on the net foreign exchange earned. Duty credit scrips can be used for the payment of custom duties, excise duties, GST on procurement of services, custom duty in case of default in fulfillment of the export obligation under Advance Authorization/EPCG, etc., Further, the SEIS scheme has given relaxation to the actual user condition and duty credit scrips and goods imported using duty credit scrips are freely transferable. Duty credit scrip would be valid for 18 months from the date of issue.
Foreign Exchange or Remittance Ineligible under SEIS Scheme
Foreign exchange remittances other than those earned for rendering of notified services would not be counted for entitlement. Thus, other sources of foreign exchange earnings such as equity or debt participation, donations, receipts of repayment of loans, etc. and any other inflow of foreign exchange, unrelated to rendering of service, would be ineligible.
Want to know the Benefit Rates under SEIS Scheme for your Export Product? Just write to “consultants@amrutamglobal.com” and our team will get back to you.
E.
EPCG Scheme (Export Promotion Capital Goods Scheme)
EPCG (Export Promotion Capital Goods) Scheme helps in facilitating the import of capital goods for manufacturing quality goods and to augment the competitiveness of India’s export.
EPCG scheme enables the import of capital goods that are used in the pre-production, production, and post-production without the payment of customs duty.
EPCG Scheme is a scheme that enables an importer (being an export-oriented business) to import capital goods at zero rates of customs duty. However, the scheme is subject to an export value equivalent to 6 times of duty saved on the importation of such capital goods within 6 years from the date of issuance of the authorization.
In simple words, there is a compulsion on the business to bring in foreign currency which is equal to 600 percent of duty saved on such importation measured in domestic currency. This is to be done within six years from availing of the Export Promotion Capital Goods Scheme.
Export Promotion Capital Goods
Export Promotion Capital Goods are capital goods used in the production of goods that are exported to other countries. It includes machinery as well as spares. Hence, to qualify as Export Promotion Capital Goods, the commodity manufactured in India must be exported outside India.
Our experts assist you in getting EPCG Scheme Benefits from DGFT & Customs as under:
=> First of all, we explain to you about the terms and conditions of the EPCG scheme with respect to export obligation, so that you don’t default in the future and make a well-informed decision.
=> We help you in preparing documents for the application for EPCG License.
=> Obtaining EPCG License from Director General of Foreign Trade.
=> Guiding regarding the procedural requirement & Compliances to be followed by the Client after issuance of EPCG Authorization.
=> Obtaining Amendment, Revalidation, or EOP Extension for the EPCG License.
=> Getting Redemption Letter from DGFT RA and release of Bond/BG after fulfilling the export obligation from Customs.
Want to know the Benefit Rates under EPCG Scheme for your Export Product? Just write to “consultants@amrutamglobal.com” and our team will get back to you.
Benefit from EPCG Scheme
EPCG is intended for promoting exports and the Indian Government with the help of this scheme offers incentives and financial support to the exporters. Heavy exporters could benefit from this provision. However, it is not advisable to go ahead with this scheme for those who don’t expect to manufacture in quantity or expect to sell the produce entirely within the country, as it could become almost impossible to fulfill the obligations set under this scheme.
F.
TMA Scheme for Exporters (Transport and Marketing Assistance Scheme)
Transport and Marketing Assistance (TMA) scheme is introduced by the Government of India for agricultural products. It aims to provide less expensive transportation of goods, referred to as freight, which is an integral element of today’s international trade. Under this scheme, the cost of transportation required to export some specific agricultural products has been lowered. It essentially means that the Freight Cost up to a specific limit will be reimbursed by the Government to make our agricultural products competitive in the global market. It also provides benefits for the marketing of agricultural products, which helps to promote the brands and help them attain recognition for Indian agrarian products in the overseas markets. The TMA Scheme is included in the Foreign Trade Policy (2015-20) and was introduced on 01.03.2019.
TMA Scheme Eligibility – Who is eligible for TMA Scheme?
The scheme covers all the exporters of eligible agriculture products, registered with the relevant Export Promotion Council, as per the Foreign Trade Policy. The transport and marketing assistance scheme aims to reimburse the part amount of freight paid (sea and air) by the exporter and also the marketing costs involved in the promotion of the product. This scheme was introduced from 01.03.2019 to 31.03.2020. As per latest update, the TMA scheme has been extended till 31.03.2021.
We assist you in claiming TMA Scheme benefits
We are leading Import Export DGFT Consultants having a client-base across India. We provide all the services related to DGFT, including MEIS, EPCG, SEIS, Advance Authorisation, DFIA, RoSCTL scheme, TMA scheme, RoDTEP scheme, etc. Want to know the Benefit Rates under TMA Scheme? Just write to “consultants@amrutamglobal.com” and our team will get back to you.
G.
RoSL Scheme (Rebate of State Levies)
Government of India (GoI) has approved the Rebate of State Levies (RoSL) scheme to support the textile sector to boost increase the competitiveness among the global market and create new employment opportunities.
Objectives of the Scheme
=>To increase the export production of apparel and made-ups
=>To provide zero-rated export taxes for apparel and made-ups to compete against the global market
=>To ensure tax benefits are met to the trading and manufacturing sector for prompt disbursal of products
=>To minimize the purchase and manufacturing costs and increase sales and growth in the turnover
=>To increase manufacturing units and employment
=>To promote quality process management and support for global marketing
Benefits of the Scheme
=> Rate of Central levies on apparel increased from 1.7 percent to 6.05 percent
=>
Rate of Central levies on made-ups increased from 2.2 percent to 8.2 percent
=> Boosts the transition of business for small and medium garments manufacturers
=> Implementation of zero-rated tax helps to decreases the purchase value of the product and increases the profit margin for traders and manufacturers
=> Rebates offered by States to stamp duty, petroleum tax, electricity duty and mandi tax embedded in exports shall be extended to the textile industry
=> Increases the distribution and sales and helps to meet the demands of the versatile textile market
We can help you to claim your pending/stuck RoSL benefits in a speedy & hassle-free manner. Just write to “consultants@amrutamglobal.com” and our team will get back to you.
H.
DFIA Scheme (Duty Free Import Authorisation)
A Duty-Free Import Authorization (DFIA) is issued to allow duty-free import of inputs that are used in the manufacture of an export product, making normal allowance for wastage, and energy, fuel, catalyst, etc. Many are utilized in the course of their use to obtain the export product.
The Director-General of Foreign Trade (DGFT), by means of Public Notice and also public interest, can exclude any product(s) from the scheme. This scheme was in force from 1st May 2006
Duties Exempted under DFIA Scheme
=>Only the payment of basic customs duty (BCD) is exempted under the Duty-Free Import Authorisation scheme.
=>IGST and Compensation Cess are not exempted under the DFIA scheme.
How we can assist you for DFIA scheme?
=>We are a team of DGFT experts who can analyze the feasibility of the DFIA scheme for exports.
=>We assist our clients in documentation in avoiding delays in the process.
=>After receiving the required documents,
we prepare the application make the online application and submit the required hardcopy in DGFT.
=>We coordinate with DGFT and other concerned departments until the issuance of the transferable DFIA license.
=>In domestic procurement, we assist our clients in getting required invalidations from the DGFT RA.
=>Lastly, we assist them in the redemption of the DFIA license at DGFT.
We can help you to claim your pending/stuck DFIA benefits in a speedy & hassle-free manner. Just write to “consultants@amrutamglobal.com” and our team will get back to you.
I.
Authorized Economic Operator (AEO)
The Indian Authorised Economic Operator (‘AEO’) Programme was developed by the World Customs Organisation and later introduced in India by the Central Board of Indirect Taxes & Customs (‘CBIC’) in 2011.
The Indian AEO Programme is a voluntary program administered by the CBIC. The AEO Programme seeks to provide benefits in the form of simplified customs procedures and faster customs clearances to those business entities that offer a high degree of security guarantees regarding their role in the supply chain.
Features of the AEO Programme
=>Including Direct Port Delivery of imports for ensuring just-in-time inventory management by manufacturers regarding clearance from the wharf to the warehouse.
=>Including Direct Port Entry for factory stuffed containers intended for export by AEOs.
=>Special focus on the small and medium scale entities, i.e. an entity handling 25 export or import documents annually.
=>Providing deferred payment of duties by delinking customs clearance and duty payment.
=>Mutual recognition agreements with different customs administrations.
=>Faster dispersal of drawback amount.
=>Fast-tracking of adjudications and refunds
=>Extending facilitation to exports in addition to imports
=>Acceptance of self-certified copies of PTA/FTA origin-related or any other required certificates for clearance.
=>Request based on-site examination/inspection.
=>Paperless declarations without supporting documents.
=>Recognition by the Partner Government Agencies and other stakeholders.
Why need AEO Certification?
If you are a business owner, you would always need some form of recognition to showcase your authenticity and reliability. The recognition could be in the form of licenses, awards of honor, or even certificates. An Authorized Economic Operator (AEO) is one such certification that signifies a business’s authority and trustability in global trade. Getting this certificate endows business owners with a wide range of benefits and conveniences.
Who Are We and how we can help you?
=>To simplify the process for you, AMRUTAM CONSULTANTS provides you with guidance and assistance through each step of the procedure.
=>Our multi-disciplinary team assists you for each phase to acquire the AEO certification and act as a “one-stop solution”.
=>We work with you to form strategic decisions to get the certification in very little time.
=>Our team of experts does the application online in case of AEO T1 and manual application in case of remaining tiers.
=>Assist in physical verification.
=>Assist in the maintenance of the AEO status.
With so many advantages of possessing an AEO Certification, you can experience faster growth for your business as these privileges will allow you to trade more freely and rapidly. Several countries have already adopted the Authorized Economic Operator Certification as a norm for conducting legitimate import/export and it holds a very positive future by maintaining integral relations in International Trade!
We can help you to claim your pending/stuck AEO benefits in a speedy & hassle-free manner. Just write to “consultants@amrutamglobal.com” and our team will get back to you.
J.
Star Export House Certificate / Status Holder Certificate
Status Holders are business leaders who have excelled in international trade and have successfully contributed to the country’s foreign trade. Status Holders are expected to not only contribute towards India’s exports but also provide guidance and handholding to new entrepreneurs.
All exporters of goods, services and technology having an import-export code (IEC) number shall be eligible for recognition as a status holder. Status recognition will depend on export performance. An applicant shall be categorized as status holder on achieving export performance during the current and previous three financial years (for Gems& Jewellery Sector the performance during the current and previous two financial years shall be considered for recognition as status holder) as indicated in paragraph 3.21 of Foreign Trade Policy. The export performance will be counted based on FOB of export earning in freely convertible foreign currencies
For deemed export, FOR value of exports in Indian Rupees shall be converted in US$ at the exchange rate notified by CBEC, as applicable on 1st April of each Financial Year.
For granting status, export performance is necessary for at least two out of four years.
Obtaining Export House Certificate or Status
An exporter involved in the export of goods or services can obtain an export house certificate. An applicant would be eligible for and be categorized upon reaching certain minimum export performance in the current and previous two financial years. The calculation of Export performance is based on FOB (Free on Board) value of export earnings in free foreign exchange. In case of deemed exports, it converts the FOR value of exports in Indian rupees into USD at the exchange rate by the Central Board of Excise and Customs, as applicable for 1st April of each financial year.
Export House Status Eligibility Criteria
Based on the export performance of an exporter, the status category is provided as follows:
| Status Category | Export Performance FOB / FOR (as converted) Value |
|---|---|
| One Star Export House | USD3 – USD25 Million |
| Two Star Export House | USD25 – USD100 Million |
| Three Star Export House | Three Star Export House: USD100 – USD500 Million |
| Four Star Export House | Four Star Export House: USD500 – USD2000 Million |
| Five Star Export House | Five Star Export House: USD2000 Million and above |
How can we assist you in getting Star Export House / Status Holder Certification?
=>We are leading Star Export House Consultants in India.
=>We assist our client in the compilation of exports made in the present FY plus the last three financial years export and analyze to check the eligibility for getting a certificate.
=>Accordingly, prepare the application along with the documentation.
=>Submit the application online & coordinate with DGFT till issuance of the Status Holder Certificate.
=>Guiding Clients in taking advantage of the various privileges given to Star Export House Holders.
Benefits of Star Export House Certificate:
Norms fixed under Advance Authorization/EPCG License within 2 months on a priority basis by the norms committee.
The Status Holders are 100% exempted from the furnishing of Bank Guarantee (BG) under the Advance/EPCG Scheme.
As per the Department of Revenue (DoR) guidelines, 2 star and above status holders shall be eligible to establish Export Warehouses.
Status Holders/Star Export houses are entitled to export freely exportable items on a free of cost basis for the export promotion purpose subject to the annual limit as specified (Excluding Gems and Jewellery, Articles of Gold and precious metals).
Three Star/Four Star/Five Star status holders (Manufacturer Exporters) will be enabled to self-certify their manufactured goods as originating from India (Certificate of origin) to qualify for preferential treatment under following
- Preferential trading agreements (PTA),
- Free Trade Agreements (FTAs),
- Comprehensive Economic Cooperation Agreements (CECA)
- Comprehensive Economic Partnership Agreements (CEPA).
Compulsory negotiation exempted for export documents through banks and entitled to preferential treatment and priority in the handling of import-export consignments.
Three Star and above star holders shall be directly entitled to AEO Benefits.
There are various Government Schemes under which status holders are given access to loans easily.
We can help you in getting Star Export House / Status Holder Certificate in a speedy & hassle-free manner. Just write to “consultants@amrutamglobal.com” and our team will get back to you.
K.
Advance Authorisation Scheme (Advance License Scheme)
It is always preferable to maintain a favorable balance of trade, i.e., the value of exports should be greater than the value of imports. The government has introduced various schemes to boost exports made by the country. All export and import-related activities are governed by the Foreign Trade Policy (FTP), which is aimed at enhancing the country’s exports and using trade expansion as an effective instrument of economic growth and employment generation. The present Foreign Trade Policy (2015-2020) aims to keep in line with the ‘Make in India’ vision and support exports made by Special Economic Zones (SEZs), Export Oriented Units (EOUs), etc. It also contains various export promotion schemes which involve either the exemption or remission of customs duty. The Advance Authorization Scheme is one such export promotion scheme.
What is the Advance Authorization Scheme?
The Advance Authorization Scheme is a scheme where the import of inputs will be allowed to be made duty-free (after making normal allowance for wastage) if they are physically incorporated in a product that is going to be exported. An export obligation is usually set as a condition for issuing Advance Authorization.
Duties exempt under the Advance Authorization Scheme
The inputs imported are exempt from duties like Basic Customs Duty, Additional Customs Duty, Education Cess, Anti-dumping duty, Safeguard Duty and Transition Product-Specific Safeguard duty, Integrated tax, and Compensation Cess, wherever applicable, subject to certain conditions.
Duty-free importable items under the scheme
The following items can be imported without payment of duty under this scheme:
=>
Inputs that are physically incorporated in the product to be exported after making normal allowance for wastage
=>Fuel, oil, catalysts are consumed or utilized to obtain the export product.
=>Mandatory spares that are required to be exported along with the resultant export product – up to 10% of the CIF value (Cost, Insurance and Freight) of Authorization
=>Specified spices would be allowed to be imported duty-free only for activities like crushing, grinding, sterilization, manufacture of oil or oleoresin and not for simpler activities like cleaning, grading, re-packing, etc.
How can we assist you for Advance Authorisation Scheme?
Our experts assist you in getting Advance License Benefits from DGFT & Customs as under:
=>We help you in preparing documents for the application of an Advance License.
=>Obtaining Advance License from Director General of Foreign Trade.
=>Guiding regarding the procedural requirement & Compliances to be followed by the Client after issuance of Advance Authorization.
=>Obtaining Amendment, Enhancements, or Extension for the Advance License.
=>Getting Redemption Letter from DGFT RA and release of Bond after fulfilling the export obligation from Customs.
