Other Government Schemes of Ministry of Commerce & Industry

The important schemes of Ministry of Commerce and Industry are as follows:

Merchandise Export from India Scheme

The six different schemes of the earlier FTP (Focus Product Scheme, Market Linked Focus Product Scheme, Focus Market Scheme, Agriculture Infrastructure Incentive Scrip, Vishesh Krishi and Gram Udyog Yojana and Incremental Export Incentive Scheme) which had varying sector-specific or actual user only conditions attached to their use have been merged into a single scheme, namely the Merchandise Export from India Scheme (MEIS). Notified goods exported to notified markets will be incentivized on realized FOB value of exports. For the purpose of granting incentibes, the countries have been grouped into three categories as follows:

• Category A: traditional markets
• Category B: emerging & focus markets
• Category C: other markets

Government has expanded the coverage of the MEIS on 29 October 2015 by adding 110 new items. The incentive rate/country coverage of 2228 items has been enhanced.

Service Export from India Scheme

The Served from India Scheme (SFIS) has been replaced with the Service Export from India Scheme (SEIS). The SEIS applies to ‘service providers located in India’ instead of ‘Indian service providers’. Thus, it provides for incentives to all service providers of notified services who are providing services from India, regardless of the constitution or profile of the service provider. The rates of incentivization under the SEIS are based on net foreign exchange earned. The incentive issued as duty credit scrip, will no longer carry an actual user condition and will no longer be restricted to usage for specified types of goods but be freely transferable and usable for all types of goods and service tax debits on procurement of services/goods.

Export House Status Holders Scheme

Merchant as well as Manufacturer Exporters, Service Providers, Export Oriented Units (EOUs) and Units located in Special Economic Zones (SEZs), Agri. Export Zones (AEZs), Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) and Bio-Technology Parks (BTPs) are recognized as various status holders as follows:

A Status Holder is eligible for many benefits such as Self declaration during custom clearances; exception from some documents and receipts; various incentives etc.

Export of goods through courier or foreign post offices using e-Commerce

The current Foreign Trade Policy has introduced a scheme to incentivise exports of goods through courier or foreign post office using e-commerce under MEIS. As the regulatory structure of e-commerce export is still evolving, scope of the scheme was kept limited.

Advance Authorization (AA) Scheme

Under this scheme, duty free import of inputs (that are physically incorporated in the export product) are allowed, with minimum 15 per cent value addition. Advance Authorization (AA) is issued for inputs in relation to resultant products as per SION or on the basis of self-declaration, as per procedures of FTP. AA normally has a validity period of 12 months for the purpose of imports and a period of 18 months for fulfilment of Export Obligation (EO) from the date of issue. AA is issued either to a manufacturer exporter or merchant exporter tied to a supporting manufacturer(s).

Duty Free Import Authorization (DFIA) Scheme

DFIA is issued to allow duty free import of inputs, with a minimum value addition requirement of 20 per cent. DFIA shall be exempted only from the payment of basic customs duty. DFIA shall be issued on post export basis for products for which SION has been notified. Separate schemes exist for gems and jewellery sector.

Export Promotion of Capital Goods (EPCG) Scheme

Under this scheme import of capital goods at zero customs duty is allowed for technology upgradation and better services to enhance India’s export competitiveness. Import under EPCG is subject to export obligation equivalent to six times of duty saved in six years. Scheme also allows indigenous sourcing of capital goods with 25 per cent less export obligation.

EOU/EHTP/STP & BTP Schemes

Units undertaking to export their entire production of goods and services may be set up under this scheme for import/ procurement domestically without payment of duties. For details of the scheme and benefits available therein FTP may be required.

National Export Insurance Account (NEIA)

National Export Insurance Account (NEIA) is a fund set up in 2006 with an approved corpus of Rs. 2000 Crore. Out of which Rs. 546 Crore were funded by the Government of India.  NEIA promotes project export from India, which are not covered by the ECGC (Export Credit Guarantee Council) because of its own underwriting capacity.  NEIA is maintained and operated by a Public Trust set up jointly by the Department of Commerce and ECGC.

Price Stabilization Fund

Kindly note that there are two price stabilization Fund schemes in India under Ministry of Commerce and Ministry of Consumers Affairs respectively. Under Ministry of Commerce, there is a Rs. 500 Crore fund to stabilize the prices of Tea, Coffee, Rubber and Tobacco to contain distress among the farmers of these commodities. Under Ministry of Consumer Affairs, there is a Rs. 900 Crore Price Stabilization for price sensitive commodities such as pulses.

Indian Leather Development Programme

The main objectives of the Indian Leather Development Programme is to augment raw material base through modernisation and technology upgradation of leather units, address environmental concerns, human resource development, support traditional leather artisans, address infrastructure constraints and establish institutional facilities.

Industrial Infrastructure Upgradation Scheme (IIUS)

To enhance competitiveness of industry by providing quality infrastructure to promote industrial growth. Infrastructure Development in the selected functional clusters will be done through implementing agencies of the State Government.

Scheme for implementation of National Manufacturing Policy

The Scheme is required to implement the National Manufacturing Policy (NMP) approved by the Cabinet and notified by the Department vide Press Note dated 4th November, 2011. Setting up of National Investment and Manufacturing Zones (NIMZs) are an important instrumentality of the policy. The proposed fund under the scheme would be to meet the expenses of cost of Master Planning of NIMZs.

Ease of Doing Business (e-Biz Project)

The e-Biz Mission Mode Project launched as one of the 31 Mission Mode Projects under the National e-Governance Plan, aims to create a business and investor friendly ecosystem in India by making all business and investment related regulatory services across Central, State and Local governments available on a single portal, obviating the need for the investors or the business to visit multiple offices or a plethora of websites.

North Eastern Industrial and Investment Promotion Policy (NEIPP)

The North East Industrial and Investment Promotion Policy (NEIIPP), 2007 has laid down a number of fiscal incentives for investors in North East India. The provisions of NEIIPP, 2007 provide the requisite incentives as well as an enabling environment to speed up the industrialization of the entire North east region. The highlights of the incentives for all industrial units, new as well as existing units on their substantial expansion located anywhere in the north east are (1) Industrial Excise Duty Exemption (2) 100% Income Tax Exemption (3) Capital Investment Subsidy on Plant and Machinery at the rate 30% without any upper limit of investment (4) Interest subsidy at the rate 3% on working capital loan for a maximum period of 10 years from the date of commencement of production(5) Comprehensive Insurance reimbursement of 100% insurance premium(6) Incentive package also available for the service sector like hotels, nursing homes, vocational training institutes etc.