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Export Promotion Schemes in India

1. Market Development Assistance (MDA) Scheme

The Market Development Assistance (MDA) Scheme is designed to support Indian exporters in promoting their products and increasing their global reach.

Objectives

  • Export Promotion Activities: Financial assistance for exporters to undertake promotion activities abroad.
  • Support for Export Promotion Councils (EPCs): Assists EPCs in promoting products and commodities globally.
  • Non-recurring Activities: Supports approved organizations in innovative export promotion activities for their members.
  • Focus Programmes: Targets specific regions, such as:
  • FOCUS (LAC): Latin America and the Caribbean.
  • Focus (Africa): African countries.
  • Focus (CIS): Commonwealth of Independent States.
  • Focus (ASEAN +2): ASEAN countries plus two additional regions.
  • Essential Activities: Supports other essential activities related to marketing promotion abroad.

Eligibility

  • Exporting Companies: Companies with an f.o.b. export value up to Rs. 15.00 crore in the preceding year are eligible.
  • Eligible companies may receive MDA assistance for participation in EPC-led trade delegations, business meets (BSMs), trade fairs, and exhibitions.

2. Cash Compensatory Support (CCS) Scheme

The Cash Compensatory Support (CCS) Scheme, introduced in 1966, is a trusted export incentive scheme that provides exporters with reimbursements for various duties, helping to reduce the cost of exports.

Key Features

  • Duty Drawback System: Offers reimbursements for:
  • Tariff on Imported Materials: Refunds tariffs on materials imported for export production.
  • Central Excise Duties: Rebates on excise duties paid on locally produced inputs.
  • Zero-Rating Exports: Ensures exports are zero-rated (no taxes on exported goods) to align with WTO standards.
  • Offset Export Costs: Helps exporters recover certain costs incurred in the supply or value chain of exports.

Eligibility and Requirements

  • Eligible Goods:
  • Goods imported into India.
  • Goods imported and used in India before export.
  • Goods manufactured with imported or indigenous materials.
  • Minimum Requirements:
  • The claimant must be the legal owner of goods at the time of export.
  • Customs duty must be paid on imported goods.
  • Duty drawback applies to most goods with paid customs duty on importation that are then exported.

3. Import Replenishment Scheme (REP)

The Import Replenishment Scheme (REP) supports the growth of the Gem and Jewellery sector by offering a replenishment license to exporters, allowing them to import raw materials needed for manufacturing.

Key Components

  • Gem & Jewellery Replenishment (Gem Rep) License: Granted to eligible exporters to facilitate the import of necessary inputs.
  • Eligibility:
  • Manufacturer-exporters and merchant exporters in the Gem & Jewellery sector.
  • Export Houses holding eligibility certificates.
  • Replenishment License Value: Based on the value of studdings (gems) used in exported items.

License Issuance

  • Issuing Authorities:
  • The Development Commissioner grants the license.
  • Regional Authority provides the Replenishment Authorization against exports supplied by a nominated agency or a foreign buyer.

These schemes serve as vital tools in assisting exporters, promoting specific sectors, and supporting the international competitiveness of Indian goods.

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