Export Promotion Incentives
Allow duty-free import of raw materials for export production.
Duty Exemption Schemes:
- Advance Authorisation (AA): Duty-free import of inputs that are exempted from Basic Customs Duty, however, IGST is payable. Minimum value addition required to be achieved under the Scheme is 15%.
- Duty-Free Import Authorisation (DFIA): Importer is exempted only from payment of Basic Customs Duty. Minimum value addition required to be achieved under the Scheme is 20%.
- Duty Drawback (DBK) Scheme: Enables post export replenishment/ remission of duty on inputs used in the export product
Allows duty-free import of machinery & equipment for export production & services.
Export Promotion Capital Goods Scheme (EPCG):
Importers have to pay IGST and take input tax credit as applicable under the GST rules. The capital goods imported can also be used for domestic production.
Importer under the Scheme has an Export Obligation (EO) equivalent to 6 times of duties, cess and taxes saved on capital goods, to be fulfilled in 6 years from the date of issue.
Duty Credit Scrips are provided against exports that can be used to pay duties.
Merchandise Export-Import Scheme (MEIS)/ Service Export-Import Scheme (SEIS):
Duty Credit Scrips are provided against exports that can be used to pay Customs or Excise Duties. However, the scrips cannot be used to pay for any type of GST.
TED (Terminal Excise Duty) exemptions/ refund for DTA (Domestic Tariff Area).
Duty-free import of goods/ procurement by SEZ:
- Only Basic Customs Duty is paid for the development, operation and maintenance of SEZ
- Authorised operations shall be exempted from payment of IGST
- A portion of taxes paid will be neutralized by Input Tax Credit