1.
Duty Drawback Scheme
Under this scheme, exporters get a refund of customs duty and excise duty that they have
already paid on goods meant for export. The refund is given after the exporter submits proof
that the goods have actually been exported. This helps reduce the overall cost of exporting.
2. Export Manufacturing under Bond Scheme
This scheme allows firms to manufacture goods without paying excise duty or other duties.
To use this facility, the firm must give a legal undertaking called a bond, promising that the
goods produced will be exported. This reduces the financial burden on exporters during
production.
3. Exemption from Sales Tax/GST and Income Tax
Goods meant for export are not subject to Sales Tax or GST, making exports more
competitive in international markets. In addition, Income Tax exemptions are provided to 100%
export-oriented units ( company or factory that is set up only to produce goods for export.)
and units set up in Export Processing Zones (EPZs) or Special Economic Zones (SEZs) for
a specified number of years.
4. Advance License Scheme
Under this scheme, exporters are allowed to obtain raw materials and inputs without paying
customs duty, whether sourced domestically or imported. These inputs must be used only for
manufacturing export goods. This helps lower production costs for exporters.
5. Export Promotion Capital Goods (EPCG) Scheme
This scheme allows exporters and service providers to import capital goods such as
machinery and equipment at zero or concessional customs duty. The objective is to help
exporters improve production capacity and quality.
6. Recognition of Export Firms (Export House, Trading House, Star Trading House)
The government grants special status such as Export House, Trading House, and Star
Trading House to exporters with strong export performance. This recognition provides benefits
like easier procedures and better support in international marketing.
7. Export of Services Scheme
To promote service exports, service firms are classified as Service Export House,
International Service Export House, and International Star Service House based on their
export performance. This recognition helps service providers expand in global markets.
8. Export Finance
Exporters are provided financial support by authorized banks at concessional interest rates.
● Pre-shipment finance is given before export to cover costs of purchasing, processing,
manufacturing, or packing goods.
● Post-shipment finance is provided after goods are shipped to help exporters manage
cash flow until payment is received.
9. 100% Export Oriented Units (EOUs)
100% EOUs are units that produce goods exclusively for export. They are set up to increase
export production by offering flexible operations, incentives, and policy support. This
scheme complements the Export Processing Zone (EPZ) scheme.
10. Export Processing Zones (EPZs) / Special Economic Zones (SEZs)
Export Processing Zones (EPZs) are specially designated areas set up by the
government to promote exports. These zones provide a duty-free environment where
firms can produce goods meant mainly for export without paying customs duties, excise
duties, and other taxes. EPZs have been established in several parts of India, such as
Gandhinagar, Santacruz, Noida, Cochin, and Chennai.
Because firms in EPZs enjoy tax and duty exemptions, their cost of production is lower.
This helps their products become more competitive in international markets.
In recent years, EPZs have been converted into Special Economic Zones (SEZs). SEZs
offer even greater benefits, including simplified procedures and relaxation from many
rules and regulations governing imports and exports. These zones aim to attract
investment, increase exports, and promote economic growth.