TaxTMI 
TaxTMI 
TaxTMI 
India offers a wide range of schemes to promote exports by reducing input costs, easing compliance, improving competitiveness, and offering financial and procedural support to exporters. Below is a comprehensive list of these schemes with a brief introduction and the respective pros and cons.
1. Advance Authorization Scheme
This scheme allows duty-free import of inputs required for manufacturing export products, subject to fulfilment of specified export obligations.
Pros: Reduces input cost; improves liquidity; widely used in manufacturing sectors.
Cons: Requires export obligation fulfilment; strict documentation and compliance.
2. EPCG Scheme (Export Promotion Capital Goods)
Permits import of capital goods at zero customs duty for pre-production, production, and post-production, subject to export obligations.
Pros: Encourages modernization and capacity expansion through duty-free imports.
Cons: Long export obligation period; penal provisions for shortfall in obligation.
3. DFIA (Duty-Free Import Authorization)
Enables post-export import of inputs without payment of duties, based on standard input-output norms (SION).
Pros: Transferable after export obligation; flexibility in post-export import planning.
Cons: Limited to SION-specified products; stricter norms than Advance Authorization.
4. Duty Drawback – All Industry Rate (AIR)
Provides standardized refund of central duties on inputs used in manufacturing exported products.
Pros: Simplified benefit based on industry average rates; minimal documentation.
Cons: May not reflect actual duty incidence; less beneficial for unique or high-duty inputs.
5. Duty Drawback – Brand Rate
Refund based on actual duty incidence on inputs used in exports, applicable where AIR is unavailable or insufficient.
Pros: Customized benefit based on real input cost; more accurate refund.
Cons: Time-consuming; requires extensive cost analysis and approvals.
6. Section 74 – Re-export of Imported Goods
Allows refund of up to 98% of customs duties paid on imported goods that are re-exported in the same condition within two years.
Pros: Cost-saving option in case of rejection or surplus goods; easy claim if unused.
Cons: Strict timelines and usage restrictions; extensive documentation required.
7. RoDTEP (Remission of Duties and Taxes on Exported Products)
Replaces MEIS and provides reimbursement of embedded, non-creditable central/state levies and taxes on export products.
Pros: WTO-compliant; supports competitiveness by refunding hidden costs.
Cons: Limited benefit rates; sector-specific exclusions still under review.
8. RoSCTL (Rebate of State and Central Taxes and Levies)
Offers refund of embedded taxes to apparel and made-up textile exporters via transferable scrips.
Pros: Sector-focused incentive; enhances margin for textile exporters.
Cons: Restricted to garments and made-ups; dependent on timely DGFT notifications.
9. AEO Scheme (Authorized Economic Operator)
A voluntary program that offers trade facilitation benefits to trusted exporters with strong compliance records.
Pros: Faster clearances, reduced inspection, global credibility with customs.
Cons: Extensive eligibility checks; higher compliance and audit obligations.
10. MOOWR Scheme (Manufacture and Other Operations in Warehouse Regulations)
Allows manufacturers to defer customs duty on imported goods until they are cleared for home consumption. No export obligation is required.
Pros: Ideal for manufacturers serving both export and domestic markets; simplifies tax structure.
Cons: Requires bonded warehouse infrastructure; high compliance burden.
11. MAI Scheme (Market Access Initiative)
Supports export promotion through financial assistance for market development activities such as trade fairs, buyer-seller meets, and branding.
Pros: Encourages market diversification; reimbursement for promotional activities.
Cons: Reimbursement model involves delayed cash flow; pre-approval mandatory.
12. ECGC (Export Credit Guarantee Corporation)
Provides insurance cover to exporters against the risk of non-payment by foreign buyers and helps obtain working capital from banks.
Pros: Protects against commercial and political risks; supports access to export finance.
Cons: Insurance premium cost; selective risk coverage in high-risk markets.
13. NIRVIK Scheme (Niryat Rin Vikas Yojana)
A sub-scheme under ECGC that provides enhanced credit insurance cover and simplifies claim settlement for exporters.
Pros: Higher coverage (up to 90%); encourages banks to lend more to exporters.
Cons: Linked with ECGC policies; administrative delays may occur.
14. SEZ (Special Economic Zone)
Designated zones treated as foreign territory for trade operations, offering duty and tax exemptions to boost exports and attract investment.
Pros: Income tax holiday, duty-free procurement, and single-window clearance.
Cons: Supplies to DTA attract duties; land acquisition and compliance challenges.
15. EOU (Export Oriented Unit)
Units set up with the objective to export entire production, enjoying duty-free import and other tax benefits under FTP.
Pros: Duty-free import of raw materials and capital goods; access to certain FTP benefits.
Cons: Limited DTA sales; mandatory export performance obligations.
16. STPI (Software Technology Parks of India)
A scheme for IT and ITeS exporters offering duty benefits and facilitation through STPI centers.
Pros: Single-window clearance; operational support for software exporters.
Cons: Tax exemptions have been phased out; mostly procedural support remains.
17. EHTP (Electronic Hardware Technology Park)
Similar to STPI, this scheme facilitates duty-free imports and export-based benefits for electronic hardware manufacturers.
Pros: Full customs exemption on capital goods and raw materials.
Cons: Export obligation is mandatory; limited popularity post-SEZ and GST reforms.
18. Biotechnology Park Scheme
Supports export-oriented biotech units with duty-free imports and infrastructure support through notified parks.
Pros: Sector-specific incentives; infrastructure and policy support.
Cons: Limited to approved biotech parks; eligibility is sector-restricted.
19. Deemed Exports (Chapter 7, FTP)
Transactions where goods supplied do not leave the country but are treated as exports (e.g., supplies to EOU, SEZ, nuclear power projects, etc.).
Pros: Supplier eligible for refund of GST, customs duty drawback, or other benefits.
Cons: Not applicable to merchant exporters; detailed certification required from recipient entities.
20. Merchant Exports
Refers to export of goods by a trader or merchant exporter who procures goods from manufacturers and exports without further processing.
Pros: Eligible for RoDTEP, RoSCTL, and Duty Drawback; promotes non-manufacturing exports.
Cons: Not eligible under deemed export benefits; requires coordination with manufacturers for compliance.
Conclusion
India’s export ecosystem is supported by a variety of well-structured schemes aimed at reducing transaction costs, improving global competitiveness, and facilitating trade. Each scheme serves a specific business model—from manufacturing exporters to merchant traders and service providers. Exporters must carefully select the most appropriate scheme(s) based on their operational structure, compliance capability, and long-term business strategy.