TaxTMI 
TaxTMI 
TaxTMI 
Launch of Support for Emerging Export Opportunities under Export Promotion Mission (EPM) – NIRYAT PROTSAHAN.
X X X X Extracts X X X X
X X X X Extracts X X X X
....nal value chains) access trade finance for exports to under-served markets and boost competitiveness through non-recourse trade finance instruments from banks. 4. The detailed Policy framework is enclosed as ANNEXURE-I. The Operational and Procedural Guidelines is enclosed at ANNEXURE-II. The governance Structure is enclosed at ANNEXURE-III. 5. The intervention shall be operationalised on a pilot basis for feedback, institutional learning, and data-driven refinements. Guidelines for banks is enclosed at ANNEXURE- IV, and pilot implementation are enclosed at ANNEXURE-V. 6. The guidelines are further submitted for stakeholder feedback in accordance with Paragraph 1.07A of the Foreign Trade Policy (FTP) 2023. Stakeholders may submit comments and suggestions on the Guidelines within 30 days from the date of issuance of this Trade Notice, through email at [email protected] This is issued with the approval of the Competent Authority. B Kruti Deputy Director General of Foreign Trade (Issued from F. No. 01/02/72/AM-26/EPM) ANNEXURE-I POLICY FRAMEWORK FOR SUPPORT FOR EMERGING EXPORT OPPORTUNITIES 1. Objective a. The objective is to support enhanced gl....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Registration Number shall be eligible for support under the intervention. b. Exports of all goods permitted for exports under the Foreign Trade Policy of the Government of India shall be eligible, subject to a negative list under the intervention (ANNEXURE-VI). c. Support shall be available for transactions involving under-served markets identified under the Intervention (ANNEXURE-VII). The list shall be reviewed periodically based on India's integration with these markets, demand in these markets, and India's untapped potential. d. The Intervention will provide risk-sharing support for eligible trade finance transactions supported by banks. 2. Activities / Instruments Supported The various non-recourse credit mechanisms supported under the Intervention include: (i) Stand-by Letters of Credit (SBLC) (ii) Risk Participation (RP) (iii) Irrevocable Reimbursement Undertaking (IRU) (iv) Letter of Credit (LC) Confirmation (v) Letter of Credit Negotiation (vi) Usance Payable at Sight Letter of Credit (UPAS LC) 3. Implementing Framework a. Exim Bank, along with the National Credit Guarantee ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....p would be 1% of the MLP. d) Issuing bank-wise exposure cap would be 10% of the MLP. 7. Intent Filling a. Applicants shall submit an online application on DGFT portal indicating their intent to avail risk-sharing support for eligible trade finance transactions, via the online portal. b. The application shall include details of the firm, export products, and the preferred lending institutions and trade finance instrument for availing the risk-sharing support. Upon submission, a unique UIN number shall be generated. c. Each declaration of intent shall remain valid until the end of the financial year or for 12 months from the date of submission, whichever is earlier. d. Applicants shall approach their preferred eligible lending institution with the UIN to apply for the support under this intervention. 8. Sanction of risk-sharing support by Exim Bank a. The lending institution shall assess the applicant's creditworthiness using its internal evaluation mechanism. b. After negotiating the terms of trade finance instrument with the MSME, the partner bank shall apply for risk-sharing support to the Exim Bank. c. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ive of the Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) Invitee 8. Representative of Exim Bank Invitee 9. Representative of Export Credit Guarantee Corporation of India (ECGC) Invitee 10. Representative from National Credit Guarantee Trustee Company (NCGTC) Invitee 11. Representative of the India Banks Association (IBA) Invitee 12. Representative of the International Financial Services Centres Authority (IFSCA) Invitee 13 Representatives of Factoring NBFCs Invitee c. The Sub-Committee may co-opt members or invite any other participants as and when required. Domain experts or industry representatives with demonstrated experience in trade finance may be associated for technical appraisal. d. The Sub-Committee shall, inter alia, recommend - i. annual beneficiary level cap on support to be provided ii. level of risk sharing, exposure limit, and, iii. exclusion or inclusion of other trade finance instruments. 2. Implementing Agency: a. Export-Import Bank of India (Exim Bank), along with National Credit Guarantee Trustee Company (NCGTC) will be the imp....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the operation of letters of credit. i. "Usance Payable at Sight"(UPAS) means a letter of credit which is the combination of Usance LC and Sight LC. A UPAS LC is a standard type of LC that is governed by the International Chamber of Commerce (ICC) publication No. 600, which outlines the Uniform Customs and Practice for Documentary Credits j. "URR 725" means the Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits ("rules"), ICC Publication No. 725, shall apply to any bank-to-bank reimbursement when the text of the reimbursement authorization expressly indicates that it is subject to these rules. k. "NCGTC" means National Credit Guarantee Trustee Company Limited set up on March 28, 2014, by the Government of India to act as the Trustee to operate various Credit Guarantee Funds/Trusts, set up/to be set up by the Government of India from time to time. l. "Trust" means the Emerging Export Opportunities Trust to be set up by the Government of India with the purpose of guaranteeing credit facility(s), extended by the Member Lending Institution(s) to the Eligible Borrowers under this Intervention. 2. Mechanisms under the Interventi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... d. After in-principal approval, Exim Bank shall request for cover from NCGTC based on the risk categorisation and the corresponding risk-sharing percentage defined in the scheme guidelines. NCGTC shall review the request for conformity with the scheme guidelines and accordingly convey approval within one business day. e. Upon approval by NCGTC, Exim Bank shall extend up to 100% cover for eligible instruments to the partner banks, as per the provisions of the agreements executed with partner banks and in line with internationally accepted documentary credit standards. On the same business day, Exim Bank shall receive the guarantee cover from NCGTC. f. The fee for risk cover shall be guided by the respective documents signed or entered with partner banks. Exim Bank will transfer the fees to the NCGTC pro-rata to its guaranteed portion. g. The processes under the various mechanisms are guided by internationally accepted documentary credit standards such as UCP 600, ISBP 745, and URR 725, which collectively govern the examination of documents, reimbursement procedures, and operational practices in trade finance. These mechanisms are further guided by....
X X X X Extracts X X X X
X X X X Extracts X X X X
....age of the underlying LC/trade instrument 9. Miscellaneous a. The Sub-Committee on Trade Finance reserves to itself the right to modify, cancel or replace the Intervention however, that the rights or obligations arising out of, or accruing under risk coverage issued under the Intervention up to the date on which such modification, cancellation or replacement comes into effect, shall not be affected. b. Notwithstanding anything contained herein, the Sub-Committee on Trade Finance shall have a right to alter the terms and conditions of the Intervention in regard to an account in respect of which risk coverage has not been issued as on the date of such alteration. 10. Risk Cover Exim Bank may extend up to 100% cover for eligible instruments. Risk-sharing support by way of unconditional and irrevocable guarantee shall be extended to Exim Bank in the range of 10% to 80% of the transaction value, based on score determined from the comprehensive risk model, as illustrated below, with the balance risk covered by Exim Bank / partner bank. The risk coverage will be reviewed periodically by the Sub- Committee on Trade Finance. Risk Category Score Range Cove....
X X X X Extracts X X X X
X X X X Extracts X X X X
....editable) 13. Bank Name 14. Account Number 15. IFSC Code DECLARATION I/We hereby declare that: 1. The applicant entity is not under investigation, charged, prosecuted, debarred, or blacklisted under the Foreign Trade (Development and Regulation) Act, 1992, or under any other applicable law relating to international trade, including the Customs Act, 1962; the Central Excise Act, 1944; the Foreign Exchange Management Act, 1999; and the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, as amended from time to time. The applicant entity has no outstanding penalties or dues under the aforesaid Acts. Any material change in such status shall be promptly disclosed, failing which the application may be rendered ineligible and appropriate action may be initiated. 2. Neither the registered office nor the head office, nor any branch, unit, or division of the applicant entity, has been declared a defaulter or otherwise rendered ineligible to undertake import or export activities under the Foreign Trade Policy or any provision thereof. 3. I/We undertake to abide by the provisions of the Foreign Trade (Development and Regu....