EXIM ADVISORY

For Indian exporters, the cost of imported raw materials can directly influence the competitiveness of finished products in international markets. Customs duties on eligible inputs can increase production costs, especially where imported materials form an important part of the export product. The Duty Free Import Authorisation scheme addresses this concern by allowing eligible exporters to import specified inputs without applicable basic customs duty, subject to prescribed conditions and export-related requirements. Administered by the Directorate General of Foreign Trade (DGFT), the scheme operates on a post-export basis and is linked to Standard Input Output Norms (SION). It is particularly relevant for businesses that manufacture or export products using imported inputs and want to manage their input costs more efficiently. What Is the Duty Free Import Authorisation scheme? The Duty Free Import Authorisation scheme is a duty exemption mechanism under Chapter 4 of the Foreign Trade...

For Indian manufacturers and exporters, investing in advanced machinery can significantly improve production capacity, product quality, and international competitiveness. However, the cost of imported capital goods can put pressure on working capital. The Export Promotion Capital Goods framework addresses this challenge by allowing eligible businesses to import qualifying capital goods at zero customs duty, subject to prescribed export obligations. The EPCG Scheme therefore connects two important business objectives: reducing the initial cost of capital investment and increasing export performance. Understanding this relationship is essential before applying for an authorisation, because the benefit comes with clearly defined compliance responsibilities. Understanding the EPCG Scheme The Export Promotion Capital Goods Scheme is administered by the Directorate General of Foreign Trade (DGFT) under Chapter 5 of the Foreign Trade Policy. Its stated objective is to facilitate the import o...

For an Indian exporter, increasing export volume is an important milestone. Higher orders can improve production capacity, strengthen international market presence and create opportunities for better economies of scale. However, larger export turnover also changes the way a business should approach government schemes, export finance, compliance and documentation. The relevance of Export Schemes and Incentives can therefore change as an enterprise moves from occasional shipments to regular, high-volume exports. The key is not simply to claim every available benefit, but to identify schemes that correspond with the product, export model, financing requirements and investment plans. India's export-support framework is also evolving. The Government's Export Promotion Mission (EPM), approved with an outlay of ₹25,060 crore for FY 2025–26 to FY 2030–31, is designed around financing and non-financial support for exporters. Its two broad components, NIRYAT PROTSAHAN and NIRYAT DISHA...

International trade today depends on more than moving goods from one country to another. Importers, exporters, manufacturers, logistics providers and other supply-chain participants must demonstrate compliance, maintain reliable records and protect cargo throughout its movement. In India, the Authorized Economic Operator programme provides a structured framework for businesses that want to strengthen these areas while receiving trade facilitation benefits. The AEO Certification programme administered by Indian Customs is designed around the principle of building trust between Customs and compliant businesses. The programme is aligned with the World Customs Organization’s SAFE Framework, which promotes supply-chain security while facilitating legitimate international trade. The current Indian AEO portal describes the programme as supporting faster, safer and more predictable cross-border trade. What Is AEO Certification? AEO Certification is a recognition granted by Customs to eligibl...

For Indian manufacturers, exporters, and service providers planning to expand their production capacity, importing advanced capital goods can involve significant upfront costs. The EPCG Scheme provides an important framework under India’s Foreign Trade Policy for obtaining eligible capital goods at zero customs duty, subject to specified export obligations and compliance requirements. The scheme is administered by the Directorate General of Foreign Trade (DGFT), and businesses need to understand the authorization process, export obligation, installation requirements, reporting requirements, and eventual redemption before using the benefit. Recent DGFT updates have also changed certain compliance procedures, making it important for businesses to follow the latest applicable rules rather than relying on older practices. What Is an EPCG License? An EPCG License is an authorization issued under the Export Promotion Capital Goods Scheme that allows eligible businesses to import capital...

Introduction India's export sector plays a significant role in economic growth, employment generation, and international trade. For businesses entering global markets, managing production costs, freight expenses, customs duties, and compliance requirements is essential to maintaining profitability. Government-backed Export Incentives can help eligible businesses manage certain export-related costs and improve their competitiveness in international markets. The Export Incentive Scheme framework in India includes several initiatives designed to support exporters through tax and duty remission, export credit assistance, and other forms of trade facilitation. However, each scheme has its own eligibility requirements, documentation standards, and application procedures. Understanding the Export Schemes and Incentives available to a business is the first step toward making informed financial decisions. This article explains the application process, important documents, common mistakes...