Export promotion schemes
To encourage the export of goods and services, (such as Merchandise Exports and Service Exports from India Scheme (MEIS and SEIS)), government of India introduces the export promotion schemes.
These schemes are also introduced to refund taxes and fees that are non-recoverable, for
example, Remission of Duties and Taxes on Export Products (RoDTEP). These are the major
characteristics of the export promotion schemes:
- These schemes provide a rebate to a certain percentage of the export value depending on the HS code. For some HS codes, there can be cap (per unit) on the value that can be refunded.
- For some HS codes, the refund is fixed based on the metric units that are exported (for example, INR 400 per meter exported).
- Refund is generally paid in the form of a scrip which can be used to pay customs duties of other imports.
The schemes are revised periodically (generally 5 years) wherein the old schemes are expired, and new ones are introduced. Based on the master data setup, Infor LN identifies all the goods and service transactions eligible for export promotion schemes.