Introduction to DGFT Export Schemes
The Directorate General of Foreign Trade (DGFT) is the apex body for formulating and implementing India's foreign trade policy. DGFT administers various export promotion schemes that allow duty-free imports of capital goods and raw materials, significantly reducing production costs for exporters.
These schemes are designed to make Indian exports more competitive globally by eliminating the cascading effect of duties on inputs. Whether you're exporting textiles, engineering goods, or agro-commodities, there's likely a scheme that can benefit your business.
💡 Key Benefit
DGFT schemes can save you 10-30% on input costs through duty-free imports, making your exports significantly more price-competitive in international markets.
EPCG Scheme (Export Promotion Capital Goods)
The EPCG scheme allows import of capital goods at zero customs duty for producing export goods. This is ideal for manufacturers looking to upgrade machinery or expand capacity.
Key Features
- Zero duty: Import capital goods at 0% customs duty
- Export obligation: 6x the duty saved within 6 years
- Average exports: Maintain annual average export performance
- Flexibility: Can club with other EPCG authorizations
✅ EPCG Benefits
- 100% duty exemption on capital goods
- Reduced investment cost for expansion
- Technology upgradation support
- Transferable to group companies
⚠️ Obligations
- Export 6x duty saved in 6 years
- Maintain average export obligation
- Submit annual EODC reports
- Block on capital goods till discharge
Example Calculation
If you import machinery worth ₹1 Cr with normal duty of 15% (₹15 lakh), your export obligation would be ₹15 lakh × 6 = ₹90 lakh over 6 years.
Advance Authorization (AA)
Advance Authorization allows duty-free import of inputs (raw materials, components, consumables) that are physically incorporated in the export product. This is particularly useful for chemical exporters and manufacturers.
Types of Advance Authorization
- Physical export: Standard AA for regular exports
- Intermediate supplies: For supplies to other AA holders
- Deemed exports: For supplies to EOU/SEZ units
- Annual AA: For regular exporters with consistent track record
Get SION or Self-Declaration
Use Standard Input-Output Norms (SION) or declare your own input-output ratio for custom products.
Apply on DGFT Portal
Submit application with export order details, input requirements, and supporting documents.
Import Inputs Duty-Free
Within 12 months of authorization, import required inputs at zero duty.
Complete Export Obligation
Export final products within 18 months (extendable) from authorization issue date.
RoDTEP Scheme
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme replaced MEIS and provides refund of embedded central, state, and local duties/taxes that are not exempted or refunded under other mechanisms.
Key Features
- Rates range from 0.5% to 4.3% of FOB value
- Credits issued as duty scrips (transferable)
- Can be used to pay customs duty on imports
- Available for all eligible exports automatically
📋 How to Claim RoDTEP
Declare RoDTEP eligibility in your shipping bill. After EGM filing, credits are automatically generated and visible in your ICEGATE account. You can use them directly or transfer to other importers.
Choosing the Right Scheme
Choose EPCG If:
- Investing in new machinery
- Upgrading technology
- Can fulfill 6x export obligation
- Have consistent export orders
Choose Advance Authorization If:
- Need duty-free raw materials
- Have specific export orders
- Manufacturing export products
- Can maintain input-output correlation
Application Process
Register on DGFT Portal
Obtain IEC and register on dgft.gov.in with DSC.
Prepare Documents
Export order, input list, SION/self-declaration, bank guarantee if required.
Submit Online Application
Fill ANF forms, upload documents, pay processing fee.
Track and Respond
Monitor application status, respond to queries, receive authorization.
Explore Our Export Products
Leverage DGFT schemes for cost-competitive exports across categories:
Conclusion
DGFT export schemes are powerful tools for reducing costs and improving competitiveness. Whether you choose EPCG for capital goods, Advance Authorization for raw materials, or claim RoDTEP benefits, proper planning and compliance are essential for maximum benefit.
Need Help with DGFT Schemes?
Our trade experts can help you identify the right schemes and assist with applications.
