Introduction
The Ministry of Commerce and Industry has extended the Interest Equalisation Scheme on pre and post-shipment rupee export credit by two months with a significant modification.
Table of Contents
According to a trade notice issued by the DGFT on Wednesday, the scheme will now be capped at Rs 1.66 crore per Importer-Exporter Code from July 1 to August 31, 2024.
The IES was implemented to encourage outbound shipments from India through interest benefits to exporters. It was initially slated to end on June 30, 2024, but the government extended it by two months.
Needless to say, the extension has been made applicable solely with regard to MSME manufacturer-exporters who are entitled to a 3 percent interest equalization benefit.
Clarifying further, the DGFT said that the scheme extended up to June 28, 2024, is specially targeted at this category of exporters.
The IEC is a mandatory business identification number for any entity dealing in import or export activities in India and plays an important role in this context.
Unless specially exempted, no individual or organization can undertake import or export operations without obtaining an IEC.
This extension and cap on the Interest Equalisation Scheme reflect the Government's Continuous efforts focused on the export sector, giving special emphasis to micro, small, and MSMEs in the manufacturing sector.
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