Export assistance

Export assistance means Monetary, tax or legal incentives or any other support designed to encourage businesses to export certain types of goods or services. A government providing export incentives often does so in order to keep domestic products competitive in the global market. Types of export incentives include tax exemption on profits made from exports. 

Importance of Export Assistance:

Export assistance make domestic exports competitive by providing a sort of kickback to the exporter. The government collects less tax in order to deflate the exported good's price, so the increased competitiveness of the product in the global market ensures that domestic goods have a wider reach. This level of government involvement can also lead to international disputes that may be settled by the World Trade Organization (WTO).

It motivates the Exporters to Export more. More Exports brings FOREX inflow. It helps in improving BOP condition.

Documents for Claiming Export Assistance:These are some common documents which are required to avail export assistance by the government:

1. Registration-cum-Membership Certificate (RCMC)2. CERTIFICATE OF CHARTERED ACCOUNTANT (CA) /COST AND WORKS

ACCOUNTANT (ICWA)/ COMPANY SECRETARY (CS)3. Export Promotion Copy of shipping Bill4. Bank Certificate of Exports and Realization

Registration-cum-Membership Certificate (RCMC)

"Registration-cum-Membership Certificate" (RCMC) means the certificate of registration and membership granted by an Export Promotion Council or other competent authority as prescribed in the Policy or Handbook (Vol.1).

According to the Foreign Trade Policy, a Registration-cum-Membership Certificate (RCMC) is required for exporters in order to avail benefits under the

policy. Holding the certificate can also help exporters in availing benefits with respect to Customs and Excise.

Any person, applying for:

a) An Authorisation to import / export, (except items) listed as ‘Restricted’ items in ITC (HS)

or

b) Any other benefit or concession under FTP shall be required to furnish RCMC granted by competent authority in accordance with procedure specified in HBP v1 unless specifically exempted under FTP. Certificate of Registration as Exporter of Spices (CRES) issued by Spices Board shall be treated as Registration-Cum-Membership Certificate (RCMC) for the purposes under this Policy.

Registering Authorities issuing RCMC:

a) While obtaining RCMC, an exporter has to declare his main line of business in the application. The exporter is required to obtain RCMC from the Council which is concerned with the product of his main line of business.

b) A status holder has an option to obtain RCMC from Federation of Indian Exporters’ Organization (FIEO).

c) In case an export product is not covered by any Export Promotion Council/Commodity Board etc., RCMC in respect thereof is to be obtained from FIEO. Further, in case of multi product exporters, not registered with any EPC, where main line of business is not discernible, the exporter has an option to obtain RCMC from Federation of Indian Exporters Organization (FIEO).

Application:

An exporter may, on application given in Appendix 19A, register and become a member of EPC. On being admitted to membership, applicant shall be granted forthwith Registration-cum-Membership Certificate (RCMC) of EPC concerned, in format given in Appendix-19B. In case an exporter desires to get registration as a manufacturer exporter, he shall furnish evidence to that effect.

(b) Prospective / potential exporters may also, on application, register and become an associate member of an EPC.

Validity Period of RCMC

RCMC shall be deemed to be valid from 1st April of licensing year in which it was issued and shall be valid for five years ending 31st March of licensing year, unless otherwise specified.

Intimation Regarding Change In Constitution In case of change in ownership, constitution, name or address of an exporter, it shall be obligatory on part of RCMC holder to intimate such change to registering authority within a period of one month from date of such change. Registering authority, however, may condone delays on merits.

De-Registration Registering authority may de-register an RCMC holder for a specified period for violation of conditions of registration. Before such de-registration, RCMC holder shall be given a show cause notice by registering authority, and an adequate and reasonable opportunity to make a representation against the proposed de-registration. Upon de–registration, concerned EPC shall intimate the same to all RAs.

CERTIFICATE OF CHARTERED ACCOUNTANT (CA) /COST AND WORKS ACCOUNTANT (ICWA)/ COMPANY SECRETARY (CS)

It is the document certified by the CA/CS that the records and documents furnished by the applicant firm or company is verified & examined.

Following are the records and documents which are verified by CA/CS:

a) Statutory documentations under Customs Act 1962 and Excise Act 1848, Service Tax Act, Foreign Trade (Development & Regulation) Act 1992;

b) Export Order / Contract, Shipping Bills, Bill of Lading (and / or Airways Bills / PP Receipts), Customs / Bank attested Invoices, Forward Inward Remittance Certificates (FIRCs) and Bank Certificates of exports and realization, GR declaration and connected books of accounts;

c) FIRCs, Certificate from international credit card companies.

And also certify that export proceeds for shipments during last three years plus current year are not outstanding beyond prescribed period as permitted by RBI.

Export Promotion Copy of shipping Bill

Exporter gets all benefits under exports from different government export promotion agencies only on the basis of export promotion shipping bills and other proof of export. In other words, among shipping bills, Government agencies accept only EP copy of shipping bill as a proof of export.

After movement of goods out of country by shipping carrier either by air or sea, the carrier files EGM (export general manifest) with customs mentioning details of goods moved as per specified format. EGM filing is a legal and mandatory requirement as per customs rules. The details of vessel or aircraft in which the cargo moved, Shipping bill number and other details of goods are mentioned in the EGM.

Once after filing EGM by shipping carrier who carried goods, the exporter or his customs house agent approaches concerned customs officials to release EP copy of shipping bill. Once after satisfying on the ‘export’ of goods mentioned in shipping bill after verifying with Export General Manifest (EGM), the customs official approves and confirms ‘export’ by releasing EP copy of shipping bill.

This export promotion copy of shipping bill is used by exporters to produce at different government agencies for claiming export benefits along with other export document like BL/AWB etc.

Bank Certificate of Exports and Realization

Bank Realisation Certificate (BRC) is issued by a bank after realisation of export proceeds in the country. It is an important document required for claiming benefits under various FTP schemes. In addition, BRC data is used by VAT, Income tax and Drawback departments.

With the introduction of electronic BRC system, banks will issue and transmit BRC’s electronically to DGFT’s server replacing the manual mode of obtaining and submitting BRC. The revised process flow with technical guidelines is available on the DGFT’s websitedgft.gov.in under the ‘e-BRC’ icon.

E-BRC system allows Transmission of realization of export proceeds details from banks to DGFT in electronically secured format. The system has been made mandatory with effect from 17th August, 2012.E-BRC data is also of use to different ministries/departments of Central Government and State Governments who have expressed interest in obtaining this data from DGFT.