Circular No. ES/373/ 2018-19 February 5, 2019
To: Members of the Council
Sub: Interest Equalisation Scheme (IES) for pre and post Shipment Rupee Export Credit and its expansion
Dear Member,
We would like to inform you that O/o DGFT has issued Trade Notice No. 45/2018- 19 dated 1st February, 2019 informing the members of Trade about Interest Equalisation Scheme (IES) for pre and post Shipment Rupee Export Credit and its expansion.
As you are aware, O/o DGFT had implemented the Interest Equalisation Scheme (IES) for pre and post Shipment Rupee Export Credit through the RBI and its network of banks w.e.f. 1st April, 2015 for a period of 5 years. Under the Scheme, the Interest Equalisation @ 3% per annum was made available to eligible exporters which included manufacturer exporters for exports in the identified 416 four digit tariff lines and all MSME exporters across all their merchandise exports.
Subsequently, the Interest Equalisation rate was increased from 3% to 5% in respect of exports by manufacturers of MSME sector w.e.f. 2nd November, 2018.
W.E.F 2nd January, 2019 merchant exporters were included under this scheme allowing equalisation rate of 3% per annum for exports of products covered under 416 tariff lines identified under the scheme.
The eligible category and Equalisation is given here- below:-
Export items |
Eligible category |
Rate of equalisation |
416 four tariff lines listed in the scheme |
|
3% per annum |
All tariff lines |
MSME sector manufacturers |
|
With regard to the above, RBI has issued following notification from time to time informing about the operative guidelines under the Scheme –
Members are requested to kindly make a note of the above and avail the benefits of this scheme.
Thanking you,
Yours faithfully,
S.BALARAJU
EXECUTIVE DIRECTOR