Interest Equalisation Scheme (IES) for Pre and Post Shipment Rupee Export Credit Extended by Two Months to 31 Aug 2024

         DGFT Issues Clarification on Trade Notice No. 07/2024-25

         Interest Equalisation will be capped at Rs. 1.66 Cr per lEC.

         scheme extended vide Trade Notice No. 07/2024-2025 dated 28.06.2024 is applicable only to MSME Manufacturer.

         Applicants would not be required to generate revised UIN.

 

[DGFT Trade Notice No. 08/2024-2025 dated 10 July, 2024]

Subject: Clarification to the Trade Notice No. 07/2024-2025.

This is in reference to the Trade Notice No. 07/2024-2025 dated 28.06.2024 vide which the Interest Equalisation Scheme (IES) for Pre and Post shipment Rupee Export Credit was extended for two months beyond 30th June, 2024.

2. In this regard, it is noticed that banks are facing difficulties on the applicability of the Trade Notice No. 07/2024-2025.

3. In view of the above, the issues raised are accordingly clarified as follows:

Sr.No.

Issue raised

Clarification

1.

Threshold Limit for the extended period: Whether here is any threshold limit of Interest Equalisation per IEC for the period from 1st July 2024 to 31st August 2024.

The Interest Equalisation will be capped at Rs. 1.66 Cr per lEC for the period from Ist July 2024 to 31st August 2024.

2.

Inclusion of MSME Merchant Exporters: Whether the scheme is applicable only to MSME Manufacturer Exporters, who are eligible for IES benefit of 3%, or if it is also applicable to MSME Merchant Exporters, who are eligible for lES benefit of 2% under 410 HS Lines as advised in circular RBl/2021- 22/180DOR.STR.REC.93/04.02.00 1/2021-22.

The scheme extended vide Trade Notice No. 07/2024-2025 dated 28.06.2024 is applicable only to MSME Manufacturer Exporters, who are eligible for IES benefit of 3%.

3.

Requirement of Revised UIN: Whether clients would be required to generate revised UIN for the extended period as the existing UINs have a validity till 31.03.2025.

Applicants would not be required to generate revised UIN for the extended period if the applicants have already generated UIN for the FY 2024-2025.

4, This issues with the approval of the Competent Authority.

[Issued from File No. 01/94/180/341/AM20/PC-4]