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The Directorate General of Foreign Trade issues clarifications regarding the extension of the Interest Equalisation Scheme for Pre and Post shipment Rupee Export Credit. Banks face difficulties on the applicability of the earlier notice. The interest equalisation is capped at Rs. 1.66 Cr per IEC for the period from 1st July 2024 to 31st August 2024. The extended scheme applies only to MSME Manufacturer Exporters who are eligible for an IES benefit of 3 percent. Applicants do not need to generate a revised Unique Identification Number for the extended period if they already hold a UIN for the financial year 2024 to 2025.
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File No. 01/94/180/341/AM20/PC-4 Government of India Ministry of Commerce and Industry Department of Commerce Directorate General of Foreign Trade Vanijya Bhawan, New Delhi 110001
Dated: 10th July 2024
Trade Notice No. 08/2024-2025
To,
Members of Trade and Industry EPCs/FIEO Reserve Bank of India
Subject: Clarification to the Trade Notice No. 07/2024-2025 - reg.
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.
In this regard, it is noticed that banks are facing difficulties on the applicability of the Trade Notice No. 07/2024-2025.
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 there is any threshold limit of Interest Equalisation per IEC for the period from 1^st July 2024 to 31^st August 2024. | The Interest Equalisation will be capped at Rs. 1.66 Cr per IEC for the period from 1st 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 IES benefit of 2% under 410 HS Lines as advised in circular RBI/2021-22/180DOR.STR.REC.93/04.02.001/2021-22. | 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. |
(K. M. Harilal) Jt. Director General of Foreign Trade DGFT (HQ)
[Issued from File No. 01/94/180/341/AM20/PC-4]
