Interest Equalisation Scheme: DGFT Notifies Amendments

The Directorate General of Foreign Trade (DGFT) has amended the Interest Equalisation Scheme in respect of the Unique Identification Number (UIN).

As per Trade Notice no. 38/2021-22 dated 15.03.2022 the eligible Interest Equalisation beneficiaries w.e.f 01.04.2022 were required to submit an Acknowledgement consisting of a Unique Identification Number (UIN) to the concerned bank to avail of the interest subvention under the scheme.

As per the amendment, all the exporters seeking benefits under the Interest Equalisation Scheme w.e.f 01.05.2023 are required to submit an Acknowledgement consisting of UIN which would be associated with a particular bank only for a ONE-TIME disbursement.

The beneficiaries of the scheme are directed to submit a new UIN for each disbursement to the concerned bank. It also applies where the credit is rolled over, and a new UIN shall be generated by the exporter for each rollover.

On April 1, 2015, the Interest Equalization Scheme (IES) was officially launched in order to give exporters pre- and post-shipment export credit in rupees. To receive this benefit, an eligible exporter must provide the concerned bank with a certification from an external auditor. Based on the certification from an external auditor provided by the exporter, banks offer benefits under the Interest Equalization Scheme to qualified exporters and request reimbursement from the Reserve Bank of India. The program aids the identified export industries in becoming more competitive globally and performing at a higher level on the export front.

Trade Notice No. 03/2023-24

Date: 20.04.2023

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