Trade Notice No. 08/2024-2025, dated 10th July 2024, issued by the Directorate General of Foreign Trade, Ministry of Commerce and Industry, provides clarification on issues raised regarding Trade Notice No. 07/2024-2025. The Notice extends the Interest Equalisation Scheme (IES) for Pre and Post shipment Rupee Export Credit for two months beyond 30th June 2024. Clarifications include capping the Interest Equalisation at Rs. 1.66 Cr per IEC for the period from 1st July 2024 to 31st August 2024. The scheme applies exclusively to MSME Manufacturer Exporters eligible for a 3% IES benefit, excluding MSME Merchant Exporters eligible for a 2% benefit. It is confirmed that there is no requirement to generate revised UINs for the extended period if UINs were already generated for the FY 2024-2025.
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
Trade Notice No. 08/2024-2025 Dated: 10th July 2024
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.
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 there 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 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. |
4. This issues with the approval of the Competent Authority.
(K. M. Radial)
Jt. Director General of Foreign Trade
DGFT (HQ)
[Issued from File No. 01/94/180/341/AM20/PC-4]
