This article intends to bring out a brief about benefits of FIEO, which was set up for international trade and commerce facilitation and promotion of export in India, it works under the regulatory standards of ISO. It is a statutory body and works to represent the foreign traders and entrepreneurs.In order to keep a healthy and safe trading environment for not just the customers but for the entrepreneurs as well, FIEO constantly work to promote and safeguard them by providing various rebates and concessions on export duty and promote all kind of goods and services related business.
FIEO – Meaning
Before we discuss the benefits of FIEO, let’s know the meaning of FIEO. FIEO stands for federation of India export organization, set up in 1965 as a central regulatory body for promoting export in India. FIEO is the statutory authorized body to register the exporting forms in India dealing with all kinds of product and services lines. FIEO also work to prepare export strategies for states. FIEO works at organizing camps, training campaigns, workshops, online and offline seminars to provide knowledge and needs for improvement and to address the problems. The FIEO works at providing speedy resolution by concerning with the central government.
FIEO has successfully entered into over 100 MoU with various organizations internationally to work for the betterment of Indian market as well as the global market. FIEO comes up with many schemes and policies for helping the exporters and the information regarding the schemes, policies, MoU are provided on the trade portal of FIEO. FIEO also publishes monthly magazines and reports, weekly E-bulletin for the traders.
In order to avail the benefits provided by FIEO the traders will have to register themselves and must get a registration-cum-membership certificate.
Benefits of FIEO Membership
Below are few benefits of FIEO Membership:
- RCMC: registration-cum-membership certificate, is a mandate in order to avail the benefits of foreign trade policy. It is available to status and not status holders both.
- Market Access Initiative: under MAI scheme FIEO provide grants to the members who participate in trade fairs, exhibitions, delegations etc.
- Feature on Official Website: FIEO enables its members to upload the images of their products on the website which helps them to be noticed.
- International Travel: FIEO provides international travel benefits by offering a certificate of origin, recommendation for visa application.
Benefits of FIEO for Exporting
FIEO works for the benefits of the exporters in India and to provide them access to the international trade and commerce. In order to provide benefits of FIEO, it has come up with various schemes and policies as below:
- Schemes for Export Promotion:
They work to provide infrastructural support and take measures to boost the Indian economy and exports:
- MEIS: merchandise exports from India scheme, provides freely transferrable duty credit scrips to products mentioned under the handbook of procedures provided on the portal. While making payment for excise duty, custom duties, services tax, excise duty etc, these transferrable credit scrips can be used.
- SEIS: Service exports from India scheme, this is for the service providers, where credit scrips can be used for the services mentioned at 5% of the earnings of net foreign exchange.
- Scheme Related to Duty Exemptions and Remissions:
- AAS: Advance authorization scheme, goods can be imported without duty charge that are used physically in the product which is exported. Such products are used as an input in a resultant product which must have add a value of at least 15% in the resultant product. The validity for making import is 12 months and that of for exports is 18 months from the date AA was issued.
- Advance Authorization for Annual Requirement: Exporters who have demonstrated a history of export success (during the course of at least the two financial years prior) are eligible for advance authorization for annual requirements. This is only applicable to goods with SION.
- DFIA: Duty Free Import Authorization requires at least a value addition of 20%, DFIAs are issued to permit duty-free imports of inputs. DFIA will only be excused from paying the minimal amount of customs duty. DFIAs must be given out for goods for which SION has given notice after shipment. It does not apply on gems and jewellery industry.
- Drawback of Duty of Central Excise Duties, Customs, and Service Tax: under this scheme goods are exported and then a rebate of duty can be claimed. It can either be claimed at the prevalent industry rates or over the brand rate.
- EPCG Scheme:
- The EPCG Zero Duty Scheme: For the production of high-quality goods and services to increase India’s export, this programme permits the entry of capital goods at zero percent customs tax. Imports covered by EPCG are subject to export obligations equal to six times the amount of duty avoided over the course of six years. Additionally, the plan permits sourcing capital items locally while reducing export requirements by 25%.
- Scheme for Post-Export EPCG Duty Credit: Exporters who plan to import capital goods after paying all applicable duties in full in cash will have access to a Post Export EPCG Duty Credit Scrip Scheme.
- Other Schemes:
- Towns of Excellence for Export (TEE): Towns with annual export potential of Rs. 750 crores are selected, or more are designated as TEEs and offer recognised Associations financial support through the MAI Scheme.
- Duty Refunds On “Export Goods” And “Material” Used To Make Such Goods: Under Rule 18 of the Central Excise Rules from 2002, a refund of duty paid on excisable goods exported or tax paid on the raw materials used to make such export goods may be requested.
- Goods Exported under Bond, Or without Paying Excise Taxes: The clearance of excisable items for export from the authorised plant, warehouse, and other sites is outlined in Rule 19 of the Central Excise Rules of 2002.
- Status Holder Scheme: It provides a status of star rating based on the performance of the applicant, upon application the export performance of the applicant will be measured and according to his performance he will be accorder star rating ranging from one to five. The star holders are provided benefits under the FTP.
- MDA: market development assistance, this scheme is for providing monetary assistance to exporters who have earned export turnover of up to Rs. 30 crores.
After discussing the benefits of FIEO, it is clear that the FIEO play an essential role to protect and promote the exporters and the customers both simultaneously, in a way by maintaining a quality check over the products and services of the organizations and by providing numerous benefits related to monetary and non-monetary terms as well to the traders in order to keep boosting India’s export and economy.