Duty Exemption and Remission Scheme: Simplifying Imports for Exporters

Export-oriented businesses often face the challenge of high import duties on raw materials and components, which can impact competitiveness in global markets. To address this, the Ministry of Electronics and Information Technology (MeitY) facilitates the Duty Exemption and Remission Scheme, designed to reduce the cost of inputs for export production.

This scheme allows eligible units to import necessary raw materials, components, and inputs duty-free, while also providing mechanisms for replenishment and duty remission. By lowering operational costs, it promotes efficiency and supports India’s exporters in staying competitive globally.

Objective of the Duty Exemption and Remission Scheme

The primary aim of the Duty Exemption and Remission Scheme is to:

• Enable duty-free imports for export-oriented production.

• Facilitate replenishment of inputs used in the manufacturing of exported goods.

• Provide duty remission to reduce financial burden and enhance cost efficiency.

• Support exporters in increasing their global competitiveness.

Key Benefits of Duty Exemption and Remission Scheme

1. Duty-Free Import of Inputs
   Units can import raw materials, components, and other necessary inputs without paying customs duties, lowering production costs.

2. Replenishment of Inputs
   The scheme allows exporters to replenish imported inputs used in export production, ensuring smooth manufacturing cycles.

3. Duty Remission
   In cases where duties are paid upfront, eligible units can claim remission of duty, improving cash flow and reducing financial strain.

4. Simplified Export Facilitation
   By removing financial and procedural barriers, the scheme streamlines the export process for businesses, particularly in electronics and high-tech manufacturing.

Who Can Benefit from Duty Exemption and Remission Scheme

The Duty Exemption and Remission Scheme is primarily targeted at:

• Export-oriented units (EOUs)

• Electronics and technology manufacturers

• Businesses involved in high-value exports that rely on imported inputs

By facilitating access to duty-free imports and remission, the scheme helps businesses scale production, reduce costs, and improve profit margins.

India’s export sector, particularly in electronics and technology manufacturing, is highly dependent on imported raw materials and components. Duties on these imports can significantly increase costs. This scheme reduces barriers, promotes efficiency, and ensures that Indian exporters remain globally competitive.

For startups and established businesses alike, the Duty Exemption and Remission Scheme is a practical tool to manage costs, optimize operations, and expand in international markets.