Interest Equalisation Scheme
No. CLE-HO/POL/CIRCULAR/2023
May 12, 2023
Members of the Council.
Sub : Interest Equalisation Scheme
Dear Sir,
As you are aware, the Government is implementing the Interest Equalization scheme on rupee export credit. A note on the scheme applicable for leather industry is enclosed herewith for your kind information.
The operationalization of new IT module for interest equalization scheme was notified vide Trade Notice No. 38 /2021-22 dated 15th March 2022.
The DGFT has now issued a Trade Notice No.04/2023-24 dated 21.04.23 stating the following.
Attention of Trade and Industry is drawn towards Trade Notice no. 03/2023-24 dated 20.04.2023, wherein the eligible Interest Equalisation beneficiaries w.e.f 01.05.2023 were required to submit an Acknowledgement consisting of UIN which would be associated with a particular bank only for a ONE-TIME disbursement, also applicable where the credit is rolled over.
2. The amendments stated under the above-mentioned Trade Notice are deferred in view of the operational challenges expressed by the beneficiaries of the scheme and the banks. The revised guidelines are as follows:
• An Acknowledgement consisting of UIN, valid for a financial year shall be unique to a specific bank. If a scheme beneficiary desires to take advantage of the benefits of the scheme from multiple banks, a new UIN must be provided for each bank.
Members may kindly note the above.
Thanks & regards,
R.Selvam
Executive Director
Encl: as above
No. CLE-HO/POL/CIRCULAR/2022
April 19, 2022
Members of the Council
Sub : Operationalization of new online IT module for interest equalization scheme w.e.f. 1st April 2022
Dear Sir,
This is continuation to our earlier circular of March 16, 2022 on the above subject.
Kindly find enclosed the following documents hosted in DGFT website for your kind information.
1. Interest Equalization scheme user manual for exporters
2. Interest Equalization scheme FAQ for exporters.
Please note the following.
· In respect of MSME units, the MSME details have to be updated in your Import Export Code (IEC) profile in the DGFT portal by using your log in and password. Updation can be done by logging on to SERVICES – IE PROFILE MANAGEMENT – VIEW IEC PROFILE – INDUSTRIAL REGISTRATION in the DGFT portal.
· Only if the MSME details are updated in the IEC profile, the MSME units can select any HS Code.
· For MSMEs manufacturer exporter, no sector selection is required in the application form and MSME exporters can directly select the concerned HS Codes.
Members may kindly note.
Thanks & regards,
R.Selvam
Executive Director
No. CLE-HO/POL/CIRCULAR/21-22
March 16, 2022
Members of the Council
Sub : Operationalization of new online IT module for interest equalization scheme w.e.f. 1st April 2022
Dear Member
This is in continuation to our earlier circular dated March 9, 2022 regarding interest equalization scheme.
As informed earlier, the Interest Equalisation Scheme on Pre & Post Shipment Rupee Export Credit is being implemented during the period October 1, 2021 till March 31, 2024. The interest equalisation rates are 3% for MSME manufacturer exporters exporting under any HS lines and 2% for manufacturer exporters and merchant exporters exporting under 410 HS lines including saddlery and harness items under 4201, leather products under 4205, footwear under 6401 to 6405, handicraft items under 4202 and 6406 and sports goods under 4203.
The Office of DGFT has now issued a Trade Notice No. 38 dated 15th March 2022 (copy enclosed) specifying operationalization of new online IT module for interest equalization scheme w.e.f. 1st April 2022. As per this Trade Notice, all exporters seeking benefit under the Interest Equalisation Scheme need to apply online by navigating to the DGFT website (https:/ I dgft.gov.in) ~ Services ~ Interest Equalisation Scheme. A Unique IES Identification Number (UIN) will get generated automatically (valid for one year) which is required to be submitted to the concerned bank when availing Interest Equalisation against their pre and post shipment rupee export credit applications.
The aforesaid DGFT Trade Notice also mentions about steps involved for generating UIN and states that it will be mandatory for the exporter to submit UIN acknowledgement to concerned bank for all applications made on or after 1.4.22
With kind regards
R. Selvam
Executive Director
No. CLE-HO/POL/Circular/2022
March 9, 2022
Members of the Council,
Sub : Extension of interest equalization scheme on rupee export credit
Dear Sir,
The Reserve Bank of India has issued a circular No. RBI/2021-22/180 dated March 8 2022 which states the following.
The extension of interest equalization on rupee export credit takes effect from October 1, 2021 and ends on March 31, 2024. T
Revised interest equalisation rates under the Scheme will now be 3 per cent for MSME manufacturer exporters exporting under any HS lines, and 2 per cent for manufacturer exporters and merchant exporters exporting under 410 HS lines (after excluding 6 HS lines pertaining to Telecom Sector as mentioned above)
A copy of the aforesaid 410 tariff lines which were notified vide RBI circular No. RBI/2015-16/322 dated Feb. 11, 2016 is enclosed for reference.
· As far as leather sector is concerned, the scheme is applicable to MSME units and to the following tariff lines which fall under Leather Goods and Footwear category
| ITC(HS) Code of 4 digit | Product category | ITC (HS) Product Description |
| 4201 | Leather Goods and footwear | Saddlery And Harness For Any Animal (Including Traces, Leads, Knee Pads, Muzzles, Saddle Cloths, Saddle Bags, Dog Coats And The Like), Of Any Material |
| 4202 | Handicraft | Trunks, Suit-Cases, Vanity-Cases, Executive-Cases, Brief[1]Cases, School Satchels, Spectacle Cases, Binocular Cases, Camera Cases, Musical Instrument Cases, Gun Cases, Holsters and Similar Containers; Travelling-Bags, Insulated Food or Beverages Bags, Toilet Bags, Rucksacks, Hand bags, Shopping[1]Bags, Wallets, Purses, Map-Cases, Cigarette-Cases, Tobacco[1]Pouches, Tool Bags, Sports Bags, Bottle Cases, Jewellery Boxes, Powder-Boxes, Cutlery Cases and Similar Containers, of Leather or of Composition Leather, of Sheeting of Plastics, of Textile Materials, of Vulcanised Fibre or of Paperboard, or Wholly or Mainly Covered With Such Materials or With Paper |
| 4203 | Sports Goods | Articles of Apparel and Clothing Accessories, of Leather or of Composition Leather |
| 4205 | Leather Goods and footwear | Other Articles Of Leather Or Of Composition Leather |
| 6401 | Leather Goods and footwear | Waterproof Footwear With Outer Soles And Uppers Of Rubber Or Of Plastics, The Uppers Of Which Are Neither Fixed To The Sole Nor Assembled By Stitching, Riveting, Nailing, Screwing, Plugging Or Similar Processes |
| 6402 | Leather Goods and footwear | Other Footwear With Outer Soles And Uppers Of Rubber Or Plastics |
| 6403 | Leather Goods and footwear | Footwear With Outer Soles Of Rubber, Plastics, Leather Or Composition Leather And Uppers Of Leather |
| 6404 | Leather Goods and footwear | Footwear With Outer Soles Of Rubber, Plastics, Leather Or Composition Leather And Uppers Of Textile Materials |
| 6405 | Leather Goods and footwear | Other Footwear |
| 6406 | Handicraft | Parts of Footwear (Including Uppers Whether or Not Attached To Soles Other Than Outer Soles); Removable In-Soles, Heel Cushions and Similar Articles; Gaiters, Leggings and Similar Articles, and Parts Thereof |
Members may kindly note the above.
Thanks & regards,
R.Selvam
Executive Director
Interest equalisation RBI circular March 2022
Interest Equalisation Scheme FAQ