AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Tax-based export incentive
As a major change to pre-existing policy, the Incremental Export Incentivisation Scheme (IEIS) was introduced for the year 2012-13. The IEIS provides incentives based on the additional export growth from previous exports. The IEIS entitles each exporters "for a duty credit scrip at 2% on the incremental growth (achieved by the IEC holder) during the period 01.01.2013 to 31.3.2013 compared to the period from 01.01.2012 to 31.3.2012 on the FOB value of exports. Incremental growth shall be in respect of each exporter (IEC holder) without any scope for combining the exports for Group Company."
Also, the amendment includes a long list of eligibility criteria, which do not allow for the incentive in case of: "
Furthermore, this incentive scheme was intended for exports only to the USA, Europe and Asia. The IEIS was prolonged unaltered for a further year through Notification 3 (RE-2013)/2009-2014.