Government Benefits And Incentives In Trading
Types Of Insurance In Export Import
“Unlocking Government Benefits and Insurance in Export-Import Business”
"Maximize Your Export Potential: Government Benefits And Incentives In Trading"
How to Select the Right Product for Government Benefits And Incentives In Trading
The government provides several benefits and incentives to encourage exporters. These help reduce costs, enhance competitiveness, and boost profitability.
1. Duty Drawback Scheme (DBK)
- Refunds customs duty paid on imported raw materials used for export products.
- Helps reduce the cost of production and increases competitiveness.
2. Merchandise Exports from India Scheme (MEIS)
- Provides financial rewards to exporters of specific goods based on their FOB value.
- Designed to offset infrastructural inefficiencies and associated costs.
3. Service Exports from India Scheme (SEIS)
- Financial incentives for service exporters, based on net foreign exchange earned.
- Covers services like tourism, IT, healthcare, and education.
4. Export Promotion Capital Goods (EPCG) Scheme
- Allows duty-free import of capital goods used in manufacturing export products.
- Reduces upfront investment costs for exporters.
5. Interest Equalization Scheme (IES)
- Offers reduced interest rates on pre-shipment and post-shipment credit.
- Helps improve liquidity for exporters.
6. Export Credit Guarantee Corporation (ECGC) Support
- Provides insurance to protect exporters against payment risks.
- Ensures smoother trade operations and financial stability.
7. Transport and Marketing Assistance (TMA)
- Offers financial assistance for freight costs of agricultural products.
- Promotes Indian agricultural exports to global markets.
8. State-Level Export Incentives
- Many states offer additional incentives like tax exemptions, subsidies, or special zones to boost exports.
How to Select the Right Market
Insurance is crucial in export-import to protect businesses from risks associated with international trade.
1. Marine Insurance
- Covers goods during transportation by sea, air, or land.
- Protects against loss, theft, or damage during transit.
- Types include:
- Specific Voyage Policy: Covers a single journey.
- Open Policy: Covers multiple shipments over a specified period.
2. Credit Risk Insurance
- Provided by Export Credit Guarantee Corporation (ECGC) or private insurers.
- Protects exporters against payment defaults, insolvency, or political risks in the buyer’s country.
3. Political Risk Insurance
- Covers losses due to political events like war, expropriation, or currency inconvertibility.
- Useful for businesses operating in politically unstable regions.
4. Product Liability Insurance
- Protects exporters if their product causes harm to the consumer or property.
- Mandatory for certain products like pharmaceuticals, machinery, or food items.
5. Freight Insurance
- Covers damages or losses to the goods caused during transportation by the freight carrier.
6. Fire and Theft Insurance
- Provides coverage for goods stored in warehouses or during transit against fire and theft.
7. Consignment Insurance
- Covers goods sent on consignment basis, ensuring the exporter is protected until the payment is received.
