DGFT Issues Notice on Amendments under Interest Equalisation Scheme in respect of Unique Identification Number (UIN)

DGFT Issues Notice on Amendments under Interest Equalisation Scheme in respect of Unique Identification Number (UIN)

The Directorate General of Foreign Trade (DGFT) has issued notification with respect to amendments under Interest Equalisation Scheme in respect of Unique Identification Number (UIN).

As per Trade Notice, dated 15 March, 2022 the eligible Interest Equalisation beneficiaries with effect from (w.e.f.) 1st April, 2022 were required to submit an Acknowledgement consisting of a Unique Identification Number (UIN) to the concerned bank to avail of the interest subvention under the scheme.

As per the amendment, all the exporters seeking benefits under the Interest Equalisation Scheme w.e.f. 1 May, 2023 are required to submit an Acknowledgement consisting of UIN which would be associated with a particular bank only for a ONE-TIME disbursement.

The beneficiaries of the scheme are directed to submit a new UIN for each disbursement to the concerned bank. It also applies where the credit is rolled over, and a new UIN shall be generated by the exporter for each rollover.

Previously, on 1 April, 2015 the Interest Equalization Scheme (IES) was officially launched in order to give exporters pre- and post-shipment export credit in rupees. To receive this benefit, an eligible exporter must provide the concerned bank with a certification from an external auditor.

Accordingly, banks provide benefits under the Interest Equalization Scheme to qualified exporters based upon a certificate that has been issued by an external auditor provided by the exporter and request reimbursement from the Reserve Bank of India as reimbursement.

As per the scheme, the aim is to help the identified export industries become more competitive in the global market, and perform at a higher level in terms of export performance.