DEEC Scheme (Duty Exemption Entitlement Certificate Scheme)

The Duty Exemption Entitlement Certificate Scheme (DEEC Scheme) is a vital export promotion initiative aimed at boosting Indian exports by allowing duty-free import of inputs required for manufacturing export products. The Directorate General of Foreign Trade (DGFT) issues Advance Licenses to manufacturers and merchant exporters under the DEEC Scheme, enabling them to import inputs at zero customs duty. This article provides an in-depth understanding of the DEEC Scheme, its benefits, eligibility criteria, and application process.

What is the DEEC Scheme?

• The DEEC Scheme is an export promotion strategy designed to support Indian manufacturers and exporters by allowing duty-free import of inputs necessary for manufacturing export products.
• The DGFT issues Advance Licenses under this scheme, enabling eligible entities to import inputs without paying customs duty.
• The primary goal is to increase India’s competitiveness in the global market and promote the country’s export-oriented industries.

Key Features of the DEEC Scheme

1. Duty-Free Import of Inputs
   • Enables manufacturers and merchant exporters to import raw materials, components, and other inputs without paying customs duty, reducing production costs and increasing the competitiveness of Indian products in the international market.
2. Advance License
   • The DGFT issues Advance Licenses to eligible entities, which act as an authorization to import inputs duty-free under the DEEC Scheme.
3. Physical Export Obligation
   • License holders are required to fulfil a specific export obligation within a stipulated time frame, ensuring that the duty-free inputs are used solely for manufacturing export products.
4. Value Addition
   • The scheme mandates a minimum value addition of 15% for most products, promoting value addition and encouraging the growth of India’s export-oriented industries.

Eligibility Criteria for the DEEC Scheme

Indian manufacturers and merchant exporters can apply for the DEEC Scheme, provided they meet the following criteria:

1. 1. The applicant must have a valid Importer Exporter Code (IEC).
   2. The applicant must intend to manufacture and export products using duty-free inputs.
   3. The applicant must fulfil the required minimum value addition criteria.
   4. The applicant must adhere to the stipulated export obligation.

Application Process for the DEEC Scheme

1. Online Application: Applicants can apply for an Advance License under the DEEC Scheme through the DGFT website using the Digital Signature Certificate (DSC).
2. Required Documents:
   1. DGFT DSC
   2. Copy of IEC
   3. Application form ANF – 4A
   4. Copy of SSI/IEM/MSME
   5. Copy of Export House Certificate (if applicable)
   6. Copy Valid RCMC
   7. Copy of GST Certificate
3. Scrutiny and Issuance: The DGFT scrutinizes the application and, if approved, issues the Advance License, enabling the applicant to import inputs duty-free.
4. Fulfilling Export Obligation: License holders must fulfil the stipulated export obligation within the specified time frame and submit relevant documents as proof.

Conclusion

The DEEC Scheme is a crucial initiative aimed at promoting Indian exports and strengthening the country’s export-oriented industries. By allowing the duty-free import of inputs, the scheme reduces production costs and enhances the competitiveness of Indian products in the global market. To make the most of this scheme, eligible manufacturers and merchant exporters must understand the eligibility criteria, application process, and export obligations associated with the DEEC Scheme.