Duty Exemption & Remission Schemes

India's Foreign Trade Policy provides several schemes that allow exporters to source inputs, capital goods, and other requirements without bearing the full burden of customs duty, provided the resulting output is exported within a prescribed period. Advance Authorisation, the Export Promotion Capital Goods (EPCG) scheme, and Duty Drawback are among the most widely used mechanisms, each with its own eligibility conditions, export obligations, and compliance timelines. Used correctly, these schemes materially reduce the landed cost of inputs and improve export competitiveness.

Why This Matters

These schemes are conditional benefits, not outright exemptions, and each carries a corresponding export obligation, actual user condition, or value-addition requirement that must be fulfilled and demonstrated to the satisfaction of customs and licensing authorities. Failure to meet the export obligation within the stipulated period, or gaps in maintaining the prescribed records, can result in demand of the exempted duty along with interest and penalty, effectively reversing the benefit and adding cost rather than saving it.

How We Help

Scheme Selection and Structuring

We evaluate which scheme, or combination of schemes, best fits a client's production cycle, input mix, and export commitments, and advise on structuring authorisations to align with actual procurement and export patterns.

Authorisation Application and Licensing

We assist with the preparation and filing of applications for Advance Authorisation and EPCG licences, including the technical input-output norms, capital goods justification, and export obligation calculations that licensing authorities require.

Export Obligation Monitoring and Discharge

We help clients track export obligation fulfilment against each authorisation, prepare the redemption documentation required to close out licences, and advise on remedial steps where obligations are at risk of not being met on time.

Duty Drawback Claims

For exporters not availing input-based exemption schemes, we assist in structuring and filing duty drawback claims, ensuring that the applicable rates and conditions are correctly applied and that claims are supported by adequate documentary evidence.

Who Needs This

• Export-oriented manufacturers importing raw materials or components
• Businesses investing in imported capital goods for export production
• Exporters seeking to reduce the duty cost embedded in their input supply chain
• Companies with existing authorisations approaching their export obligation deadlines

Our Approach

We approach these schemes as ongoing compliance commitments rather than one-time approvals, building monitoring checkpoints into the authorisation lifecycle so that clients are never caught unprepared when redemption or renewal falls due. Our advice takes into account the practical realities of production planning alongside the strict letter of the policy conditions.

Get in Touch

To discuss how we can support you with duty exemption and remission schemes, write to us at info@agarwalurs.com.