- The Government approved the Interest Equalisation Scheme for Pre andPost Shipment Rupee Export Credit with effect from 1st April, 2015 for 5years.
- The rate of interest equalisation @ 3% per annum will be available on Pre-Shipment Rupee Export Credit and Post Shipment Rupee Export Credit.
- The scheme will be available to all exports under 416 tariff lines [at ITC(HS) code of 4 digit]as per Annexure A and exports made by Micro, Small &Medium Enterprises (MSMEs) across all ITC(HS) codes In this regard, it has been decided by the Government of India to increasew.e.f. November 02, 2018 Interest Equalisation rate from 3% to 5% inrespect of exports by the Micro, Small & Medium Enterprises (MSME)sector manufacturers under the Interest Equalisation Scheme on Pre andPost Shipment Rupee Export Credit.
In terms of para 2(c) of the Annex to the aforesaid RBI circulars, theScheme is available to all exports under 416 tariff lines [at ITC (HS) codeof 4 digits] and exports made by MSMEs across all ITC(HS) codes. It istherefore, advised that the benefit of the scheme be provided to all eligibleMSME Exporters.
In this regard, it has been decided by the Governmentof India to include merchant exporters also, w.e.f.
January 2, 2019, under the ongoing InterestEqualisation Scheme for Pre and Post ShipmentRupee Export Credit and allow them interestequalisation at the rate of 3% on credit for export ofproducts covered under 416 tariff lines identified underthe Scheme.