Beyond Duty-Free Imports: Combining EPCG, MEIS, and RODTEP to Capture Every Export Benefit
For this biotech-based natural ingredients manufacturer, duty-free capital goods import under EPCG was only the starting point. A2 also secured MEIS duty credit scrips at the applicable 5% rate and helped sell them, then kept the company current on RODTEP as the incentive regime changed, so no export benefit went uncla
The starting point was mapping which incentive applied to which part of the company's operation: EPCG against the capital goods it had imported, and MEIS, then RODTEP, against its ongoing export shipments, so that no eligible transaction fell through the gap between schemes.
Duty-free capital goods import under EPCG
As with A2's other EPCG engagements, the capital goods used in this company's production were imported under an EPCG authorization sized to a realistic export plan, avoiding upfront customs duty and setting a six-times export obligation the company could genuinely meet through its normal export activity.
Obtaining and monetizing MEIS scrips at the 5% rate
While MEIS remained in force, export shipments eligible for the scheme were claimed at the applicable 5% rate of FOB value, generating transferable duty credit scrips. Since the company did not need all of the scrips to offset its own import duty, A2 helped identify buyers and complete the sale of the surplus scrips, converting what would otherwise have been an unused paper credit into actual cash realized from the export activity.
Transitioning to RODTEP as the incentive regime changed
When MEIS was withdrawn and replaced by RODTEP, export documentation and claim procedures were updated to the new scheme's requirements so that shipments made after the transition date continued to generate a benefit without interruption, rather than falling into a gap between the old scheme closing and the new one being properly claimed.
Keeping benefit claims current, scheme by scheme
Because RODTEP rates and eligible product categories are revised periodically, claims have continued to be reviewed and filed on an ongoing basis with each export cycle, rather than as a one-time setup, so the benefit keeps pace with both the company's export volumes and any changes the government makes to the scheme.
The Result
Across a single export operation, the company captured value from three separate government incentive schemes rather than treating them as a one-time or one-scheme exercise, turning what could have been left as unclaimed paper entitlements into a recurring source of realized benefit alongside its core export revenue.
Key outcomes
- Capital goods imported duty-free under an EPCG authorization sized to a realistic export obligation
- MEIS duty credit scrips obtained at the applicable 5% rate on eligible export shipments
- Surplus MEIS scrips sold and monetized rather than left unused
- Claims transitioned cleanly to RODTEP when MEIS was withdrawn, with no gap in benefit capture
- RODTEP benefits reviewed and claimed on an ongoing basis as rates and eligible categories are periodically revised
Why This Matters Beyond This Case
Export incentive schemes in India are not static, and a company that sets up its claims once and stops paying attention typically ends up either missing a scheme transition entirely or leaving transferable benefits like duty credit scrips sitting unused instead of converted to cash. Treating EPCG, MEIS, RODTEP, and whatever replaces them next as one ongoing compliance and monetization program, rather than a single setup task, is usually the difference between an exporter capturing the full value the government intends to hand back and quietly leaving a share of it unclaimed year after year.