Export Incentive Schemes
India's export incentive architecture — Advance Authorisation, EPCG, RoDTEP, and the special-zone regimes around them — can move several points of margin for a manufacturing exporter. But every scheme trades benefit for obligation: duty-free inputs against export commitments, concessional capital goods against multi-year performance requirements, refunds against documentation discipline. Companies that enter schemes on optimistic projections and weak tracking convert incentives into liabilities — unredeemed licences, interest-bearing demands, and the slow punishment of departmental attention.
We run scheme participation as portfolio management. Entry decisions are modelled against your realistic export trajectory, not your most hopeful one; licence conditions, value-addition norms, and export-obligation timelines are tracked as live commitments with early-warning thresholds; and redemption — the step that actually banks the benefit — is prepared from the first shipment rather than reconstructed at the deadline. RoDTEP and duty-drawback claims run as a systematic monthly process, because episodic claiming is how entitled money goes uncollected.
What this covers
- Scheme selection modelling: which instruments pay under your product mix, sourcing pattern, and export projections.
- Advance Authorisation lifecycle: application, norms fixation, licence management, and redemption.
- EPCG management: applications, installation certificates, obligation tracking, and closure.
- RoDTEP and drawback claims run systematically, with rate reviews as schedules change.
- Default remediation: regularisation of lapsed obligations before they mature into demands with interest.
Who needs this
Manufacturing exporters and merchant exporters; foreign-owned units weighing scheme participation against compliance capacity; and companies carrying legacy licences nobody currently tracks.
How we deliver
- Scheme modelling against realistic export projections before any application is made.
- Licence lifecycle management: applications, condition tracking, and obligation early-warnings.
- Redemption prepared from first shipment, so closure is administration rather than reconstruction.
Why A2 Consultants
We treat every licence as a liability until redeemed — a discipline learned from regularising other advisors' lapsed schemes, and the reason our clients' incentives end as cash rather than demands.
Engagement & what to expect
Engagement begins with modelling: each scheme's benefits and obligations run against your realistic export projections, producing a participation recommendation with numbers attached. For adopted schemes, we manage the lifecycle — applications, licence conditions, obligation tracking with early-warning thresholds, and the redemption filings that convert benefit into banked cash. Clients with legacy licences typically start with a portfolio audit: what is outstanding, what is at risk, and what regularisation costs before demands mature. The ongoing cadence is quarterly: obligations tracked, claims filed, exposure reported.
An incentive is only an incentive after redemption — until then it is an obligation, and we manage it like one.