I (Meaning and importance of Exports) Unit Structure

14.2 MAIN EXPORT INCENTIVES 
The main export incentives are as follows. 
1) Export Promotion Capital Goods Scheme 
– 
The scheme allow import of new capital goods at 5% 
customs duty subject to an export equivalent to 5 times. CIF value 
of capital goods to be fulfilled over a period of 8 years. Both new 
and second hand capital goods can be imported. 
2) Duty Drawback (DBK) 
– 
The exporters are entitled to claim the refund of the customs 
duty paid on the imported materials and components. DBK also 
involves refund of central excise duty paid on indigenous materials 
used in the manufacture of the finished goods. Such refunds are 
described as “drawback”. 

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3) Exemption from Excise Duty 
– 
Finished goods, when exported are exempted from payment 
of excise duty. Exemption can be made in two ways i.e. Export 
under rebate and Export under bond.
In case of export under rebate, the exporter has to initially 
pay the duty which he can claim refund at a later stage. 
In case of export under bond, goods can be exported without 
prior payment of duty but an indemnity bond is executed in favour 
of excise authorities. 
4) Exemption from VAT 
– 
Export goods are also exempted from the payment of sales 
tax. Necessary documents are to be provided to the sales tax 
authorities, giving proof of export, in order to claim sales tax 
exemption. 
5) Marketing Development Assistance 
– 
Large exporters such as export houses, trading houses, star 
trading houses and SSTH are given marketing development 
assistance which ranges between 25% to 60% of the actual 
expenditure incurred MDA is provided in respect of conducting 
market surveys, advertising and publicity abroad, opening 
showrooms in India and abroad, etc.