Incentives/Benefits available for export of Tobacco and Tobacco products from India:

1. Duty Draw Back Scheme:

 The Duty Drawback Scheme seeks to rebate duty or tax chargeable on any imported / excisable materials and input services used in the manufacture of export goods, prior to export. The duties and tax neutralized under the scheme are (i) Customs and Union Excise Duties in respect of inputs and (ii) Service Tax in respect of input services.  The exporters are entitled to claim duty drawback as soon as the exports are completed, at the post of discharge, after evidencing of ‘Let Export Order’ issued by the concerned customs authorities.

 The All Industry Rates (AIR) of Duty Drawback for tobacco and tobacco products notified by the Department of Revenue, Ministry of Finance for 2018-‘19 are given below :

2.  Interest Equalisation Scheme  (IES) :

 The Interest Equalisation Scheme(IES) for Pre and Post Shipment Rupee Export Credit is being implemented by the Directorate General of Foreign Trade(DGFT) through RBI and its network of banks. The scheme came into effect from 01.04.2015 and is for a period of 05 years. Under the scheme, Interest Equalisation @ 5 % per annum is provided in respect of exports by the Micro, Small & Medium Enterprises (MSME) sector manufacturers across all tariff lines. From  02.01.2019, the scheme is available to  Merchant Exporters with Interest Equalisation @ 3 % per annum for 416 four digit tariff lines listed in the scheme (Tobacco is not covered under these 416 tariff lines).

 Exporters of tobacco and tobacco products having MSME registration are eligible to avail benefits under this scheme.