The scheme Capacity Building of First Time Exporters (CBFTE) was launched in June 2022.
This scheme was initiated as a subcomponent of the International Cooperation scheme. It aims to make it easier for first-time exporters to get entry level export assistance in the form of financial and procedural support.
If you are Starting in export business, then this blog is for you.
Objective of the Scheme
Overall, the scheme aims to uplift MSMEs in India by fostering an environment conducive for exports. It has a focus on the following objectives:
✅To encourage MSMEs to provide goods and services of a high calibre for the worldwide market.
✅To increase Indian MSMEs’ involvement in the global value chain and assist them in realising their export potential.
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Highlights of the Scheme
Under the scheme, financial assistance will be provided to the first time exporters as per the following details:
✅Reimbursement of Registration-cum-Membership Certificate charges/ paid by the first-time MSE exporters for registration with EPCs- upto 75% of the cost paid or Rs.20000, whichever is less.
✅Reimbursement of export insurance premium paid by MSEs -Actual or Rs.10000 whichever is less.
✅Reimbursement of fee paid on Testing & Quality Certification acquired by MSEs to export products- 75% of the testing and quality certification with ceiling of 1 lac or actual whichever is less.
Eligibility of the scheme
The eligibility criteria for availing the benefits under the Scheme are:
✅Micro and Small Enterprise (MSE) with valid Udyam Registration.
✅Import Export Code No. of the MSE must not be older than 3 years on the date of export shipment.
✅Proof of Insurance premium payment.
✅The above scheme is applicable to the MSE exporters engaged in the Manufacturing Sector.
Application Process
Step 01: The applicant Organisation will submit an online application for financial assistance, along with the relevant documents in the proforma (prescribed on the IC Scheme portal: https://ic.msme.gov.in) giving full details of expenditure.
Step 02: To apply under the scheme, the applicant organization needs to visit the official website/portal.
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Step 03: On the home page, select the “Capacity Building of First Time MSE Exporters” to Login, if Already Registered. If the applicant Organization is a new user, click on “New User Register Here” to register under the scheme by selecting the type of Organization.
Step 04: After successful registration, the applicant organization can login with valid credentials. After login, the user will be redirected to their Dashboard where multiple action has to be done.
Note: The admissible financial assistance would be worked out in accordance with the criteria/scale.
Release of Grant
Grants under the Scheme will be released on re-imbursement basis on submission of the re-imbursement claim in the proforma (uploaded on the IC Scheme Portal). Claim must be accompanied with the documents, as prescribed by the Ministry.
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Documents Required
Documents required for RCMC (Claim Form at Annexure K):
- IEC Code not more than 3 years old on the date of export shipment
- RCMC fee receipt
- Proof of export carried out in the same financial year for which RCMC is claimed
Documents required for Export Insurance Premium (Claim Form at Annexure L):
- IEC code not more than 3 years old on the date of export shipment
- Receipt of Insurance Premium
- Proof of export shipment carried out in the same financial year for which insurance is claimed
Documents required for Testing and Quality Certification (Claim Form at Annexure M):
- IEC code not more than 3 years old on the date of export shipment
- Testing and quality certification
- Proof of export shipment of product for which testing and quality certification is claimed.
- Proof of mandatory requirement of Testing and Quality Certification for such export.
- Self-certification by MSE that he/she has not availed benefits under the Market Access Initiative (MAI) Scheme of the Department of Commerce, for the same purpose (As at Annexure-N).
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The CBFTE aims to help Indian small businesses step onto the world stage by encouraging them to improve their products and services to meet global standards. This initiative also aims to make India a strong global player and achieve its goal of a self-reliant nation. The scheme will support new exporters by providing financial help, training, and modern technology tools to digitize their operations, regardless of what they export.
By emphasizing quality enhancement, fostering a strong global presence, and providing comprehensive support to budding exporters, this initiative is poised to propel India’s MSME sector onto the international stage.
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