Assistance Scheme for Spices Export
Assistance Scheme for Spices Export
The Indian Government has initiated a subsidy scheme for spice exporters and research institutions to undertake product research and development under the Department of Export Development and Promotion of Spices. In this article, let us look at the Assistance Scheme for Spices Export.
To know about the Export and Import Procedure in India
Eligibility Criteria
All the registered exporters who have registered their brands with the Board, Spice House Certificate (SHC), Logo holders, and organic certification holders are eligible to avail the benefits of the scheme. Recognized research institutions are also eligible to apply for this assistance scheme.
Assisted Areas under the Scheme
Under this scheme, the grant in aid is provided to the significant areas that are as follows:
- Utilization of the services of international or national research institutes for developing new spice products and applications or for establishing traditional and non-traditional values.
- In-house research programs by entities with sufficient infrastructure facilities.
- Clinical trials to establish and verify the therapeutic properties of the spices through reputed third parties.
- They are patenting and product registration in consuming countries.
- Spices Board would examine the application forms, and on satisfying the proposal, the Board will accord ‘in-principle’ approval to the project proposal on merit to proceed with the project further.
Scale of Assistance
Under this scheme, the subsidy is provided at 50% of the cost subject to a maximum amount of Rs.25 lakhs per beneficiary during the plan period that is offered to meet the cost of product research and development. If clinical trials and patenting are also involved in the program, the ceiling amount will be up to Rs.1 crore. All payments under the assistance schemes by the Board would be in the form of a crossed cheque or Bank transfer.
The financial assistance will be released in three installments, as given below unless the MoU executed on this behalf provide otherwise;
- The first installment of 30% of the project cost (excluding the equipment cost, if any) & cost of equipment/instruments required during the period will be released upon signing the MoU to begin the research work.
- The second installment of 30% of the project cost (excluding the cost of equipment) will be released after significant progress is made in the proposed research work and on submission of the progress report and expenditure statement supported by attested bills and vouchers, along with the cost of equipment/instruments required during the period.
- Balance amount as third and final installment after completion of the research work and submission of final & completion report with the detailed presentation in the Board’s office.
- In the case of individual exporters and non-government institutions, the grant will be released on production of a Bank guarantee equivalent to 110% of the first and second installments of the grant amount. On submission of the final report, the BGs will be released.
Also, read about – Trade Infrastructure for Export Scheme
Documents Required
The required documents must be furnished along with the application form are as follows:
- Application in the prescribed form in duplicate
- Project description appraised by financial institutions/Chartered Engineer or any other competent technical organization.
- List of equipment proposed to be installed.
- Copies of quotations for machinery/equipment from a minimum of two parties
Export Obligation
No export obligation is prescribed for providing product research and development assistance.
Application Procedure of the Scheme
The exporter who wants to avail of the assistance under this scheme has to follow the below procedure:
Step 1: The applicant must approach the Spices Board to apply for this Assistance Scheme Spices Export.
Step 2: Then, the applicant has to get the scheme form from the office and fill it out the in the prescribed format along with copies of the detailed proposal, including details of the market promotion to be offered with the cost break up in each segment separately.
Step 3: The applicant will have to provide a detailed report/records of the activities undertaken along with a progress report and an expenditure statement that the loan has been fully utilized only for the sanctioned purpose and must be submitted at the end of each year.
Step 4: The supporting documentary proofs for the expenditure incurred/committed has to be produced to the Board.
Step 5: Finally, the applicants can avail of the funds upon completion of the formalities, and the fund will be transferred to the applicant at the earliest.
Inspection/Verification
The beneficiary would produce all necessary documents that the Board particular would call for to the project in addition to the below following documents:
- Final report on the product research and development
- Original bills and copies of payments that are made in the course of completion of the project
- Expenditure statement duly certified by Chartered Accountant
- Samples of products manufactured (if applicable)
- Copies of documents/records to establish the claimed properties of the products (if applicable)
- Documentary evidence for the patenting of the product (as appropriate)
Release of grant
Based on the completion report and the verification of the documents/certificates, the Board would release the eligible grant to the beneficiary or the proposed agency and institution. In this case, if courier or air freight charges, the exporters can raise the claims for the payment every quarter, and the bills relating to the last quarter of the financial year must be submitted before the specified date.
Import Export Code
The Import Export Code is a primary document necessary for commencing Import-export activities. The IE code is to be obtained for exporting or importing goods or services.IEC has numerous benefits for the growth of the business. Indeed, you cannot ignore the necessity of IE code registration, as it is mandatory. You can apply for an Import Export code through IndiaFilings and obtain it within 6 to 7 days.
