Export Promotion Council Membership Reimbursement Scheme
Export Promotion Council Membership Reimbursement Scheme
To encourage MSMEs to participate in the public procurement process, the Government has decided to provide financial support to SC/ST owned MSEs under the Export Promotion Council Membership Reimbursement Scheme. Accordingly, the National SC-ST Hub (NSSH), set up under the aegis of Ministry of Micro, Small and Medium Enterprises offers financial assistance against the membership fee charged by various Export Promotion Councils (EPCs), exclusively for SC-ST micro and small enterprises (MSEs). In this article, we will have a look at the Export Promotion Council Membership Reimbursement Scheme in detail.
The key objective of the Export Promotion Council Membership Reimbursement Scheme is to achieve the procurement target of 4% set aside for SC-ST owned MSEs under the public procurement policy:
- To enhance the marketing capabilities and competitiveness of SC-ST owned MSEs
- To update the MSE enterprises about the prevalent global market scenario
- To Showcase the MSE competencies
- For providing a platform for interaction with large institutional buyers
The National Small Industries Corporation Limited (NSIC) is the nodal agency for implementation of the Export Promotion Council Membership Reimbursement Scheme.
Reimbursement of Annual Membership Fee
The assistance under the Export Promotion Council Membership Reimbursement Scheme will be released from National SC-ST Hub funds.
- The rate of reimbursement is limited to 50% or Rs.20000 whichever is less per financial year on annual membership subscription fee charged by various Export Promotion Councils.
- Membership of multiple Export Promotion Councils is allowed within the overall capped amount of Rs.20000 per enterprise in a financial year.
The Export Promotion Council Membership Reimbursement Scheme can be availed multiple times in a financial year by SC/ST owned MSEs but the financial assistance will be restricted to the ceiling mentioned.
To get the benefit of the Export Promotion Council Membership Reimbursement Scheme, the SC-ST owned MSEs have to avail the membership from any Export Promotion Council (EPC) by submitting relevant documents.
The eligibility criteria for SC/ST MSEs to avail the benefit of Export Promotion Council Membership Reimbursement Scheme are listed as follows:
- In case of proprietorship firm, the proprietor should be from ST or SC category
- In case of partnership firm, the ST or SC partners should be holding at least 51% shares in the firm
- In the case of private limited companies, at least 51% of shares should be held by SC/ST promoters
Only SC/ST MSEs having Udyog Aadhaar Memorandum (UAM), registration under Goods and Services Tax (GST), valid Import-Export Code (IEC) and PAN number are eligible to avail the assistance under the Export Promotion Council Membership Reimbursement Scheme.
Criteria for Export Promotion Council
Export Promotion Councils (EPCs) which are under the administrative control of Department of eligible for the Export Promotion Council Membership Reimbursement Scheme.
Timeline for Submission of Claims
The applicant can submit the claims for Export Promotion Council Membership Reimbursement Scheme within 45 days from the receipt of Registration cum Membership Certificate (RCMC) issued by the Export Promotion Council (EPC).
Once, the claim is submitted, the NSSH Office will conduct due diligence and accordingly, reimbursements will be made to each applicant by National SC and ST Hub (NSSH) within 45 days from the receipt of application form subject to the submission of all required documents
The documents required for Export Promotion Council Membership Reimbursement Scheme is listed as follows:
- Udyog Aadhaar Memorandum
- Copy of Goods and Service Tax Number
- PAN card – In case of proprietorship, PAN card of SC/ST proprietor ought to be submitted
- Caste certificate of proprietor/ all partners/ directors
- Details of shareholding in case of partnership / Private Limited/ Limited Liability Partnership firm
- In case of partnership concerns, the shareholding of the enterprise will be required to ascertain the status of the MSE as SC/ST MSE (shareholding of SC/ST entrepreneur to be > 51%).
- Partnership Deed for Partnership Firm
- Memorandum and Article of Association in case of LLP/Private Limited Company
- Certificate of valid Import and Export Code (IEC) allotted by the concerned office of the Joint/ Dy. Director-General of Foreign Trade (DGFT)
- Registration Cum Membership Certificate (RCMC) issued by the Export Promotion Council (EPC) post-registration
- Proof of transferred amount as reimbursement by NSSHO/ NSIC through PFMS under the Export Promotion Council Membership Reimbursement Scheme, where any such assistance is availed earlier within the same financial year
- Attested (signature with stamp) or membership fee payment receipt and system-generated GST invoice (entrance fee, annual membership/subscription fee) for the total amount paid to respective Export Promotion Councils (EPCs)
- Cancelled Cheque of the current account of the firm from which the EPC membership fee has been debited
The application procedure for the Export Promotion Council Membership Reimbursement Scheme is explained in detail below:
Submission of claims
- Once the applicant received the Registration cum Membership Certificate (RCMC) from the respective Export Promotion Council (EPC), the applicant has to approach the NSSH office and submit the prescribed application form along with relevant documents for claiming their reimbursements.
- The application forms can be collected from the nearest NSSH Office (NSSHO) or download from here.
Due Diligence by NSSHO
- The application will be evaluated in terms of documentation will be conducted by the respective officer of NSSHO. In case of any discrepancy, clarification will be sought from applicant/EPCs appropriately.
Submission of Application to NSSH Cell
- Post evaluation by NSSHO, proposals of all applicants in prescribed format duly signed by the NSSHO and Accounts Head, will be submitted to NSSH Cell at NSIC head office for approval.
Final approval on reimbursement
- Based on the evaluation conducted by NSSHO, the consolidated proposal will be prepared by NSSH Cell at NSIC head office and forwarded to the Screening Committee headed by Director (P&M)-NSIC and having officials from Ministry of NSSH Cell, MSME and Finance Division of NSIC as members, for consideration.
- The screening committee will consider the proposals received in line with the eligibility and other criteria’s.
- The proposals will be duly recommended by the Screening Committee and forwarded to the CMD-NSIC for approval.
Payment of Reimbursement
- The reimbursement amount will be transferred to the applicant’s bank account directly through the Public Financial Management System (PFMS) by the respective NSSHO or NSSH Cell.