Commerce min caps interest equalisation at Rs 1.66 cr per IEC for Jul-Aug

The commerce ministry on Wednesday clarified that the interest equalisation will be capped at Rs 1.66 crore per IEC (import-export code) for the July 1-August 31 period.

Last month, the government extended the interest equalisation scheme (IES) on pre- and post-shipment rupee export credit for two months to promote the country's outbound shipments.

The scheme, which provides exporters interest benefits, ended on June 30 this year.

In a trade notice, the Directorate General of Foreign Trade (DGFT) said the scheme extended on June 28, 2-24 is applicable only to MSME manufacturer exporters, who are eligible for IES benefit of 3 per cent.

"The Interest Equalisation will be capped at Rs 1.66 crore per IEC for the period from 1st July 2024 to 31st August 2024," DGFT said.

An Importer-Exporter Code (IEC) is a key business identification number, mandatory for export from India or import to India. No export or import shall be made by any person without obtaining an IEC unless specifically exempted.