Kerala, with its strategic coastal location, abundant agricultural produce, skilled labor force, and a growing network of MSMEs, holds tremendous potential for exports. Whether you’re in seafood, spices, textiles, handlooms, or IT services, entering the global market begins with obtaining the Import Export Code (IEC)—a mandatory registration issued by the Directorate General of Foreign Trade (DGFT), Government of India.
Once a business secures its IEC registration, it becomes eligible to explore and leverage a variety of export incentives and schemes introduced by the central and state governments. These incentives aim to enhance India’s export competitiveness, support MSMEs, and encourage foreign exchange earnings.
If you’re an exporter based in Kerala, here’s a detailed look at the various export benefits available after IEC registration. You can also get help with IEC registration at OurTaxPartner.com.
Why is IEC Registration Important?
IEC registration is a 10-digit unique code issued to individuals or businesses involved in international trade. It is mandatory for:
- Exporting goods or services from India
- Clearing shipments through customs
- Receiving export incentives and refunds
- Opening a bank account for international transactions
Once registered, your business is eligible for numerous export-oriented benefits offered by DGFT, Customs, GST authorities, and other export promotion bodies.
Key Export Incentives and Benefits After IEC Registration
1. Duty Drawback Scheme (DBK)
Under the Duty Drawback Scheme, exporters can claim a refund of customs duties paid on imported inputs used in the manufacture of exported goods. This ensures price competitiveness in international markets.
The amount of drawback is either fixed as per rates published by the government or determined based on actual inputs. IEC is mandatory to claim this benefit.
2. Rebate of State and Central Taxes and Levies (RoSCTL)
For exporters in the textile and apparel sectors, the RoSCTL scheme allows rebates on embedded taxes that are not refunded under GST, such as electricity tax or fuel tax. This helps lower the overall cost of exports.
3. Remission of Duties and Taxes on Exported Products (RoDTEP)
RoDTEP is one of the most important schemes for exporters across all sectors. It refunds embedded taxes and levies (like transport fuel, electricity duties) that are not recovered through other schemes.
To avail the RoDTEP benefit, businesses must have an IEC and mention it on all shipping bills and invoices.
4. Advance Authorization Scheme
Businesses involved in manufacturing exports can import raw materials duty-free under the Advance Authorization Scheme. The duty is exempted on the condition that the final product will be exported within a specified timeframe.
This scheme is particularly useful for manufacturers in Kerala exporting rubber products, coir-based goods, and processed foods.
5. Export Promotion Capital Goods (EPCG) Scheme
This scheme allows exporters to import capital goods (such as machinery, tools, equipment) at zero or concessional customs duty. In return, the exporter must fulfill a specific export obligation within a certain time period.
Having an IEC is a prerequisite to apply for EPCG licenses.
6. GST Refunds on Exports
Exporters can either export under bond/LUT without paying GST or pay GST and claim a refund. GST paid on inputs and input services can also be claimed as Input Tax Credit (ITC) and refunded.
GST refunds are only processed when the exporter has a valid IEC linked with their GSTIN and shipping documents.
7. Market Development Assistance (MDA) Scheme
Kerala-based exporters, especially MSMEs, can benefit from the MDA scheme for participating in international trade fairs, buyer-seller meets, or market research abroad. This scheme helps offset promotional and travel costs.
8. State Government Export Incentives in Kerala
The Government of Kerala offers additional support to promote exports through the Department of Industries and Commerce and the Kerala State Industrial Development Corporation (KSIDC). Benefits may include:
- Export performance awards
- Subsidized freight for exports through Kochi Port
- Cluster development programs
- Access to export training and capacity building programs
All these require IEC as a fundamental eligibility criterion.
Benefits of Using OurTaxPartner.com for IEC and Export Advisory
At OurTaxPartner.com, we assist new exporters in Kerala with:
- Quick and error-free IEC registration with DGFT
- Consulting on eligibility for various incentive schemes
- Preparation of documentation for GST and customs refund claims
- Support with shipping bill declarations and duty credit scrips
- Guidance on EPCG, Advance Authorization, and RoDTEP processes
We simplify the compliance burden so that your business can focus on scaling globally. With end-to-end export support, we’re a one-stop destination for all documentation and benefits management.
Documents Required to Avail Export Incentives
To claim most of the export benefits, you will need:
- IEC certificate
- Shipping bills
- GST invoices and returns
- Export realization certificates (BRC/FIRC)
- Bank advice and payment confirmations
- Duty payment challans and ITC records
Conclusion
IEC registration is your business passport to international trade. But it is only the beginning. Once you obtain an IEC, a wide array of financial and policy-based export incentives open up for you—covering tax refunds, duty exemptions, subsidized infrastructure, and promotional support.
If you’re a new or existing exporter in Kerala, partner with OurTaxPartner.com to unlock every benefit your business is entitled to. From IEC registration to incentive claim support, we ensure smooth documentation and strategic guidance.
To get started with IEC registration or export benefits consultation, visit: www.ourtaxpartner.com/registration-service/import-export-code/
Step into global markets with confidence—get your IEC and export benefits now.
