Reimbursing Costs for First-Time MSE Exporters through the CBFTE Scheme
Eligibility for MSME exporters to claim reimbursement on specific costs during their inaugural export ventures? Check your qualifications now.
Ever thought about stepping your micro or small enterprise (MSE) onto the global stage but unsure about the costs? Here's some good news! The Capacity Building of First Time MSE Exporters (CBFTE) scheme has got your back. This sub-component of the International Cooperation Scheme, run by the Ministry of Micro, Small and Medium Enterprises (MSME) in India, offers a helping hand to new MSEs embarking on their exporting journey.
Under this scheme, first-time MSE exporters can kiss goodbye to the worry of hefty costs for export shipments. Costs such as registration-cum-membership certificate charges, export insurance premium, and fees for testing and quality certification will be reimbursed.
Details of Financial Assistance
The scheme provides quite a substantial amount of financial support for eligible costs incurred by MSE exporters. Here's a breakdown:
- For registration-cum-membership certificate (RCMC) charges, the scheme will cover 75% of the cost, with a maximum of Rs 20,000 or the actual amount incurred, whichever is lower.
- The insurance premium reimbursement limit is Rs 10,000 or the actual amount, whichever is lower, per financial year.
- For testing and quality certification, the scheme offers reimbursement of 75% of the cost up to a maximum of Rs 1 lakh or the actual amount, whichever is lower.
Importantly, the financial assistance is capped at three certificates per financial year per MSE unit. Also, the certificate for which financial assistance is sought must be attained within the same financial year.
Who Can Apply?
To be eligible for the CBFTE scheme, your MSE should:
- Be registered with the Udyam portal, the government's single registration window for MSMEs.
- Have an Importer Exporter Code (IEC) that's not more than three years old on the date of export shipment.
To apply for the scheme, create an account on ic.msme.gov.in, submit your online application accompanied by relevant documents, and share details of the expenses incurred under the scheme.
Don't fret about the process – after logging in, follow the actions listed on the scheme's dashboard. Once completed, the admissible financial support will be calculated and shared.
Documentation Required
The documents you'll need for reimbursement include:
- For RCMC: Proof of export in the same financial year for which RCMC is claimed along with an RCMC fee receipt and an up-to-date IEC code.
- For export insurance premium: IEC code, proof of export in the same financial year that the insurance is claimed, and the receipt of insurance premium.
- For testing and quality certification: Proof of mandatory requirement of testing and quality certification for export, shipping proof of product for which testing & quality certification is required, IEC code, and a self-certification by MSE that it has not availed benefits under the Market Access Initiative scheme for the same reason.
For details about the application process or additional eligibility criteria, consult the Ministry of MSME or appropriate Export Promotion Councils.
Remember, the CBFTE scheme is just one of the ways the government is committed to supporting MSEs in becoming global competitors. So, seize this opportunity and give your MSE the boost it needs to conquer new markets with confidence!
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- The Capacity Building of First Time MSE Exporters (CBFTE) scheme, a sub-component of the International Cooperation Scheme, offers financial assistance to cover costs like registration-cum-membership certificate charges, export insurance premium, and fees for testing and quality certification for eligible MSE exporters.
- Under this scheme, costs such as registration-cum-membership certificate charges are reimbursed at 75% of the cost, with a maximum of Rs 20,000 or the actual amount incurred, whichever is lower.
- To be eligible for the CBFTE scheme, your MSE should be registered with the Udyam portal and have an Importer Exporter Code (IEC) that's not more than three years old on the date of export shipment.
- For reimbursement, documents such as the proof of export in the same financial year for which RCMC is claimed, an RCMC fee receipt, an up-to-date IEC code, and the receipt of insurance premium or proof of mandatory requirement of testing and quality certification for export, shipping proof of product for which testing & quality certification is required are required.
- The financial assistance under the CBFTE scheme is a subsidy for education-and-self-development opportunities in the field of business and finance, particularly for Defi and export-oriented MSEs, helping them to build their capacity and compete in international markets.
