Duty Exemption and Remission Scheme (DERS) is an export-promotion initiative of the Government of India that assists exporters in reducing the burden of duties and taxes levied on inputs used in the production of exportable goods. The primary objective of this scheme is to enhance the competitiveness of Indian products in the international market either by exempting import duties prior to the commencement of production, or by refunding the duties and taxes paid after the completion of exports.
Objectives of Duty Exemption and Remission Scheme 2026
- Promote exports from India
- Reduce production cost for exporters
- Encourage manufacturing and employment
- Improve foreign exchange earnings
- Enhance global competitiveness of Indian products
Types of DERS Scheme
(1) Duty Exemption Schemes
These schemes allow duty-free import of raw materials or inputs used in manufacturing export products.
Advance Authorisation (AA) Scheme -
- Allows duty-free import of inputs needed for export production
- Applicable to manufacturer exporters and merchant exporters
- Export obligation must be fulfilled within a specified period
- Exemption available on customs duty, IGST, and compensation cess in eligible cases
Duty Free Import Authorisation (DFIA) -
- Duty-free import benefit is given after export completion
- Transferable authorisation
- Mainly based on Standard Input Output Norms (SION)
- Gems and jewellery sector generally excluded
(2) Duty Remission Schemes
These schemes refund duties and taxes already paid on exported goods.
- Duty Drawback (DBK) Scheme
- Refunds customs duties paid on imported inputs used in exports
- Refund provided after export completion
- Rates are fixed by the government for different products
Eligibility Criteria of Duty Exemption and Remission Scheme
Generally, exporters must:
- Have a valid Import Export Code (IEC)
- Export goods manufactured in India
- Meet value addition requirements
- Submit export and import documents to DGFT/customs authorities
- Fulfil export obligations within the prescribed period
Benefits of DERS
Reduces export cost
Improves exporters profit margins
Encourages large-scale manufacturing
Increases India's export competitiveness
Supports MSMEs and export-oriented industries
Application Process of Duty Exemption and Remission Scheme 2026
To apply for the Duty Exemption and Remission Scheme (DERS), exporters must first obtain an Import Export Code (IEC) and register on the official DGFT portal. After logging into the portal, applicants must select the relevant scheme such as Advance Authorisation, DFIA, Duty Drawback, or RoDTEP under the Services section. Exporters are required to provide detailed information regarding their export products, raw materials, import quantities, production data, and port details; subsequently, they must upload necessary documents such as GST certificates, RCMCs, bank details, and supporting invoices. Upon paying the application fee online, the application form must be submitted using either an Aadhaar e-sign or a 'Digital Signature Certificate (DSC). Once approval is received from the DGFT, exporters may import goods duty-free or claim duty remission benefits; subsequently, they must submit proof of export to complete the entire process.
Documents Required of Duty Exemption and Remission Scheme 2026
- Import Export Code (IEC)
- Shipping Bill
- Export Invoice
- Bill of Entry
- Bank Realisation Certificate (BRC/e-BRC)
- GST details
- Application forms on DGFT portal
Duty Exemption and Remission Scheme 2026 - Frequently Asked Questions (FAQs):
Q1. What is the Duty Exemption and Remission Scheme?
- Answer: It is a government export promotion scheme that provides duty exemptions or tax refunds to exporters.
Q2. What is the main purpose of the scheme?
- Answer: The main purpose is to reduce export costs and boost India’s exports globally.
Q3. Which schemes are included under DERS?
- Answer: Advance Authorisation, DFIA, Duty Drawback, and RoDTEP are major schemes under DERS.
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