Coffee Export Incentive Scheme

The Coffee Board of India has launched the Export Incentive Scheme for Coffee to offer financial incentives and improve the competence of the coffee industry. Under the Export Promotion scheme, coffer exporters are incentivized to offset the transaction costs and also enable the growth of India's export market. In detail, this article discusses the Coffee Export Incentive Scheme. To know about Export and Import Procedures in India.

The objective of the Scheme

The Scheme aims to maximize coffee exporters' income by enhancing Value Added Coffees' market share in retail packs and the export of coffee to high-value far-off international markets.

Eligibility Criteria

All exporters registered with the Coffee Board and holding a valid registration certificate are eligible to avail of the benefits under the Scheme.

Documents Required

While claiming for the export incentive, the registered exporters must submit self-attested copies of the below-listed documents to consider their claims.

Claim Form in duplicate copy
Export permit returned to the exporter by the Customs with their endorsement.
ICO certificate of origin having customs endorsement
Bill of Lading (BL)
Bank Account details
IFSC/RTGS/NEFT code

In the case of a claim towards the export of value-added coffees, the exporter has to provide a specimen of retail consumer packs/labels used in each such instance. The example of the retail consumer packs/labels must denote the following:

Suppose the information on the specimen copy\label is other than in English format. In that case, the same is to be translated into English by an Authorized translator with the stamp & signature of the translator, and the concerned exporter would self-certify the same.
The specimen retail consumer pack/label submitted is to be in color, readable, and contain the weight/capacity of the unit.
The Export Permit Number (Form-C) and its date are to be indicated and self-certified.

Get in touch with IndiaFilings for the registration of the Import-Export Code.

Scale of Incentive

An incentive of Rs.3 per Kg will be provided for the Value Added Coffees in retail consumer packs exported as "Indian Brand" calculated on the Green Coffee utilized for its manufacture/preparation at the maximum rate of 2.6 kg for instant/soluble coffee and 1.19 kgs for the Roasted coffee seeds and B&G Coffees.
An export incentive of Rs.2 per kg will be provided for the export of High-Value Green Coffees to far-off high-value markets, viz., USA, Canada, Japan, Australia, New Zealand, South Korea, Finland, and Norway.

The selection process of high-value markets will be subjected to the review of export performance on the successful completion of two years at the Board level in consultation with the stakeholders. Countries will be added or deleted based on the requirements.

Claim Application Procedure

All the registered exporters of coffee with Coffee Board would furnish the claim for export incentive per the following terms and conditions specified in the claim forms. Step 1: The export incentive would be available for all such exports made during the current financial year. Application Forms Form A - Export Incentive claim for the export of High-Value Green Coffee to far-off destinations, which is reproduced below for reference: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2019/08/FORM-A-FILE.pdf" title="FORM A FILE"] Form B - Export Incentive claim for the export of Value Added Coffee in retail consumer packs as 'India Brand." [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2019/08/FORM-B-FILE.pdf" title="FORM B FILE"] Submit the Application Step 2: The application for the export incentive must be submitted to the Deputy Secretary (Export Section). The claim to be preferred monthly or quarterly spreading throughout the year in a specific claim form that is to be submitted on or before the 10th date of each month and must be addressed by post or in-person to the following:

Director (P&C)
Export Section
Coffee Board
Address: No.1, Dr. Ambedker Veedhi, Bangalore- 560 001.

Step 3: An exporter can submit one claim in a month. The export date is the date mentioned by the Customs Authorities in their endorsement of the Export Permit or ICO Certificate of Origin. Inspection Process Step 4: The consignment marked for the export incentive scheme would be inspected at random by the authorized officials of the Indian Coffee Board. Disbursement of export Incentive Step 5: Finally, the applications will be processed based on a first-come, first serve, provided the claim applications are complete in all respects. The export incentives would be released to the exporter's bank accounts through EFT in cases where the application forms are complete in all respects and fulfill the eligibility criteria.

Claim Form Rejection

The claim forms will be cleared within 45 days of submission. In case of any delay or rejection of applications, the reasons will be communicated to the applicants for further compliance, in case of rejected forms for which the export incentive has already been received to be refunded within a month to the Board of such re-imports. Except for the Coffee Growing States viz Karnataka, Tamil Nadu, and Kerala, all other Coffee Growing States are considered the Non-Traditional Areas for this Scheme. The Chairman Indian Coffee Board, Bangalore, is the authority for making the final decision in admitting or rejecting specified conditions on any claim form. The legal area of the authority is Bangalore in case of a dispute arises in this regard.