The Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, has issued Trade Notice No. 03/2026-27 dated 13th May 2026, providing important clarifications regarding the implementation of the Interest Subvention Support for Pre- and Post-Shipment Export Credit under the Export Promotion Mission (EPM) – Niryat Protsahan Scheme.
The Trade Notice has been issued in continuation of earlier guidelines and trade notices issued under the EPM Interest Subvention framework to address operational difficulties faced by exporters and lending institutions during the initial implementation phase of the scheme.
Industry Representations on UIN-Related Difficulties
DGFT noted that several representations were received from exporters and banks regarding difficulties associated with the generation and validation of the Unique Identification Number (UIN) under the Equalisation Intervention Scheme.
The implementation process involved onboarding multiple lending institutions, aligning internal banking workflows, and integrating technical systems for UIN validation and claim processing. During this transition period, non-uniform implementation across banks led to practical and procedural challenges.
Among the key issues highlighted were:
- UINs generated under the erstwhile Interest Equalisation Scheme (IES), while export credit was disbursed on or after 02.01.2026; and
- Cases where export credit was disbursed after 02.01.2026, but the UIN generation process could not be completed prior to disbursal.
DGFT Provides One-Time Relief Window
After examining the matter, DGFT has decided to provide a special compliance window for firms to generate UINs in eligible cases where export credit was disbursed during FY 2025-26 on or after 02.01.2026.
The Directorate has clarified that these amendments shall form part of the Interest Subvention Support guidelines issued under the Export Promotion Mission (EPM) – Niryat Protsahan Scheme.
Key Amendments Introduced
Under the revised provisions inserted in Draft HBP Para X.4(d), interest subvention claims may now be submitted by lending banks for export credit disbursed on or after 02.01.2026, even where the UIN was generated after the date of disbursal, subject to prescribed conditions.
For FY 2025-26 (02.01.2026 to 31.03.2026)
DGFT has allowed admissibility of interest subvention claims provided:
- the eligible export credit was disbursed on or after 02.01.2026; and
- the UIN is generated on or before 31.05.2026.
The Trade Notice further clarifies that interest subvention shall be admissible from the actual date of loan disbursal and not merely from the date of UIN generation. Banks have also been instructed to ensure that interest benefits are computed and credited accordingly on a priority basis.
Revised Provision for FY 2026-27 Onwards
For FY 2026-27 onwards, a UIN generated within 15 days from the date of original disbursal of eligible export credit shall be treated as valid for admissibility of interest subvention support.
In such cases also, the interest subvention benefit shall be admissible from the date of disbursal.
Additional Compliance Requirements for Banks
DGFT has directed banks to ensure that:
- claims filed against a UIN correspond specifically to the year in which the export credit was disbursed; and
- the applicable rate of interest subvention shall be the rate prevailing on the date of loan disbursal.
Directions to Lending Institutions
All scheduled commercial banks and lending institutions participating in the EPM Interest Subvention Scheme have been directed to implement the revised provisions immediately and uniformly.
The Trade Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/05/Trade_Notice_03_2026.pdf
