ProIndiaClub

The Government of India has launched the Trade Regulations, Accreditation & Compliance Enablement (TRACE) scheme under the Export Promotion Mission (EPM) – NIRYAT DISHA. This initiative is designed to strengthen India’s quality and technical compliance ecosystem, specifically helping MSMEs meet the regulatory requirements of importing countries.

Below is a brief scheme of the incentives and operational guidelines:

1. Nature of Assistance

The government provides financial support in the form of partial reimbursement of actual costs incurred for compliance.

• Reimbursement Rates:
  • Positive List: Up to 60% of the actual cost (net of taxes) or the notified ceiling, whichever is lower.
  • Priority Positive List: Up to 75% of the actual cost (net of taxes) or the notified ceiling, whichever is lower.
• Maximum Limit: A cumulative maximum reimbursement of ₹25 lakh per Importer-Exporter Code (IEC) per financial year.

2. Eligible Expenditures

Support is available for costs related to:

• One-time Costs: Certification prerequisites like inspections, audits, and market-specific licensing.
• Recurring Costs: Ongoing export compliance, health/safety certificates, and buyer-mandated voluntary certifications.
• Activities Covered: Testing, inspection, certification, audits, and traceability systems mandated by foreign regulations or international standards.

3. Eligibility Criteria

• MSMEs: Must hold an active Importer-Exporter Code (IEC) and a valid Udyam Registration Number.
• Merchant MSMEs: Eligible only for specific tariff lines (e.g., meat, dairy, fish) where exports are predominantly through aggregator models .
• Exclusions: Support is not available for “deemed exports” or exports to Special Economic Zones (SEZ).
• Effective Date: Only eligible activities undertaken on or after February 20, 2026, qualify.

4. Application & Claim Process

The scheme operates through a two-stage online process:

• Stage I: Intent-to-Claim (IC): Exporters must file an online “Intent-to-Claim” before obtaining the certification or test report. This intent is valid for 2 years.
• Stage II: Reimbursement Claim (RC): Once the certification or inspection is successfully obtained, the exporter files the final claim online, providing the invoice, proof of payment, and the certificate/test report.

Disbursement: After approval by the DGFT, funds are credited directly to the bank account linked to the IEC.