LIFT Scheme for Exporters – Freight Cost Reimbursement for MSMEs

High Logistics Cost Reducing Your Export Margins?

MSME exporters from hinterland and remote areas are subject to significantly increased inland freight costs when they transport their products to export points (ports, ICDs, etc.) or logistics hubs. This additional cost is one of many factors that will lower an exporter’s ability to compete with other exporters on price internationally and also increase their risk of losing profit.

This initiative is part of the broader Export Promotion Mission (EPM) aimed at strengthening India’s export ecosystem.

What is LIFT (Logistics Interventions for Freight & Transport)?

The LIFT scheme is a government initiative that falls under the Export Promotion Mission (EPM – Niryat Disha), intending to remove the logistical disadvantage being faced by Exporters.

It reimburses part of the inland freight costs to assist MSME exporters in absorbing some portion of the transportation costs and thus improving their competitive position in foreign markets.

Businesses can also improve access to funding through collateral support mechanisms for MSME exporters.

What is the Actual Benefit for Exporters?

The scheme offers direct financial relief on logistics costs:

• Up to 30% reimbursement on eligible freight cost
• Maximum benefit up to ₹20 lakh per IEC per financial year
• Applicable for road, rail, and air logistics
• Reimbursement is credited directly to the exporter’s bank account

Example:

• Freight Cost: ₹10 lakh
• Eligible Reimbursement: ₹3 lakh
• Direct saving on logistics expenses

This directly improves export margins and pricing flexibility.

Which Logistics Costs Are Eligible?

• Transportation from factory to ICD / CFS / Port / Airport
• Inland freight via road and rail
• Air cargo (primarily for Northeastern regions)
• Movement of export goods within India prior to shipment

Minimum transport distance of 200 km is required for eligibility.

Who is Eligible?

• MSME exporters with valid Importer Exporter Code (IEC)
• Valid Udyam Registration
• Located in notified eligible districts
• Export of products under notified HSN tariff lines
• Not listed in the Denied Entity List (DEL)

Eligible regions include:

• Northeast states
• Bihar
• Uttarakhand
• Himachal Pradesh
• Jammu & Kashmir, Ladakh
• Other notified districts

Documents Required

• IEC Certificate
• Udyam Registration Certificate
• Transport invoices
• Proof of freight payment
• Shipping bill
• E-way bill

Complete documentation is mandatory for successful claim processing.

How to Apply for LIFT Scheme

1. File Intent-to-Claim (IC) on the DGFT portal before shipment
2. Generate UIN (Unique Identification Number)
3. Complete export shipment and logistics movement
4. Submit Reimbursement Claim (RC) with required documents
5. DGFT verifies the claim
6. Approved amount is credited to your bank account

Note:

• Claim must be filed within 6 months from shipment
• IC remains valid for 12 months or till end of financial year

Important Conditions to Know

• Maximum reimbursement capped at ₹20 lakh per IEC per year
• Freight cost considered only up to 20% of FOB value
• Applicable only for shipments made after February 2026
• Not applicable for:
  • SEZ exports
  • Deemed exports
• No duplicate claims allowed under other schemes

Which Products Are Covered?

The scheme applies to notified export products, including:

• Agricultural products (fruits, spices, etc.)
• Processed food items
• Handicrafts and textiles
• Bamboo and forest-based products
• Regional specialty goods

Eligibility is based on the notified HSN tariff list.

Who Should Apply?

This scheme is ideal for:

• Exporters based in remote or hinterland regions
• MSMEs facing high inland logistics costs
• Businesses exporting bulk or heavy goods
• Exporters targeting price-sensitive international markets

How Afleo Helps You

• Complete eligibility assessment
• UIN generation and DGFT filing support
• Documentation and claim preparation
• Coordination with DGFT for approvals
• Error-free submission to avoid rejection
• Faster claim processing through structured follow-up

Maximize your reimbursement while ensuring compliance.

Speak to Export Incentive Expert

Why LIFT Scheme is Important

The LIFT scheme has a very important function of reducing the disadvantages in terms of the region that exporters face. It enables the MSME to compete at a more effective level in the global market by lowering the logistics cost, improving price flexibility and supporting an increase in exports from under represented regions.