Under the SEIS Scheme, the Government gives Incentives to Service Exporters from India. Only selected services are eligible under the SEIS Scheme as per Appendix 3D. One such service which is eligible is “Transport Services”.

However, Appendix 3D only provides the Broad description of Services which are Eligible (For Example Appendix 3D only states that “Transport Services” are eligible). But how does one know which exact services are included in Transportation Services? In order to know and confirm that the service which you are providing is eligible under SEIS or not, one needs to look at the detailed description of SEIS Services.

[If you want an in-depth knowledge of SEIS Scheme read our article on “All about Service Exports From India Scheme – SEIS”]

Appendix 3D also has a column of Provisional CPC Code against each service type. PFB Image for Illustration of Transport services in SEIS scheme:

Note: The above image that you see also contains the rate of reward under SEIS.

[To know in details the benefits and nature of rewards under SEIS Scheme read our article on “SEIS Scheme Benefits in India – All You need to know”]

Introduction to CPC Classification

The Central Product Classification (CPC) is a detailed product classification consisting of all goods and services. Enforced by the United Nations Statistical Commission, CPC was introduced to be an international standard, clearly defining and explaining all the goods and services classified under it and assigning to each of them a CPC Code for correct recognition. This classification was necessary to give the claimants a clear idea under which category their product falls and what percentage of benefit they are entitled to.

In simple language, CPC Classification provides a description of Services harmonized by different codes which are centrally acceptable in many countries. Therefore, this CPC Classification plays an important role in deciding whether the service provided by you will be eligible under SEIS or not.

You can find the Entire CPC Document here – http://dgft.gov.in/sites/default/files/cpc_0.pdf

Now let’s decode these codes and understand its significance. PFB Table for Transport Services along with sub-category services and respective CPC Codes.

The main Heading of "Transport Services" is further divided into sub-categories Maritime Transport Services, Air Transport Services, Road Transport Services & Services auxiliary to all modes of Transport.

Maritime Transport Services

These codes basically mean that if the Service that you are providing matches with the Code description then you are eligible to apply for SEIS Scheme.

7211 – Passenger Transportation:

Note – In this case, the 4-digit CPC class code is further divided into 5 digit CPC Code.

While applying for SEIS, you have to choose a 5-digit CPC Code which best suits your Services. You can apply under multiple 5-digit CPC Codes as well.

72111 Passenger transportation by ferries

Passenger transportation by ocean-going or coastal water ferries, including hydrofoils and hovercraft, on a scheduled or non-scheduled basis.

72119 Other passenger transportation

Passenger transportation on the high seas and on coastal waters by seagoing vessels, on a scheduled or non-scheduled basis, regardless of the class of service, and including passenger accompanying baggage transportation.

7212 - Freight transportation:

It is further divided into 5-digit CPC Code.

72121 Transportation of frozen or refrigerated goods

Transportation by seagoing vessels of frozen or refrigerated goods in specially refrigerated compartments.

72122 Transportation of bulk liquids or gases

Transportation by seagoing vessels of bulk liquids or gases in special tankers. These vessels may also be refrigerated.

72123 Transportation of containerized freight

Transportation by seagoing vessels of individual articles and packages assembled and shipped in specially constructed shipping containers designed for ease of handling in transport.

72129 Transportation of other freight

Transportation by seagoing vessels of freight not elsewhere classified.

7213 – Rental of vessels with crew:

It is further divided into 5-digit CPC Code.

72130 Rental services of seagoing vessels with operator

Rental and leasing services of all types of self-propelled, seagoing vessels with operator, such as passenger vessels (except pleasure boats) tankers, bulk dry cargo vessels, cargo and freight vessels, tugboats and fishing vessels. Exclusions: Leasing or rental services of vessels without operator are classified in subclass 83103. Leasing or rental services of seagoing pleasure boats are classified in subclass 96499 (Other recreational services n.e.c.).

8868 – Maintenance and repair of vessels:

88680 Repair services of other transport equipment on a fee or contract basis

7214 - 72140 – Pushing & towing services:

Towing and pushing services on the high seas and on coastal waters. These services are generally provided by vessels which do not themselves carry freight or passengers. Included here are towing services of oil rigs, floating cranes, dredging vessels, buoys, and of hulls and incomplete vessels, on a fee or contract basis. Towing services for distressed seagoing vessels are also included.

745 – Supporting services for water transportation:

74510 Port and waterway operation services (excl. cargo handling)

Port operation services such as wharves, docks, piers, quays and other marine terminal facilities-related services, including passenger terminal services in connection with marine transportation, on a fee or contract basis, and operating and maintenance services of boat, barge and ship canals, of canalized rivers and of other artificial inland waterways. Also included here are services of locks, boat lifts, weirs, sluices and towing services on canals other than by tugboat, e.g. by tractors or locomotives on the towpath.

Exclusions: Stevedoring services are classified in subclass 74110 (Container handling services), if for containerized freight, and in 74190 (Other cargo handling services), if for non-containerized freight. Port storage and warehousing services are classified in group 742 (Storage and warehousing services). Tugboat-assisted docking and towing services are classified in subclass/74520 (Pilotage and berthing services).

74520 Pilotage and berthing services

Tugboat services in connection with the docking and undocking of vessels of all types, and pilotage services, including the services of pilot vessels, whether supplied to conduct a vessel in or out of harbors or around navigational dangers.

74530 Navigation aid services

Services provided by lighthouses, lightships and light vessels, buoys, channel markers, and similar aids to navigation.

74540 Vessel salvage and refloating services

Vessel salvage services, whether provided on the ocean and coastal waters or on inland waters. Such services consist of recovering distressed and sunk vessels and their cargoes, including the raising of sunken vessels, the righting of capsized vessels and the refloating of stranded vessels.

Exclusions: Towing services supplied to distressed vessels are classified in subclass 72140, if for seagoing vessels, and in 72240, if for non-seagoing vessels. Lifeboat services, marine fireboat services, and other marine search and rescue services are classified in subclass 91260 (Police and fire protection services) and 91290 (Other public order and safety affairs related services).

74590 Other supporting services for water transport

Cleaning, disinfecting, fumigating, vermin control and similar services, onboard docked or anchored vessels, on a fee or contract basis, water transport supporting services directly connected with vessel operations not elsewhere classified, and not directly connected with vessel operations, such as icebreaking, vessel registration, vessel laying-up and storage services, etc.

Exclusions: Lifeboat services, marine fireboat services, and other marine search and rescue services are classified in subclass 91260 (Police and fire protection services) and 91290 (Other public order and safety affairs related services).

 

Air Transport Services

734 - Rental services of aircraft with operator

7340 - 73400 Rental services of aircraft with operator

Rental and leasing services of freight- or passenger-carrying aircraft (including helicopters) or of spacecraft of any type and for any purpose, with operator. These services are generally supplied on a time basis and several different destinations are frequently involved.

Exclusion: Leasing or rental services of aircraft without operator are classified in subclass 83104.

8868 – Maintenance and repair of vessels:

88680 Repair services of other transport equipment on a fee or contract basis

 Airport operation and ground handling services is also covered in the Central Product Classification.

 

Road Transport Services

7121 – Other scheduled passenger transportation

71211 Urban and suburban regular transportation

Urban and suburban regularly scheduled multi-stop passenger transportation via highways and other modes of land transport. Services classified here are motor-bus, tramway, trolley bus and similar services generally rendered on a franchise basis within the confines of a single city or group of contiguous cities. These services are provided over predetermined routes on a predetermined time schedule, may provide pick-up and discharge of passengers at any scheduled stop, and are open to any user.

Exclusion: Urban and suburban passenger transportation by railway are classified in subclass 71112.

71212 Urban and suburban special transportation

Scheduled transportation by school buses to carry pupils between their homes and school, between schools etc., within the borders of a single city or group of contiguous cities. Included is scheduled transportation between an urban centre and airports or stations in this urban centre or in suburban locations by motor-bus and multi-passenger airport limousine, with driver. These services are provided over predetermined routes on a predetermined time schedule. They generally have a restricted category of users. Most individual trips involve either pick-ups or discharges, but not both.

Exclusion: Taxi services are classified in subclass 71221 and other non-scheduled chauffeur-driven hired car services are classified in subclass 71222 (Rental services of passenger cars with operator).

71213 Interurban regular transportation

Interurban regularly scheduled highway passenger transportation by motor-bus, including passenger accompanying baggage transportation.

71214 Interurban special transportation

Scheduled transportation by school buses to carry pupils between their homes and school, between schools etc., from one to another urban centre. Also included is scheduled transportation between an urban centre and airports or stations in another urban centre by motor-bus and multi-passenger airport limousine, with driver.

71219 Other scheduled passenger transportation n.e.c.

Other passenger land transportation by mechanized land vehicle, not elsewhere classified. Included are cable-operated transport services, e.g. services by teleservices, and also funicular and similar services rendered on a scheduled basis.

7122 -  Other non-scheduled passenger transportation

71221 Taxi services

Motorized taxi-cab services, including urban, suburban and interurban. These services are generally rendered on a distance-travelled basis, for a limited duration of time, and to a specific destination. Taxi services provided by passenger carrying motorcycles are included.

Exclusions: Animal-drawn and man-drawn taxi services are classified in subclass 71224 (Passenger transportation by man- or animal-drawn vehicles). Water and air taxi services are classified in subclass 72219 (Other passenger transportation) and 73120 (Non-scheduled passenger transportation by air), respectively.

71222 Rental services of passenger cars with operator

Chauffeur-driven hired car services, wherever delivered, except taxi services. These services are generally supplied on a time basis to a limited number of passengers, and frequently involve transportation to more than one destination.

71223 Rental services of buses and coaches with operator

Chauffeur-driven hired bus and motor coach services, generally rendered on a time and distance basis. They frequently involve transportation to more than one destination.

71224 Passenger transportation by man- or animal-drawn vehicles

Passenger transportation by man- or animal-drawn vehicles or conveyances and by pack animals, provided that the services of a driver are provided with the vehicles or animals.

Exclusion: Animal-drawn freight and passenger vehicle rental services without the services of a driver are classified in subclass 83102 (Leasing or rental services concerning goods transport vehicles without operator) and 83105 (Leasing or rental services concerning other land transport equipment without operator), respectively

71229 Other non-scheduled passenger transportation n.e.c.

Passenger transportation by non-scheduled vehicles with driver, not elsewhere classified.

Exclusion: Passenger transportation by non-scheduled motor-buses, chartered buses and tour and sightseeing buses is classified in subclass/71223 (Rental services of buses and coaches with operator).

7123 - Freight transportation

71231 Transportation of frozen or refrigerated goods

Transportation by road of frozen or refrigerated goods, in specially refrigerated trucks and cars.

71232 Transportation of bulk liquids or gases

Transportation by road of bulk liquids or gases in special tank trucks. These vehicles may also be refrigerated.

71233 Transportation of containerized freight

Transportation by road of individual articles and packages assembled and shipped in specially constructed shipping containers designed for ease of handling in transport.

71234 Transportation of furniture

Transportation of furniture by road over any distance.

Exclusion: Furniture transportation by transoceanic shipment is classified in subclass 72123 (Transportation of containerized freight).

71235 Mail transportation

Transportation of mail by any land mode of transport other than railway.

71236 Freight transportation by man- or animal-drawn vehicles

Transportation of freight by man- or animal-drawn vehicles.

71239 Transportation of other freight

Transportation by land modes of transport other than railway, of freight, not elsewhere classified.

7124 – Rental of commercial vehicles with operator

71240 Rental services of commercial freight vehicles with operator

Truck and other motorized freight vehicle rental services, with driver.

Exclusions: Animal-drawn freight vehicle rental services with drivers are classified in subclass 71236 (Freight transportation by man- or animal-drawn vehicles). Rental services in connection with client-driven trucks are classified in subclass 83102 (Leasing or rental services concerning goods transport vehicles without operator).

6112 – Maintenance and repair of road transport equipment

61120 Maintenance and repair services of motor vehicles

Automobile maintenance and repair services. Such services may involve engine overhaul, motor tune-up, carburettor repair and adjustment, electrical system repair and battery charging, steering gear repair and adjustment, wheel adjustment and balancing, suspension repair, brake repair and adjustment, transmission repair and adjustment, exhaust system repair, cooling system repair including water-hose replacement and other automobile maintenance and repair services.

Automobile body repair and similar services. Such services may involve door and lock repair, bumper straightening and repair, repainting, collision repair; upholstery repair and window screen and window replacement and other automobile body repair services.

Also included here are automobile emergency road services and cleaning and routine maintenance services, such as vehicle laundry and car-wash services, undercoating, polishing and waxing services etc.

Exclusion: Puncture repair services are classified here, but rebuilt and retreaded tyres are classified in subclass 36120.

744 - Supporting services for road transport

74410 Bus station services

Passenger terminal services in connection with urban, suburban and interurban bus passenger transport, on a fee or contract basis.

Exclusion: Baggage and freight handling services are classified in subclass 74190 (Other cargo handling services).

74420 Highway, bridge and tunnel operation services

Services of fixed facilities operation, such as roads, tunnels, bridges and causeways, on a fee or contract basis.

Exclusion: Services of vehicle parking facilities are classified in subclass 74430 (Parking services).

74430 Parking services

Parking services provided by car parks, parking lots and parking garages, whether or not roofed.

74490 Other supporting services for road transport

Commercial road vehicle maintenance and minor repair services, on a fee or contract basis, and other supporting services for road transport, not elsewhere classified.

 

Services auxiliary to all modes of transport

741 - Cargo handling services

74110 Container handling services

Cargo handling services provided for freight in special containers. Included are services of freight terminal facilities, on a fee or contract basis, for all modes of transport, including stevedoring services (i.e. the loading, unloading and discharging of vessels' containerized freight, at ports).

74190 Other cargo handling services

Cargo handling services provided for non-containerized freight or for passenger baggage. Included are services of freight terminal facilities, on a fee or contract basis, for all modes of transport, including stevedoring services (i.e. the loading, unloading and discharging of vessels' non-containerized freight, at ports), and cargo handling services incidental to freight transport, not elsewhere classified. Also included are baggage handling services at airports, and at bus, rail or highway vehicle terminals.

Exclusions: Other supporting and auxiliary transport services linked to a specific mode of transport are classified in subclass 74300 for railway transport, subclass 74490 for road transport, subclass 74590 for water transport and subclass 74690 for air transport.

742 - Storage and warehousing services

74210 Storage services of frozen or refrigerated goods

Storage and warehousing services of frozen or refrigerated goods, including perishable food products.

74220 Bulk storage services of liquids or gases

Bulk storage and warehousing services of liquids and gases.

74290 Other storage or warehousing services

Storage and warehousing services of other goods, including: cotton, grain, wool, tobacco, other farm products, and other household goods.

748 – Freight transport agency services

7480 - 74800 Freight transport agency services

Freight brokerage services, freight forwarding services (primarily transport organization or arrangement services on behalf of the shipper or consignee), ship and aircraft space brokerage services, and freight consolidation and break-bulk services.

Therefore, if you are sure that the Service You are providing falls under one of the 5-digit CPC Code above, then you are eligible to apply under the “Transport Services” category.

[If you want to know the complete process of applying under SEIS Scheme read our article on “SEIS Scheme Application Process – Complete Guide (2019)”]

Why us?

Afleo.com can help you claim SEIS benefits on the “Transportation Services” that you are providing. Afleo is a leading SEIS Consultant in India and providing services in the field of international trade (Import & Export) like Merchandise Export from India Scheme (MEIS), Services Export from India Scheme (SEIS), EPCG, DFIA – Issuance and Transferability, Advance License – Issuance and Redemptions, SION fixation/revision & other DGFT related work.

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