TRACE Scheme for Exporters – Get Reimbursement on Certification & Compliance Costs

High Certification Costs Blocking Your Exports?

MSMEs may need to meet international standards like FDA, CE, ISO and industry-specific certifications to enter global markets. The costs associated with testing, audits and approvals are also very high; sometimes reaching lakhs of rupees.

Many MSMEs may be forced to slow their expansion or lose money due to the cost of these certifications when exporting to countries with regulatory bodies.

Exporters can also improve access to funding through export credit support and collateral guarantee schemes.

What is TRACE (Trade Regulations, Accreditation & Compliance Enablement)?

TRACE is an initiative by the Government of India for exporters as part of the Export Promotion Mission (EPM or Niryat Disha), which aims to help exporters meet their international obligations with regard to traceability. The objective of the program is to provide exporters with a portion of the cost of obtaining certifications, testing, inspections, audits and other compliance costs associated with exporting to the global market.

What is the Actual Benefit for Exporters?

The scheme directly reduces the cost of export compliance:

• Up to 60% reimbursement on standard certification costs
• Up to 75% reimbursement for priority certifications
• Maximum benefit up to ₹25 lakh per IEC per financial year
• Covers both one-time and recurring compliance expenses

This results in direct cost savings on mandatory export certifications, improving margins and competitiveness.

Businesses can further reduce financial burden by leveraging interest subvention schemes for export credit.

What Expenses Are Covered?

One-Time Costs

• Product testing and inspection
• Factory audits and assessments
• Certification approvals
• Market entry compliance requirements

Recurring Costs

• Renewal of certifications
• Ongoing compliance audits
• Buyer-mandated certification updates

Coverage is applicable only after successful completion of certification or compliance activity.

Managing certification costs alongside cash flow is crucial, and exporters can use export factoring and trade finance solutions to maintain liquidity.

Which Certifications Are Eligible?

The scheme supports a wide range of globally recognized certifications:

• CE Marking (Europe)
• FDA Approval (USA)
• ISO Certifications (ISO 9001, ISO 22000, etc.)
• HACCP, BRCGS, FSSC
• REACH, RoHS (EU compliance)
• SABER (Saudi Arabia), CCC (China), ECAS (UAE)

The scheme operates on a dynamic “Positive List” of certifications, covering multiple sectors and international markets.

Who is Eligible?

• MSME exporters with valid Importer Exporter Code (IEC)
• Valid Udyam Registration
• Not listed in the Denied Entity List (DEL)
• Engaged in international trade

Merchant exporters are eligible only for specific notified HSN tariff lines.

Documents Required

• Certification reports / test certificates
• Invoice and proof of payment
• Proof that certification is required for export
• IEC and Udyam registration details
• Self-declaration confirming no duplicate claim under other schemes

How to Apply for TRACE Scheme

1. File Intent-to-Claim (IC) on the DGFT portal before starting certification
2. Complete certification / testing / audit process
3. Submit Reimbursement Claim (RC)
4. Upload:
   • Certificates
   • Invoices
   • Payment proof
   • Compliance requirement evidence
5. DGFT verifies the claim
6. Approved amount is credited to the exporter’s bank account

Note: IC is valid for up to 2 years.

Important Conditions to Know

• Applicable only for certifications undertaken after 20 February 2026
• Intent-to-Claim (IC) must be filed before starting certification
• No duplicate benefits allowed under other government schemes
• Claims can be submitted only after successful certification completion
• Subject to verification, audit, and compliance checks

Who Should Apply?

This scheme is ideal for:

• Exporters entering regulated markets like the US, EU, UAE, and others
• Businesses requiring CE, FDA, ISO, or similar certifications
• Industries such as food, pharmaceuticals, electronics, textiles, and engineering
• MSMEs facing high compliance and certification costs

How Afleo Helps You

• Detailed eligibility assessment
• Certification mapping (what you actually need vs optional)
• End-to-end IC filing support
• Documentation and claim preparation
• Error-free submission to avoid rejection
• Faster reimbursement through structured follow-up

Maximize your reimbursement while ensuring full compliance.

Speak to Export Compliance Expert

Why TRACE Scheme is Important

TRACE Scheme is essential because of global market demands for quality, safety and regulatory standards compliance. It reduces the financial burden associated with meeting these requirements by allowing MSMEs to meet international benchmarks, enter regulated markets confidently, and scale exports sustainably.