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DGFT LIFT Scheme: Complete Guide for MSME Exporters (Eligibility, Benefits, Products & Step-by-Step Application Process)

If you’re an MSME exporter from the North Eastern Region or other notified hilly and geographically disadvantaged areas, the DGFT LIFT Scheme could help reduce one of your biggest export expenses—inland transportation costs.

Recently, the Directorate General of Foreign Trade (DGFT) sent an email to eligible Importer Exporter Code (IEC) holders explaining the benefits of this scheme and encouraging eligible exporters to claim financial assistance.

Here’s everything you need to know.


What is the DGFT LIFT Scheme?

LIFT stands for Logistics Interventions for Freight & Transport.

It is a financial assistance scheme launched by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, Government of India, under the Export Promotion Mission (EPM).

The objective of the scheme is to partially reimburse inland freight and transportation costs incurred by eligible MSME exporters located in notified hilly, remote and border regions, thereby making Indian exports more competitive in international markets.


Why Was the DGFT LIFT Scheme Introduced?

Exporters located in remote regions often spend substantially more on transporting goods to:

  • Seaports
  • Inland Container Depots (ICDs)
  • Container Freight Stations (CFSs)
  • Air Cargo Complexes

These additional logistics costs reduce profit margins and make Indian products more expensive in overseas markets.

To address this challenge, the Government introduced the DGFT LIFT Scheme under the Export Promotion Mission (EPM).

Its aim is simple:

Reduce export logistics costs and promote exports from geographically disadvantaged regions of India.


Who Can Apply?

According to the official DGFT communication, an exporter must satisfy all the following conditions.

✅ Hold a valid Importer Exporter Code (IEC) issued by DGFT.

✅ Have a valid Udyam Registration as an MSME.

✅ Export notified eligible products covered under the scheme.

✅ The manufacturing or processing unit must be located in notified districts/states covered by the scheme.

✅ Fulfil all other conditions prescribed in the Scheme Guidelines.

Important: Merely having an IEC is not sufficient. Both the product exported and the location of the manufacturing/processing unit must qualify under the scheme.


Which Products Are Covered?

The current pilot phase covers 28 notified product categories, mainly representing the strengths of the North Eastern Region and Himalayan States.

Fresh Fruits & Horticulture

  • Walnuts
  • Apples (Fresh & Processed)
  • Pineapple
  • Mandarin Oranges
  • Lemons
  • Kiwi
  • Litchi

Spices & Plantation Products

  • Large Cardamom
  • Mizo Ginger
  • Saffron
  • Mixed Spices
  • Bhut Jolokia / King Chilli / Mizo Chilli
  • Other notified chillies
  • Cinnamon

Agricultural & Processed Food Products

  • Makhana (Fox Nuts)
  • Bakery Products
  • Jams & Jellies
  • Fruit Purée
  • Pickles
  • Preserved Fruits & Vegetables
  • Fruit-based Processed Products
  • Millet
  • Other Cereals

Forest & Bamboo Products

  • Bamboo Articles
  • Agarbatti (Incense Sticks)
  • Wooden Handicrafts

Textiles & Handicrafts

  • Silk Textiles
  • Mizo Silk Fabric
  • Muga Silk
  • Kullu Shawls
  • Pashmina Shawls
  • Handmade Carpets
  • Floor Coverings
  • Knitted Socks
  • Knitted Gloves

Note: Eligibility depends on the notified ITC (HS) Codes specified in the Scheme Guidelines. Exporters should verify that their product’s ITC (HS) code is included before filing a claim.

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Is Assam Tea Covered?

Many exporters from Assam may naturally ask this question.

Based on the current DGFT communication, Assam Tea is not specifically listed among the 28 product categories covered under the pilot phase. Eligibility depends on the officially notified ITC (HS) codes. Exporters should check the latest scheme guidelines or contact the DGFT Regional Authority before assuming their exports qualify.


Major Benefits of the DGFT LIFT Scheme

Eligible MSME exporters can benefit by:

  • Reducing inland transportation costs.
  • Improving price competitiveness in overseas markets.
  • Increasing export profitability.
  • Expanding exports from remote and hilly regions.
  • Supporting value-added agricultural, horticultural, textile and handicraft exports.
  • Promoting balanced regional export growth.

When Should You Apply?

One of the biggest clarifications provided by DGFT is that:

There is NO requirement to file any prior Declaration or Intent-to-Claim before export.

This is an important simplification introduced under the scheme.

You first complete your export in the normal manner.

After the export is completed and the Shipping Bill has been filed, eligible exporters can submit their reimbursement claim online.


Step-by-Step Application Process

Step 1 – Check Eligibility

Confirm that:

  • your MSME has a valid Udyam Registration,
  • you possess a valid IEC,
  • your manufacturing unit is located in a notified district/state,
  • your exported product is included under the notified ITC (HS) codes.

Step 2 – Complete Your Export

Export the goods following the normal customs and DGFT procedures.

Ensure that the Shipping Bill is filed successfully.


Step 3 – Collect Supporting Documents

Keep ready:

  • Shipping Bill
  • Freight / Transport Invoices
  • Commercial Invoice
  • Proof of Freight Payment
  • IEC Details
  • Udyam Registration Certificate
  • Other prescribed documents

Step 4 – Submit Online Claim

After export, log in to the Export Promotion Mission (EPM) Portal and submit your reimbursement claim with all the required documents.


Step 5 – Verification

DGFT verifies:

  • eligibility,
  • product category,
  • manufacturing location,
  • documents,
  • freight expenses.

Step 6 – Financial Assistance

After successful verification, financial assistance is released as per the provisions of the scheme.


Where Can Exporters Get Help?

If you need assistance, DGFT advises exporters to contact:

  • DGFT Regional Authority, Guwahati (for North Eastern States)
  • Additional DGFT Office, Kolkata (for the East Zone)
  • Your concerned Export Promotion Council (EPC)
  • The Trade Connect Portal for guidelines, notified districts, eligible products and the online claim process.

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Why This Scheme Matters for North-East India

The North Eastern Region has immense export potential in horticulture, spices, bamboo products, silk, handicrafts and processed food. However, exporters often face significantly higher transportation costs due to long distances from major ports.

The DGFT LIFT Scheme directly addresses this challenge by providing financial assistance to eligible MSME exporters, helping them compete more effectively in international markets.


Final Thoughts

The DGFT LIFT Scheme (Logistics Interventions for Freight & Transport) is a welcome initiative for MSME exporters in notified hilly, remote and border regions.

One of the biggest advantages of the scheme is its simplified claim process—there is no requirement to submit any prior declaration or Intent-to-Claim before export. Eligible exporters can complete their export, file the Shipping Bill, and then apply online for reimbursement through the EPM Portal.

If your business satisfies the eligibility conditions relating to IEC, Udyam Registration, notified products and notified manufacturing location, this scheme could help reduce your export logistics costs and improve your competitiveness in global markets.


About the Author

Tabrez is the founder of BusinessZindagi.com and an exporter from Assam. Through BusinessZindagi, he shares practical insights on exports, MSMEs, government schemes and entrepreneurship, making complex business topics easier to understand for Indian entrepreneurs.


AI Disclosure

This article was researched with the assistance of AI and carefully reviewed using official DGFT communications and government notifications. Readers should always verify the latest guidelines before submitting any claim.


Affiliate Disclosure

Some links on BusinessZindagi may be affiliate links. If you purchase a product or service through these links, we may earn a small commission at no extra cost to you. This helps us continue creating free business resources for entrepreneurs and exporters.


Disclaimer

This article is for informational purposes only. Eligibility, reimbursement, notified products, ITC (HS) codes, districts and operational procedures are governed by the latest DGFT notifications and Scheme Guidelines. In case of any discrepancy, the official DGFT notification and guidelines shall prevail

Suggested Reading

📚 Authentic Sources & References

Use the following section at the end of your article. These are official government sources and are clickable.

  1. DGFT Trade Notice No. 29/2025-26 – Guidelines for Facilitating Logistics Interventions for Freight and Transport (LIFT) under Export Promotion Mission (EPM) – Official trade notice introducing the LIFT Scheme and its operational guidelines.
  2. Directorate General of Foreign Trade (DGFT) Official Website – Official portal for DGFT notifications, trade notices, IEC services and export-related schemes.
  3. DGFT Online Services / Export Promotion Mission (EPM) Portal – Portal for DGFT online services, including scheme-related applications and claims.
  4. Trade Connect Portal (Government of India) – Official platform providing export guidance, market intelligence, notified products, and trade facilitation services.
  5. Ministry of Commerce & Industry, Government of India – Official website for policy announcements, export promotion initiatives and government notifications.

tabrez25061977@gmail.com

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