Capacity Building of First Time MSE Exporters (CBFTE)

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Dated: 27.03.2026

Capacity Building of First Time MSE Exporters (CBFTE)

The Ministry of Micro, Small & Medium Enterprises (MSME), Government of India, has introduced the International Cooperation (IC) Scheme for the financial cycle 2021-22 to 2025-26. This scheme aims to support Micro and Small Enterprises (MSEs) in expanding their global footprint and enhancing their competitiveness in international markets. The scheme is divided into three sub-components:

Market Development Assistance (MDA) – Available in both physical and virtual modes.
Capacity Building of First Time Exporters (CBFTE) – Focused on empowering MSEs to enter the export market.
Framework for International Market Intelligence Dissemination (IMID) – To be operationalized in the future.

This article provides a detailed overview of Sub-Component II: Capacity Building of First Time MSE Exporters (CBFTE), which became effective on July 15, 2022, as per the guidelines issued by the Ministry of MSME.

Objective of CBFTE 

The primary goal of the CBFTE sub-component is to provide financial assistance to first-time MSE exporters, enabling them to overcome initial challenges and establish themselves in the international market. This initiative is designed to encourage MSEs to explore export opportunities and contribute to India’s global trade.

Eligibility Criteria

To avail benefits under the CBFTE sub-component, MSEs must meet the following conditions:

Udyam Registration: The applicant must be a registered Micro or Small Enterprise with a valid Udyam Registration.
Importer Exporter Code (IEC): The applicant’s IEC must not be older than three years on the date of export shipment.
Applicability: The scheme is applicable from the date of issuance of the guidelines (July 15, 2022).

Assistance Under the Scheme 

The CBFTE sub-component provides financial assistance to first-time MSE exporters for specific costs incurred during export shipments. The assistance is categorized into three areas:

1. Registration-cum-Membership Certificate (RCMC) Charges 

Eligibility: First-time exporters who have paid RCMC charges to Export Promotion Councils (EPCs).
Financial Assistance: 75% of the cost paid, subject to a maximum of ₹20,000 or actual cost, whichever is lower.
Reporting: EPCs must submit quarterly reports in the prescribed format.

2. Export Insurance Premium 

Eligibility: Export insurance premium paid to Export Credit Guarantee Corporation Ltd. (ECGC) under the Small Exporter’s Policy.
Financial Assistance: Maximum of ₹10,000 per financial year or actual cost, whichever is lower.
Reporting: ECGC Ltd. must submit quarterly reports in the prescribed format.

3. Testing and Quality Certification 

Eligibility: Fee paid for testing and quality certification required for exporting products.
Financial Assistance: 75% of the cost incurred, subject to a ceiling of ₹1,00,000 or actual cost, whichever is lower.
Conditions:
- Financial assistance is allowed for a maximum of three certificates per financial year.
- The certificate must be obtained within the same financial year.
- The Ministry of MSME will share the list of beneficiaries with the Department of Commerce on a quarterly basis.

Procedure to Avail Benefits 

Eligible MSEs can apply for financial assistance under the CBFTE sub-component by following these steps:

Online Application: Submit an online application on the IC Scheme portal (https://ic.msme.gov.in) along with relevant documents.
Claim Submission: The claim must be submitted in the prescribed proforma available on the portal.
Reimbursement Basis: Grants will be released on a reimbursement basis after submission of the required documents.

Required Documents

To claim financial assistance, MSEs must provide the following documents:

For RCMC Charges 

IEC Code (not older than three years on the date of export shipment).
RCMC fee receipt.
Proof of export carried out in the same financial year for which RCMC is claimed.

For Export Insurance Premium 

IEC Code (not older than three years on the date of export shipment).
Receipt of insurance premium.
Proof of export shipment carried out in the same financial year for which insurance is claimed.

For Testing and Quality Certification 

IEC Code (not older than three years on the date of export shipment).
Testing and quality certification.
Proof of export shipment of the product for which testing and quality certification is claimed.
Proof of mandatory requirement of testing and quality certification for such export.
Self-certification by the MSE stating that no benefits have been availed under the Market Access Initiative (MAI) Scheme of the Department of Commerce for the same purpose.

All documents must be duly attested or certified by the applicant organization.

Claim Process

The claim process involves the following steps:

RCMC Certificate: Export Promotion Councils (EPCs) will sign a Memorandum of Understanding (MoU) with the Ministry of MSME. EPCs will apply for financial assistance on behalf of MSEs through the IC Scheme portal.
Export Insurance Premium: The Ministry of MSME will sign an MoU with ECGC Ltd. Claims for financial assistance will be released to ECGC upon receipt of applications on the IC Scheme portal.
Testing and Quality Certification: The Ministry of MSME will sign an MoU with the National Small Industries Corporation Ltd. (NSIC). Financial assistance for certifications will be released to NSIC for further distribution to eligible MSEs.

Key Points to Note

The scheme is designed to support first-time exporters in overcoming initial challenges.
Financial assistance is provided on a reimbursement basis.
The scheme is applicable only to MSEs with an IEC code not older than three years.
The Ministry of MSME will collaborate with EPCs, ECGC Ltd., and NSIC to ensure smooth implementation of the scheme.

Conclusion

The Capacity Building of First Time MSE Exporters (CBFTE) sub-component is a significant step by the Ministry of MSME to encourage small businesses to explore international markets. By providing financial assistance for RCMC charges, export insurance premiums, and testing and quality certifications, the scheme aims to reduce the financial burden on first-time exporters and enhance their global competitiveness. Eligible MSEs are encouraged to take advantage of this initiative and contribute to India’s growing presence in the global trade arena.

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Source: Ministry of Micro, Small & Medium Enterprises

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