Punjab MSME Export Freight Assistance

Under Clause 12.8 D 22 of the Industrial and Business Development Policy 2022, Punjab addresses the cost disadvantage exporters in a landlocked state face on inland movement. An MSME exporter may claim either 1% of FOB value or the freight actually paid for moving goods from the place of manufacture to the place of shipment, whichever is lower, capped at ₹20 lakh per annum. Claims are available for 5 years, within the policy's validity period.

Consignments from Punjab units travel several hundred kilometres by road to a port or ICD before shipment begins. That inland leg alone can determine whether an export order turns a profit, and the clause is directed at exactly that cost.

- Complete the export and keep the shipping bill, FOB invoice and freight bills covering the manufacture-to-shipment leg - Work out 1% of the FOB value, set it against the freight actually paid, and claim whichever amount is lower - Submit the freight assistance claim through the Invest Punjab Business First portal, under the Industrial and Business Development Policy 2022 - Enclose Udyam registration, IEC and unit particulars - Lodge a fresh claim annually, for a maximum of 5 years, provided it falls within the policy period

The department checks the export documents and freight bills submitted. It then applies the lower-of-the-two rule and disburses the amount, subject to the annual ceiling of ₹20 lakh.