DGFT Scraps UIN for Export Factoring and Allows Concurrent Interest Subvention Under the Export Promotion Mission

DGFT has simplified how exporters claim factoring support under the Export Promotion Mission (EPM) — Niryat Protsahan. Trade Notice No. 32/2026-27, dated 26 October 2026, amends the guidelines for "Support for Alternative Trade Instruments" (continuing Trade Notice No. 25/2025-26 of 20 February 2026). Two changes matter most: the Unique Identification Number (UIN) and declaration-of-intent step is removed, and eligible MSME exporters can now avail both export-factoring support and interest subvention — previously an either/or choice — subject to anti-duplication safeguards.

For MSME exporters who use factoring to get paid earlier, and for the Factors who service them, this cuts a procedural layer and widens the benefit.

What Happened

UIN requirement removed. Exporters no longer submit a declaration of intent or obtain a UIN for export-factoring support. They are now identified exclusively through their Importer Exporter Code (IEC) at every stage. Paragraphs (a) to (e) of Annexure-IV and the "Intent to Claim" form are deleted, and UINs already generated cease to have effect.

Factoring modalities and filing triggers clarified. Three modalities are specified:

• M1 (Advance Factoring): one record per tranche after buyer payment.
• M2 (Revolving Facility): one record after each billing period closes, with the actual buyer payment date provided at invoice closure.
• M3 (Bullet Interest): one record per tranche after buyer payment.

Factors must register on the DGFT portal and upload transaction data within one month of the trigger. Exporters must claim monthly, within two months of the Factor's upload; claims are filed online and approved subvention is credited directly to the bank account linked to the exporter's IEC.

Concurrent interest subvention. Eligible MSME exporters under the Interest Subvention for Pre- and Post-Shipment Export Credit scheme (Trade Notice No. 20/2025-26) may now avail both interventions, and vice versa — with safeguards: an invoice financed through export factoring and claimed under the Alternative Trade Instruments route cannot also be claimed under post-shipment export credit; the same interest cost cannot be claimed twice; and annual ceilings apply separately to each intervention. Duplicate or excess claims can trigger full recovery with interest and penal action under the FT(D&R) Act, 1992.

Transition. For transactions before 26 October 2026, timelines run from the date of the notice; support covers exports on or after 20 February 2026, with the export date determined by the EGM filing date for the relevant shipping bill. Claims for these can be filed once the portal is operational.

Why / Background

The Export Promotion Mission is the government's umbrella push to lower the cost of trade finance for exporters, especially MSMEs that struggle with receivables cycles. Requiring a separate intent declaration and UIN added friction and a point of failure. Moving to IEC-only identification aligns factoring support with how exporters are already recognised across DGFT and customs systems, and allowing concurrent benefits recognises that factoring and subsidised credit address different parts of the same cash-flow problem.

Who Benefits

• MSME exporters who factor their export receivables — less paperwork, and the ability to stack factoring support with interest subvention.
• Factors / financial institutions servicing exporters, who now have defined upload triggers per modality.
• Exporters with pre-existing UINs, who no longer need to manage them.

What Exporters Should Do Now

• Ensure your IEC details are current on the DGFT portal — identification now hinges entirely on IEC.
• Map each factoring arrangement to the correct modality (M1/M2/M3) so your Factor files the right record at the right trigger.
• Track the two-month claim window after each Factor upload; set an internal calendar so claims are not missed.
• If you use subsidised export credit, review eligibility to claim both interventions — but keep invoice-level records that show no single invoice or interest cost is double-claimed.
• Reconcile exports back to 20 February 2026 that may now be claimable once the portal is live.

The Bigger Picture

This sits within a broader simplification of India's export-incentive plumbing — IEC-centric identification, portal-based claims, and direct-to-bank credit. For MSMEs, the combination of factoring support and interest subvention can meaningfully lower the effective cost of financing an export order, but the anti-duplication rules mean documentation discipline is the price of the wider benefit.

Frequently Asked Questions

Do I still need a UIN to claim export-factoring support? No. The UIN and declaration-of-intent step is removed. You are identified only by your IEC, and any UIN already issued no longer has effect.

Can I claim both export factoring support and interest subvention? Yes, if you are an eligible MSME exporter — but you cannot claim the same invoice or the same interest cost under both, and each intervention has its own annual ceiling.

Who files the transaction data — me or my Factor? The Factor registers on the DGFT portal and uploads transaction data within one month of the trigger. You then file your claim monthly, within two months of that upload.

From when are exports eligible? Support covers exports on or after 20 February 2026, with the export date taken from the EGM filing date of the relevant shipping bill.

Conclusion

Trade Notice 32/2026-27 removes a procedural hurdle and widens a benefit: export-factoring support is now IEC-only, and MSME exporters can combine it with interest subvention. The exporters who gain most are those who map their factoring modality correctly and keep clean, non-overlapping records.

This is a plain-English summary for MSME exporters and their advisors. Verify the exact terms against DGFT Trade Notice No. 32/2026-27 on the official DGFT portal (dgft.gov.in) before filing claims.