DGFT Scraps UIN for Export Factoring and Simplifies Interest-Subvention Claims Under the Export Promotion Mission

The Directorate General of Foreign Trade has removed a layer of paperwork that had slowed exporters claiming financial support for factoring. In Trade Notice No. 32/2026-27, dated 26 October 2026, DGFT scraps the Unique Identification Number (UIN) and the separate declaration of intent that exporters previously had to file to access export-factoring support under the Export Promotion Mission (EPM) — Niryat Protsahan. From now on, exporters are identified exclusively through their Importer-Exporter Code (IEC) at every stage of the process. The notice amends the earlier Trade Notice No. 25/2025-26 (20 February 2026).

For MSME exporters who use factoring to unlock working capital against their export receivables, this is a welcome simplification: fewer registrations, a cleaner online claim flow, and the ability to combine factoring support with interest subvention, within limits.

What Happened

Export factoring lets an exporter sell its export receivables to a "factor" (a bank or financial institution) and receive funds upfront instead of waiting out the credit period. Under the EPM, the government supports the cost of this facility. Until now, accessing that support required exporters to obtain a UIN and lodge a declaration of intent — an extra step on top of the IEC every exporter already holds.

Trade Notice 32/2026-27 makes the following changes:

• UIN requirement removed. Exporters no longer need a declaration of intent or a UIN. Existing UINs cease to have effect, and identification is done through the IEC alone.
• Three factoring modalities clarified. The notice defines M1 (advance factoring), M2 (revolving facility) and M3 (advance with bullet interest), each with its own trigger for uploading transaction data.
• Simplified online claims. Factors upload transaction data on the DGFT portal; exporters then review the records linked to their IEC, remove any ineligible entries, and file claims online. Approved subvention is credited directly to the bank account linked to the IEC.
• Defined timelines. Factors upload data within one month of the trigger; exporters file consolidated monthly claims within two months of upload. For transactions before 26 October 2026, the timelines run from the date of the notice.
• Eligibility window. Support covers exports made on or after 20 February 2026, dated by the Export General Manifest (EGM) filing for the relevant shipping bill.
• Concurrent interest subvention. Eligible MSME exporters may also use the Interest Subvention facility under Trade Notice No. 20/2025-26 (2 January 2026) — but the same invoice or interest cost cannot be claimed twice, and annual ceilings apply separately to each intervention.

Why This Matters

Factoring is a core working-capital tool for smaller exporters who cannot afford to wait 60, 90 or 120 days for payment. Any friction in claiming government support — an extra registration, a parallel identifier, a manual claim — erodes the benefit and deters uptake. By anchoring everything to the IEC and moving the claim flow online, DGFT reduces the compliance overhead and the risk of mismatch between a UIN and an IEC. Allowing concurrent interest subvention (without double-dipping) means an exporter can optimise across both support mechanisms rather than choosing one and forgoing the other.

Who Benefits

Primarily eligible MSME exporters who factor their export receivables, who gain simpler onboarding, a cleaner claim process and direct credit to their IEC-linked account. Factors (banks and financial institutions) also benefit from clearly defined data-upload procedures and modalities. Exporters already operating under a UIN should note that it no longer has effect and transition to IEC-based identification.

What Exporters Should Do Now

• Confirm your IEC details are current. Since identification is now IEC-only, ensure the IEC profile and the linked bank account on the DGFT portal are accurate and active.
• Stop relying on your UIN. Existing UINs no longer have effect; move all factoring-support activity to the IEC-based flow.
• Coordinate with your factor. Agree which modality (M1, M2 or M3) applies to each facility and confirm the factor will upload transaction data within the one-month window.
• Diarise the claim deadlines. File consolidated monthly claims within two months of the factor's upload; for pre-26 October transactions, count the timeline from the notice date.
• Check the eligibility window. Only exports on or after 20 February 2026 (by EGM date) are covered — reconcile your shipping bills accordingly.
• Avoid double-claiming. If you also use interest subvention under Trade Notice 20/2025-26, ensure no invoice or interest cost is claimed under both, and track each scheme's annual ceiling separately.

The Bigger Picture

The Export Promotion Mission is one of the government's flagship efforts to lower the cost of export finance, especially for MSMEs squeezed by high working-capital costs and long payment cycles. Simplifying how firms access factoring support — and linking it cleanly to the IEC that already underpins all foreign-trade transactions — fits a broader DGFT push toward IEC-centric, portal-based, paperless processes. It also signals that the government wants more exporters to actually use these facilities, not merely to have them on the books.

Frequently Asked Questions

Do I still need a UIN to claim export-factoring support? No. The UIN and declaration-of-intent requirement are removed. You are identified by your IEC alone, and existing UINs no longer have effect.

From which date are my export transactions eligible? Exports made on or after 20 February 2026, dated by the EGM filing for the relevant shipping bill.

Can I claim both factoring support and interest subvention? Yes, if you are an eligible MSME, but you cannot claim the same invoice or interest cost under both. Each scheme's annual ceiling applies separately.

What are the claim timelines? The factor uploads transaction data within one month of the trigger; you file consolidated monthly claims within two months of that upload. For transactions before 26 October 2026, the clock runs from the notice date.

How is the subvention paid? Directly into the bank account linked to your IEC, after you review and finalise the records on the DGFT portal.

Conclusion

Trade Notice 32/2026-27 trims genuine friction from a facility MSME exporters rely on. With the UIN gone and claims running through the IEC on the DGFT portal, the main work now is operational: keep your IEC profile clean, align with your factor on modality and timelines, and avoid double-claiming where you also use interest subvention.

This article is for general guidance only and is not legal or financial advice. Verify the exact text, modalities and timelines of Trade Notice No. 32/2026-27 on the official DGFT portal (dgft.gov.in) before acting.