International Cooperation (IC) Scheme: Why Applications Get Rejected and How to Fix It

International Cooperation (IC) Scheme: Why Applications Get Rejected and How to Fix It

International Cooperation (IC) Scheme claims are rejected most often because the cost was never actually paid by the applicant, because prior approval was skipped for an exhibition or delegation, or because a first-time-exporter claim comes from an enterprise whose Importer Exporter Code is already too old. This article pairs each reason with its fix. For the reimbursement rates, eligible applicants and the full application route, read the International Cooperation (IC) Scheme guide; here we cover only rejections.

A reminder that prevents the commonest failure: the IC Scheme, run by the Ministry of MSME since 1996, pays on a reimbursement basis only. You incur and pay the cost first, then claim it against paid invoices. It never pays in advance.

Reason 1 to cost not actually paid, or invoice not in your name

Claims are rejected when the expense was not genuinely incurred and paid by the applicant, or when the invoice is in someone else's name. This is the defining rejection for a reimbursement scheme.

Fix: Pay airfare, space rent, RCMC fee, insurance premium or certification charges yourself, and keep invoices and receipts issued in the applicant's exact registered name. Reimburse only what you can document as paid.

Reason 2 to prior approval not obtained

For international exhibitions, trade fairs and business delegations, the guidelines require prior approval before the event. Filing after the fact for a component that needed pre-approval is a common rejection.

Fix: Submit the application before the event for the trade-fair and delegation component. Note the distinction: CBFTE claims are filed after the qualifying expenditure, while exhibition and delegation participation needs approval in advance.

Reason 3 to IEC older than three years for a CBFTE claim

The Capacity Building of First Time MSE Exporters (CBFTE) component, launched in June 2022, is for genuinely new exporters. An enterprise whose Importer Exporter Code is older than three years at the time of the shipment falls outside the "first time exporter" definition and is rejected.

Fix: Check your IEC issue date against the shipment date before claiming. If the IEC is over three years old, you are not eligible for CBFTE reimbursement: there is no relaxation for this.

Reason 4. A medium enterprise filed a CBFTE claim

CBFTE is restricted to micro and small enterprises. Medium enterprises claiming under it are rejected.

Fix: Confirm your category on your Udyam Registration certificate. Only micro and small enterprises qualify for CBFTE reimbursement of RCMC charges, testing and certification, and export insurance premium.

Reason 5: an individual applied for the trade-fair component

An individual entrepreneur cannot apply directly for the trade-fair, delegation or exhibition component. That assistance is routed through eligible State/Central Government organisations, registered industry associations, societies and trusts that promote the MSME sector, which then nominate participating MSMEs.

Fix: Participate through an eligible nominating organisation for the trade-fair component. An individual micro or small enterprise can, separately, claim under CBFTE in its own name.

Reason 6 to claim filed after the window

A claim filed after the window specified in the sanction or guidelines is rejected on timing alone, however valid the expense.

Fix: File within the period stated in your sanction letter or the current guidelines on ic.msme.gov.in. Track the deadline from the day the expenditure is incurred.

Reason 7 to missing supporting proof

Rejections also follow from missing shipment proof, boarding passes, stall allotment letters or testing bills that the claim type requires.

Fix: Assemble the evidence set for your claim type before filing, boarding passes and stall allotment letters for trade-fair claims, shipment and certification documents for CBFTE.

How to check status or escalate

1. Track the claim on the scheme portal at ic.msme.gov.in; assistance is released to the applicant's bank account after scrutiny by the Ministry's International Cooperation division.
2. For a stalled claim, use the prescribed form to the Director (International Cooperation), Ministry of MSME, Udyog Bhawan, New Delhi 110011.
3. For general MSME and Udyam queries, call the helpline on 1800-180-6763.

Because ceilings are revised from time to time, verify the current rate on the CBFTE page of ic.msme.gov.in before committing to a certification or exhibition expense. Filing is free, no consultant fee is payable to the Ministry, and no agent can guarantee sanction. Fix the underlying gap; payment proof, prior approval, IEC age, enterprise category or timing, and re-file.