International Cooperation Scheme — Capacity Building of First Time MSE Exporters (CBFTE)

What is the Capacity Building of First Time MSE Exporters scheme?

CBFTE (Capacity Building of First Time MSE Exporters) is a sub-scheme under the International Cooperation (IC) Scheme of the Ministry of Micro, Small and Medium Enterprises. According to the IC Scheme portal, it provides financial assistance towards the costs a first-time micro or small enterprise (MSE) exporter incurs on its export shipments, so that the expense of getting export-ready does not hold small firms back.

The International Cooperation Scheme has two broad components: one supports participation in international exhibitions, trade fairs and conferences, and the other; CBFTE, reimburses first-time MSE exporters for specific, documented costs. This guide covers the CBFTE component.

CBFTE targets a real gap. A small manufacturer taking its first order abroad has to obtain an export registration, insure the shipment against payment and transit risk, and often get its product tested or certified to meet the buyer's standards. These upfront costs fall due before any export earnings arrive. CBFTE shares those costs so that a first export becomes financially viable.

What are the benefits under CBFTE?

CBFTE reimburses three categories of cost, each on a reimbursement basis (the enterprise pays first and claims back the eligible share):

• Registration-cum-Membership Certificate (RCMC): 75% reimbursement, capped at Rs 20,000. The RCMC, issued by an Export Promotion Council or commodity board, is a basic requirement for availing export benefits.
• Export insurance premium: reimbursement of the premium up to Rs 10,000 per financial year, covering the cost of insuring an export shipment.
• Testing and quality certification: 75% reimbursement, capped at Rs 1 lakh per MSE per financial year, for up to three certificates in a year. This helps a first-time exporter meet the quality and safety standards its buyers or destination markets demand.

Together these cover the three biggest first-order hurdles, registration, risk cover and certification, for a new small exporter.

Who is eligible for CBFTE?

You can apply if:

• Your enterprise holds a valid Udyam Registration as a Micro or Small Enterprise.
• Your enterprise holds an Importer Exporter Code (IEC) that is not older than three years as on the date of the export shipment. The mark of a first-time or new exporter.
• The cost you are claiming — RCMC fee, export insurance premium, or testing and quality certification, was actually incurred and is backed by receipts, and the export shipment took place in the same financial year.

You cannot apply if:

• Your enterprise is a Medium enterprise, CBFTE is limited to micro and small units.
• You do not have Udyam Registration, or you are not registered as a manufacturer/service enterprise as required.
• Your IEC is older than three years on the shipment date, since the sub-scheme is meant for new exporters, not established ones.
• You are claiming a cost without proof of the underlying export shipment.

How to apply for CBFTE

1. Go to the International Cooperation Scheme portal at ic.msme.gov.in.
2. Register your enterprise by selecting the organisation type, then log in to your account.
3. Open the CBFTE component and start a reimbursement claim, entering your Udyam Registration and IEC details.
4. Upload the supporting documents. The RCMC and fee receipt, the export insurance premium receipt, or the testing/quality certificate and invoice, depending on which cost you are claiming.
5. Attach proof of the export shipment (shipping documents) for the same financial year and enter your bank account details for the reimbursement.
6. Submit the claim and track its status on the portal. Claims are processed on a reimbursement basis after verification.

What documents do you need?

Help and contacts

• IC Scheme portal: ic.msme.gov.in, registration, claims and status.
• Administrative queries: 011-23063526.
• Technical / portal queries: 011-23062354.

CBFTE is delivered directly by the Ministry of MSME through the IC Scheme portal, so there is no need for an agent. Because assistance is paid as a reimbursement, keep every fee receipt, certificate and shipping document, and file the claim in the same financial year as the export shipment.