DGFT RELIEF Scheme: Gulf Crisis Logistics Aid with FEMA Compliance for Exporters

Tensions around the Strait of Hormuz have driven up shipping costs, with war risk premiums, vessel diversions, and surcharges like Additional War Risk Premiums (AWRP) and Emergency Conflict Surcharges (ECS) hitting FCL, LCL, and reefer shipments to UAE, Saudi Arabia, and beyond. Echoing the 90-100% freight spikes during the 2023-24 Red Sea crisis, MSMEs face severe pressure from higher outbound logistics and limited working capital.

To counter this, the Government launched the Resilience and Logistic Intervention for Export Promotion (RELIEF) scheme under the Export Promotion Mission (EPM). Issued via DGFT Notification No. 65/2025-26 on 19 March 2026, RELIEF offers targeted support through three components, with ECGC as the nodal agency. It covers past and future shipments, prioritizing MSMEs, and ensures FEMA compliance by aiding EDPMS closures to avoid shipping bill disruptions.

Key Components of RELIEF

Component 1: Top-Up for Existing ECGC Policies
Exporters with ECGC credit insurance for consignments shipped between February 14 and March 15, 2026, get government-topped compensation for war/political risk losses beyond standard cover. Premiums stay at pre-disruption levels—no hikes during this period.

Component 2: Enhanced Coverage for Upcoming Shipments

For exports from March 16 to June 15, 2026, new ECGC policies offer up to 95% loss coverage. This boosts confidence amid uncertainties, encouraging steady shipment flows.

Component 3: Reimbursement for Uninsured MSMEs

MSME exporters without ECGC cover (February 14–March 15, 2026) can claim up to 50% reimbursement on eligible freight/insurance surcharges, capped at Rs. 50 lakhs per exporter.

• CIF contracts: Actual additional costs.
• OB contracts: Shortfall between contracted value and realized proceeds, if due to disruption-linked surcharges (with documentation).
  Subject to verification; helps close EDPMS obligations per FEMA rules.

Funded under EPM, RELIEF will be reviewed based on geopolitical shifts, ensuring exporters stay resilient.

Contact Sriya Enterprise- FEMA Consultant today for expert guidance on applications, documentation, and FEMA-compliant EDPMS/IDPMS/BRC closures. Email us at info@sriyaenterprise.com

Disclaimer: This blog is for educational purposes only. It provides general information on the RELIEF scheme and is not financial, legal, or export advice. Exporters must adhere to or consult the specific DGFT Notification No. 65/2025-26 dated 19 March 2026 for case-specific details and compliance.