DGFT Removes UIN Requirement for Export Factoring Support Under Export Promotion Mission

Exporters who use factoring to get paid sooner now have a simpler way to claim government support. On 26 October 2026, the Directorate General of Foreign Trade (DGFT) issued DGFT Trade Notice 32/2026-27, which discontinues the Unique Identification Number (UIN) requirement for export factoring support under the Export Promotion Mission (EPM) – Niryat Protsahan.

The notice also clarifies the factoring modalities that qualify, the filing timelines for factors and exporters, the date from which eligibility is counted, and whether an MSME exporter can claim this support together with interest subvention on export credit. This article explains the changes in simple terms.

Background: Support for Alternative Trade Instruments

The Support for Alternative Trade Instruments intervention was first notified under Trade Notice No. 25/2025-26 dated 20 February 2026. It offers support for export factoring, where a factor advances money against an exporter’s receivables so that the exporter does not have to wait for the overseas buyer to pay.

Trade Notice No. 32/2026-27 amends and clarifies the Operational and Procedural Guidelines (Annexure-II) and the Application Procedure (Annexure-IV) of that earlier notice. All other provisions of the earlier notice remain unchanged, including the important details outlined in the DGFT Trade Notice 32/2026-27.

Key Change: UIN Requirement Discontinued

Earlier, an exporter had to submit a declaration of intent and obtain a UIN before using the factoring facility. That requirement is gone:

• Paras (a) to (e) of Annexure-IV and the Intent to Claim Form stand deleted.
• No declaration of intent or UIN is needed to avail support.
• The exporter is identified by its Importer Exporter Code (IEC) at every stage: application, claim and disbursal.
• UINs already generated cease to have effect.

If you had obtained a UIN, you do not need to use it any further. The IEC is now your reference.

Eligible Factoring Modalities

The notice specifies three modalities, each with its own data filing trigger:

Modality	How it works	When the factor files data
M1: Advance Factoring	Advance paid upfront; interest deducted at disbursement or accrued over the advance period	One record per tranche, after buyer payment
M2: Revolving Factoring Facility	Advance on a revolving basis; interest on the average outstanding balance per billing period	One record per billing period, after that period closes
M3: Advance Factoring with Bullet Interest	Advance paid upfront; interest deferred and charged in full at buyer settlement	One record per tranche, after buyer payment

Under M2, the actual buyer payment date must be furnished when the invoice is closed. Subvention is calculated only after this date is provided.

Claim and Disbursal Procedure

The process now has two stages: the factor uploads, and the exporter reviews and claims.

Step 1: Factor uploads transaction data

• The factor registers on the DGFT portal (dgft.gov.in) before uploading any data.
• It then goes to My Dashboard → Factoring Application Room → Start Fresh Application and uploads transaction-level data using the prescribed template.
• The upload counts as an IEC-wise subvention claim filed by the factor on behalf of the exporter, and each record is tagged to the exporter concerned.
• The data must be uploaded within one month of the relevant filing trigger.

Step 2: Exporter reviews and files the claim

• The exporter logs in to the DGFT portal and goes to Services → Export Promotion Mission → Support for Alternative Trade Instruments → Apply for Claim of Support.
• The transaction records uploaded by the factor appear against the exporter’s IEC.
• The exporter should review each record and disable or delete any transaction for which a claim is not eligible or is not intended to be made.
• The exporter then confirms the eligible records and files the claim online with digital authentication and the required declaration.
• Claims are filed monthly in consolidated form, and not later than two months from the date the factor uploaded the data.

Step 3: Approval and credit

Once the Competent Authority approves the claim, the sanctioned subvention is credited to the bank account linked to the exporter’s IEC. Exporters should confirm that the bank details linked to their IEC are current.

Earlier transactions

For transactions that took place before the date of the notice, the one-month and two-month timelines are counted from the date of the Trade Notice, not from the original filing trigger or upload date.

Eligibility: The Date of Export Is Decided by the EGM

Support is available only for exports made on or after 20 February 2026. The notice clarifies how that date is determined: it is the date of filing of the Export General Manifest (EGM) that contains the relevant shipping bill.

Exporters should therefore keep the EGM filing date handy and not rely only on the shipping bill date or the invoice date.

The notice also provides that:

• Eligible claims for export factoring transactions on or after 20 February 2026 can be filed from the date the portal is operationalised for this intervention.
• The claim filing time limits apply prospectively from that date, and they do not bar claims for transactions between 20 February 2026 and the date of portal operationalisation.

Claiming Together With Interest Subvention

An eligible MSME exporter availing Interest Subvention for Pre- and Post-Shipment Export Credit (Trade Notice No. 20/2025-26 dated 2 January 2026) can also claim support under the factoring intervention, and the reverse is also true. The conditions are:

1. No double claim on the same item. An invoice or export receivable financed through factoring and claimed under this support cannot also be claimed as a post-shipment export credit under the interest subvention intervention. The same interest cost cannot be claimed under both.
2. Separate annual ceilings. The annual ceilings apply separately and independently to each intervention.
3. Recovery and penalty for duplicate claims. A duplicate or excess claim makes the exporter liable to full recovery with interest and to penal action under the Foreign Trade (Development and Regulation) Act, 1992.

For exporters who use both export credit and factoring, accurate invoice-wise records are essential.

Practical Points for Exporters

• Stop using the UIN. Use your IEC for all steps.
• Check your factor’s registration. The factor must be registered on the DGFT portal before it can upload data.
• Review the uploaded records. Delete or disable any transaction you do not want to claim or that is not eligible.
• Track deadlines. Factor uploads are due within one month of the trigger, and exporter claims within two months of the upload.
• Reconcile with your books. Match factoring advances, interest charged and buyer receipts with your accounts before filing.
• Avoid overlap. If you also use pre- or post-shipment credit subvention, keep a record showing which invoices were claimed under which intervention.
• Confirm portal status. Check whether the facility is live on the DGFT portal before relying on any timeline.

Frequently Asked Questions (FAQ)

1. What has Trade Notice 32/2026-27 changed?
It discontinues the UIN and declaration of intent requirement for export factoring support under EPM – Niryat Protsahan. It also clarifies the factoring modalities, filing triggers, claim procedure, the eligibility date and the concurrent availability of interest subvention.

2. Do I still need a UIN to claim export factoring support?
No. The Intent to Claim Form and the UIN requirement are deleted, and UINs already generated cease to have effect. You are identified by your IEC.

3. Which factoring arrangements are covered?
Three modalities: M1 (advance factoring with interest deducted upfront or accrued), M2 (revolving factoring with interest on the average outstanding balance) and M3 (advance factoring with bullet interest paid at buyer settlement).

4. Who uploads the transaction data, and when?
The factor, on the DGFT portal, within one month of the applicable filing trigger.

5. What is the exporter’s deadline for filing a claim?
The exporter files consolidated claims monthly, and not later than two months from the date the factor uploaded the relevant data.

6. Which exports are eligible?
Exports made on or after 20 February 2026. The date of export is taken as the date of filing of the EGM containing the shipping bill.

7. Can I claim both factoring support and interest subvention on export credit?
An eligible MSME exporter can, but the same invoice, receivable or interest cost cannot be claimed under both. Annual ceilings apply separately to each.

8. What happens if I make a duplicate or excess claim?
The amount will be recovered in full with interest, and penal action can follow under the Foreign Trade (Development and Regulation) Act, 1992.

9. Where will the subvention amount be paid?
In the bank account linked to the exporter’s IEC, after the claim is approved by the Competent Authority.

10. What if my factoring transactions are older than the notice?
For transactions before the date of the Trade Notice, the filing timelines are counted from the date of the notice. Eligible claims for transactions from 20 February 2026 can be filed once the portal is operational.

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Conclusion

Trade Notice 32/2026-27 makes export factoring support easier to access by removing the UIN step and setting out a clear process for factors and exporters. The main points to remember are the IEC-based identification, the one-month and two-month timelines, the EGM-based eligibility date, and the rule against claiming the same invoice or interest cost under two interventions.

Disclaimer: This article is for general information based on DGFT Trade Notice No. 32/2026-27 dated 26 October 2026. Please refer to the original notice and the DGFT portal for the latest position, and consult a professional before filing claims.