Last Updated: October 27, 2026 by Pratham Agarwal, Rasp International
The short answer
LIFT (Facilitating Logistics Interventions for Freight and Transport) lets a Micro, Small or Medium Enterprise (MSME) exporter claim back up to 30 percent of its pre-tax inland freight to a port or depot, within Rs 20 lakh per Importer Exporter Code (IEC) a financial year, under Directorate General of Foreign Trade (DGFT) Trade Notice No. 29/2025-26 dated 20 February 2026. Its Annexures V and VI cover only 13 states and union territories and 28 products. Uttar Pradesh is not covered.
The rule that decides everything: file the online Intent-to-Claim before you book the truck or train, because Annexure II para 3(b) of Trade Notice No. 29/2025-26 asks for it “prior to obtaining transportation services”.
Verified as on 27 October 2026 against DGFT Trade Notice No. 29/2025-26 dated 20 February 2026 and its Annexures I to VI, DGFT trade notices up to No. 32/2026-27 dated 26 October 2026, DGFT Notification No. 41/2026-27 dated 30 September 2026 and Uttar Pradesh Government Orders No. 828/18-4-2025 and No. 829/18-4-2025 dated 6 November 2025. Written by Pratham Agarwal, Founder, Rasp International.
Up to 30%
of eligible pre-tax freight paid back, Trade Notice 29/2025-26 Annexure II para 2(c)
Rs 20 lakh
ceiling per IEC per financial year, Annexure II para 2(b)
200 km
minimum distance to the port or depot, Annexure II para 1(e)
13
states and union territories covered, all districts, Annexure V
| Scheme | Facilitating Logistics Interventions for Freight and Transport (LIFT) |
|---|
| Part of | Niryat Disha, Export Promotion Mission (EPM) |
|---|
| Run by | EPM Section, DGFT (Annexure III para 2); claims paid by the DGFT Regional Authority (Annexure IV item d) |
|---|
| Legal basis | DGFT Trade Notice No. 29/2025-26 dated 20 February 2026, a pilot (notice para 4) |
|---|
| Who it is for | MSMEs with an active IEC and Udyam Registration in Annexure V states and union territories, exporting Annexure VI products |
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| What you get | Up to 30 percent of pre-tax freight, counted up to 20 percent of Free on Board (FOB) value |
|---|
| Cap | Rs 20 lakh per IEC per financial year |
|---|
| Validity or window | Intent before transport; claim within six months of it (paras 3(b) and 3(d)) |
|---|
| Where you apply | Online: Annexure IV names the DGFT portal; the DGFT LIFT page links to trade.gov.in |
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Exporting from Uttar Pradesh: Annexure V of Trade Notice No. 29/2025-26 does not list Uttar Pradesh, so a unit there cannot claim LIFT. The state pays its own support under Government Order No. 828/18-4-2025 dated 6 November 2025 (see our UP port freight subsidy guide) and Government Order No. 829/18-4-2025 of the same date (see our UP air freight subsidy guide).
Why this page exists
LIFT is easy to mistake for a national inland freight subsidy. Annexure V of Trade Notice No. 29/2025-26 covers only 13 states and union territories in the North East, the Himalayan belt and Bihar. Freight already paid cannot be claimed either, because the Intent-to-Claim must come first (Annexure II para 3(b)).
Bare paragraph numbers on this page refer to Annexure II of that notice. Rasp International is an ISO 9001:2015 certified export and import (EXIM) and DGFT advisory firm founded in 2019 that has served 500 plus exporters.
What LIFT is
LIFT is a freight reimbursement scheme that pays back part of the inland freight cost for MSME exporters in hinterland districts, run by the EPM Section of DGFT under Niryat Disha of the Export Promotion Mission. Paragraph 2 of the notice aims it at low export intensity areas.
A Sub-Committee on Warehousing and Logistics, chaired by the Additional DGFT in charge of the EPM Division, recommends the districts, products, rates and ceiling (Annexure III paras 1(c) and 1(e)), so the lists can change. Claims are filed online: Annexure IV item c names the DGFT portal, and the DGFT LIFT page links its apply button to the Trade Connect ePlatform (trade.gov.in). The wider map is on our Export Promotion Mission page and in our guide to every EPM trade notice.
What you get
| Item | What LIFT pays or does not pay | Source |
|---|
| Rate | Up to 30 percent of eligible freight, excluding taxes | Para 2(c) |
| Eligible freight | Actual pre-tax freight or the notified cost, whichever is lower | Para 2(a) |
| FOB cap | Freight counted only up to 20 percent of the FOB value | Para 2(d) |
| Yearly ceiling | Rs 20 lakh per IEC per financial year | Para 2(b) |
| Road and rail | Premises to an Inland Container Depot (ICD), Container Freight Station (CFS), sea port or Air Cargo Complex (ACC) | Para 1(c)(i) |
| Air | Also supported for districts from the “Northeastern regions” | Para 1(c)(ii) |
| Not paid | Taxes on freight, deemed exports and exports to a Special Economic Zone (SEZ) | Paras 2(a), 2(c) and 2(e) |
Illustrative example. A Bihar unit ships makhana worth Rs 10,00,000 FOB and pays Rs 1,20,000 plus tax to truck it to a sea port over 200 km away. The freight is under 20 percent of FOB, so LIFT may pay Rs 36,000. Had the goods been worth Rs 4,00,000 FOB, freight would count only up to Rs 80,000 and LIFT may pay Rs 24,000, subject to the notified cost and approval.
Who can apply and who cannot
Only units in the 13 Annexure V states and union territories qualify, and Uttar Pradesh is not one of them.Who can apply
- An MSME with an active IEC not on the Denied Entity List and a valid Udyam Registration Number (para 1(b)).
- A unit from any district of the 13 Annexure V states and union territories, with exports originating there (paras 1(a) and 1(b)).
- Exporting an Annexure VI product, described in line with the list (paras 1(d) and 4(c)).
- A unit that outgrew MSME size, for three years from re-classification (para 2(g)).
Codes are the ITC(HS) codes (Indian tariff codes) as Annexure VI prints them.
| Group | Annexure VI products and ITC(HS) codes |
|---|
| Fruit and nuts | Walnuts 08023100, pineapple 08043000, mandarin oranges 08051000, lemons 08055000, kiwi fruit 08105000, litchi 08109060, makhana (fox nuts) 08109090, apples fresh and processed 08081000 or 20079940 |
| Spices | Large cardamom 09083100, Mizo ginger 09101100, saffron 09102000, mixed spices 09109990, chillies such as King Chilli and Bhut Jolokia 09042110 or 09042210, cinnamon 09061100 or 09061900 |
| Cereals and processed food | Millet and other cereals 10082100 or 10082900, bakery products 19059000, jams, jellies and fruit puree 20079900, pickles and preserved fruit or vegetables 20019000 or 20079900, fruit based processed products 20079900 or 20089900 |
| Crafts | Incense sticks (agarbatti) 33074100, bamboo articles 46021100, wooden handicrafts 44200000 or 44209090, handmade carpets and floor coverings 57010000 to 57050000 |
| Silk and textiles | Ryndia silk textiles and Mizo silk fabric 50079000, Muga silk 50010000, 50020000 or 50030000, Kullu, Pashmina and Shaphee Lanphee shawls 62142010, knitted socks and gloves 61150000 or 61160000 |
Who cannot apply
- A unit outside the 13 Annexure V states and union territories, including every unit in Uttar Pradesh.
- Deemed exports under Chapter 7 of the Foreign Trade Policy (FTP) and exports to an SEZ (para 2(e)).
- Transport availed before 20 February 2026 (para 2(i)) or obtained before the Intent-to-Claim (para 3(b)).
Documents that get it through
LIFT freight counts only when the origin and the port or depot are at least 200 km apart.| Document | What the authority checks | The mismatch that brings a query or rejection |
|---|
| Intent-to-Claim and its Unique Identification Number (UIN) | Filed before transport was obtained; the UIN is generated on submission (para 3(b); Annexure IV item a) | An Intent dated after the transport booking or invoice |
| Transport invoice | Road or rail freight from your premises to an ICD, CFS, port or ACC (paras 1(c)(i) and 4(d)(i)) | Tax not shown separately, another pickup point or a destination under 200 km away |
| Proof of payment | That the MSME paid: Annexure I para 2(a) covers freight cost “incurred by MSMEs” (para 4(d)(ii)) | Freight paid by the buyer’s forwarder, or a different amount |
| Shipping bill | The export (para 3(c)), the FOB value for the 20 percent cap (para 2(d)) and a description aligned with Annexure VI (para 4(c)) | A code or description outside Annexure VI; see our shipping bill guide |
| E-way bill | The movement of the same goods, attached for continuous tracking (para 4(d)(iv)) | Goods, dates or origin that differ from the invoice and shipping bill |
| Self-declaration | No other central, state or third-party benefit for the same expenditure (para 3(c)(iii)) | The same freight bill also filed under a state scheme |
| IEC record | An active IEC and its bank account, where the money is paid (paras 1(b) and 4(b)) | An IEC deactivated for a missed April to June update (FTP 2023 para 2.05(d) and (e)) or an outdated bank account (Handbook of Procedures 2023 para 2.14(b)); see our IEC guide |
How to apply, stage by stage
Before you apply
1
Pass the three tests
State in Annexure V, product in Annexure VI and a haul of at least 200 km (paras 1(a), 1(d) and 1(e)).
2
Put the IEC in order
Finish the yearly IEC update and check its bank account, where payment goes (para 4(b)).
3
Settle who pays the haulage
Only freight incurred by the MSME counts (Annexure I para 2(a)).
Filing
4
File the Intent-to-Claim
Submit it online before you book transport and note the UIN (Annexure IV item a).
5
Export, then file the Reimbursement Claim
Tag the UIN and attach the four mandatory documents and the self-declaration (paras 3(c) and 4(d)). Claims go quarterly to the jurisdictional DGFT Regional Authority (para 4(a)).
After filing
6
Examination and payment
The Regional Authority examines, approves and pays into the IEC bank account (Annexure IV item d), with no processing time or appeal route printed. Find your office on the DGFT Regional Authority list.
The lapse rule: an Intent lasts to the end of the financial year or 12 months from submission, whichever is earlier (para 3(b)), and supports a claim for six months from issue (para 3(d)). No revival route is printed, so claim inside six months.
Freight to book from a LIFT state but no Intent filed yet
Send us your district, ITC(HS) code and destination port or depot. We check them against Annexures V and VI and the 200 km rule, and tell you plainly if LIFT will not pay.
Where claims go wrong
These patterns come from the notice, not from client cases.
| Failure | What you see | What actually broke |
|---|
| Truck booked first, Intent filed later | No valid Intent to tag | Para 3(b) puts the Intent before transport is obtained |
| Product code outside Annexure VI | Claim not admissible for that shipment | Paras 1(d) and 4(c) tie support to the Annexure VI list |
| Freight claimed with Goods and Services Tax (GST) | Amount cut | Paras 2(a) and 2(c) count freight excluding taxes |
| Claim filed seven months after the Intent | Intent no longer usable | Para 3(d) gives six months from issue |
| Same freight under a state scheme | Self-declaration untrue | Para 3(c)(iii) bars the same expenditure under any other scheme |
| Buyer’s forwarder paid the haulage | No payment proof from the unit | Annexure I para 2(a) covers freight incurred by the MSME |
How LIFT fits with other schemes
One line governs every combination: under para 3(c)(iii), each claim declares that no other central or state scheme or third party pays for the same expenditure.
| Scheme | What it pays for | How it sits with LIFT |
|---|
| Uttar Pradesh Government Order No. 828/18-4-2025 | Freight to the gateway port: Rs 20,000 per 20 foot or Rs 40,000 per 40 foot container, or 30 percent of freight, whichever is less, up to Rs 30 lakh a year (its paragraph 1) | The route for Uttar Pradesh units, which LIFT leaves out |
| Uttar Pradesh Government Order No. 829/18-4-2025 | 30 percent of air freight or Rs 150 per kg, whichever is less, up to Rs 10 lakh a year (its paragraph 3) | The air route for Uttar Pradesh units |
| A freight scheme of an Annexure V state | Set by that state’s own order | One scheme per freight bill; check with your state’s export promotion office first |
| RoDTEP (Remission of Duties and Taxes on Exported Products) | Un-refunded duties and taxes on the exported product (FTP 2023 para 4.54(i)), continued to 31 December 2026 by DGFT Notification No. 41/2026-27 | A different cost, and the LIFT notice does not name RoDTEP. See our RoDTEP scheme page |
| FLOW (Facilitating Logistics, Overseas Warehousing and Fulfilment) | 30 percent of an overseas warehouse proposal’s cost, up to Rs 10 crore a year, for listed entities such as Export Promotion Councils, logistics firms and associations (Trade Notice No. 28/2025-26 Annexure II paras 2(b) and 4(a)) | A cost abroad, funded as an approved project, not per shipment; see our FLOW page |
What LIFT will not do
1
It will not pay outside the two lists
No state outside Annexure V (Uttar Pradesh included) and no product outside Annexure VI, until a new notice adds them.
2
It will not pay for freight already moved
Transport before 20 February 2026 (para 2(i)) or before the Intent-to-Claim (para 3(b)) stays outside LIFT.
3
It will not pay the whole bill or on a set date
At most 30 percent of pre-tax freight, within 20 percent of FOB and Rs 20 lakh a year, on no printed timeline.
How Rasp International handles LIFT
When a unit engages us, we prepare and file the Intent-to-Claim and Reimbursement Claim end to end, always in the unit’s own name. Units that prefer to file themselves can do so with our guidance. We sign a non-disclosure agreement (NDA) and a service level agreement (SLA) with every client.
The client and we both hold the portal logins, kept safe and confidential. Documents stay in encrypted storage. We give an authority letter only on request. We hold no customs broker (CHA) licence; licensed CHA partners across India handle customs clearance. Read how we work or see our freight advisory and export logistics services.
Shipping from a hill, border or North East district
Tell us the district, product and route to the port. We tell you which scheme, if any, may pay and what to file first.
What Is Not Yet Notified, Checked on 27 October 2026
- The “notified cost” in para 2(a): no rate per route or mode is published. Check with the EPM Section of DGFT.
- Which Intent period governs a claim filed between month six and month twelve, para 3(b) or para 3(d). Check with your jurisdictional DGFT Regional Authority.
- How the 200 km is measured, which districts count as “Northeastern regions” for air support and which flight leg is covered. Check with your jurisdictional DGFT Regional Authority.
- Whether heading level entries such as 44200000 and 57010000 to 57050000 cover every tariff line under them. Check with the EPM Section of DGFT.
- Whether “MSMEs from the districts” (para 1(b)) means the Udyam address, the IEC address or the factory, and whether merchant exporters qualify. Check with your jurisdictional DGFT Regional Authority.
- Portal screens and field names (DGFT help pages hold no LIFT user guide). Check with the EPM Section of DGFT.
- New states or products: no trade notice up to No. 32/2026-27 dated 26 October 2026 changes LIFT. Check with the EPM Section of DGFT.
Frequently asked questions
What is the LIFT scheme of DGFT?
LIFT, or Facilitating Logistics Interventions for Freight and Transport, is a DGFT scheme under Niryat Disha of the Export Promotion Mission. Launched by Trade Notice No. 29/2025-26 dated 20 February 2026, it repays eligible MSME exporters in 13 states and union territories part of their inland freight, subject to approval.
Which states are covered under the LIFT scheme?
Annexure V of Trade Notice No. 29/2025-26 covers all districts of Assam, Arunachal Pradesh, Himachal Pradesh, Jammu and Kashmir, Ladakh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Uttarakhand and Bihar. No other state or union territory is listed, and no trade notice up to No. 32/2026-27 dated 26 October 2026 adds one.
Is Uttar Pradesh covered under the LIFT scheme?
No. Uttar Pradesh is not in Annexure V of Trade Notice No. 29/2025-26, so a unit there cannot claim LIFT. Uttar Pradesh exporters may be able to claim state support instead, under Government Order No. 828/18-4-2025 for freight to the gateway port and Government Order No. 829/18-4-2025 for air freight.
Which products are eligible for LIFT freight support?
Annexure VI lists 28 entries by ITC(HS) code, among them walnuts, pineapple, makhana, large cardamom, saffron, apples, chillies, millets, pickles, incense sticks, bamboo articles, wooden handicrafts, handmade carpets, silk, shawls and knitted socks. The claim must describe the product in line with that list (para 4(c)).
How much freight does LIFT reimburse?
Annexure II of Trade Notice No. 29/2025-26 pays up to 30 percent of pre-tax freight, counting the actual freight or the notified cost if lower, and never more than 20 percent of FOB value (paras 2(a) to 2(d)). The ceiling is Rs 20 lakh per IEC per financial year.
Does LIFT apply if the port is less than 200 km away?
No. Annexure II para 1(e) of Trade Notice No. 29/2025-26 allows support only where origin and destination are at least 200 km apart for movements to an ICD, CFS, air cargo complex or seaport. The notice does not say how distance is measured, so check with your Regional Authority.
When should I file the LIFT Intent-to-Claim?
Before you obtain the transport, as Annexure II para 3(b) of Trade Notice No. 29/2025-26 requires. The safe practice is to file it before you book the truck or rail wagon, so no freight falls outside the rule. Transport availed before 20 February 2026 never qualifies (para 2(i)).
How long is a LIFT Intent-to-Claim valid?
Para 3(b) keeps an Intent-to-Claim valid until the end of the financial year or 12 months from submission, whichever is earlier. Para 3(d) keeps it valid for filing the Reimbursement Claim for six months from issue. The safe reading is to file each claim within six months of the Intent.
Can I claim LIFT and a state freight subsidy on the same freight?
Not on the same expenditure. Annexure II para 3(c)(iii) of Trade Notice No. 29/2025-26 requires a self-declaration that no benefit has been or will be claimed for that expenditure under any other central or state scheme or third-party assistance. Choose one scheme for each freight bill.
Can I claim LIFT and RoDTEP on the same shipment?
Trade Notice No. 29/2025-26 does not name RoDTEP. RoDTEP refunds un-refunded duties and taxes on the exported product under FTP 2023 para 4.54, while LIFT pays part of the freight, a different cost. The LIFT bar is on the same expenditure, so check with your Regional Authority if in doubt.
Sources
- Tier 1. DGFT Trade Notice No. 29/2025-26 dated 20 February 2026, LIFT guidelines with Annexures I to VI: content.dgft.gov.in.
- Tier 1. DGFT LIFT page: dgft.gov.in; trade notice list up to No. 32/2026-27 dated 26 October 2026: DGFT trade notices.
- Tier 1. DGFT Trade Notice No. 28/2025-26 dated 20 February 2026, FLOW guidelines: content.dgft.gov.in.
- Tier 1. DGFT Notification No. 41/2026-27 dated 30 September 2026 (RoDTEP continued): DGFT notifications.
- Tier 1. Foreign Trade Policy 2023 paras 2.05 and 4.54 and Handbook of Procedures 2023 para 2.14: dgft.gov.in.
- Tier 1. Uttar Pradesh Government Orders No. 828/18-4-2025 and No. 829/18-4-2025 dated 6 November 2025, in Hindi: UPEPC government orders page.
This is general guidance. Rules change. Check the current notification or trade notice, or speak to us, before you act.
Related: Export Promotion Mission schemes | FLOW overseas warehousing support | TRACE certification cost support