UP Textile and Garmenting Policy 2022- Freight Reimbursement

Key Features

• Reimbursement of container-freight cost from unit to port: This means if your garmenting unit in Uttar Pradesh exports goods and ships via container from your unit’s location to an export port, you may claim reimbursement of a portion of that freight cost under this policy.
• Five-year benefit period: Once your garmenting unit begins export operations (subject to eligibility under the policy), you can claim this freight reimbursement benefit for up to five years. This gives you a multi-year aid window to reduce logistics cost and improve competitiveness.
• Reimbursement Schedule (75% → 50% → 25%): The incentive is front-loaded: for years 1-2 you can claim up to 75% of eligible freight cost, for years 3-4 up to 50%, and for year 5 up to 25%. This declining scale encourages early export scaling.
• For export-oriented garmenting units in UP: The policy targets garmenting units (textile & apparel manufacturing) in Uttar Pradesh which are engaged in export activities. This is to promote the exports of garments from the state by offsetting the extra logistic burden (due to land-locked state and distance from ports).

Financial Assistance

Eligibility Criteria

Who Can Apply:

• Garmenting units newly established in Uttar Pradesh under the Textile & Garmenting Policy 2022. 
• Units which export garment products and incur container freight costs from unit to a designated port. 
• Units not availing similar freight-cost incentives under the Uttar Pradesh Export Promotion Policy 2020‑25 (or other conflicting scheme) for the same cost. 

Who Cannot Apply:

• Units located outside Uttar Pradesh.
• Garmenting units that are not new (i.e., existing units not eligible under “new unit” definition) unless otherwise specified.
• Units that are already receiving freight reimbursement under another scheme for the same freight cost (duplication prohibited). 
• Units that do not export or incur container freight from unit to port as per the policy’s requirement.

Documents Required

• Certificate of incorporation / registration of the garmenting unit in Uttar Pradesh.
• Letter of Comfort (LoC) or registration under the Textile & Garmenting Policy 2022.
• Export documentation showing garment exports from the unit.
• Invoices / receipts for container freight cost from unit to seaport.
• Proof of freight shipment (bill of lading, container number, etc.).
• Bank statements showing payment of freight costs.
• GST/PAN details of the unit.

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations. 

Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.
 

Option 2: Apply via Government Portal

1. Visit the official portal of the Department of Handloom & Textiles / Invest UP under the Textile & Garmenting Policy 2022
2. Register your unit under the policy and select the Freight Reimbursement component.
3. Fill out the application form and attach required documents (see below).
4. Submit. The nodal agency verifies eligibility and freight cost details, and issues a sanction / reimbursement order.

Option 3: Single Window / District Industry Office

1. Submit the application via the district industry center or state single‐window system.
2. The application is forwarded to the state nodal agency for review, approval and disbursement.

Power Combos with The Scheme

• UP Textile and Garmenting Policy 2022- Subsidy for Infrastructure
• U.P. Handlooms, Powerlooms, Silk, Textile & Garmenting Policy 2017