Introduction to MEIS
Merchandise Exports from India Scheme (MEIS) was introduced in 2015 with the objective to offset infrastructural inefficiencies and associated costs involved in export of goods/products, which are produced/manufactured in India, especially those having high export intensity and employment potential to enhance India's export competitiveness.
Export of more than 4000 Items are eligible to get benefit under MEIS. For the first time exports from SEZ also are covered under this incentive scheme.
There were 5 different Export Promotion Schemes in FTP 2009-2014 for promoting exports of Goods, which is now merged into Merchandise Exports from India Scheme (MEIS)
Introduction to MEIS
Merchandise Exports from India Scheme (MEIS) was introduced in 2015 with the objective to offset infrastructural inefficiencies and associated costs involved in export of goods/products, which are produced/manufactured in India, especially those having high export intensity and employment potential to enhance India's export competitiveness.
Export of more than 4000 Items are eligible to get benefit under MEIS. For the first time exports from SEZ also are covered under this incentive scheme.
There were 5 different Export Promotion Schemes in FTP 2009-2014 for promoting exports of Goods, which is now merged into Merchandise Exports from India Scheme (MEIS)
Merchandise Exports
From India Scheme
Focus Product Scheme
Focus Market Scheme
Market Link Focus Product Scheme
Agriculture Infrastructure Incentive Scrip
Vishesh Krishi and Gram Udoyg Yojna
Merchandise Export
from India scheme
(MEIS)
Reward, Benefits, &Eligibility under MEIS
MEIS Reward
MEIS Rewards are in the form of Duty Credit Scrip for exports effected on or after 01.04.2015
Benefits of MEIS
Benefit of MEIS is eligible to Export of Notified Goods and Export to Notified of such goods.
Eligible Categorise under MEIS
Appendix 3B of Foreign Trade Policy 2015-20, gives list of Notified Goods, Specified Market & Rate of Reward on such goods.
Reward, Benefits, &Eligibility under MEIS
MEIS Reward
MEIS Rewards are in the form of Duty Credit Scrip for exports effected on or after 01.04.2015
Benefits of MEIS
Export of Notified Goods and Export to Notified Market of such goods.
Eligible Categorise under MEIS
Appendix 3B of Foreign Trade Policy 2015-20, gives list of Notified Goods, Specified Market & Rate of Reward on such goods.
inEligible Categorise under MEIS
EOUs / EHTPs / BTPs/ STPs who are availing direct tax benefits / exemption; Supplies made from DTA units to SEZ units; Deemed Exports; Exports made by units in FTWZ; SEZ/EOU/EHTP/BPT/FTWZ products exported through DTA units,
Export of imported goods covered under paragraph 2.46 of FTP; Goods which are restricted or prohibited for exports, unless specifically notified in Appendix 3B
Exports through trans-shipment, Export products which are subject to Minimum export price or export duty.
Diamond Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones.
Products wherein precious metal/diamond are used or Articles which are studded with precious stones.
Ores and concentrates of all types and in all formations; Red sanders and beach sand.
Cereals of all typed, Sugar of all types and all forms, Export of milk and milk products, Export of Meat and Meat Products.
Crude / petroleum oil and crude / primary and base products of all types and all formulations.Service Exports.
Calculation of Reward / Benefits
The basis of calculation of reward would be on:
Realised FOB value of exports in Free Foreign Exchange OR;
FOB Value of exports as given in the Shipping Bills in Free Foreign Exchange, whichever is LESS
Validity of MEIS
The scrip so rewarded under this scheme shall be valid for a period of 24 months from the date of its issue. The scrip should be valid on the date of actual debit.
Transferability
MEIS is freely transferable i.e. an exporter can transfer the scrip he obtained, to any other person as per Para 3.02 of FTP
Utilisation
MEIS can be used for payment of:
(i) Basic Customs Duty and Additional Customs Duty specified under Sections 3 (1), 3 (3) and 3 (5) of the Customs Tariff Act
(ii) Central Excise Duties on Domestic Procurement of Inputs or Goods
(iii) Fee as per Paragraph 3.18 of the FTP 2015 -20
MEIS cannot be used for payment of:Any GST and related Cess on Imports as well as Domestic Procurements
Time limit for application under MEIS
Last Date for Filing Applications for Duty Credit Scrip under MEIS shall be:
Later of:
1) 12 months from the Let Export Order (LEO) Date OR
2) 3 months from the date of :
a) Uploading of EDI shipping bills onto the DGFT server by Customs
b) Printing/ release of shipping bills for Non EDI shipping bills.
Frequently Asked Questions
(FAQ's)
Duty Credit Scrip (DCS) are scrip given to eligible exporters as a reward by the Govt. of India and issued by the DGFT as per guidelines under the Foreign Trade Policy.
As the name suggests, DCS is a scrip (document) that allows the holder/ transferee to pay the Duty levied at the time of Import, up to the value of the credit mentioned on the scrip.
Exporters of Goods as well as Services are eligible for these Duty Credit Scrip (DCS).
MEIS is the DCS reward given to Exporter of Goods and SEIS is the DCS reward given to Exporter of Services.
The MEIS eligible goods and their respective rates are mentioned in Appendix 3B, Table 2 and updated by DGFT from time to time.
To know more schedule call my with your FTP Expert
Application for MEIS needs to be done online on DGFT’s website with the concerned RA in Aayat Niryat Form (ANF) 3A using Digital Signature by linking the E-BRC and the relevant Shipping Bills with the Online Application. We at ‘Vivid’ can assist you in the process of filing an MEIS Application.
Revalidation of MEIS Scrip is not permitted unless validity has expired while in custody of Customs Authority /RA.
Revalidation of MEIS Scrip shall not be permitted unless covered under paragraph 2.20(c) of the Handbook of Procedures (HBP) of the FTP 2015-2020 .
MEIS can be used for payment of:
(i) Basic Customs Duty and Additional Customs Duty specified under Sections 3 (1), 3 (3) and 3 (5) of the Customs Tariff Act
(ii) Central Excise Duties on Domestic Procurement of Inputs or Goods
(iii) Fee as per Paragraph 3.18 of the FTP 2015 -20
MEIS cannot be used for payment of:
Any GST and related Cess on Imports as well as Domestic Procurements
Last Date for Filing Applications for Duty Credit Scrip under MEIS shall be:
Later of:
1) 12 months from the Let Export Order (LEO) Date OR
2) 3 months from the date of :
a) Uploading of EDI shipping bills onto the DGFT server by Customs
b) Printing/ release of shipping bills for Non EDI shipping bills.
The unprecedented situation has brought in grave challenges for businesses.
The last date for filing MEIS claims is 1 year from the Let Export Order (LEO) date of each Shipping Bill, and another 2 years beyond that with imposition of a late cut. In view of the Covid-19
situation, the Govt. has announced the last date of filing MEIS claims without late cut for all Shipping Bills for which the initial one-year period expired / will be expiring on or after 1st Feb
2020 and on or before 31st May 2020, has been extended by 3 months beyond the expiry date of the initial one-year period.
SEIS Scrip is freely transferable i.e. an exporter can transfer the scrip he obtained, to any other person as per Para 3.02 of FTP
Transfer of Duty Credit Scrip under HSN 4907 attracts “NIL” GST Rate as notified under GST Rules. [IGST Notification No. 36/2017 – Integrated Tax(Rate) Dt. 13.10.2017]
It was required that in order to claim the Benefits under the MEIS Scheme, the Reward Column of the Shipping Bill should be marked “Yes” and the Reward Column must also mention the Wording as “We intend to claim the Benefits under Merchandise Exports from India Scheme as per FTP 2015-2020 ” which is the ‘Declaration of Intent’.
In case of Reward Scheme filled as “No” one cannot claim the MEIS Benefit for the relevant shipment even if it is notified under Appendix 3B for eligible benefits.
Yes, in order to use the Scrip in lieu for payment of eligible duties on import, it’s a must that the Scrip is registered at the Customs. The Scrip cannot be used without registration at Customs.
Yes, one can sell an unregistered scrip.
The unregistered scrip would usually fetch a comparative lesser price as the additional registration expenses and time would now become a cost to the transferee of such scrip.
Duty Credit Scrips are usually sold at a Discount.
Assuming there is a Scrip for a Value of Rs.1,000 and it is being sold at a price of say Rs. 900,
then on after purchase of such a scrip (at the discounted price) you can utilise this Scrip for paying
your Import Duty upto Rs. 1,000 at Customs (when you have actually paid only Rs. 900 for
purchase of it), thus saving you Rs. 100 on your import costs.
It’s like someone is offering you a Rs. 100/- note at a discounted price of Rs. 90/- and you are
entitled to utilise the entire value of Rs. 100/- on such purchase.
The prices for the scrips are very dynamic and fluctuate constantly depending on the demand and
supply conditions in the market. The above prices are for an illustrative purpose only.
Please schedule my call with your team to know more on the Savings using ‘Duty Credit Scrip’
The savings under Duty Credit Scrip may change from time to time, depending upon the demand/ supply situation at the time of import.
In any case; use of Duty Credit Scrip for your import clearances will definitely be more advantageous than paying Duty under Merit i.e. Cash Duty Payment directly to Customs vide RTGS.
Please schedule my call with your FTP Experts to know the current Savings using ‘Duty Credit Scrip’
No, unutilized/balance value cannot be returned to the Govt.
It can however be used to offset your Customs Duty on any other imports uptil the validity of the scrip. Alternately, the unutilized portion of the Scrip can also be sold to any other Buyer/ Importer.
Is there any hidden charges, in the Sale/ Purchase of my MEIS Scrip?
There are no hidden charges in Sale/ Purchase of your Scrip through ‘Vivid’.
The prices quoted to you for purchase/ sale, will be nett and inclusive of our charges.
Please schedule my call to know the Best Prices on Monetisation for my MEIS
Yes, only the following 6 commodities exported by Post /Courier through e-commerce are eligible for a reward under the MIES viz. (i) Handicraft Items or Products (ii) Handloom Products (iii)
Books/Periodicals (iv) Leather Footwear (v) Toys (vi) Customised Fashion Garments
Export of goods through courier/ post using e-commerce of FOB value up to Rs.25000 per consignment will be entitled to rewards under MEIS.
If the value of exports using the e-commerce platform is more than Rs.25000 per consignment, then MEIS reward will be limited to FOB value of Rs.25000 only.
Goods/Products can be exported in manual mode through Foreign Post Offices at New Delhi, Chennai and Mumbai.
Export of such goods under Courier Regulations will be allowed manually on a pilot basis through airports at Mumbai, Delhi and Chennai as per appropriate amendments in regulations to be made
by Department of Revenue. Department of Revenue will fast-track the implementation of Electronic Data Interchange (EDI) mode at courier terminals.