The Merchandise Exports from India Scheme (MEIS) was introduced by the Government of India under Chapter 3 of the Foreign Trade Policy 2015-20 to promote the manufacture and export of notified goods/products. The MEIS export benefit came into effective from April 1, 2015 and is part of the 2 schemes introduced under the Exports from India Schemes along with the with the Service Exports from India Scheme.
What is Merchandise Exports from India Scheme?
The Merchandise Exports from India Scheme (MEIS) scheme provides benefits to exports of notified goods with the ITC Code made to the notified markets listed under the Appendix 3B of Handbook of Procedures in form of Duty Credit Scrips.
The MEIS scheme has replaced 5 schemes which were applicable under the Foreign Trade Policy 2009-14. The schemes replaced by the Merchandise Exports from India Scheme include the following:
- Focus Product Scheme (FPS)
- Focus Market Scheme (FMS)
- Infrastructure Incentive Scheme
- Market Linked Focus Product Scheme (MLFPS)
- Vishesh Krishi Gramin Upaj Yojana (VKGUY)
What are Duty Credit Scrips?
Duty credit scrip are benefits that allow a business to import goods/products without the need to pay certain import duties. Duty Credit Scrips will be valid for 24 months from the date on which they are issued. Such duty credit scrips are freely transferable at specified reward rate. The percentage of incentives under MEIS range from 2% to 5% and vary from product to product.
Under the Merchandise Exports from India Scheme (MEIS), duty credit scrips can be used in the following cases:
- To pay customs duties on import of goods besides the items listed under Appendix 3A.
- To pay safeguard duty.
- To pay anti-dumping duty.
- To pay composition fees.
- To pay application Fee.
- To pay custom duties and fee as per the FDI Policy.
The countries for which incentives are permitted are divided into 3 categories:
- Category A: Traditional markets including the USA, Canada, and European Union.
- Category B: Emerging and Focus markets including CIS countries, Africa, ASEAN countries, Latin America and Mexico, Turkey and Western Asian countries, South Korea, Japan, Taiwan, and China.
- Category C: Other markets.
Merchandise Exports from India Scheme (MEIS) For Ecommerce
Under the MEIS scheme, the following categories of goods are eligible for the benefit in case of ecommerce:
- Handicraft Items or Products
- Handloom Products
- Leather Footwear
- Customised Fashion Garments
Such goods can be exported in manual mode through Foreign Post Offices at New Delhi, Mumbai and Chennai. Exports of these goods are entitled to the benefit under MEIS for a maximum of INR 25,000 per consignment. If the value of exports through ecommerce is more than INR 25,000 per consignment, the reward is limited to the value of INR 25000 only.
Export Categories Ineligible under MEIS
Under the MEIS benefit, the following export categories cannot claim any duty credit scrips:
- Export Oriented Units (EOUs) or Electronics Hardware Technology Park (EHTP) Scheme or BTPs or STPs.
- Supplies made from Domestic Tariff Area (DTA) units to Special Economic Zone (SEZ) units.
- Exports of Imported Goods.
- Exports through trans-shipment i.e. exports which originate in the third country but transshipped via India.
- SEZ/EHTP/EOU/BPT products exported through Domestic Tariff Area (DTA) units.
- Deemed Exports.
- Exports made by units in Free Trade and Warehousing Zones (FTWZ).
Goods Ineligible under MEIS
- Red sanders and beach sand.
- Diamond, Gold, Silver, Platinum or any other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones.
- Crude or petroleum (primary and base) products of all type and all formulation.
- Cereals of all types.
- Ores and concentrate of all types and in all formations.
- Sugar of all type and all form.
- Export of meat and meat products.
- Export of milk and milk products.
- Products wherein precious metal or diamond are used, or articles studded with precious stones.
How To Claim Rewards Under MEIS?
An application must be filed online in the prescribed format using the Digital Signature of the export with the Directorate General of Foreign Trade (DGFT) to claim benefits of the Merchandise Exports from India Scheme.
If there is more than one port of export, separate applications must be filed to claim the reward. If the exports are carried out through EDI port, the proof of landing must be submitted. If exports are carried out through a non-EDI port, documents like the proof of landing, physical copy of export promotion copy of non-EDI shipping bills, and scanned copies of other prescribed documents for claiming scrip must be submitted along with the application.
LetsComply can help you with the complete procedure to claim export benefits under the Merchandise Exports from India Scheme. We act as your Virtual CFO and provide end-to-end solutions for all kinds of financial and investment requirements. To get started with claiming the benefits of the MEIS scheme for your business, you can call us at +91-9717070500 or send an email at email@example.com.