IndiaFilings » Learn » DGFT Scrip Transfer Recording Module

DGFT Scrip Transfer Recording Module

DGFT Scrip Transfer Recording Module

DGFT Scrip Transfer Recording Module

As a trade facilitation measure, the Directorate General of Foreign Trade (DGFT), vide a Trade Notice dated 11th April 2022, has announced the re-operationalize of the Scrip Transfer Recording Module with additional features.

DGFT  vide a Trade Notice No. 42/2015-20 dated 11th January 2019  announced the mandatory recording of information about the transfer of MEIS/SEIS scrips issued on or after 14.01.2019 on the DGFT website. An e-com module for recording the transfer was also made available on the DGFT website.

Scrip Transfer Recording Module – Trade Notice No. 42/2015-20

According to the Trade Notice, DGFT has discontinued the issuance of MEIS/SEIS Scrips in physical form and requested the MEIS Scrip holder to have the online information so that the scrip holder can use the Scrip for duty payment by Customs Authorities.

Therefore, a facility has been created on the DGFT website to record the information about the transfer of Scrip before discontinuing the physical issue of Scrip. It has also been decided that each transfer of every Scrip should be mandatorily recorded on this DGFT facility. Customs Authorities will check the ownership information of the Scrip before the owner is allowed to use the Scrip for payment of duty.

DGFT Scrip Transfer Recording Module

Scrip Transfer Procedure

MEIS/ SEIS scrip owner will continue to ‘transfer’ the Scrip to another IEC firm/ company in the same manner as was done earlier, i.e., as per the negotiated terms & conditions between the buyer and seller.

  • The information about the new owner (transferee) has to be recorded on the DGFT website by the current owner (transferor) before the new owner (transferee) can utilize the Scrip.
  • It is essential for both the transferor and transferee to ensure that information regarding the transfer is recorded by the transferor.
  • After the information is recorded on the DGFT website, the old owner cannot record further transfers, and only the new owner can record any additional transfers.
  • The recording of information is for DGFT and Customs. Unless recorded on the DGFT website, the new owner (transferee) will not be able to utilize the Scrip for duty payment.

Therefore, the new owner (transferee) has to ensure that the Scrip is recorded in his favor by the old owner (transferor). DGFT/ Customs is not responsible for any lapse by the old or new owner or any dispute between them in this regard.

Additional Features of n Scrip Transfer Recording Module

The additional features which have been added to the Scrip Transfer Recording Module are as follows:

  • Introductions of time-lag for transfer of the Scrip from original scrip owner to the next transferee that is the original owner of the Scrip (A) will not be able to transfer Scrip to another entity (B) on an immediate basis and will be able to do that after ‘n’ number of days from the scrip issue date.
  • Introduction of time lag for the scrip transfer from one entity to another, i.e., the next scrip transfer from entity B to entity C, can occur after the ‘x’ number of hours of the last transfer.
  • Introduction of time-lag for transfer of Scrip after IEC Modification, i.e., once IEC has been modified in the IT database, the IEC holder will be able to transfer scrips only after ‘x’ number of hours of IEC modification date/time.
  • Introduction of limit on the number of scrip transfers initiated for transfer or accepted by each IEC per day, i.e., ‘y’ several scrips can only be undertaken for transfer or transfer taken by each IEC per day.
  • Email and SMS notifications to IEC holders and Directors/Partners attached to IEC on the following trigger points:
    • Transfer of Scrips
    • Modification of IEC– Change in email/mobile for correspondence and changes in director/partner section
    • Linking of users to IEC
  • Automated de-linking of Users from IEC every six months
  • Automated de-linking of Digital Signature and Aadhar Registration every day
  • Certain IECs flagged in the IT database based on specific Rules link the same mobile number linked to more than 3 IECs, PAN Mismatch, Director/Partner mismatch will not be allowed to use the scrip transfer recording module until the IEC holder suitably rectifies this flag.

Importance Announcement for Duty Scrip Holder

EXIM community is advised to follow necessary due diligence as per Trade Notice No. 26 dated 26.11.2021, ensure safe custody of their digital dongles (DSCs) and review their IEC user profile, SMS/Email communications being sent to them regularly, and report any untoward incident to the concerned authorities.

The Trade Notice No. 26, dated 26.11.2021, is attached here for reference:

DGFT Scrip Transfer Recording Module
  • The original duty scrip holder is required to register the duty credit scrip at the Port of Registration with Customs, and the ‘transfer’ of scrips from one IEC to another IEC will be as per the negotiated terms & conditions between the buyer and the seller. D
  • GFT/Customs shall not be responsible for any lapse between the transferor, the transferee (old or new owner of the scrips), or any dispute in this regard.
    Procedure for Record Scrip Transfer.

Procedure to Record Online Scrip Transfer Details

  • Importer/Exporter needs to register on DGFT Website. Link the existing IEC with DGFT.
  • The applicant needs to login into the DGFT portal; after logging in, select the Initiate/Accept/Reject the “Record Online Transfer Details.”
  • The applicant needs to Search scrip and enters details. OTP will be sent to the registered mobile number. Once the OTP verification is done, proceed with the Aadhar E-singing.
  • Register for Aadhaar E-sign under My Dashboard > View and Register Aadhaar E-sign • Scrip Management under Services > Record Scrip Transfer
  • Both transacting IECs (sending & receiving) should be Valid, and the Scrip being transferred should be Active.
  • Only the member (director, partner, trustee, etc.) of the IEC will be able to e-sign using Aadhaar and will be able to initiate the online record of scrip transfer or accept/reject the requests.
  • On a successful Aadhar e-signing process, the transfer request will be submitted successfully to DGFT.

Procedure to View Scrip Ownership

  • After login into the DGFT website, the applicant must access the services option and select the View ownership option.
  • Search with IEC number, scrip number, Scrip issue date, and captcha.
  • The scrip ownership details will be displayed if all the details entered are correct.