Merchandise Exports from India Scheme (MEIS)
Merchandise Exports from India Scheme (MEIS)
The Government of India has introduced Exports from India Schemes through the Foreign Trade Policy (FTP) 2015-20 with effect from 1st April 2015. Exports from India Schemes comprise two schemes for exports of merchandise and services namely, Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS). MEIS and SEIS schemes are designed with the aim of making India’s export products more competitive in the global markets including Europe, The United States of America and Africa. As part of this, the Government provides rewards to exporters to offset infrastructural inefficiencies and associated costs involved and to provide exporters with a level playing field. In this article, we will look at Merchandise Exports from India Scheme in detail.
Know more about Foreign Trade Policy
Nature of Rewards
Duty Credit Scrips will be granted as rewards under Exports from India Schemes (MEIS and SEIS). The Duty Credit Scrips and goods imported or domestically procured against the Duty Credit Scrips will be freely transferable. This duty credit Scrips can be used for payment of, excise duty, service tax and customs duty. The payment of customs duty is explained below:MEISApp3BTable2-ilovepdf-compressed (1)-1-200
- Duty credit scrips can be used to pay the basic customs duty and additional customs duty specified under the Customs Tariff Act for import of inputs or goods, including capital goods
- Reimbursement of Central excise duties on the domestic procurement of inputs or goods
- Payment of basic and additional customs duty under the Customs Tariff Act, 1975 and fee as per Exports from India Schemes
Merchandise Exports from India Scheme (MEIS)
As part of Exports from India Schemes, the Government of India has brought in the MEIS, replacing five other similar incentive schemes presented in the earlier Foreign Trade Policy 2009-2014. Schemes that have been replaced by the Merchandise Exports from India Scheme are listed below:
- Focus Product Scheme (FPS)
- Focus Market Scheme (FMS)
- Market Linked Focus Product Scheme (MLFPS)
- Infrastructure incentive scheme
- Vishesh Krishi Gramin Upaj Yojana (VKGUY)
According to the present FTP, the MEIS scheme is introduced with an aim to rationalise the incentives and enlarges exporter’s scopes by removing various restrictions.
Objective of MEIS
The aim of Merchandise Exports from India Scheme (MEIS) is to offset infrastructural inefficiencies and associated costs involved in the export of goods or products, which are produced or manufactured in our country, especially products having high export intensity, employment potential and to enhance India’s export competitiveness in the world market.
Rewards under MEIS schemes are payable as a percentage (2, 3 or 5% ) of realised FOB value of covered export, by way of the MEIS scheme duty credit scrip. The Merchandise Exports from India Scheme (MEIS) rewards rates are explained in Appendix 3B of Customs Act 1962. ITC (HS) code wise list of products with reward rates under Merchandise Exports from India Scheme (MEIS) is given in the documents attached here:
Calculation of Reward
The basis of calculation of MEIS reward would be on realised free on board (FOB) value of export in free foreign exchange, or on FOB value of commodities as given in the Shipping Bills in freely convertible foreign currencies. From these two, the lower cost will be taken for the calculation.
Rewards for Export of Goods through Courier or Foreign Post Offices using e-Commerce
The following six commodities exported by Post /Courier through e-commerce are eligible for a reward under the MIES
- Handicraft Items or Products
- Handloom Products
- Leather Footwear
- Customised Fashion Garments
Reward Rate for Export of Commodities using e-Commerce
The exports of goods through courier or foreign post office 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.
Note: The Customized Fashion Garments are garments that are made on a specific request or order of the customer and accordingly tailored or manufactured.
Ineligible Exports Categories under MEIS
The following exports categories or sectors will not be eligible for Duty Credit Scrip entitlement under MEIS according to Foreign Trade Policy.
- Export Oriented Units (EOUs) or Electronics Hardware Technology Park (EHTP) Scheme or BTPs or STPs who are availing direct tax benefits or exemption
- Supplies made from Domestic Tariff Area (DTA) units to Special Economic Zone (SEZ) units
- Exports through trans-shipment – Exports that are originating in the third country but transshipped via India
- SEZ/EHTP/EOU/BPT/FTWZ products exported through the Domestic Tariff Area (DTA) units
- Deemed Exports
- Items, which are prohibited or restricted for export under Schedule-2 of Export Policy in ITC (HS), unless specifically notified in Appendix 3B (refer above-attached document)
- Service Export
- Export products/goods which are subject to Minimum export price or export duty
- 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 which are studded with precious stones
- Exports made by units in Free Trade and Warehousing Zones (FTWZ).
- Export of imported goods covered under Foreign Trade Policy (refer the document attached below)
Documents Required for MEIS Application
To get a MEIS reward, the exporter needs to submit Proof of landing documents. As proof of landing of export consignment in notified Market, the exporter may file any of the following documents:
- A self-attested copy of the import bill of entry filed by the importer in the specified market
- The delivery order issued by port authorities
- Arrival notice issued by goods carrier
- Tracking report from the goods carrier (shipping lines or airlines or his accredited agent in India)
- Evidence of arrival of export cargo to destination Market
- For Landlocked notified Market, Rail or Lorry receipts of transportation of goods from Port to Landlocked notified Market
- Proof of any other documents that products/goods have landed in or reached the notified market.
MEIS Application Filing Procedure
MEIS Application Filing Procedure is explained in step by step procedure here:
You need to set up the system for DGFT application filing with the instructions given the document:HelpTlogin-ilovepdf-compressed
Step 1: Access the home page of Director General of Foreign Trade. From the home page select services option. The list of services will be displayed.
Step 2: You need to select the ECOM option and then select Online ECOM application. The link will redirect to a new page.
Step 3: In this new page you need to select Merchandise Exports from India Scheme (MEIS) option, the link will redirect to a new page.
Step 4: You need to login to the portal using the Digital Signature Certificate. Once login, the application form for MEIS will be shown.
Create a MEIS Application
Step 5: From the top menu panel you need to click on the select file option and then select the create option. An E-com reference number will be generated. Click on OK button.
‘The MEIS application main screen opens as below:
- Select the export license period based on LEO date from the drop-down Menu
- Select the port of registration from the drop-down menu
We have herewith attached an application Form for Merchandise Exports from India Scheme (MEIS):
Step 6: After providing details a small window will be displayed click on the OK button, the screen appears as depicted in the image.
Attach a Shipping Bill to MEIS
You need to perform the following things to attach a Shipping Bill to MEIS Application:
- Add shipping bills to the repository
- Attach e-BRC to Shipping Bill
- Update Freight, Insurance and Commission values, in e-BRC
Step 7: Click the button SB Repository to select and attach Shipping bills to MEIS application.
Step 8: Eligible shipping bills will be listed; you need to move the shipping bills to the right panel and click on OK. Shipping Bills gets attached to the application.
Step 9: Shipping bills of multiple EDI ports can be attached to one MEIS application. In the SB selection window, you can attach SBs from different EDI ports by selecting the desired port from the drop-down box.
Note: It is essential that at least one Shipping Bills should be included in the application for the Port of Registration selected on the main screen and you can attach a maximum of 50 shipping Bills in an application.
Attach the Disallowed Shipping Bills
Step 10: On the Shipping Bill Selection Screen, type the Disallowed SB Number in the box and Tick the Checkbox Attach Disallowed Shipping Bills.
Step 11: Shipping Bill will be shown in the List of Available Shipping Bill box below. You need to move the SB to the right side, i.e. list of Selected Shipping Bills.
Step 12: By clicking on Ok, the shipping Bill will be attached in the application.
Step 13: By clicking on the Pay Online button, you can make an online payment via inter-banking. After successful payment, you can verify the payment using Verify Pay option.
Step 14: After verifying the payment, click on the submit button. A new window will be displayed from that select the DGFT Regional Office to which MEIS application to be submitted and click on Generate Button.
Step 15: A document will be displayed in the box. Select the Document and click on submit. A pink coloured page appears, click on Sign and Submit option. Your application will be forwarded to the DGFT office, and File number will be displayed.
Port of Registration of Scrips for MEIS
- Duty Credit Scrip (including splits) under MEIS to be issued with a single port of registration which will be the port of export.
- Duty credit scrip has to be registered at the port of exports before usage of duty credit.
- Once registered at EDI port, scrip to be automatically used at any EDI port for the import and any manual port under Telegraphic Release Advise (TRA) procedure.
- If the port of registration is a manual port, TRA required for imports at any other port.
- Validity period and Revalidation
- Duty Credit Scrip will be valid for 18 months from the date of issue, and the validity will be started from the date on which actual debit of duty is made.
- Revalidation of duty credit scrip will not be permitted unless validity has expired while in custody of Customs Authority / RA.
Split Certificates of Duty Credit Scrip
Split certificates of duty credit scrip subject to a minimum of five lakh each and multiples may also be issued at the time of application.