MEIS

MEIS Scheme Consultants | DGFT Export Benefits & Claims Assistance | Unique Group

Govt. of India has introduced this scheme with an aim to make Indian products more competitive in the Global Markets. The scheme provides incentives to offset infrastructural inefficiencies and the associated costs of exporting products produced in India giving special emphasis on those which are of India’s export interest and have the capability to generate employment and enhance India’s competitiveness in the world market. The incentive is in the form of Duty Credit Scrips. The incentive is paid as percentage of the realized FOB value (in free foreign exchange) for notified goods going to notified markets.

The incentives under this scheme vary from Product to Product. The countries for which the incentives are allowed are divided into 3 categories:

Category A: Traditional Markets (30) – European Union (28), USA and Canada

Category B: Emerging & Focus Markets - Africa (55), Latin America & Mexico (45), CIS Countries (12), Turkey & Western Asian Countries(13), ASEAN Countries (10), Japan, South Korea, China and Taiwan

Category C: Other Markets (70)

The percentages of incentives vary from product to product and are in the range of 2% to 5% for most items.

The Duty Credit Scrips can be used for the following purposes.

1. ♦ Payment of customs duties on import of inputs or goods, safeguard duty, anti-dumping duty and any other customs duty under FTP 2015-20
2. ♦ The scrips can also be transferred.

The sectors or segments mentioned below are not entitled to MEIS incentives:

1. SEZ/EOU/EHTP/FTWZ products exported through DTA units.
2. Supplies made to SEZ units from DTA units.
3. Deemed Exports.
4. Export of imported commodities covered under paragraph 2.46 of FTP.
5. Export commodities which are subject to a minimum export duty or export price.
6. Exports via trans-shipment, meaning thereby exports that are emerging in the third country but trans-shipped through India.
7. Exports initiated by units in Free Trade and Warehousing Zones (FTWZ).

Important to remember

1. Declaration of Intent is mandatory for claiming MEIS incentives in the shipping bills.
2. Applications should be made separately for EDI and Non EDI ports
3. Applications should be made before 12 months from Let Export Order or 3 months from the date of uploading of EDI shipping bills onto the DGFT server
4. Duty Credit scrip is valid for 24 months
5. There is a provision for splitting the scrips, but the minimum value of scrips should be Rs. 5 lakhs
6. Splitting is not permitted for Non-EDI scrips
7. All supporting documents need to be kept safely for atleast 3 years, there maybe chances where the authorities will call for the original documents

We can help you with applications for MEIS and sale of credit scrips for best value in the market.