MEIS Scheme: Govt incentives for Export of Items – 2 to five%

The Merchandise Export from India Scheme (MEIS Scheme) is a newly launched scheme launched as part of the brand new Overseas Commerce Coverage and is relevant from 2015 to 2020. This new scheme replaces the 5 related incentive schemes obtainable earlier underneath Overseas Commerce Coverage 2014-2019 and rationalises the incentives given underneath these schemes. Below the MEIS Scheme – the Govt has allotted greater than 22,000 crore each year for exports. The next are the 5 Schemes which have now been changed by the MEIS Scheme:-

  1. Focus Product Scheme (FPS)
  2. Market Linked Focus Product Scheme (MLFPS)
  3. Focus Market Scheme (FMS)
  4. Agriculture Infrastructure Incentive Scrip (AIIS)
  5. Vishesh Krishi Gramin Upaj Yojana (VKGUY)

The brand new Overseas Commerce Coverage for 2015-2020 has not solely revamped the incentives and rewards for Merchandise Exporters but in addition for Service Exporters by means of the SEIS Scheme. On this article, we might primarily be discussing the advantages to exporters underneath the MEIS Scheme. For advantages to service exporters underneath the SEIS Scheme, kindly refer this text – 5% Incentives by Govt to Service Exporters underneath SEIS Scheme

Merchandise Export from India Scheme (MEIS)

Below the MEIS Scheme, sure rewards and incentives are given to exporters. Such incentives are given to exporters at a specified price which varies from product to product and from nation to nation.The incentives are given at a specified price on the FoB worth and can be on the decrease of the next:-

 

 

  1. Realised FOB worth of exports in free overseas change, or
  2. The FoB worth of exports as given within the Delivery Invoice in free overseas change, whichever is much less,

The incentives and rewards given underneath this scheme fluctuate from Product to Product and from Nation to Nation. The nations for which the incentives are allowed are divided into 3 classes specifically:-

  • Class A: Conventional Markets (30) – European Union (28), USA, Canada
  • Class B: Rising & Focus Markets (139) – Africa (55), Latin America & Mexico (45), CIS Nations (12), Turkey & Western Asian Nations(13), ASEAN Nations (10), Japan, South Korea, China, Taiwan
  • Class C – Different Markets (70)

The proportion of rewards varies from product to product and are within the vary of two% to five% for many gadgets. The detailed listing of rewards on every product export has been talked about on this file – Fee of Rewards underneath MEIS Scheme for Exporters.

Responsibility Credit score Scrips issued underneath MEIS Scheme

The incentives awarded to exporters underneath this scheme are issued within the type of Responsibility Credit score Scrips. These Responsibility Credit score Scrips are freely transferable and can be utilized for the cost of Customs Responsibility.

In case the holder of such Responsibility Credit score Scrips needs to promote these scrips, he can simply promote them to anybody as these scrips are freely transferable. To know extra about Responsibility Credit score Scrips, you might refer the next article:-

  • Responsibility Credit score Scrips – Its Advantages to Exporters and Learn how to promote them

Final Date for submitting software for Responsibility Credit score Scrips

Utility for acquiring Responsibility Credit score Scrips underneath MEIS shall be filed inside a interval of:-

  1. 12 months from the Let Export Order (LEO) date, or
  2. 3 months from the date of:
    • Importing of EDI Delivery Payments onto the DGFT Server by Customs
    • Printing/ Launch of Delivery Payments for Non-EDI Delivery Payments (whichever is later)

Validity Interval and Revalidation of Scrips

  • Responsibility Credit score Scrip to be legitimate for a interval of 18 months from the date of subject and should be legitimate on the date on the date on which precise debit of responsibility is made.
  • Revalidation of Responsibility Credit score Scrip shall not be permitted except the validity has expired whereas within the custody of Customs Authority/ RA.

Facility for Splitting of Scrips

  • Responsibility Credit score Scrips shall be issued on request topic to a minimal of Rs. 5 Lakh every and multiples thereof might also be issued on the time of software.
  • In case of EDI enabled ports = Cut up certificates shall be permitted with the identical port of Registration as showing on the unique scrip after issuance.
  • In case of export by means of non-EDI Ports – Facility of cut up not allowed after subject of Scrip.

The next video ready by the DGFT outlines the advantages given by the Govt to numerous exporter

Commodities for which such Incentives underneath MEIS are awarded

The commodities for which such incentives underneath the MEIS Scheme are awarded are labeled into varied completely different product teams based mostly on the next:-

  1. Highest Rewards for Agricultural and Village trade merchandise; Worth added and packages merchandise; Eco-friendly and inexperienced merchandise; Labour Intensive Merchandise and Merchandise with massive no. of producers and/or exporters, Industrial Merchandise from potential profitable sectors and Hello-tech merchandise
  2. First time help offered for export of Fruits, Greens, Dairy Merchandise, Oil Meals, Ayush & Natural Merchandise, Paper, Paper Board Merchandise.
  3. World help offered to Fruits, Flowers, Greens, Tea, Espresso, Spices; Cereals Preparation, Shellac, Important Oils, Processed Meals, Eco Pleasant Merchandise that add worth to waste; Marine Merchandise; Handloom, Coir, Jute Merchandise and Technical Textiles, Carpets Handmade; Different Textiles and Readymade Clothes supported out there within the European Union, USA, Canada and Japan; Handicraft, Sports activities Items and Furnishings, wooden articles;
  4. Help to main markets given to Prescribed drugs, Herbals, Surgicals; Industrial Equipment, IC Engine, Machine Instruments, Elements, Auto Elements/ Elements; Hand Instruments, Pumps of all sorts; cars, two-wheelers, bicycles, ships, planes, chemical compounds, plastics, rubber, ceramic and glass, Leather-based Clothes, Saddlery Gadgets, Footwear, Metal Furnishings, Prefabs, Lighters, Wooden, Paper, Stationary; Iron, Metal and Base Metals, Merchandise

Process for submitting Utility underneath MEIS Scheme

  1. Utility for claiming incentives underneath the MEIS Scheme shall be filed on-line within the specified format i.e. ANF-3A utilizing Digital Signature.
  2. The appliance for export of products shall be filed with the involved Regional Authority of DGFT on DGFT Web site.
  3. Separate software shall be filed for every port of export.
  4. An software might be filed with upto a most of fifty delivery payments
  5. In case of exports by means of the EDI Port – the onerous copy of the applying, delivery invoice, e-BRC and RCMC will not be required to be submitted. Nonetheless, the proof of touchdown is required to be submitted.
  6. Related EDI delivery invoice and e-BRC to be linked with the web software.
  7. In case of exports by means of non EDI-port, the onerous copy of the export promotion copy of non-EDI delivery payments and proof of touchdown within the prescribed method is required to be submitted. However the onerous copies of purposes to DGFT, digital financial institution realisation certificates (e-BRC) and RCMC will not be required to be submitted. Scanned copies of another prescribed paperwork for claiming scrip are required to be submitted.
  8. The paperwork which aren’t required to be submitted (in unique), are required to be retained by the applicant for a interval of three years from the date of issuance of scrip. The licensing authority could name for such paperwork in unique at any time inside 3 years.
  9. In case of failure to submit the unique paperwork when demanded by the licensing authority, the rewards granted are required to be refunded together with curiosity.
  10. No handbook feeding is allowed for EDI Shipments to the candidates within the on-line system.
  11. “Let Export Date” to be taken because the related date for willpower of eligibility of product, corresponding ITC (HS) code, and markets for claiming rewards underneath MEIS.

The above process is to be adopted for claiming incentives underneath the MEIS Scheme in all instances besides in case of export of products by means of e-commerce. The process for claiming incentives for export by means of e-commerce has been mentioned beneath.

Process for claiming Incentives underneath MEIS for Export by means of e-commerce

In case of export of products by means of courier or overseas submit workplace utilizing e-commerce, incentives underneath this scheme are awarded for FOB Worth upto Rs. 25,000 per consignment. In case the FOB Worth is greater than Rs. 25,000, the rewards are restricted on worth restricted to Rs. 25,000 solely.

The next process is to be adopted for claiming incentives underneath the MEIS Scheme for export of Items by means of Courier or Overseas Publish Workplace utilizing e-commerce:-

  1. Utility to be filed on-line utilizing Digital Signature in Kind ANF-3D
  2. For proof of touchdown, the exporter could submit specific operator touchdown certificates/ on-line internet monitoring print out indicating airway invoice no.
  3. Separate software to be filed for every port of export
  4. The submitted paperwork shall be examined manually by the RA earlier than grant of scrip.

Willpower of Jurisdictional Officer of DGFT

  • The applicant shall have the choice to decide on the Jurisdictional RA on the premise of Company Workplace/ Registered Workplace/ Head Workplace/ Department Workplace handle endorsed on the IEC for submitting the applying.
  • Choice should be exercised originally of the monetary yr
  • As soon as an possibility is exercised, no change can be allowed for claims referring to that yr.

Port of Registration underneath MEIS Scheme

  • Responsibility Credit score Scrip underneath MEIS shall be issued with a single port of registration which shall be the port of export.
  • Responsibility Credit score Scrip must be registered on the port of exports previous to utilization of responsibility credit score.
  • As soon as registered on the EDI port, scrip to be routinely used at any EDI Port for Import and at any handbook port underneath Telegraphic Launch Recommendation (TRA) process.
  • In case of port of registration is a handbook port, TRA required for imports at another port.

Re-export of Faulty/ Unfit Items

  • Items exported that are discovered faulty or unfit to be used, could also be re-exported, as per DoR tips.
  • In case the Responsibility Credit score Scrip has been used for Imports, the Customs shall subject a certificates containing the particulars of scrips used, date of import of re-exported items and the quantity debited whereas importing such items.
  • Based mostly on this certificates, upon software, a contemporary scrip shall be issued by involved RA to the extent of 98% of debited quantity, with the identical port of registration and legitimate for a interval equal to steadiness interval obtainable on date of import of the faulty/ unfit items.

Threat Administration System for checking Authenticity

A Threat Administration system is in operation whereby each month the Laptop System in DGFT workplace, on random foundation, selects 10% of instances for every RA the place scrips have already been issued, underneath every RA Scheme. RA in flip could name for unique paperwork in all such chosen instances for additional examination intimately.

In case any discrepancy and/or over declare is discovered on such examination, the applicant shall be underneath obligation to rectify such discrepancy and/or refund over declare in money with curiosity. The unique holder of scrip, nonetheless, could refund such over declare by surrendering the identical scrip whether or not partially issued or absolutely unutilised, with out curiosity.

The Regional Authority might also ask for unique proof of touchdown certificates, annexures connected to ANF’s or another doc, which has been uploaded digitally at any time inside 3 years from the date of subject of scrip.

Failure to submit such paperwork in unique would make the applicant liable to refund the rewards granted with curiosity. It might be the accountability of the applicant to keep up such paperwork, certificates and so forth. for a interval of atleast 3 years from the date of issuance of scrips.

Different Salient Options of MEIS Scheme

  1. FOB Worth means the value of products on the time of loading on the home port and don’t embrace loading, cargo and insurance coverage prices.
  2. SEZ models and EOU/ STP/ BTP/ EHTP models not availing Direct Tax Exemption are also additionally eligible to say profit underneath this scheme.
  3. There isn’t a conditionality connected to those Responsibility Credit score Scrips.
  4. The exporter shall point out the next declaration on all classes of Delivery Payments with a purpose to be eligible for claiming rewards underneath MEIS – “We intent to say rewards underneath Merchandise Exports from India Scheme (MEIS)
  5. The Free overseas change earned by means of Worldwide Credit score Playing cards and different Devices as permitted by RBI shall even be taken under consideration for computation of worth of exports.
  6. The requirement of submission of touchdown certificates has been eliminated vide public discover 6-2015-2020 dated 4th Might 2016.
  7. All of the Varieties and there procedures for submitting software for declare of incentives underneath MEIS Scheme have been talked about on this file – Detailed Information on MEIS Scheme.

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