Overview of MEIS Scheme
MEIS scheme for exporters was introduced in recent Foreign Trade Policy of India 2015-20 by consolidating previous different schemes such as Vishesh Krishi Gram Udyog Yojana (VKGUY), Focus Product Scheme (FPS), Agri-Infrastructure Incentive Scrip), Market Linked Focus Product Scheme (MLFPS) etc with modification. MEIS scheme extends benefits to more than 5000 export items and the duty credit scrips helps exporters in payment of Customs Duties for import of inputs or goods, payment of excise duties on domestic procurement of inputs or goods, payment of service tax on procurement of services, payment of Customs Duty and fee etc. MEIS Scheme was introduced with an objective to promote the export of goods from India by providing incentives in the range of 2-7% of the FOB value of exports for notified/specific products. By providing these incentives, MEIS Scheme aims to make Indian goods competitive in the global markets by offsetting infrastructural inefficiencies and associated costs involved in exports from India.
The MEIS Scheme Provides incentive in the form of a Duty credit scrip or MEIS License which can be used in payment of import duties or can be sold in the open market for a premium rate.
The MEIS scheme benefits are permitted to exports made by EOU/Special Economic Zone(SEZ) units also, which were not allowed in the previous export incentive schemes. Exporters can avail of the benefits under this scheme on the export of the eligible goods only notified as per the Appendix 3B.
Eligibility Criteria for MEIS Scheme
The following is the eligibility criteria for MEIS Scheme:
- All the Exporters from India, be it a merchant exporter (trader) or a manufacturer exporter who are exporting the products that are notified in the Appendix 3B – MEIS Schedule are eligible to claim incentives under the MEIS Scheme.
- SEZ Units & EOU Units are also eligible to claim benefits under the MEIS Scheme.
- There is no minimum turnover criteria to claim MEIS.
- Goods exported through e-commerce platforms via courier are also eligible.
- Country of origin of the exported products should be India, re-exported products are not eligible.
- Only those Shipping Bills are eligible for MEIS Scheme in which there is a “Declaration of Intent” & Scheme reward option is ticked as “YES”.
Nature of rewards under the MEIS scheme
The Validity of the MEIS Scrip is 24 months from the date of issue. Revalidation of Duty Credit Scrip is not permitted under the MEIS scheme, and it should be valid on the date on which actual debit is made.
Ineligible categories under MEIS scheme
There are the following export categories that are ineligible under the MEIS scheme.
(i) EOUs / EHTPs / BTPs/ STPs who are availing direct tax benefits / exemption.
(ii) Supplies made from DTA units to SEZ units
(iii) Export of imported goods covered under paragraph 2.46 of FTP;
(iv) Exports through trans-shipment, meaning thereby exports that are originating in third country but trans-shipped through India;
(v) Deemed Exports;
(vi) SEZ/EOU/EHTP/BPT/FTWZ products exported through DTA units;
(vii) Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS), unless specifically notified in Appendix 3B.
(ix) Red sanders and beach sand.
(x) Export products which are subject to Minimum export price or export duty.
(xi) Diamond Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones.
(xii) Ores and concentrates of all types and in all formations.
(xiii) Cereals of all types.
(xiv) Sugar of all types and all forms.
(xv) Crude / petroleum oil and crude / primary and base products of all types and all formulations.
(xvi) Export of milk and milk products.
(xvii)Export of Meat and Meat Products.
(xviii)Products wherein precious metal/diamond are used or Articles which are studded with precious stones.
(xix) Exports made by units in FTWZ.
Documents required for MEIS Scheme Application
The following are the documents required for MEIS Scheme:
- Shipping bills
- RCMC (Registration Cum Membership Certificate)
EBRC (Electronic Bank Realization Certificate)
How to claiming the MEIS scheme benefits
• Consult our clients about their products eligibility & inform the benefits they can avail
• We help our clients for preparation of required documentation to claiming the benefits.
• After receipts of required documents from clients we prepare and submit online applications to concerned authority and Follow-up with the DGFT Department to obtain the License under the MEIS scheme.
• After Receipt of MEIS Script, We also provide services of MEIS Script Registration done at custom.
• We also help to selling MEIS Script with preparation of necessary documentation procedure for the transfer of duty script to the buyer.
• Online transfer of MEIS Script details to the buyers on the DGFT website.
• DGFT Digital Signature Certificate is also required.
• We also help our client to obtain DGFT DSC and RCMC from concerned dept. to avoid further delay of process of MEIS Claim.