Merchandise Exports from India Scheme (MEIS)

The Government of India has introduced Exports from India Schemes through the Foreign Trade Policy (FTP) 2015-20 from 1st April 2015. Exports from India Schemes comprise two merchandise and services export schemes: the Merchandise Exports from India Scheme (MEIS) and the Service Exports from India Scheme (SEIS). MEIS and SEIS schemes are designed to make 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 rewards exporters for offsetting infrastructural inefficiencies and associated costs involved and providing exporters with a level playing field. 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. These duty credit Scrips can pay excise duty, service tax, and customs duty. The payment of customs duty is explained below: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2018/11/MEISApp3BTable2-ilovepdf-compressed-1-1-200.pdf" title="MEISApp3BTable2-ilovepdf-compressed (1)-1-200"]

Payment of Basic Customs Duty and Additional Customs Duty specified under sections 3(1), 3(3), and 3(5) of the Customs Tariff Act, 1975, for the import of inputs or goods, including capital goods, as per DoR Notification, except items listed in Appendix 3A.
Payment of Central excise duties on domestic procurement of inputs or goods,
Payment of Basic Customs Duty and Additional Customs Duty specified under Sections 3(1), 3(3), and 3(5) of the Customs Tariff Act, 1975, and fee as per paragraph 3.18 of this Policy.

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 the Merchandise Exports from India Scheme have replaced 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 current FTP, the MEIS scheme is introduced to rationalize the incentives and enlarge the exporter’s scope by removing various restrictions.

Objective of MEIS

The aim of the 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 and employment potential and enhance India’s export competitiveness in the world market.

MEIS-Rewards Rate

Rewards under MEIS schemes are payable as a percentage (2, 3, or 5% ) of the realized FOB value of covered export by the MEIS scheme duty credit scrip. The Merchandise Exports from India Scheme (MEIS) rewards rates are explained in Appendix 3B of the Customs Act 1962. ITC (HS) code-wise list of products with reward rates under the 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 realized 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
Books/Periodicals
Leather Footwear
Toys
Customized 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 the MEIS reward will be limited to only a FOB value of Rs.25000.
Goods/Products can be exported manually through Foreign Post Offices in 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 the Department of Revenue. Department of Revenue will fast-track the implementation of Electronic Data Interchange (EDI) mode at courier terminals.

Note: Customized Fashion Garments are garments made on a specific request or order of the customer and tailored or manufactured accordingly.

Ineligible Exports Categories under MEIS

According to Foreign Trade Policy, the following export categories or sectors will not be eligible for Duty Credit Scrip entitlement under MEIS.

Export Oriented Units (EOUs) or Electronics Hardware Technology Park (EHTP) Schemes 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 originate in a third country but transshipped via India
SEZ/EHTP/EOU/BPT/FTWZ products exported through the Domestic Tariff Area (DTA) units
Deemed Exports
Items that 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, including plain and studded jewelry and other precious and semi-precious stones.
Crude or Petroleum (primary and base) products of all types and all formulation
Cereals of all types
Ores and concentrate of all types and in all formations
Sugar of all kinds and all forms
Export of Meat and Meat Products
Export of milk and milk products
Products wherein precious metal or diamond are used, or articles studded with precious stones are used.
Units make exports in Free Trade and Warehousing Zones (FTWZ).
Export of imported goods covered under Foreign Trade Policy (refer to the document attached below)

Prerequisites for Applying for MEIS Scheme

To apply for the MEIS scheme, an IEC is required. Other prerequisites mentioned in Chapter 3 of Foreign Trade Policy and Handbook of Procedures may be referred to.

Documents Required for MEIS Application

The exporter must submit proof of landing documents to get a MEIS reward. 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 Markets, 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:

Visit the DGFT website and proceed with Login by entering the User ID, Password and captcha, then click on the login button to log in to the system.
Click on the service option at the top of the screen and select the MEIS option from the menu; the user will be redirected to the MEIS page.
Scroll down to find the Apply for MEIS node and click on explore button on the MEIS node; you will be redirected to the Apply for MEIS application page.
To create a new application, click on the Start Fresh Application. Fill in the required fields in the applicant details section.
Enter all the mandatory details on the screen and click on the ‘save & next button to reach the other details page
On the declaration page, click on yes to add penalty details. Enter the place and sign the declaration by clicking the box.
Click on the print summary to print the outline of the application.
To proceed with payment, click on proceed with a payment button. After successful payment, the e-receipt will be generated.

Viewing and printing the MEIS scrip

There are two ways to view the MEIS scrip. After logging in to the DGFT website, follow the below-mentioned steps:

Viewing MEIS scrip from view and print MEIS Node (Services -> MEIS -> View and print Node)
Viewing MEIS scrip from My Authorization section (My Dashboard -> My Authorizations)

After clicking on the print, the script will be downloaded into the user’s local system.

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 must be registered at the export port before using duty credit.
Once registered at the EDI port, scrip is 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 is 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 the actual debit of duty is made.
Revalidation of duty credit scrip will not be permitted unless validity has expired while in Customs Authority / RA custody.