Merchandise Exports from India Scheme (MEIS) under Foreign Trade Policy of India

Merchandise Exports from India Scheme (MEIS) means

 

The details about Merchandise Exports from India Scheme (MEIS) are explained here. 

Merchandise Exports from India Scheme (MEIS)

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

Merchandise Exports from India Scheme (MEIS) under Foreign Trade Policy of India (FTP 2015-20) is one of the two schemes introduced in Foreign Trade Policy of India 2015-20, as a part of Exports from India Scheme. (The other scheme is SEIS, Service Exports from India Scheme)

The details of MEIS, Merchandise Exports from India Scheme under Export Import Policy 2015-2020 (FTP 2015-20) is given below under Foreign Trade Policy of India 2015-20, paragraph wise.

Nature of Rewards

Duty Credit Scrips shall be granted as rewards under MEIS. The Duty Credit Scrips and goods imported / domestically procured against them shall be freely transferable. The Duty Credit Scrips can be used for the following requirements:

  • Payment of Customs Duties for import of inputs or goods, except items listed in Appendix 3A.
  • Payment of excise duties on domestic procurement of inputs or goods, including capital goods as per DoR notification.
  • Payment of service tax on procurement of services as per DoR notification.
  • Payment of Customs Duty and fee as per paragraph 3.18 of this Policy.

 

Entitlement under MEIS

Exports of notified goods/products with ITC[HS] code, to notified markets as listed in Appendix 3B, shall be rewarded under MEIS. Appendix 3B also lists the rate(s) of rewards on various notified products [ITC (HS) code wise]. The basis of calculation of reward would be on realized FOB value of exports in free foreign exchange, or on FOB value of exports as given in the Shipping Bills in free foreign exchange, whichever is less, unless otherwise specified.

Ineligible categories under MEIS as per Import Export Policy 2015-2020 (FTP 2015-20)

The following exports categories /sectors shall be ineligible for Duty Credit Scrip entitlement under MEIS, EXIM Policy 2015-20 (FTP 2015-20).

  • EOUs / EHTPs / BTPs/ STPs who are availing direct tax benefits / exemption.
  • Supplies made from DTA units to SEZ units
  • Export of imported goods covered under paragraph 2.46 of FTP;
  • Exports through trans-shipment, meaning thereby exports that are originating in third country but trans-shipped through India;
  • Deemed Exports;
  • SEZ/EOU/EHTP/BPT/FTWZ products exported through DTA units;
  • Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS), unless specifically notified in Appendix 3B.
  • Service Export.
  • Red sanders and beach sand.
  • Export products which are subject to Minimum export price or export duty.
  • Diamond Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones.
  • Ores and concentrates of all types and in all formations.
  • Cereals of all types.
  • Sugar of all types and all forms.
  • Crude / petroleum oil and crude / primary and base products of all types and all formulations.
  • Export of milk and milk products.
  • Export of Meat and Meat Products.
  • Products wherein precious metal/diamond are used or Articles which are studded with precious stones.
  • Exports made by units in FTWZ.

This post describes about Merchandise Exports from India Scheme (MEIS).   Comment below your thoughts about this post Merchandise Exports from India Scheme (MEIS).

 

 

 

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Comments


Manish: MEIS SCHEME HELP ME

gowtham: This article is super on full export and import process and licenses.

rupali: we are 100% EOU, in the business of cutting and polishing Diamonds. We are confused weather we come under MEIS and SEIS. Pls Guide us

Nirali: IS MEIS Scheme used in trading of used spares of Machinery?

aneeka: I would like to seek your guidance regarding merchandise export which i plan to start at a small scale under sole proprietorship. Kindly please give me your valuable advice with regards to the same. I have been into running a dialysis center last 15years but some anti social elements blackmailed me and took over the center from me and I have been left with no work. So after lot of research i planned to register my sole proprietorship for trading. Kindly guide me with the same and oblige

palash: I am a merchant exporter, I want to apply for the MEIS licence, but I am facing some practical difficulty, Can you please help me in getting the licence practically. I have made a DSC for logging in to DGFT site but an error message occur stating Not a valid IEC Please contact certificate issuing authority, please help me to get rid of the problem.

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