Merchandise Exports from India Scheme – Its documents, Benefits, and Process

Introduction

With effect from April 1, 2015, the Government of India has introduced Exports from India Schemes through the Foreign Trade Policy (FTP) it is a five-year policy to be applied to the Foreign Trade. The Merchandise Exports from India Scheme (MEIS) and the Service Exports from India Scheme (SEIS) are two schemes for Merchandise and Service Exports from India (SEIS). MEIS and SEIS are aimed to increase the competitiveness of India’s export products in global markets such as Europe, the United States of America, and Africa. As part of this, the government pays exporters in order to offset infrastructural inefficiencies and associated expenses, as well as to provide a level playing field for exporters. In this essay, we’ll take a closer look at the Merchandise Exports from India Scheme.

What is MEIS (Merchandise Exports from India Scheme)?

MEIS Scheme a program aiming to compensate exporters for inefficiencies in infrastructure and the costs associated with them. The Duty Credit Scrips and the items purchased with them, whether imported or domestically, will be freely transferable. The Duty Credit Scrips can be used for the following things:

• Payment of Basic Customs Duty and Additional Customs Duty as stated in 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, with the exception of items listed in Appendix 3A.

• Payment of central excise duty on domestic inputs or goods acquisition.

• Payment of the Basic Customs Duty and Additional Customs Duty imposed by Sections 3(1), 3(3), and 3(5) of the Customs Tariff Act, 1975, as well as the charge set forth in the exports policy.

Merchandise Exports from India (MEIS) Benefits

Under the MEIS, exporters are provided various incentives and awards, which are given at a predetermined rate and differ from country to country and product to product. The countries that are eligible for incentives are divided into three categories: Category A, Category B, and Category C.

Explanation of the Above three Categories:

Category A consists of a Traditional Market, which includes the European Union, Canada, and the United States.

Category B includes emerging markets around the world, such as Asian countries, African markets, Mexico and Latin America, CIS (CommonWealth Independent States) countries, China, Japan, and Turkey.

All other countries that do not fall under Category A or Category B are classified as Category C.

Application Procedure for acquiring benefits from MEIS Scheme

To obtain duty credit scrip rights under MEIS, you must submit an online application in form ANF 3A with a digital signature. Hard copies of the application filed with DGFT (Directorate General of Foreign Trade), EDI shipping bills, Bank Realisation Certificate received electronically (e-BRC), and RCMC must be provided by the applicant. If the application is made using EDI (Electronic Data Interchange)  ports, however, the applicant is simply needed to submit export promotion copies of non-EDI shipping invoices and proof of landing, not physical copies.

For each port, the applicant must submit a new application. The applicant is not required to submit any documents in their original form, but must keep the originals for three years. The application must be submitted within the following time frame:

• 12 months from the LEO (Let Export) date, or

• Three months from the date of customs’ uploading of EDI (Electronic Data Interchange) shipping bills onto the DGFT server, or printing of non-EDI shipping bills, whichever comes first.

Documents required for MEIS Scheme

The exporter must present proof of landing paperwork in order to get a MEIS award. The exporter may file any of the following documents as proof of landing of an export consignment in a notified Market:

• The cargo transporter has given an arrival notification.

• The port officials have issued a delivery order.

• A copy of the importer’s self-attested import bill of entry is lodged in the selected market.

• The goods carrier’s tracking report (shipping lines or airlines or his accredited agent in India).

• For Landlocked notified Markets, proof of the arrival of export cargo to destination market, Rail or Lorry receipts of goods transit from Port to Landlocked notified Market Proof of any other papers indicating products/goods have landed in or reached the notified market.

Categories that are not eligible for duty credit scrip under MEIS Scheme

• Exports from third-world countries that are routed through India.

• Export of services.

• From DTA units to SEZ units, supplies are made.

• Cereals.

• Beach sand and red sanders.

• Products for export (subject to export duty and minimum export price).

• Concentrates and ores of all sorts and formations.

• Sugar in all its shapes and varieties.

• Precious and semi-valuable stones, as well as gold, platinum, diamonds, silver, and other precious metals in any form (including jewelry).

• crude oil/petroleum oil.

• Meat and meat products studded with precious metals/stones are exported.

• Units of the FTWZ (Free Trade Warehousing Zone) export.

FAQs on Merchandise Exports from India Scheme

1. What is the time period for Duty Credit Scripts?

The Duty Credit Scripts are valid for 24 months from the date of issuing.

2. What is the deadline for completing the MEIS application?

It is three months from the date of the LEO (Late Export Order) or twelve months from the date of the Customs’ uploading of the EDI Shipping Bill into the DGFT server.

3. What is the Objective of the MEIS Scheme?

The Merchandise Exports from India Scheme’s prime objective is to boost the production and export of designated goods and products.

4. Is it necessary to have an IEC Code in order to register for the MEIS Scheme?

Yes, having an IEC Code is required for registration under the MEIS Scheme.

Conclusion  

MEIS replaced the  Focus Product Scheme (FPS),  Market Linked Focus Product Scheme (MLFPS), Vishesh Krishi Gramin Udyog Yojana (VKGUY), and Focus Market Scheme (FMS), and Agri Infrastructure incentive schemes, all of which provided various types of Duty Credit Scrips. The MEIS received all Duty Credit Scrips given under previous incentive schemes.