MEIS Scheme, MEIS was a part of the Foreign Trade Policy (FTP) for 2015–2020. The purpose of the MEIS was to promote the export of commodities. Exporters receive the incentives in the form of duty credit scrips. The Ministry of Commerce and Industry implements the MEIS after receiving notification from the DGFT (Directorate General of Foreign Trade).
Contents
Background to MEIS
MEIS replaced many export incentive programs, including the Focus Market Scheme (FMS), Focus Product Scheme (FPS), Vishesh Krishi Gramin Udyog Yojana (VKGUY), Market Linked Focus Product Scheme (MLFPS), and Agri Infrastructure incentive scheme. These programs offered various kinds of duty credit scrips. The MEIS received all duty credit scrips granted under the previous incentive programs.
Objective of MEIS
In order to increase India’s export competitiveness in the global market, the Merchandise Exports from India Scheme (MEIS) aims to offset inefficient infrastructure and associated costs associated with exporting goods or products made in our country, especially those with high export intensity and employment potential.
Also Read: Ladli Scheme, shaladarpanportalgov.com, yojanaforall.com, Onlinereferjobs
MEIS Incentive
MEIS plans to encourage exports of products made or produced in India under the FTP 2015–20. The incentives are intended for businesses who produce or develop commodities that are often exported from India and are intended to boost the competitiveness of Indian exports.
MEIS covers goods notified for the purposes of the system. The percentages used to calculate the incentives under the programs are 2%, 3%, or 5% of the realized FOB (free-on-board) value of exports in free foreign exchange or the FOB value of exports as per shipping bills in free foreign exchange. Distributing the rewards is done using a MEIS duty credit scrip. International credit cards and other Reserve Bank of India (RBI)-approved instruments will be considered “free foreign exchange.”
MEIS Incentive Application Procedure
Form ANF 3A and a digital signature must be provided electronically in order to establish obligation credit scrip rights under MEIS. Hard copies of the application submitted to DGFT, shipping invoices, the Bank Realization Certificate received electronically (e-BRC), and the RCMC must be provided by the applicant. For export promotion, physical copies of non-EDI shipping invoices and proof of landing are the only documents needed if the application is submitted through an EDI port.
For every port, the applicant must submit a different application. Although it is not necessary for the applicant to present any papers in their original form, they should keep the originals for three years. The deadline for submitting the application is:
- There are three options: one year from the day the non-EDI shipping bills were issued, one year from the date customs submitted the EDI shipping bills to the DGFT system, or one year from the date of the LEO (Let Export).
Usage of MEIS Incentive
Customs charges on the import of goods or inputs, safeguard duties, anti-dumping levies, and other customs costs can be paid with duty credit scrips, according to FTP 2015–20. It is also possible to import goods against them and transfer them using the scrips. As long as each duty credit scrip has a minimum value of Rs 5 lakh, exporters are allowed to request a split of the scrip.
Once the script is available, you may also use the same registration port as the original script to submit the request. Nevertheless, the process is only relevant to ports that support EDI (Electronic Data Interchange). You cannot split a duty credit scrip for a non-EDI port once it has been given. The program has eliminated many of the structural inefficiencies of the previous incentive programs and gives exporters options in terms of import and payment.
Goods Notified Under MEIS
MEIS provides incentives for over 5,000 commodities that are classified and notified under various ITC (HS) codes, with corresponding reward rates ranging from 2% to 5%. The DGFT notifies them of the goods.
Ineligibility of Benefits Under MEIS
Businesses cannot get MEIS subsidies in the following industries: DTA units manage exports from SEZs, EOUs, EHTPs, and FTWZs. SEZ units receive supplies from DTA units. Deemed exports: FTP paragraph 2.46 addresses the export of imported commodities. Export goods that are liable to a minimum export price or export duty. Transshipped commodities are goods produced in a third nation and sent off via India. Units in Free Trade and Warehousing Zones (FTWZ) are the ones that start exports.
Also Read: PAHAL Scheme, Mobilenumbertrackeronline, indnewsupdates.com, ssorajasthanidlogin.com
MEIS-Rewards Rate
The MEIS plan duty credit scrip pays rewards as a percentage (2, 3, or 5%) of the realized FOB value of covered exports. Appendix 3B of the Customs Act 1962 provides an explanation of the incentive rates for the Merchandise Exports from India Scheme (MEIS). The following papers provide an ITC (HS) code-by-code list of goods with incentive rates under the Merchandise Exports from India Scheme (MEIS):
Techniques for Calculating Incentives The MEIS reward would be based on the realized free-on-board (FOB) value of exports in free foreign exchange or shipping bills in freely convertible foreign currencies. The calculation will make use of the least costly of these two.
Ineligible Exports Categories under MEIS
The following export industries or categories will not be eligible for Duty Credit Scrip entitlement under MEIS, per Foreign Trade Policy.
- Electronics Hardware Technology Park (EHTP) schemes, Export Oriented Units (EOUs), BTPs, or STPs that receive direct tax incentives or exemptions
- Supplies to Special Economic Zone (SEZ) units from Domestic Tariff Area (DTA) units
- Exports classified as transshipment exports originate outside of India but end up in India.
- Products exported through the Domestic Tariff Area (DTA) units include SEZ, EHTP, EOU, BPT, and FTWZ.
- Exporting Services
- Export goods and items that are subject to export duties or a minimum export price
- Beach sand with red sanders
- Any valuable metal, including diamonds, gold, silver, platinum, and other precious and semi-precious stones, as well as jewelry that is plain or studded.
- Petroleum or crude products of various kinds and formulations, both primary and base
- All kinds of cereals
- Any kind of ore or concentration in any kind of formation
- All types and forms of sugar
- Meat and Meat Products Exports
- Milk and milk products exported
- Items that employ or have precious metals or stones on them.
- In Free Trade and Warehousing Zones (FTWZ), units export.
- Imported products exported in accordance with the Foreign Trade Policy (see the paper below)
Prerequisites for Applying for the MEIS Scheme
An IEC is necessary in order to apply for the MEIS scheme. The Foreign Trade Policy and Handbook of Procedures, Chapter 3, has additional regulations that can be utilized as
Documents Required for MEIS Application
- To get a MEIS award, the exporter has to provide confirmation of landing documentation. The exporter may provide any of the following paperwork as evidence that the export shipment has landed in the notified market:
- A copy of the importer’s self-attested bill of entry submitted to the designated market
- The delivery order that port officials issued
- The cargo transporter issued the arrival notification.
- tracking information provided by the goods carrier (airlines, shipping lines, or his authorized agency in India)
- Proof that export goods have arrived at the destination market
- When moving commodities from a port to a landlocked specified market, rail or truck receipts are necessary.
- Proof of any further records confirming the products’ or items’ arrival in the market identified by the alert.
Also Read: Gold Monetisation Scheme, digitizeindiagovin.com, Typingspeedtestonline, Nebsit Council
MEIS Application Filing Procedure
- Here is a step-by-step guide to the MEIS Application Filing Procedure:
- To log into the system, go to the DGFT website, input your User ID, password, and captcha, and then click the login button.
- Clicking on the service option after choosing the MEIS option from the menu will display the MEIS website at the top of the screen.
- You may access the Apply for MEIS application page by scrolling down until you reach the Apply for MEIS node. Click the explore button on the MEIS node.
- Click the Start Fresh Application button to start a new application. In the application details area, complete the essential fields.
- To access the additional details page, input the specified facts on the display screen and click on the “shop & subsequent” button.
- Click “yes” to offer information about the penalty on the declaration page. click the field to sign the statement after coming into the region.
- To print the software’s definition, click the print precis button.
- Click the “continue with a price” button to finish the fee. an electronic receipt could be provided following a successful price.
Port of Registration of Scrips for MEIS
- Only one port of registration that doubles as the port of export destination may get a Duty Credit Scrip (including splits) under MEIS.
- Both manual and EDI ports need the automatic use of Scrip for imports after registration at the EDI port using the Telegraphic Release Advise (TRA) procedure.
- For imports at any other port, TRA is necessary if the port of registration is a manual port.
- Revalidation and the validity period
- On the exact day the duty is levied, the Duty Credit Scrip will go into effect and be valid for 18 months.
- It is not possible to recheck the obligation credit scrip until the validity time has passed, even if the Customs Authority (RA) holds it.
@PAY