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).
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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.
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.
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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.”
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:
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.
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.
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.
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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.
The following export industries or categories will not be eligible for Duty Credit Scrip entitlement under MEIS, per Foreign Trade Policy.
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
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