1. What is the MEIS scheme?
Merchandise Exports from India Scheme (MEIS) under the Foreign Trade Policy of India (FTP 2015-20) is one of the two schemes introduced in the Foreign Trade Policy of India 2015-20, as a piece of Exports from India Scheme. (The other plan is SEIS, Service Exports from India Scheme).
The Government of India has gotten the Merchandise Exports Incentive Scheme (MEIS), supplanting five other comparative impetus plans present in the previous Foreign Trade Policy 2009-14. The schemes that have been replaced by the MEIS scheme include:
► Focus Product Scheme (FPS)
► Focus Market Scheme (FMS)
► Market Linked Focus Product Scheme (MLFPS)
► Agri. Infrastructure incentive scheme
► Vishesh Krishi Gramin Upaj Yojna (VKGUY)
► According to the current FTP, the MEIS plot doesn't intend to simply supplant these five plans yet in addition means to defend the motivating forces and expands their degrees by expelling different limitations.
2. The Objective of the MEIS Scheme
To offset infrastructural inefficiencies and the associated costs of exporting products produced in India giving special emphasis on those which are of India’s export interest and have the capability to generate employment and enhance India’s competitiveness in the world market.
3. About the Scheme
With the point of making India's items progressively serious in the worldwide markets, the plan gives motivating forces as obligation credit scrip to the exporter to make up for his misfortune on an installment of obligations. The incentive is paid a percentage of the realized FOB value (in free foreign exchange) for notified goods going to notified markets. To determine the number of incentives, the countries have been segregated into three groups. Incentives on the export of each product at the 8-digit level (ITC HS codes) depending on the group in which its destination country belongs.
There are essentially three country groups. Group A has India’s traditional destinations such as the EU countries and the USA. Gathering B has the most extreme number of nations and covers practically the entirety of India's significant fare goals internationally. It merits referencing here that Group B has the most noteworthy quantum of a motivator. Group C on the other hand has no incentive at all. It can be divided into, SAARC, Australia and New Zealand, some EU and African countries.
4. Revision of MEIS scheme
The main timetable of the MEIS comprising of the meaning of the national gatherings and the motivating forces on the 8-digit product offerings was distributed alongside the Foreign Trade Policy 2015-20 in April 2015. Notwithstanding, after rehashed portrayals from different industry affiliations and fare advancement committees remembering us for the insufficiency of the motivators, the DGFT came out with another calendar vide Public Notice No. 06/2015-2020 distributed on fourth May 2016. While the country groups have remained the same in the new schedule, there has been a re-orientation of the incentive rates and in general, the incentive basket has broadened. We have studied both the earlier schedule and the new one. The key changes include
►Additions of some product lines (at 8 digits) to the list of beneficiaries under MEIS. For example, items coming in the class of the clinical and logical instruments have been remembered for the MEIS calendar and motivating forces have been given for every one of the three gatherings.
►Amendment in the incentive rates for some product lines already included in the schedule. Here the most significant change has been the award of motivators to Group A nations for some product offerings. This has obviously contributed towards the expansion of the incentive market and has addressed one of our concerns
About MEIS Scheme
Frequently Asked Questions (FAQs)
What is the Duty Credit scrip?
Obligation Credit scrips will be scrips given to exporters as "motivators" by the Government of India. Through Merchandise Exports from India Scheme (MEIS Scheme) scrips are given for products sends out and through Service Exports from India Scheme (SEIS Scheme)scrips are given for administration trades. The estimation of the scrips is a level of the FOB estimation of merchandise/administrations traded and is unreservedly transferable. The scrips can be utilized to balance customs obligations while bringing in.
What is MEIS?
Product Exports from India Scheme is famously known as the MEIS Scheme. MEIS is an obligation scrip given as compensation by the legislature to an exporter of products. The estimation of the scrips is 2% to 6% of the FOB estimation of merchandise sent out. There are in excess of 4000 duty lines that are qualified for MEIS. The scrips can be utilized to counterbalance import obligations and are openly transferable.
How can I Apply for MEIS Script?
Applying for MEIS is a simple procedure and can be done online on DGFT’s website with the concerned RA in AayatNiryat Form (ANF) 3A using a digital signature. E-BRC and the significant delivery bills will be connected with the online application. We will help you during the time spent recording a MEIS application.
Can I sell MEIS scrips?
Absolutely Yes, Scrips are freely transferable as per para 3.02 of FTP.
Is it mandatory to registered Scrips at customs?
Yes, it is mandatory to get the script registered at customs. We will help you to register your scrips at customs.
Can I sell an unregistered Scrip at customs?
Yes. However unregistered scrips attract lesser rates, due to additional process.
What is the GST rate on the MEIS scrip?
The government has removed the GST chargeable on the sale of this scrip. The GST chargeable on the sale of scrips is 0%.
What is the validity of MEIS scrips under DGFT?
MEIS scrips are valid only for 24 months from the date of issuance of the scrips.
My MEIS scrip has expired, can it be revalidated?
Revalidation of scrips isn't allowed except if legitimacy has lapsed while in the care of Customs Authority/RA. Revalidation of scrips isn't allowed except if secured under passage 2.20(c) of the Handbook of Procedures (HBP) of the Foreign Trade Policy 2015-2020.
Are there any hidden fees that I will have to bear?
There are ZERO hidden’ fees’. rplicence.com (R.P Trading Company) is a trusted and transparent platform to buy and sell scrips.
How can I make use of MEIS?
MEIS scrips are uninhibitedly transferable and are usable for the installment of Customs Duty (BCD), Anti-Dumping Duty (ADDs), and Safeguard Duties. The obligation credit scrips can't be utilized for the installment of IGST (Integrated Goods and Services Tax) and GST pays cess in imports, and CGST, SGST, IGST, and GST remuneration cess for local acquirement.
What is the time limit to apply for MEIS scrips?
There is a period limit. Applications must be made inside 3 months from the date of transferring EDI dispatching bills on the DGFT server, or 3 months from the date of print/arrival of transportation bills (for non-EDI bills) or a year from the Let Export (LEO) date, whichever is later, in regard of shipments for which guarantee is being documented.
Why should I buy Duty credit scrips?
For example, the assumed worth of scrip is Rs.1000 and it is being sold at a cost of state Rs.950. You would now be able to use it at customs while bringing in merchandise at a 100% presumptive worth of Rs.1000 and spare Rs.50. [Note: Prices cited above are for representation purposes as they were. Real costs offered for the scrips are dynamic and depend on specialized and showcase factors].
How much will I save if I use Duty credit scrips?
Scrips are regularly sold at a rebate. State the presumptive worth of scrip is Rs.10,000 and it is being sold for Rs.9500, you spare Rs.500 on the off chance that you utilize that scrip during an installment of obligation during imports. [Note: Prices cited above are for representation purposes as they were. Genuine costs offered for the scrips are dynamic and depend on specialized and advertising factors].
Can I return, an unutilized value in scrip?
No, you cannot return unutilized/balance value. In any case, you can utilize the equalization incentive to counterbalance customs obligation on different imports, or you can sell the unutilized segment of a scrip.