Merchandise Exports From India Scheme (MEIS)

Updated on July 06, 2024 11:46:15 PM

MEIS was introduced in the Foreign Trade Policy (FTP) for the period 2015-2020. The MEIS was launched as an incentive scheme for the export of goods. The rewards are given by way of duty credit scrips to exporters. The MEIS is notified by the DGFT (Directorate General of Foreign Trade) and implemented by the Ministry of Commerce and Industry.

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Background to MEIS

MEIS replaced the various export incentive schemes which gave different types of duty credit scrips namely, 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. All duty credit scrips issued under the earlier incentive schemes were transferred to the MEIS.

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MEIS Incentive

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Under the FTP 2015-20, MEIS intends to incentivise exports of goods manufactured in India or produced in India. The incentives are for goods widely exported from India, industries producing or manufacturing such goods with a view to making Indian exports competitive. The MEIS covers goods notified for the purpose of the scheme.

The incentives under the schemes are calculated as a percentage, which is 2%, 3% or 5% of the realised FOB (free-on-board) value exports in free foreign exchange or FOB value of exports as per shipping bills in free foreign exchange. The incentives are allotted through a MEIS duty credit scrip. The ‘free foreign exchange’ will include foreign exchange earned through international credit cards and other instruments allowed by the Reserve Bank of India (RBI).

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How to apply for MEIS incentive

You should make an online application in form ANF 3A through a digital signature to claim duty credit scrip entitlements under MEIS. The applicant has to furnish hard copies of the application filed with DGFT, EDI (Electronic Data Interchange) shipping bills, Bank Realisation Certificate obtained electronically (e-BRC) and RCMC. However, if the application is made through EDI ports, then the applicant is not required to submit hard copies, but only export promotion copies of non-EDI shipping bills and proof of landing.

The applicant shall file separate applications for each port. The applicant is not required to submit any documents in original but should retain the original documents for a period of three years.

The application should be filed within a period of:

  • 12 months from the LEO (Let Export) date or
  • 3 months from the date of – uploading of the EDI shipping bills onto the DGFT server by customs, or printing of shipping bills for non-EDI shipping bills, whichever is later.
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How to use MEIS incentive

The duty credit scrips can be utilised to pay customs duties on import of inputs or goods, safeguard duty, anti-dumping duty and any other customs duty under FTP 2015-20. The scrips can also be transferred as well as used for importing goods against them.

Exporters can request for a split of the duty credit scrip with a condition of each scrip valuing to at least Rs 5 lakh. The request can also be made after the issue of scrip, with the same port of registration as applicable for the original scrip. However, the procedure is applicable only in respect of EDI (Electronic Data Interchange) enabled ports. In the case of non-EDI ports, a duty credit scrip cannot be split after it is issued.

The scheme provides the flexibility of import and payment to exporters and has removed many structural inefficiencies of the earlier incentive schemes.

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Goods notified under MEIS

MEIS incentivises close to 5,000 items classified and notified under various ITC (HS) codes and with corresponding reward rates ranging from 2% to 5%. The items are notified by the DGFT.

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Ineligibility of benefits under MEIS

The sectors or segments mentioned below are not entitled to MEIS incentives

  • SEZ/EOU/EHTP/FTWZ products exported through DTA units.
  • Supplies made to SEZ units from DTA units.
  • Deemed Exports.
  • Export of imported commodities covered under paragraph 2.46 of FTP.
  • Export commodities which are subject to a minimum export duty or export price.
  • Exports via trans-shipment, meaning thereby exports that are emerging in the third country but trans-shipped through India.
  • Exports initiated by units in Free Trade and Warehousing Zones (FTWZ).
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Duration of MEIS

The MEIS incentives are applicable from 1 April 2015 until the validity of the FTP 2015-20, which is 31 March 2020.

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Port of Registration:

  • Credit Scrip (including splits) under MEIS shall be issued with a single port of registration which shall be the port of export.
  • Duty credit scrip needs to be registered at the port of exports. This is to be done prior to allowing usage of duty credit. Once registered at EDI port, scrip can be automatically used at any EDI port for import and at any manual port under Telegraphic Release Advise (TRA) procedure. In case port of registration is a manual port, TRA shall be required for imports at any other port.
  • In case of scrip applied under Service Exports from India Scheme, the applicant can choose any port as port of registration and mention it in the application at the appropriate column. RA will issue the scrip with such port of registration. Such Duty credit scrip needs to be registered at the port of registration of duty credit. Once registered at EDI port, scrip can be automatically be used at any EDI port for import and at any manual port under Telegraphic Release Advise (TRA) procedure. In case port of registration is a manual port, TRA shall be required for imports at any other port.
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List of Countries Covered Under MEIS:

I-Country Group A

(1) Austria (11) France (21) Netherlands
(2) Belgium (12) Germany (22) Poland
(3) Bulgaria (13) Greece (23) Portugal
(4) Canada (14) Hungary (24) Romania
(5) Croatia (15) Ireland (25) Slovak Republic
(6) Cyprus (16) Italy (26) Slovenia
(7) Czech Republic (17) Latvia (27) Spain
(8) Denmark (18) Lithuania (28) Sweden
(9) Estonia (19) Luxembourg (29) United Kingdom
(10) Finland (20) Malta (30) United States of America

II-Country Group B

(1)Algeria, (51)Grenada, (101)Russia,
(2) Angola, (52)Guadeloupe, (102)Rwanda,
(3) Antigua, (53)Guatemala, (103)Sao Tome,
(4) Argentina, (54)Guinea, (104)Saudi Arab,
(5) Armenia, (55)Guinea Bissau, (105)Senegal,
(6) Azerbaijan, (56)Guyana, (106)Seychelles,
(7) Bahamas, (57)Haiti, (107)Sierra Leone,
(8) Bahrain , (58)Honduras, (108)Singapore,
(9) Barbados, (59)Indonesia, (109)Somalia,
(10) Belarus, (60)Iran, (110)South Africa,
(11) Belize, (61)Iraq, (111)St Helena,
(12) Benin, (62)Israel, (112)St Kitt N A
(13) Bermuda, (63)Jamaica, (113)St Lucia,
(14) Bolivia, (64)Japan, (114)St Vincent,
(15) Botswana, (65)Jordan, (115)Sudan,
(16) British Virgin Islands, (66)Kazakhstan, (116)Suriname,
(17) Brazil, (67)Kenya, (117)Swaziland,
(18) Brunei, (68)Korea Republic (south Korea), (118)Syria,
(19) Burkina Faso, (69)Kuwait, (119)Taiwan,
(20) Burundi, (70)Kyrgyzstan, (120)Tajikistan,
(21) Central African Republic, (71)Lao PDR (121)Tanzania Republic,
(22) Cambodia, (72)Lebanon, (122)Thailand,
(23) Cameroon, (73)Lesotho, (123)Togo,
(24) Canary Island, (74)Liberia, (124)Trinidad,
(25) Cape Verde Island, (75)Libya, (125)Tunisia,
(26) Cayman Island, (76)Madagascar, (126)Turkey,
(27) Chad, (77)Malawi, (127)Turkmenistan,
(28) Chile, (78)Malaysia, (128)Turks and Caicos Island
(29) China PRP, (79)Mali, (129)United Arab Emirates
(30) Colombia, (80)Martinique, (130)Uganda,
(31) Comoros, (81)Mauritania, (131)Ukraine,
(32) Congo Democratic Republic, (82)Mauritius, (132)Uruguay,
(33) Congo Republic, (83)Mexico, (133)Uzbekistan,
(34) Costa Rica, (84)Moldova, (134)Venezuela,
(35) Cote D' Ivoire, (85)Montserrat, (135)Vietnam Socialist Republic
(36) Cuba, (86)Morocco, (136)Virgin Island Us
(37) Djibouti, (87)Mozambique, (137)Yemen Republic
(38) Dominic Rep, (88)Myanmar, (138)Zambia,
(39) Dominica, (89)Namibia, (139)Zimbabwe.
(40) Ecuador, (90)Netherland Antilles, _
(41) Egypt , (91)Nicaragua, _
(42) El Salvador, (92)Niger, _
(43) Equatorial Guinea, (93)Nigeria, _
(44) Ethiopia, (94)Oman, _
(45) Falkland Island, (95)Panama Republic, _
(46) French Guiana, (96)Paraguay, _
(47) Gabon, (97)Peru, _
(48) Gambia, (98)Philippines, _
(49) Georgia, (99)Qatar, _
(50) Ghana, (100)Reunion, _

III-Country Group C

(1)Afghanistan, (25) Hong Kong, (49) Palau,
(2) Albania, (26) Iceland, (50) Panama,
(3) American Samoa, (27) Kiribati Rep, (51) Papua New Guyana,
(4) Andorra, (28) Korea DPR (North Korea), (52) Pitcairn Islands,
(5) Anguilla, (29) Liechtenstein, (53) Puerto Rico,
(6) Antarctica, (30) Macao, (54) SaharwiA.Dm Republic,
(7) Aruba, (31) Macedonia, (55) Samoa,
(8) Australia, (32) Maldives, (56) San Marino,
(9) Bangladesh, (33) Marshall Islands, (57) Serbia,
(10) Bhutan, (34) Micronesia, (58) Solomon Island,
(11) Bosnia and Herzegovina, (35) Monaco, (59) Sri Lanka DSR,
(12) Channel Islands, (36) Mongolia, (60) St Pierre,
(13) Christmas Islands, (37) Montenegro, (61) Switzerland,
(14) Cocos Islands, (38) N. Mariana Islands, (62) Timor Leste,
(15) Cook Islands, (39) Nauru Republic, (63) Tokelau Islands,
(16) Eritrea, (40) Nepal, (64) Tonga,
(17) Faroe Islands, (41) Neutral Zone, (65) Tuvalu,
(18) Fiji Island, (42) New Caledonia, (66) Serbia
(19) French Polynesia, (43) New Zealand, (67) Montenegro,
(20) French Southern and Antarctic Lands (Fr S Ant Tr), (44) Niue Islands, (68)Vanuatu Republic,
(21) Gibraltar, (45) Norfolk Islands, (69) Territory of the Wallis and Futuna Islands
(22) Greenland, (46) Norway, (70) Any other country not listed in the Country Groups abovewill be treated as part of Country Group C
(23) Guam, (47) Pacific Islands, (70 Countries)
(24) Heard Macdonald, (48) Pakistan, _