Merchandise Exports from India Scheme (MEIS)

Objective of the scheme is to promote manufacture and export of notified goods / products from India. The reward for the exporters is an incentive of a fixed percentage on the FOB value of the exports. The percentage for various notified products is fixed by DGFT and notified in Appendix 3B according to the ITC(HS) codes of the respective products.

The reward is the form of “Duty Credit Scrips”. The Duty Credit scrips can be used for

1. Payment of basic customs duty and Additional Customs duty for import of goods
2. Payment of Central Excise Duty on domestic procurement of goods.
3. Payment of Custom Duties in case of Export Obligation defaults.
4. Payment of Composition fees
5. Payment of Application Fee
6. Payment of Value Shortfall in Export Obligation

Duty Credit Scrips are freely transferable, which means these can be sold to a different entity as well.

MEIS for E-Commerce

Following products are eligible for MEIS scheme through E-commerce

1. Handicraft Items / Products
2. Handloom products
3. Books / Periodicals
4. Leather Footwear
5. Toys
6. Customized Fashion Garments

There is a limit of Rs. 25000 per consignment applied for this category. MEIS will be applicable only for FOB value upto Rs. 25000 per consignment. If value of consignment is above Rs. 25000, MEIS reward will be limited to FOB value of Rs. 25000 only.

Ineligible Export Categories:

1. Supplies from DTA to SEZ units
2. Export of Imported Goods
3. Exports through Trans-shipment
4. Deemed Exports
5. SEZ / EOU / EHTP / BTP / FTWZ products exported through DTA units
6. Export products subject to minimum export price or export duty
7. Exports made by FTWZ

Validity:

Duty Credit Scrips will be valid for 24 months from the date of Issue. Further revalidation cannot be issued by Dept.

Time Frame for Applying for MEIS:

1. 12 months from the Let Export (LEO) Date or
2. 3 months from date of
   1. Uploading of EDI Shipping Bills onto the DGFT Server by Customs
   2. Printing / Release of shipping bills for Non – EDI Shipping bills Whichever is later.

Important Points to remember:

1. Declaration of Intent: To claim the benefit of MEIS it is mandatory to declare intent by marking/ ticking of “Y” (for yes) in “Reward” Column of EDI shipping bills against each item for which the applicant desires to claim benefit. In case of Non – EDI shipping bills following line should be mentioned on the shipping bills to claim reward: “We intend to claim rewards under Merchandise Exports from India Scheme (MEIS)”

Objective

Objective of the Merchandise Exports from India Scheme (MEIS) is to promote the manufacture and export of notified goods/products.

Entitlement under MEIS

Exports of notified goods/products with ITC [HS] code, to notified markets as listed in Appendix 3B, shall be rewarded under MEIS. Appendix 3B also lists the rate(s) of rewards on various notified products [ITC (HS) code wise]. The basis of calculation of reward would be on realised FOB value of exports in free foreign exchange, or on FOB value of exports as given in the Shipping Bills in freely convertible foreign currencies, whichever is less, unless otherwise specified.

Export of goods through courier or foreign post offices using e-Commerce

1. Exports of goods through courier or foreign post office using e- commerce, as notified in Appendix 3C, of FOB value up to Rs. 25000 per consignment shall be entitled for rewards under MEIS.
2. If the value of exports using e-commerce platform is more than Rs. 25000 per consignment then MEIS reward would be limited to FOB value of Rs.25000 only.
3. Such goods can be exported in manual mode through Foreign Post Offices at New Delhi, Mumbai and Chennai.
4. Export of such goods under Courier Regulations shall be allowed manually on pilot basis through Airports at Delhi, Mumbai and Chennai as per appropriate amendments in regulations to be made by Department of Revenue. Department of Revenue shall fast track the implementation of EDI mode at courier terminals.

Ineligible categories under MEIS

The following exports categories /sectors shall be ineligible for Duty Credit Scrip entitlement under MEIS

1. Supplies made from DTA units to SEZ units
2. Export of imported goods covered under paragraph 2.46 of FTP;
3. Exports through trans-shipment, meaning thereby exports that are originating in third country but trans-shipped through India;
4. Deemed Exports;
5. SEZ/ EOU /EHTP/ BTP /FTWZ products exported through DTA units;
6. Export products which are subject to Minimum export price or export duty.
7. Exports made by units in FTWZ.

Effective date of schemes (MEIS)

The schemes shall come into force with effect from the date of notification of this Policy, i.e. the rewards under MEIS shall be admissible for exports made/services rendered on or after the date of notification of this Policy.

1. Policy for Merchandise Exports from India Scheme (MEIS) is given in Chapter 3 of FTP.
2. An application for claiming rewards under MEIS on exports (other than Export of goods through courier or foreign post offices using e- Commerce), shall be filed online, using digital signature, on DGFT website at http://dgft.gov.in with RA concerned in ANF 3A. The relevant shipping bills and e BRC shall be linked with the on line application.
3. If application is filed for exports made through EDI ports, then the RAs shall not ask for any physical documents except under the provisions of para 3.01 (h) below and therefore hard copy of the following documents need not be submitted to RA: hard copy of applications to DGFT, EDI shipping bills, electronic Bank Realisation Certificate (e-BRC) and RCMC. The applicant shall submit the proof of landing in the manner prescribed under paragraph 3.03 of HBP.
4. In case application is filed for exports made through non EDI ports, then applicant need to submit export promotion copy of non EDI shipping bills. The applicant shall submit the proof of landing in the manner prescribed under paragraph 3.03 of HBP. The applicant shall upload scanned copies of any other prescribed documents for claiming scrip unless specified otherwise. However applicant need not submit hard copy of applications to DGFT, electronic Bank Realisation Certificate (e-BRC) and RCMC in this case also.
5. Applicant shall file separate application for each port of export in case of Non EDI Shipping bills. In case of EDI shipping bills, the applicant can file a single application containing shipping bills of different EDI ports. Accordingly shipments from different EDI ports will not require separate applications
6. Processing of Non EDI Shipping bills at RA: In cases the Non EDI shipping bills or the shipping bills not received through the Message Exchange from Customs, concerned RA shall verify the details entered by the exporter from the original shipping bills before grant of scrip.
7. No manual feeding allowed for EDI shipments: For EDI Shipping Bill, no manual feeding of shipping bill details shall be allowed to the applicants in the online system. Rewards will be granted by RAs without the need for cross verifying EDI Shipping Bill details.
8. RA shall process the electronically acknowledged files and scrip shall be issued after due scrutiny of electronic documents. After scrutiny, if the officer has reasonable suspicion of wrong classification/mis-declaration in any application, in such cases officer may, after approval of his senior officer/ Head of the Office, seek physical documents for scrutiny. On receipt of such documents, the officer must decide the claim within 7 working days. In cases, where the claim is rejected, a speaking order shall be issued.
9. The documents which are not required to be submitted in original, shall be retained by the applicant for a period of 3 years from the date of issuance of scrip or as prescribed under FTP para 3.19 (b).
10. Licensing Authority may call such documents in original at any time within 3 years. In case the applicant fails to submit the original documents on demand by Licensing Authority the applicant shall be liable to refund the rewards granted along with interest at the rate prescribed under Section 28 AA of Customs Act 1962, from the date of issuance of scrip.
11. Eligibility of product, corresponding ITC [HS] code, and markets (as given in Appendix 3B) for claiming rewards under MEIS shall be determined from Let Export Date as per Paragraph 9.12 of HBP.

Applications for Export of goods through courier or foreign post offices using e-Commerce

1. Application shall be filed online, using digital signature, in ANF 3D by exporter. The applicant shall submit the proof of landing in the manner prescribed under paragraph 3.03 of HBP.
2. Applicant shall file separate application for each port of export.
3. RA will manually examine the submitted documents before grant of scrip.

Proof of Landing

1. Wherever the reward under MEIS is available to all countries, proof of landing shall not be required to be submitted for claiming the reward
2. Uploading/submission of documents, as a proof of landing:
   As a measure of ease of doing business, documents as a proof of landing of export consignment in notified market can be digitally uploaded in the following manner:-
   1. Any exporter may upload the scanned copy of document as mentioned at paragraph 3.03 (c) (i) under his digital signature.
   2. Status holders falling in the category of Three Star, Four Star or Five Star export house category may upload scanned copies of documents as mentioned at paragraph 3.03(c) (iv).
   3. In all other cases the physical copy, in original, shall be filed by all categories of exporters.
3. Applicant shall be required to submit or upload, as the case may be, any one of the following documents as a proof of landing of export consignment in notified Market:
   1. A self attested copy of import bill of entry filed by importer in specified market, or
   2. Delivery order issued by port authorities, or
   3. Arrival notice issued by goods carrier, or
   4. Tracking report from the goods carrier (Shipping Line/Airline etc. or his accredited agent in India) duly certified by them, evidencing arrival of export cargo to destination Market, or
   5. For Land locked notified Market, Rail/Lorry receipts of transportation of goods from Port to Land locked notified Market,
   6. Any other document that may satisfactorily prove to RA concerned that goods have landed in /reached the notified Market.
4. In case of (iv) and (vi) above, the accredited agent of the Goods Carrier must certify that he is the accredited agent of the concerned Goods Carrier on the date of issuance of the tracking report / document.
5. Further, in the case of issuance of any other document under (vi) above, the accredited agent must state that proof of landing of goods in relevant notified Market is given based on information available in the Goods Carrier’s backup database and he has verified the same and issued this document accordingly.
6. In cases of exports using e commerce, exporter may submit express operator landing certificate/online web tracking print out indicating airway bill number as prescribed in enclosure (B) to ANF 3D.

Jurisdictional RA / RA Concerned

Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office/ Registered Office/Head Office / Branch Office address endorsed on IEC for submitting application/applications under MEIS and SEIS. This option need to be exercised at the beginning of financial year. Once an option is exercised, no change would be allowed for claims relating to that year. To illustrate, if an exporter has chosen RA Chennai for claiming rewards for exports made in 2015-16,then all claims for exports made in 2015-16, irrespective of the date of application shall be made to RA Chennai only.

Port of Registration of Scrips

Port of Registration under MEIS would be as follows:

Duty Credit Scrip (including splits) under MEIS shall be issued with a single port of registration which shall be any one of the EDI ports from where export is made. In case of shipments from Non EDI ports, the Duty 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.
SEZs being non-EDI Ports, the scrip shall be registered at the SEZ port and in case the scrip holder intends to use the scrip for import from another port, the concerned DC shall issue Telegraphic Release Advice (TRA).

Facility for Split Scrips

1. On request, split certificates of Duty Credit Scrip subject to a minimum of Rs. 5 Lakh each and multiples thereof may also be issued, at the time of application.
2. Once Duty Credit Scrip has been issued, request for splits can be permitted with same port of registration as appearing on the original Scrip. The above procedure shall be applicable only in respect of EDI enabled ports.
3. In case of export through non-EDI ports, the facility of splits shall not be allowed after issue of Scrip.

Re-export of defective / unfit goods

Goods imported which are found defective or unfit for use, may be re- exported, as per DoR guidelines. Where Duty Credit Scrip has been used for imports, Customs shall issue a certificate containing particulars of Scrip used, date of import of re-exported goods and amount debited while importing such goods. Based on this certificate, upon application, a fresh Scrip shall be issued by concerned RA to extent of 98% of debited amount, with same port of registration and valid for a period equivalent to balance period available on date of import of the defective / unfit goods.

Validity period and Revalidation

Duty Credit Scrip issued on or after 01.01.2016 under chapter 3 shall be valid for a period of 24 months from the date of issue and must be valid on the date on which actual debit of duty is made. Revalidation of Duty Credit Scrip shall not be permitted unless covered under paragraph 2.20(c) of HBP.

Procedure for Declaration of Intent on EDI and Non EDI shipping bills for claiming rewards under MEIS including export of goods through courier or foreign post offices using e-Commerce

1. EDI Shipping Bills: Marking/ ticking of “Y’ (for Yes) in “Reward” column of shipping bills against each item, which is mandatory, would be sufficient to declare intent to claim rewards under the scheme. In case the exporter does not intend to claim the benefit of reward under Chapter 3 of FTP exporter shall tick “N’ (for No). Such marking/ticking shall be required even for export shipments under any of the schemes of Chapter 4 (including drawback), Chapter 5 or Chapter 6 of FTP.
2. Non-EDI Shipping Bills: In the case of non-EDI Shipping Bills, Export shipments would need the following declaration on the Shipping Bills in order to be eligible for claiming rewards under MEIS: “We intend to claim rewards under Merchandise Exports from India Scheme (MEIS)”. Such declaration shall be required even for export shipments under any of the schemes of Chapter 4 (including drawback), Chapter 5 or Chapter 6 of FTP.

Whenever there is a decision during the financial year to include any new product / goods or new markets then to avail such rewards:

1. For exports of such products/goods, to such markets, a grace period of one month from the date of notification/public notice will be allowed for making this declaration of intent.
2. After the grace period of one month, all exports (of such products/goods or to such markets) would have to include the declaration of intent on all categories of shipping bills.
3. For exports made prior to date of notification/public notice of products/markets, such a declaration would not be required since such exports would have already taken place.

Last date of filing of application for Duty Credit Scrips

Application for obtaining Duty Credit Scrip under MEIS shall be filed within a period of:

1. Twelve months from the Let Export (LEO) date or
2. Three months from the date of :
3. Uploading of EDI shipping bills onto the DGFT server by Customs.
4. Printing/ release of shipping bills for Non EDI shipping bills.

Whichever is later, in respect of shipments for which claim is being filed.