In recent years the government is aiming to increase the margin of export under the new Five-Year Foreign Trade Policy by providing incentives to the exporters of goods and services. The schemes like- MEIS scheme i.e. Merchandise Export Incentive Scheme and SEIS scheme are introduced.
More than 4000 items of exports are eligible to get benefit under MEIS DGFT. Under MEIS Scrips shall be granted as rewards. The Scrips shall be freely transferable against goods imported / domestically procured. First time exporters from SEZ are also covered under this initiative.
Merchandise Exports from India Scheme (MEIS) Aims to offset infrastructural inefficiencies and associated costs involved in export of goods or products produced as well as manufactured in the country, especially products of high export intensity, employment potential and to improve India’s export competitiveness in the world market.
Interlink helps you to make an online application for claiming rewards under MEIS on exports other than Export of goods through courier or foreign post offices using e-Commerce. The applicant shall file separate application for each port of export.
We help in making the necessary document and application and assist you in submitting the original documents. 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.
Licensing Authority may call these 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 will be liable to refund the rewards granted along with interest.
Further, we assist the client to understand the conditions and help in preparing the exact required documents of MEIS for export that will be beneficial for the betterment of their business.
Under Merchandise Exports from India Scheme, GOI provides up to 5% incentives to exporters. We help all exporters to get tax incentives provided under FTP 2015 - 2020. Credit Scrip holder can import commodities by not paying a specified amount in import duties.
Basically, duty free scrips are paper authorizations that allow the holder to import inputs that go into manufacture of products that are exported or machinery used for producing such goods without paying duties equal to the printed value. The scrips are given to exporters for meeting certain goods and exporting it to specific markets. Main objective of the scrip is to incentivize the exporters to make more exports of specific commodities/services and those to specific markets. The FTPs (Foreign Trade Policies) usually mention the schemes eligible for scrips.
It is also used to reimburse duties on imported inputs under schemes such as the export promotion capital goods scheme, the duty free import authorization scheme and the advance authorization scheme.
For example, if duty free scrip is valued at Rs 10 lakh, the holder can use it to import such goods without paying duties up to Rs 10 lakhs. It is issued to the exporter so that it allows him to import a certain percentage of his export value without levying any import duty. The scrip value can be deducted from import duty.
As per the new FTP (2015), the scrip can be transferred to other persons. This means that an exporter can transfer the MEIS scrip he obtained to the importer.
The Scrip is granted from Regional Offices of DGFT, across the country and also the duty-free scrip can be used for payment of excise duty on such “inputs” that are permitted for imports foreign trade policy.
Merchandise Exports from India Scheme is popularly known as MEIS Scheme. MEIS is a duty scrip given as a reward by the government to an exporter of goods. The value of the scrips is 2% to 5% of the FOB value of goods exported. There are more than 4000 tariff lines which are eligible for MEIS. The scrips can be used to offset import duties and are freely transferable.
Duty Credit scrips are scrips given to exporters as “incentives” by the Government of India. Through Merchandise Exports from India Scheme (MEIS Scheme) scrips are given for goods exports and through Service Exports from India Scheme (SEIS Scheme)scrips are given for services exports. The value of the scrips is a percentage of the FOB value of goods/services exported and are freely transferable. The scrips can be used to offset customs duty while importing.
Recently, the government has removed the GST chargeable on sale of these scrip. The GST chargeable on sale of scrips is now ZERO!
MEIS scrips are valid for a period of 18 months from the date of issuance of the scrips. The limited validity of scrips means delays in realizing its value could mean loss of complete value of the license
Revalidation of scrips is not permitted unless validity has expired while in custody of Customs Authority /RA. Revalidation of scrips is not permitted unless covered under paragraph 2.20(c) of the Handbook of Procedures (HBP) of the Foreign Trade Policy 2015-2020.
There is ZERO hidden’ fees’. Interlink Capital is a trusted and transparent platform to buy and sell scrips.
The MEIS rate of your product is available here DGFT website. (Note: The DGFT notifies the goods eligible for MEIS from time to time;
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 digital signature. E-BRC and the relevant shipping bills shall be linked with the online application. We will help you in the process of filing an MEIS application.
MEIS scrips are freely transferable and are usable for payment of Customs Duty (BCD), Anti-Dumping Duty (ADDs) and Safeguard Duties. The duty credit scrips cannot be used for payment of IGST (Integrated Goods and Services Tax) and GST compensation cess in imports, and CGST, SGST, IGST and GST compensation cess for domestic procurement.
Absolutely, Scrips are freely transferable as per para 3.02 of FTP.
Of course. As per para 3.06 of FTP, the subsequent exports categories /sectors are ineligible for Scrip entitlement under MEIS
There is a time limit. Applications have to be made within 3 months from the date of uploading EDI shipping bills on the DGFT server, or 3 months from the date of print/release of shipping bills (for non-EDI bills) or twelve months from the Let Export (LEO) date, whichever is later, in respect of shipments for which claim is being filed.
To claim MEIS, export shipments need the following declaration on the Shipping Bills in to be eligible for claiming rewards under MEIS DGFT : Reward column of the shipping bill should check (‘YES’). This is called the declaration of intent.
If you have filed under (‘No’) reward scheme you cannot claim MEIS.
Yes, it is mandatory to get scrips registered at customs. Your CHA should be able to help you register your scrips at customs. 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. A Interlink Capital we buy or sell registered scrips
Yes. However unregistered scrips attract lesser rate, due to additional process burden on the buyer.
For instance the face value of a scrip is Rs.1000 and it is being sold at a price of say Rs.950. You can nowutilize it at customs while importing goods at a 100% face value of Rs.1000 and save Rs.50. [Note: Prices quoted above are for illustration purpose only. Actual prices offered for the scrips are dynamic and are based on technical and market factors.]
Scrips are typically sold at a discount. Say the face value of a scrip is Rs.1000 and it is being sold at a price of Rs.950, you save Rs.50 if you use that scrip during payment of duty during imports. If you buy an duty credit scrip of a face value of Rs.10,00,000 at Rs.9,50,000, and you want to import goods which have a customs duty on them of say Rs.5,00,000, you will be able to pay the entire Rs.5,00,000 of the customs duty through your scrips. So, in this case you save Rs.50,000 by buying scrips. [Note: Prices quoted above are for illustration purpose only. Actual prices offered for the scrips are dynamic and are based on technical and market factors.]
No, you cannot return unutilized/balance value. However, you can use the balance value to offset customs duty on other imports, or you can sell the unutilized portion of a scrip.