Merchandise Exports from India Scheme (MEIS): A Comprehensive Guide
Introduction
The Merchandise Exports from India Scheme (MEIS) is a significant initiative by the Government of India aimed at promoting the export of goods by providing incentives to exporters. This scheme was introduced under the Foreign Trade Policy (FTP) 2015-2020 and has been instrumental in boosting India’s export performance.
What is MEIS?
MEIS is a duty credit scrip scheme that rewards exporters with duty credit scrips based on the value of their exports. These scrips can be used to offset import duties on inputs or goods, including capital goods. The value of the scrips ranges from 2% to 5% of the Free on Board (FOB) value of the exported goods.
Objectives of MEIS
The primary objective of MEIS is to promote the manufacture and export of notified goods/products. By providing incentives, the scheme aims to offset infrastructural inefficiencies and associated costs, making Indian goods more competitive in the global market.
Eligibility Criteria
To be eligible for MEIS, exporters must meet certain criteria, including having an Import Export Code (IEC) and complying with the provisions of the Foreign Trade Policy and Handbook of Procedures. The scheme covers a wide range of products, with over 4000 tariff lines eligible for incentives.
Rewards under MEIS
The rewards under MEIS are provided in the form of duty credit scrips, which can be used for:
- Payment of Basic Customs Duty and Additional Customs Duty on imported inputs or goods
- Payment of Central Excise Duties on domestically procured inputs or goods
- Payment of Basic Customs Duty and Additional Customs Duty on imported capital goods
How to Apply for MEIS
Step 1: Register on DGFT Portal
- Visit the MEIS Official Portal.
- If you do not have an account, you will need to create one by registering on the portal.
- Once registered, log in to your account using your credentials.
Step 2: Prepare the Required Documents
- Import Export Code (IEC)
- Digital Signature Certificate (DSC)
- Profile of Exporter on DGFT Portal
- Authorization Letter (if applicable)
- Details of Export Performance
Step 3: Fill the Application Form
- Navigate to the “Services” section on the DGFT portal.
- Select the “MEIS” option and proceed to fill the application form (ANF 3A).
- Enter all required details such as IEC, export product details, and value of exports.
- Upload the necessary documents as per the guidelines.
Step 4: Submit the Application
- Review the application form to ensure all details are correct.
- Submit the application form electronically through the DGFT portal.
- Pay the required application fee online.
Step 5: Track Application Status
- After submission, you can track the status of your application on the DGFT portal.
- You will receive updates and notifications regarding the progress of your application.
Step 6: Receive Duty Credit Scrips
- Once the application is approved, you will receive the MEIS duty credit scrips electronically.
- You can then use these scrips to offset import duties on inputs or goods.
Implementation and Administration
MEIS is notified by the Directorate General of Foreign Trade (DGFT) and implemented by the Ministry of Commerce and Industry. The scheme has been designed to be user-friendly, with provisions for online application and tracking of scrips.
Recent Developments
In recent years, the government has made several changes to enhance the effectiveness of MEIS. One significant change is the removal of GST on the sale of duty credit scrips, making them more attractive to exporters. Additionally, the scheme is set to be replaced by the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme from January 1, 2021.
Conclusion
The Merchandise Exports from India Scheme (MEIS) has played a crucial role in promoting India’s exports by providing incentives to exporters. With its user-friendly implementation and attractive rewards, MEIS has helped Indian exporters compete effectively in the global market.
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