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INCENTIVE UNDER MEIS SCHEME (MERCHANDISE EXPORTS FROM INDIA SCHEME)
WHEN CAN YOU CLAIM THE INCENTIVE?
Under the MEIS Scheme, certain rewards and incentives are given to exporters. Such incentives are given to exporters at a specified rate which varies from product to product and country to country.
The incentives are given at a specified rate on the FOB (Free on Board) Value and would be lower of the following:-
- Realised FOB value of exports in free foreign exchange, or
- The FOB value of exports as given in the shipping bill in free foreign exchange, whichever is less.
DOCUMENTS REQUIRED
- Self-attested copy of the import bill of entry
- Delivery order issued by port authorities
- Arrival notice issued by goods carrier
- Tracking report from the goods carrier
- Evidence of arrival of export cargo to destination Market
- For Landlocked notified Market, Rail or Lorry receipts of transportation of goods from Port to Landlocked notified Market
- Proof of any other documents that products/goods have landed in or reached the notified market.
ELIGIBLE GOODS
- Agricultural and Village industry products, presently covered under VKGUY.
Value added and packaged products. - Eco-friendly and green products that create wealth out of waste from agricultural and other waste products that generate additional income for the farmers, while improving the environment.
- Labour intensive Products with large employment potential and Products with large number of producers and /or exporters.
- Industrial Products from potential winning sectors.
- Hi-tech products with high export earning potential.
Markets Supported
- Most Agricultural products supported across the Globe.
- Industrial and other products supported in Traditional and/or Emerging markets only.
High potential products not supported earlier
- Support to 852 Tariff lines that fit in the product criteria but not provided support in the earlier FTP. Includes lines from Fruits, Vegetables, Dairy products, Oils meals, Ayush & Herbal Products, Paper, Paper Board Products.
Global support has been granted to the following category:
- Fruits, Flowers, vegetables
- Tea Coffee, Spices
- Cereals preparation, shellac, Essential oils
- Processed foods,
- Eco Friendly products that add value to waste
- Marine Products
- Handloom, Coir, Jute, products and Technical Textiles, Carpets Handmade.
- Other Textile and Readymade garments have been supported for European Union,
USA, Canada and Japan. - Handicraft, Sports Goods
- Furniture, wood articles
Support to major markets have been given to the following product categories
- Pharmaceuticals, Herbals, Surgical
- Industrial Machinery, IC Engine, Machine tools, Parts, Auto Components/Parts
- Hand Tools, Pumps of All Types
- Automobiles, Two wheelers, Bicycles, Ships, Planes
- Chemicals, Plastics
- Rubber, Ceramic and Glass
- Leather garments, saddlery items, footwear
- Steel furniture, Prefabs, Lighters
- Wood , Paper, Stationary
- Iron, steel, and base metals, products
Other sectors supported under MEIS
- 352 Defence related Product with export of US$ 17.7B consisting of Core Products (20),
- Dual Use products (60), General Purpose products (272).
- 283 Pharmaceutical products of Bulk Drugs & Drug Intermediates, Drug Formulations Biologicals, Herbal, Surgicals, and Vaccines.
- 96 lines of Environment related Goods, Machinery, and Equipments.
- 49 lines where mandatory BIS standards are prescribed.
- 7 lines of Technical Textiles.
Participation in global value chain of the items falling under the scheme:
- 1725 lines of Intermediate Goods – These goods become inputs in the manufacturing of other countries and will strengthen backward manufacturing linkages, which is vital for India’s participation in Global Value Chains.
- 1109 lines of Capital Goods sector- will also strengthen Manufacturing Base in India.
- 1730 lines of Consumer Goods sector- We hope a quantum jump in export from this sector with strengthening of Make in India Brand in near future.
Technology based analysis:
- 572 lines-Low skill Technology-intensive manufacturing.
- 1010 lines-Medium skill Technology-intensive manufacturing.
- 1309 lines-High Skill Technology-intensive manufacturing.
Women Centric Products supported under MEIS
- Women workers constitute 52% of plantation workers-203 lines of Tea Coffee, Spices, and Cashew.
- 69% of the aggregate female employment is concentrated in the following sectors:
- Manufacture of other food products -Jelly Confectionery, tomato ketchup, cooked stuffed pasta, pawa, mudi and the like, gingerbread , papad, pastries and cakes.
- Manufacture of wearing apparel-396 lines of Readymade Garments
- Sectors that have a significant proportion of female employment (more than 25%):
- Agricultural and animal husbandry service activities, except veterinary activities– 263 lines of basic Agriculture products.
- Manufacture of footwear – 28 Footwear and Leather products.
- Consumer Electronics and Electronic Components, watches and clocks -483lines.
FAQs
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.
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
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.
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.
If you have filed under (‘No’) reward scheme you cannot claim MEIS.
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.