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All you need to know about MEIS Scheme

Navdisha Sehgal

| Updated: Apr 24, 2021 | Category: Finance, Foreign Exchange Management

All you need to know about MEIS Scheme

MEIS scheme has replaced 5 incentive schemes that gave different types of duly credit scrips. The 5 incentive schemes that are replaced are, Focus Product Scheme (FPS), Focus Market Scheme (FMS), Agriculture Infrastructure incentive Scrip (AIIS), Vishesh Krishi Gramin Upaj Yojana (VKGUY), and Market Linked Focus Product Scheme (MLFPS). Thus, in this article we will look in the MEIS in depth.

What is MEIS Scheme?

MEIS stands for Merchandise Exports from India Scheme. It is a scheme which is designed to boost the export of the goods notified, produced & manufactured in the country. The scheme became operational w.e.f 1st April 2015, through the Foreign Trade Policy & will exists till 2020.

The MEIS Scheme is applicable till 2020 and it has replaced 5 scheme incentives that were available under Foreign Trade Policy 2014 – 2019.

 The 5 scheme incentives are:

  • Focus Product Scheme (FPS)
  • Focus Market Scheme (FMS)
  • Agriculture Infrastructure Incentive Scrip (AIIS)
  • Vishesh Krishi Gramin Upaj Yojana (VKGUY)
  • Market Linked Focus Product Scheme (MLFPS)

For MEIS’s implementation, the Ministry of Commerce & Industry is responsible. Under the scheme, more than Rs. 22,000 crore per year has been allocated by the government for exports.

Objective of MEIS Scheme

The objective of MEIS scheme is to enhance the infrastructural inefficiencies and the costs related to the export of products or goods manufactured in India.

The scheme will emphasis on products or goods with high employment potential, this in turn will enhance the India’s competitiveness in exports.

Features of MEIS Scheme

The following are the features of MEIS Scheme:

  • It eliminates the complexities by combining the benefits of the entire 5 incentive scheme into one.
  • Earlier, MEIS covered only 4914 tarrif lines and an amount of Rs. 18,000 per year was allocated. However, later it was expanded to Rs. 22,000 crore per year and to 5012 tarrif lines.
  • Duty credit scrips issues are easily transferable & can be used for excise duty or service tax or custom duty payment.
  • The incentives under MEIS are also available to the units in SEZs.

Benefits of MEIS Scheme

Certain rewards are given to the exporter of goods under the MEIS Scheme. The incentives given are at the pre- dominated rate and it varies from country to country & from product to product.

The countries that are receiving incentives are categorised under 3 categories that are:

  • Category A: it comprises of traditional markets
  • Category B: it comprises of focus & emerging markets
  • Category C: t comprises of other markets

The percentage of incentives is in between 2% and 5%, for most of the goods and it will vary from product to product.

Eligibility for MEIS Scheme

The exporters of goods, i.e., Merchant or manufacturer exporter are eligible to claim rewards under MEIS scheme.

The MEIS rewards can be claimed by the supporting manufacturer or by the company or firm that has realized foreign exchange directly from overseas.

Ineligibility Categories under MEIS

The ineligible export categories under MEIS scheme are:

  • Supplies made to SEZ units from DTA units
  • The export of imported goods
  • Deemed exports
  • Exports made in FTWZ by the units
  • Exports made through trans – shipment, i.e., exports shipped through India, but are originating in third country
  • Export products that are subject to min export price or duty
  • SEZ/ EHTP/ BPT/ EOU/ FTWZ products that are exported through DTA units
  • Red sanders & beach sand
  • All types & forms of sugar
  • All kinds of cereals
  • Service export.

How to apply for MEIS Scheme?                  

A few points are needed to keep in mind while applying under MEIS scheme:

  • In order to claim rewards under MEIS scheme, the application must be filed online and in the specified format, i.e. ANF – 3A and is submitted using a digital signature.
  • The application is to be filed on the official website of DGFT[1] (Directorate General of Foreign trade) with the relevant regional authority for export of goods.
  • Separate application must be filed for every port of export.
  • One single application can contain 50 shipping bills maximum.
  • There is no need to submit the shipping bill in case of exports carried out via the EDI port and also in case of RCMC & e – BRC, physical copy of bill need not to be submitted. However, proof of landing needs to be submitted.
  • When the exports are carried out through non – EDI port, the following documents are required to be submitted:
    • Proof of landing;
    • Physical copy of export promotion;
    • EDI shipping bill copy;
    • Scanned copies of other prescribed documents.
  • The applicant needs to retain original copy of the documents submitted for at least 3 years from the issuance of scrip.
  • The incentives needs to be refunded with the interest, in case of non-production of the original documents when demanded.
  • Online application for EDI shipments doesn’t allow annual feeding by the applicants.
  • In order to claim the incentives, the ‘Let Export Date’ will be considered as relevant date to determine the corresponding ITC (HS) code, product eligibility & markets, under the MEIS Scheme.

How to claim Incentives for Exports through E- commerce?

Where the goods are exported via foreign post office or courier fore – commerce, the incentives are awarded for goods with a FOB value of Rs. 25,000 per consignment. For the FOB over Rs. 25,000 the rewards are limited to Rs. 25,000 only.

These steps are to be followed to claim rewards for the goods exported trough foreign post office or courier for e- commerce:

  • An application is to be filed with Form ANF -3A with a digital signature to claim rewards.
  • Proof of landing certificate needs to be submitted.
  • Each port has to apply for a separate application.
  • Manual examination of the submitted documents is to be carried out by the regional authority.

Conclusion

The MEIS Scheme was introduced by the Indian Government to enhance the export of goods or products in a country. The scheme came into force from 1st April 2015 and will be operational till 2020 only.

Also, Read: Remission of Duties or Taxes on Export Products: RoDTEP Scheme

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Navdisha Sehgal

Completed BA LLB from JEMTEC, School of Law, Greater Noida (Affiliated to GGSIP University, New Delhi). I have an experience of about 2 years in various fields of corporate laws, but I have a keen interest in researching on legal issues and to gain knowledge. I always strive to bring the best to work on what I do.

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