{"id":9527,"date":"2020-08-13T21:07:58","date_gmt":"2020-08-13T15:37:58","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=9527"},"modified":"2020-08-13T21:07:58","modified_gmt":"2020-08-13T15:37:58","slug":"merchandise-exports-from-india-scheme-meis","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/merchandise-exports-from-india-scheme-meis\/","title":{"rendered":"Merchandise Exports From India Scheme (MEIS)"},"content":{"rendered":"<div class=\"metadata\">\n<p class=\"timestamp\"><span style=\"color: #0000ff;\"><strong>Relevance: Prelims\/Mains: G.S paper III: Indian Economy<\/strong><\/span><\/p>\n<p><span style=\"color: #ff0000;\"><strong>Why in news?<\/strong><\/span><\/p>\n<p>Commerce and industry minister Piyush Goyal on Thursday said the key incentive scheme for exports Merchandise Export from India Scheme (MEIS) is not going anywhere and that it is a cash flow issue for which the government will find a solution that does not impact exports.<\/p>\n<p><span style=\"color: #ff0000;\"><strong>About<\/strong><\/span><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.iastoppers.com\/wp-content\/uploads\/2020\/03\/Merchandise-Exports-from-India-Scheme.jpg\" alt=\"Merchandise-Exports-from-India-Scheme | IASToppers\" \/><\/p>\n<\/div>\n<div class=\"content\">\n<p>MEIS was introduced in the Foreign Trade Policy (FTP) for the period 2015-2020. The MEIS was launched as an incentive scheme for the export of goods. The rewards are given by way of duty credit scrips to exporters. The MEIS is notified by the DGFT (Directorate General of Foreign Trade) and implemented by the Ministry of Commerce and Industry.<\/p>\n<ul>\n<li>Background to MEIS<\/li>\n<li>MEIS incentive<\/li>\n<li>How to apply for MEIS incentive<\/li>\n<li>How to use MEIS incentive<\/li>\n<li>Goods notified under MEIS<\/li>\n<li>Ineligibility of benefits under MEIS<\/li>\n<li>Duration of MEIS<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/img.etimg.com\/photo\/msid-71125860,imgsize-161084\/Export.jpg\" alt=\"Finance Minister reaches out to exporters with fresh stimulus - The  Economic Times\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_68 ez-toc-wrap-center counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >What's Inside this Blog!<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/triumphias.com\/blog\/merchandise-exports-from-india-scheme-meis\/#1_Background_to_MEIS\" title=\"1. Background to MEIS\">1. Background to MEIS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/triumphias.com\/blog\/merchandise-exports-from-india-scheme-meis\/#2_MEIS_incentive\" title=\"2. MEIS incentive\">2. MEIS incentive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/triumphias.com\/blog\/merchandise-exports-from-india-scheme-meis\/#3_How_to_apply_for_MEIS_incentive\" title=\"3. How to apply for MEIS incentive\">3. How to apply for MEIS incentive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/triumphias.com\/blog\/merchandise-exports-from-india-scheme-meis\/#4_How_to_use_MEIS_incentive\" title=\"4. How to use MEIS incentive\">4. How to use MEIS incentive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/triumphias.com\/blog\/merchandise-exports-from-india-scheme-meis\/#5_Goods_notified_under_MEIS\" title=\"5. Goods notified under MEIS\">5. Goods notified under MEIS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/triumphias.com\/blog\/merchandise-exports-from-india-scheme-meis\/#6_Ineligibility_of_benefits_under_MEIS\" title=\"6. Ineligibility of benefits under MEIS\">6. Ineligibility of benefits under MEIS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/triumphias.com\/blog\/merchandise-exports-from-india-scheme-meis\/#7_Duration_of_MEIS\" title=\"7. Duration of MEIS\">7. Duration of MEIS<\/a><\/li><\/ul><\/nav><\/div>\n<h2 id=\"Back\"><span class=\"ez-toc-section\" id=\"1_Background_to_MEIS\"><\/span><span style=\"color: #ff0000;\"><strong>1. Background to MEIS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>MEIS replaced the various export incentive schemes which gave different types of duty credit scrips namely, Focus Market Scheme (FMS), Focus Product Scheme (FPS), Vishesh Krishi Gramin Udyog Yojana (VKGUY), Market Linked Focus Product Scheme (MLFPS) and Agri Infrastructure incentive scheme. All duty credit scrips issued under the earlier incentive schemes were transferred to the MEIS.<\/p>\n<h2 id=\"MEIS\"><span class=\"ez-toc-section\" id=\"2_MEIS_incentive\"><\/span><span style=\"color: #ff0000;\"><strong>2. MEIS incentive<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under the FTP 2015-20, MEIS intends to incentivise\u00a0exports\u00a0of goods\u00a0manufactured\u00a0in India or produced in India. The incentives are for goods widely exported from India, industries producing or manufacturing such goods with a view to making Indian exports competitive. The MEIS covers goods notified for the purpose of the scheme.<\/p>\n<p>The incentives under the schemes are calculated as a percentage, which is 2%, 3% or 5% of the realised\u00a0FOB\u00a0(free-on-board) value exports in free foreign exchange or FOB value of exports as per shipping bills in free foreign exchange. The incentives are allotted through a MEIS duty credit scrip. The \u2018free\u00a0foreign exchange\u2019 will include foreign exchange earned through international credit cards and other instruments allowed by the Reserve Bank of India (RBI).<\/p>\n<h2 id=\"Apply\"><span class=\"ez-toc-section\" id=\"3_How_to_apply_for_MEIS_incentive\"><\/span><span style=\"color: #ff0000;\"><strong>3. How to apply for MEIS incentive<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>You should make an online application in form ANF 3A through a digital signature to claim duty credit scrip entitlements under MEIS. The applicant has to furnish hard copies of the application filed with DGFT, EDI (Electronic Data Interchange) shipping bills, Bank Realisation Certificate obtained electronically (e-BRC) and RCMC. However, if the application is made through EDI ports, then the applicant is not required to submit hard copies, but only export promotion copies of non-EDI shipping bills and proof of landing.<\/p>\n<p>The applicant shall file separate applications for each port. The applicant is not required to submit any documents in original but should retain the original documents for a period of three years.<\/p>\n<p>The application should be filed within a period of:<\/p>\n<ul>\n<li>12 months from the LEO (Let Export) date or<\/li>\n<li>3 months from the date of \u2013 uploading of the EDI shipping bills onto the DGFT server by customs, or printing of shipping bills for non-EDI shipping bills, whichever is later.<\/li>\n<\/ul>\n<h2 id=\"Use\"><span class=\"ez-toc-section\" id=\"4_How_to_use_MEIS_incentive\"><\/span><span style=\"color: #ff0000;\"><strong>4. How to use MEIS incentive<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The duty credit scrips can be utilised to pay customs duties on import of inputs or goods, safeguard duty, anti-dumping duty and any other customs duty under FTP 2015-20. The scrips can also be transferred as well as used for importing goods against them.<\/p>\n<p>Exporters can request for a split of the duty credit scrip with a condition of each scrip valuing to at least Rs 5 lakh. The request can also be made after the issue of scrip, with the same port of registration as applicable for the original scrip. However, the procedure is applicable only in respect of EDI (Electronic Data Interchange) enabled ports. In the case of non-EDI ports, a duty credit scrip cannot be split after it is issued.<\/p>\n<p>The scheme provides the flexibility of import and payment to exporters and has removed many structural inefficiencies of the earlier incentive schemes.<\/p>\n<h2 id=\"Goods\"><span class=\"ez-toc-section\" id=\"5_Goods_notified_under_MEIS\"><\/span><span style=\"color: #ff0000;\"><strong>5. Goods notified under MEIS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>MEIS incentivises close to 5,000 items classified and notified under various ITC (HS) codes and with corresponding reward rates ranging from 2% to 5%. The items are notified by the DGFT.<\/p>\n<h2 id=\"Ineli\"><span class=\"ez-toc-section\" id=\"6_Ineligibility_of_benefits_under_MEIS\"><\/span><span style=\"color: #ff0000;\"><strong>6. Ineligibility of benefits under MEIS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The sectors or segments mentioned below are not entitled to MEIS incentives:<br \/>\n\u2013\u00a0SEZ\/EOU\/EHTP\/FTWZ products exported through DTA units.<br \/>\n\u2013 Supplies made to SEZ units from DTA units.<br \/>\n\u2013\u00a0Deemed Exports.<br \/>\n\u2013 Export of imported commodities covered under paragraph 2.46 of FTP.<br \/>\n\u2013 Export commodities which are subject to a minimum export duty or export price.<br \/>\n\u2013 Exports via trans-shipment, meaning thereby exports that are emerging in the third country but trans-shipped through India.<br \/>\n\u2013 Exports initiated by units in Free Trade and Warehousing Zones (FTWZ).<\/p>\n<h2 id=\"Dur\"><span class=\"ez-toc-section\" id=\"7_Duration_of_MEIS\"><\/span><span style=\"color: #ff0000;\"><strong>7. Duration of MEIS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The MEIS incentives are applicable from 1 April 2015 until the validity of the FTP 2015-20, which is 31 March 2020.<\/p>\n<\/div>\n<p><strong> <img decoding=\"async\" src=\"https:\/\/slideplayer.com\/slide\/8150476\/33\/images\/43\/Export+Promotion+Measures+in+India.jpg\" alt=\"IBO-03 INDIA'S FOREIGN TRADE - ppt download\" \/><\/strong><\/p>\n<p><span style=\"color: #0000ff;\"><strong>For more such notes, Articles, News &amp; Views Join our Telegram Channel.<\/strong><\/span><\/p>\n<p><a title=\"Telegram Link\" href=\"https:\/\/t.me\/triumphias\" target=\"_blank\"><span style=\"color: #ff0000;\"><strong>https:\/\/t.me\/triumphias<\/strong><\/span><\/a><\/p>\n<p><span style=\"color: #0000ff;\"><strong>Click the link below to see the details about the UPSC \u2013Civils courses offered by Triumph IAS.<\/strong> <\/span><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" title=\"Courses available\" href=\"https:\/\/triumphias.com\/pages-all-courses.php\">https:\/\/triumphias.com\/pages-all-courses.php<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relevance: Prelims\/Mains: G.S paper III: Indian Economy Why in news? Commerce and industry minister Piyush Goyal on Thursday said the<\/p>\n","protected":false},"author":1,"featured_media":6714,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[123,42,43],"tags":[392],"class_list":["post-9527","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","category-general-studies-iii-technology-economic-development-bio-diversity-environment-security-and-disaster-management","category-indian-economy","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/9527","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=9527"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/9527\/revisions"}],"predecessor-version":[{"id":9528,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/9527\/revisions\/9528"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/6714"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=9527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=9527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=9527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}