Merchandise Exports From India Scheme (MEIS) Overview: Incentives, Application, Benefits

The Merchandise exports from India Scheme was launched by the Government of India in 2015 to promote the export of goods manufactured in India. The nodal ministry  that implements the scheme is the ministry of Commerce and industry. It is an incentive based scheme for export of goods under which rewards are given in the form of duty credit scrips to exporters. Incentives are provided on goods that have high export intensity, employment potential and enhance India’s export competitiveness. This scheme was a replacement of various export incentive schemes that provided incentives in different forms.  Focus Market Schemes(FMS), Focus Product Schemes(FPS), Vishesh Krishi Gramin Udyog Yojana (VKGUY), Market Linked Focus Products Scheme and Agri Infrastructure incentive scheme were the schemes that Merchandise Exports from India scheme replaced. 

This article deals with the benefits, incentives, application procedure, and other useful information related to the scheme. Read through for a better understanding of the scheme and know how to avail its benefits.

 

Merchandise Exports From India Scheme (MEIS) Overview

Feature Details
Scheme Name Merchandise Exports from India Scheme (MEIS)
Launched By Government of India
Implemented By Directorate General of Foreign Trade (DGFT)
Objective To promote the export of notified goods manufactured in India
Beneficiaries Exporters of notified goods and products
Eligibility All exporters of goods notified under the scheme
Incentives Duty credit scrips
Scrip Value Percentage of the realized FOB value of exports
Export Categories Agriculture, leather, textiles, handicrafts, and more
Usage of Scrips Payment of customs duties, excise duties, service tax, and other specified duties
Validity of Scrips 18 months from the date of issuance
Application Process Online application via DGFT website
Documentation Required Shipping bills, e-BRC, RCMC, among others
Key Features Simplified application process, wide coverage of goods, and flexibility in usage of scrips
Official Website DGFT India

 

Objectives of Merchandise Exports From India Scheme (MEIS)

  • Encourage Exports By providing financial assistance in the form of Duty credits to exporters
  •  to provide transferable credits that can be used to pay various duties including basic custom duty, countervailing duty, and special edition duty
  • Enhance export potential and India’s export competitiveness in the Global market
  • Promote manufacture and export of certain notified goods that have higher export intensity 

 

Incentives under MIES

 

Under the Foreign Trade Policy 2015-20, Merchandise exports from India scheme is mandated to provide incentive for goods that are widely exported from India in order to enhance India’s Export competitiveness. The MIES incentives provided under the scheme are calculated based on the free-on-board value as percentage i.e. 2%, 3%, or 5% of the realized free-on-board value exports as per the shipping bills in free foreign exchange.The allotment of incentives happens through a MIES duty credit scrip. 

 

How can these incentives of MIES be used? 

  • The incentives under Merchandise exports from India scheme can be used to pay custom duties on import of goods.
  • These incentives can also be used to pay other duties such as anti dumping duty and any other custom duty under Foreign Trade Policy 2015-2020.
  • The duty credit scrips received under the scheme can also be transferred and used for importing goods. 
  • The duty credit scrip can also be split on request of the exporter at a payment of at least ₹5 lakhs.
  • The request for a split can also be made after the issuing of the duty credit scrip at the same port from where the original scrip had been generated. 
  • The scheme has made it very flexible to import and pay to exporters by removing the inefficiencies of the earlier schemes.

 

How to Apply for Incentives under Merchandise Exports From India Scheme (MEIS)?

  • To apply under the Merchandise Exports from India scheme, an individual has to make an online application in form AFN 3A using a digital signature to claim the duties scrip entitlements under MIES. 
  • Hard copies of the online application with DGFT, EDI(Electronic Data Interchange) shipping bills, Bank Realization Certificate and RCMC are required to apply.
  • If the application is made through the EDI ports, then hard copies are not required.
  • The applicant does not have to submit any document in original but should retain the original documents for at least three years. 
  • The application takes 12 months to file from the Let Export date or 3 months from the date of uploading the EDI shipping bills onto the DGFT or printing of shipping bills from non-EDI shipping bills. 

 

Goods notified under MIES 

There are close to 5000 items notified under ITC codes that are rewarded with incentives at rates ranging from 2% to 5%. The nodal authority to classify these items that will be incentivised  is DCFT.

 

Duration of Merchandise Exports From India Scheme (MEIS)

The incentives under monetize exports from India’s scheme were applicable from 1 April 2015 till 31 March 2020. This game was later replaced by the Remission of Duties and Taxes on Export Products scheme.

 

FAQs

1. Which scheme replaced the MEIS scheme?

The Merchandise Exports from India scheme was later replaced by the Remission of Duties and Taxes on Export Products scheme.

2. What are the schemes that MIES replaced?

The MEIS scheme replaced many export incentive schemes that provided incentives in different duty credit scrip formats. Focus Market Schemes(FMS), Focus Product Schemes(FPS), Vishesh Krishi Gramin Udyog Yojna(VKGUY), Market Linked Focus Products Scheme and Agri Infrastructure incentive scheme were few schemes that the MEIS scheme replaced. 

3. What was the duration of the MEIS scheme? 

The MEIS scheme was applicable from 1 April 2015 to 31st March 2020. It was later replaced by the Remission of Duties & Taxes on Export Products Scheme in 2021.

Latest Posts

  • All Posts
  • Admit Card
  • Education
  • Govt. Jobs
  • Govt. Schemes
  • Result
  • Uncategorized

©DDENBU 2024 | All rights reserved