Objective of the scheme is to promote manufacture and export of notified goods / products from India. The reward for the exporters is an incentive of a fixed percentage on the FOB value of the exports. The percentage for various notified products is fixed by DGFT and notified in Appendix 3B according to the ITC(HS) codes of the respective products.
The reward is the form of “Duty Credit Scrips”. The Duty Credit scrips can be used for
- Payment of basic customs duty and Additional Customs duty for import of goods
- Payment of Central Excise Duty on domestic procurement of goods.
- Payment of Custom Duties in case of Export Obligation defaults.
- Payment of Composition fees
- Payment of Application Fee
- Payment of Value Shortfall in Export Obligation
Duty Credit Scrips are freely transferable, which means these can be sold to a different entity as well.
MEIS for E-Commerce
Following products are eligible for MEIS scheme through E-commerce
- Handicraft Items / Products
- Handloom products
- Books / Periodicals
- Leather Footwear
- Customized Fashion Garments
There is a limit of Rs. 25000 per consignment applied for this category. MEIS will be applicable only for FOB value upto Rs. 25000 per consignment. If value of consignment is above Rs. 25000, MEIS reward will be limited to FOB value of Rs. 25000 only.
Ineligible Export Categories:
- Supplies from DTA to SEZ units
- Export of Imported Goods
- Exports through Trans-shipment
- Deemed Exports
- SEZ / EOU / EHTP / BTP / FTWZ products exported through DTA units
- Export products subject to minimum export price or export duty
- Exports made by FTWZ
Duty Credit Scrips will be valid for 24 months from the date of Issue. Further revalidation cannot be issued by Dept.
Time Frame for Applying for MEIS:
- 12 months from the Let Export (LEO) Date or
- 3 months from date of
- Uploading of EDI Shipping Bills onto the DGFT Server by Customs
- Printing / Release of shipping bills for Non – EDI Shipping bills Whichever is later.
Important Points to remember:
- 1. Declaration of Intent: To claim the benefit of MEIS it is mandatory to declare intent by marking/ ticking of “Y” (for yes) in “Reward” Column of EDI shipping bills against each item for which the applicant desires to claim benefit. In case of Non – EDI shipping bills following line should be mentioned on the shipping bills to claim reward: “We intend to claim rewards under Merchandise Exports from India Scheme (MEIS)”