Incentive Schemes for Exports from India

Export from India schemes under chapter three for the foreign trade policy , there are schemes which provide benefits to exporters of certain goods or services .

The objective of the scheme is to reward the exporter to offset the infrastructural inefficiencies and other costs that the exporters face .

While exporting from India , the reward is equivalent to a percentage of the total export value .

This is given to provide the Indian exporter a level playing field in the international market .

The rewards are given under two schemes , merchandise exports from India's scheme M E I S service exports from India's scheme S E I S .

Are you eligible for such benefits ?

Not all exports are eligible for M E I S benefits , whether an export item is eligible and what is the percentage of reward is based on the type of item and the country of export ?

This can be checked on the D G F T website under important links or under appendix three B of the FTP M E I S benefits are also given for export of goods through Korea or foreign post offices under e-commerce .

Besides the export through standard land sea and airports .

Similarly for S E I S only the list of notified services is eligible for benefits .

The notification is available on the D G F T website .

What are the benefits under M E I S ?

The reward given is a percentage of the total value of the export measured in F O B terms .

This would range between 2 to 5% .

Usually F O B stands for free on board by F O B .

We mean the price of goods at the time of loading at the domestic port and do not include loading , shipment and insurance costs .

The rewards are given not in cash but in terms of freely transferrable duty , credit scripts .

These scripts are financial pieces of paper of a stated value which can be used to pay customs duty , excise duty or service tax .

Alternatively , if the owner does not require it to pay any tax , they can transfer it to another entity .

Of course , the other entity would pay you money for that .

And therefore these scripts are almost as good as cash , how to apply one while filing the shipping bill at the time of export .

The declaration of intent that one wishes to claim benefits under M E I s should be filled only then the shipping bill is electronically transferred from the customs authority to D G F T system .

Two application for claiming benefits under M E I s should be filed online on the D G F T website using one's digital signature .

The relevant shipping bill and E B R C should be linked with a given online application .

Three in cases where the M E I S benefit is given for only certain countries , a proof of landing that the given export consignment landed in the stated country should also be furnished a tested copy of the bill of entry tracking report from the goods carrier , et cetera is accepted as proof of landing .

For more details .

You may read paragraph 3.3 of the handbook of procedures .

Four , once the application is approved duty credit script is issued D G F T .

The script must be registered with a port prior to allowing usage of the duty credit .

The port of registration will be the port through which exports were made .

Once registered , the duty credit can be automatically used at any port of India .

Similarly under S C I S , the application for rewards shall be filed online unlike M E I S under S E I S , the application is filed once in a year on an annual basis for the entire financial year under S E I S .

The applicant can choose any port of registration and mention it in the application in the appropriate column .

For more details , please read through chapter three of the foreign trade policy and the handbook of procedures .

You may also refer the FA Q S on chapter three on D G F T website for any personal clarification .

Meet your nearest Banu officer at D G F T office or email ?