< Back to Blog
Original link:

2023-06-14 19:20:18

Incentive Schemes for Exports from India

video content Image generated by Wilowrid

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 ?

video content Image generated by Wilowrid

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 ?

video content Image generated by Wilowrid

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 .

video content Image generated by Wilowrid

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 .

video content Image generated by Wilowrid

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 .

video content Image generated by Wilowrid

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 .

video content Image generated by Wilowrid

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


Attention YouTube vloggers and media companies!
Are you looking for a way to reach a wider audience and get more views on your videos?
Our innovative video to text transcribing service can help you do just that.
We provide accurate transcriptions of your videos along with visual content that will help you attract new viewers and keep them engaged. Plus, our data analytics and ad campaign tools can help you monetize your content and maximize your revenue.
Let's partner up and take your video content to the next level!
Contact us today to learn more.