Merchandise export from India Scheme is commonly known as the MEIS Scheme. MEIS is a duty scrip given as a reward by the government to an exporter of goods. The value of the scrips is 2% to 5% of the FOB cost of goods exported. There are more than 4000 tariff lines that are appropriate for MEIS. The scrips can be used to offset import duties and are freely transportable.
MEIS was introduced in the Foreign Trade Policy (FTP) for the period 2015-2020. The MEIS was launch as an incentive scheme for the export of goods. The rewards are given by the technique 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.
MEIS replace 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.
A scheme designed to offer rewards to exporters to offset infrastructural inefficiencies and associated costs. The Duty Credit Scrips and goods import/ domestically procured against them shall be freely movable. The Duty Credit Scrips can be used for:
(i) Payment of Basic Customs Duty and extra Customs Duty specified under sections 3(1), 3(3) and 3(5) of the Customs Tariff Act, 1975 for import of inputs or goods, including capital goods, as per DoR Notification, except items listed in Appendix 3A.
(ii) Payment of Central excise duties on home procurement of inputs or goods,
(iii) Payment of Basic Customs Duty and Additional Customs Duty specified under Sections 3(1), 3(3) and 3(5) of the Customs Tariff Act, 1975 and fee as per paragraph 3.18 of this Policy.
The objective of the Merchandise Exports from India Scheme (MEIS) is to encourage the manufacture and export of notified goods/ products.
The Merchandise Export from India Scheme (MEIS Scheme) is a recently launched scheme launched as a part of the new Foreign Trade Policy and is appropriate from 2015 to 2020. This new scheme replaces the 5 similar incentive schemes available earlier under Foreign Trade Policy 2014-2019 and rationalizes the incentives given under these schemes. Under the MEIS Scheme – the Govt has allocated more than 22,000 crores per annum for exports.
The following are the 5 Schemes that have now been replaced by the MEIS Scheme:-
1. Focus Product Scheme (FPS)
2. Market Linked Focus Product Scheme (MLFPS)
3. Focus Market Scheme (FMS)
4. Agriculture Infrastructure Incentive Scrip (AIIS)
5. Vishesh Krishi Gramin Upaj Yojana (VKGUY)
The new Foreign Trade Policy for 2015-2020 has not only to revamp the incentives and rewards for Merchandise Exporters but also for repair Exporters through the SEIS Scheme. In this article, we would mainly be discussing the benefits to exporters under the MEIS Scheme. For benefits to service exporters under the SEIS Scheme, kindly refer to this article – 5% Incentives by Govt to Service Exporters under SEIS Scheme.
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