Merchandise Exports from India Scheme (MEIS) under Foreign Trade Policy of India (FTP 2015-20) is one of the two schemes introduced in Foreign Trade Policy of India 2015-20, as a part of Exports from India Scheme. (The other scheme is SEIS, Service Exports from India Scheme).
The Government of India has brought in the Merchandise Exports Incentive Scheme (MEIS), replacing five other similar incentive schemes present in the earlier Foreign Trade Policy 2009-14. The schemes that have been replaced by the MEIS scheme include:
The Objective of the MEIS SchemeTo offset infrastructural inefficiencies and the associated costs of exporting products produced in India giving special emphasis on those which are of India’s export interest and have the capability to generate employment and enhance India’s competitiveness in the world market.
With the aim in making India’s products more competitive in the global markets, the scheme provides incentive in the form of duty credit scrip to the exporter to compensate for his loss on payment of duties. The incentive is paid as percentage of the realized FOB value (in free foreign exchange) for notified goods going to notified markets. To determine the quantity of incentive, the countries have been segregated into three groups. Incentives on export of each product at 8-digit level (ITC HS codes), depend on the group in which its destination country belong.
There are essentially three country groups. Group A has India’s traditional destinations such as the EU countries and USA. Group B has the maximum number of countries and covers almost all of India’s major export destinations globally. It is worth mentioning here that Group B has the highest quantum of incentive. Group C on the other hand has no incentive at all. It can be divided into, SAARC, Australia and New Zealand, some EU and African countries.
Service Exports from India Scheme (SEIS) aims to promote export of services from India by providing duty scrip credit for eligible exports. Under the scheme, service providers, located in India, would be rewarded under the SEIS scheme, for all eligible export of services from India. In this article, we look at the Service Exports from India Scheme in detail. Service Exports from India Scheme was earlier termed as Served from India Scheme (SFIS).
Service Providers of notified services, located in India are eligible for the Service Exports from India Scheme. To be eligible, a service provider (Company / LLP / Partnership Firm) should have a minimum net free foreign exchange earnings of USD15000 in the preceding financial year to be eligible for duty credit scrips. For proprietorships or individual service providers, a minimum net foreign exchange earnings of USD10, 000 in the preceding financial year is required to be eligible for the scheme. Also, in order to claim reward under the SEIS scheme, the service provider shall have to have an active Import Export Code (IE Code) at the time of rendering such services for which rewards are claimed.
Net foreign exchange earnings for the SEIS scheme is calculated as:
Net Foreign Exchange = Gross Earnings of Foreign Exchange – Total Expenses or payment or remittances of Foreign Exchange.
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For monitoring the progress of Export Obligation Discharge Certificate (EODC) applications of Advance and EPCG authorisations, the Directorate General of Foreign Trade (DGFT) has developed an online EODC monitoring system.
The website can be accessed at http://eodc.online in which the input data related to applications submitted by exporters for EODC can be put and the status can be updated when either Deficiency letter or EODC is issued.
DGFT said a facility has also been provided for exporters to view status of their pending EODC applications.
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India has discontinued the export incentive schemes (like MEIS), which is not in compliance with WTO guidelines. The Government of India Ministry of Finance, Department of Revenue Central Board of Indirect Taxes & Customs Drawback Division has notified a new scheme called Rebate of State and Central Taxes and Levies Scheme on the export of garments and made-ups (RoSCTL Scheme). Under the said plot state and focal charges and imposes which are available at the expense of fares of articles of clothing and made-ups will be refunded. The Scheme will remain in effect till 31st March 2020. The existing Rebate of State Levies (RSL) scheme for garments and made-ups has been discontinued. Currently, this scheme is available for the Textile industry only, however, it would be soon extended to other sectors as well.
What are the Benefits of the RoSCTL Scheme to Exporters?
With RoSCTL, the benefit to exporters is given by DGFT in the form of duty credit scrips the same as it was with Merchandise Exports from India Scheme (MEIS). ROSL Scheme (old scheme) is to be processed for shipping bills with Let Export Order (LEO) date up to 6th March 2019 only.
The Scheme for Rebate of State Levies (RoSL) was discontinued w.e.f. 7th March, 2019. ... II) dated 7th March, 2019 to support the textile sector. In this regard, the Ministry of Textiles has issued Notification No. 12015/11/2020-TTP dated 9th June, 2020 regarding issuance of Duty Credit Scrips for RoSCTL/ RoSL.