MEIS Scheme: Brief Discussion about the Scheme



Under the MEIS scheme, 5 incentive schemes have been replaced, in which various types of credit scraps have been duly given. The 5 incentive schemes that have been replaced are: Focus Product Scheme (FPS), Focus Market Scheme (FMS), Agricultural Infrastructure Incentive Scrip (AIIS), Vishwa Krishi Gram Upaj Yojana (VKGUY), and Market Linking Focus Product Planning (MLFPS). Thus, in this article we will learn about MEIS in depth.

What is the MEIS Scheme?

MEIS stands for Merchandise Exports from India Scheme. It is a scheme designed to promote the export of notified, produced and manufactured goods in the country. The scheme became operational on 1 April 2015 through the Foreign Trade Policy and will remain in place till 2020.


The MEIS scheme has been implemented till 2020 and is replaced by replacing 5 plan incentives that were already available under the Foreign Trade Policy 2014 - 2019.


  • Focus Product Scheme (FPS)

  • Focus Market Scheme (FMS)

  • Agriculture Infrastructure Incentive Scrip (AIIS)

  • Vishesh Krishi Gramin Upaj Yojana (VKGUY)

  • Market Linked Focus Product Scheme (MLFPS)


For the implementation of MEIS, the Ministry of Commerce and Industry is responsible. Under the scheme, Rs. The government has allocated Rs 22,000 crore per year for export.

Objective of MEIS Scheme  


The MEIS scheme aims to increase infrastructure and costs related to the export of manufactured products or goods in India.


This scheme will emphasize on products or commodities with high employment potential, which in turn will increase India's competitiveness in exports.

MEIS Scheme Features

The following are the features of the MEIS Scheme:


  • This eliminates complications by adding the benefits of the entire 5 incentive plan to one.

  • Earlier, MEIS covered only 4914 traffic lines and an amount of Rs. 18,000 was allocated per year. However, it was later increased to Rs. 22,000 crores and 5012 starred lines per year.

  • Duty credit scrip issues are easily transferable and can be used for excise or service tax or custom duty payments.

  • Incentives under MEIS are also available to SEZ units, which can be benefited by using them.

Advantages of MEIS Scheme

Under the MEIS scheme, some awards are given to the exporter of goods. The incentives given are at a pre-prevailing rate and vary from country to country and product to product.


The countries receiving incentives are classified under 3 categories:


  • Contains traditional markets

  • Includes Focus and Emerging Markets

  • It includes other markets


The incentive percentage for most goods is between 2% and 5%, and will vary from product to product.

Eligibility for MEIS Scheme

Exporters of goods, ie, traders or manufacturers are eligible to claim the award under the MEIS scheme.


The MEIS award may be endorsed by the subsidiary manufacturer or the company or firm that has received foreign exchange directly from abroad.

Disqualification categories under MEIS Scheme

The unqualified export categories under the MEIS scheme are:


  • Supply from DTA units to SEZ units

  • Export of imported goods

  • Exported

  • Exports made by units to FTWZ

  • Exported via trans-shipment, that is, exported through India, but originating in a third country

  • Export products subject to the minimum export price or duty

  • SEZ / EHTP / BPT / EOU / FTWZ Products which are exported through DTA units

  • Red sanders and beach sand

  • All types and forms of sugar

  • All kinds of grains

  • Service export.


Apply for the MEIS Scheme

While applying under the MEIS scheme, it is necessary to keep a few things in mind:


  • To claim the award under the MEIS scheme, there is a provision to make the application online and it is mandatory to file it in the specified format, namely, ANF - 3A. In an online application, it is easy to present using a digital signature.

  • The application is to be lodged on the official website of DGFT [1] (Directorate General of Foreign Trade) with the concerned regional authority for the export of goods.

  • Each port of export has to be applied separately.

  • A single application can have a maximum of 50 shipping bills.

  • In case of exports made through EDI port and in case of RCMC and e-BRC, there is no need to submit a shipping bill, no physical copy of the bill is required to be submitted. However, proof of landing has to be produced.

  • When the export is done through a non-EDI port, the following documents have to be submitted:


  1. Landing Proof

  2. Physical copy of export incentives

  3. EDI Shipping Bill Copy

  4. Scanned copies of other prescribed documents.


  • The applicant is required to retain the original copy of the documents submitted for a minimum of 3 years before issuing the dividend.

  • When demand is made, the incentive has to be returned with interest, in case the original documents are not produced.

  • Online applications for EDI shipments do not allow annual feeding by applicants.

  • For claiming incentives, the Scheme Late Export Date will be considered as the relevant date for determining the respective ITC (HS) codes, product eligibility and markets under the MEIS scheme.

Claim Incentives for Exports through E-commerce


Where the goods are exported through the foreign post office or courier front commerce, the goods will cost Rs. 25,000 per lot. FOB on Rs. 25,000 prizes are limited to Rs. 25,000 only. These steps are to be followed for e-commerce to claim rewards for goods exported by a foreign post office or courier:


  • An application to claim the awards is to be filed along with Form ANF-3A with digital signature.

  • Landing certificate is required to be submitted.

  • It is mandatory to apply for a separate application for each port..

  • The documents submitted are to be manually tested by the regional authority.

Conclusion

The MEIS scheme was initiated by the Government of India to increase the export of goods or products to a country. The scheme came into effect from 1 April 2015 and will be operational only by 2020. To get more details about it , contact BIATConsultant


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