Merchandise Exports from India Scheme ( MEIS ) under the Foreign Trade Policy of India (FTP 2015-20) is one of the two schemes which is introduced in the Foreign Trade Policy of India 2015-20, as a part of Exports from India Scheme. The objective of MEIS is to offset the infrastructural inefficiencies and the associated costs which are involved in the export of goods/products, which are produced/manufactured in India, especially those having high export intensity, employment potential and thereby enhancing India’s export competitiveness.
With the aim in making India’s products more competitive in the global markets, the scheme thus provides incentive in the form of duty credit scrip to the exporter in order to compensate for his loss on the payment of duties. The incentive is paid as a percentage of the realized FOB value (in free foreign exchange) for the notified goods going to the notified markets. To determine the quantity of incentive, the countries have thus been segregated into three groups. Incentives on export of each product at 8-digit level (ITC HS codes), thus depends on the group in which its destination country belong.
There are thus essentially three country groups. Group A consists of India’s traditional destinations such as the EU countries and USA. Group B has the maximum number of countries and it covers almost all of the India’s major export destinations globally. It is thus worth mentioning here that Group B has the highest quantum of incentive. Group C on the other hand thus has no incentive at all. It can be divided into, SAARC, Australia and New Zealand, and also some EU and African countries.
Entitlement under MEIS:-
Exports of notified goods/products with ITC [HS] code, to notified markets as listed in Appendix 3B, shall be rewarded under MEIS. Appendix 3B also lists the rate(s) of rewards on various notified products [ITC (HS) code wise]. The basis of calculation of reward would be on realized FOB value of exports in free foreign exchange or of FOB value of exports as given in the Shipping Bills in free foreign exchange, whichever is less unless otherwise specified.
Export of goods through courier or foreign post offices using e-Commerce:-
(i) Exports of goods through courier or foreign post office using e-commerce, as notified in Appendix 3C, of FOB value up to Rs. 25000 per consignment shall be entitled to rewards under MEIS.
(ii) If the value of exports using e-commerce platform is more than Rs 25000 per consignment then MEIS reward would be limited to FOB value of Rs.25000 only.
(iii) Such goods can be exported in manual mode through Foreign Post Offices at New Delhi, Mumbai, and Chennai.
(iv) Export of such goods under Courier Regulations shall be allowed manually on the pilot basis through Airports at Delhi, Mumbai, and Chennai. As per appropriate amendments in regulations to be made by Department of Revenue. Department of Revenue shall fast track the implementation of EDI mode at courier terminals.
The schemes shall come into force with effect from the date of notification of this Policy, i.e. the rewards under MEIS shall be admissible for exports made on or after the date of notification of this Policy. This is in line with the new policies under the export programs initiative of the Government.
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