Merchandise Exports From India Scheme (MEIS)

Updated on January 18, 2025 01:36:00 PM

MEIS was launched as part of the Foreign Trade Policy (FTP) for the period 2015 - 2020. The MEIS was created as an incentive program to encourage exports of products. The incentives are provided through duty credit credits to exporters. The MEIS is announced to the DGFT (Directorate General of Foreign Trade) and is implemented through the Ministry of Commerce and Industry.

The goal of the Merchandise Exports from India Scheme (MEIS) is to compensate for the inefficiencies in infrastructure and the expenses associated with the export of goods and products made or produced in India, particularly products with high levels of export efficiency and employment potential, and to increase India's competitiveness on the global market.

Credit scrips for duty can be used to pay customs duty on imports of inputs or products, including anti-dumping duties and other customs levies. Even though MEIS was discontinued and replaced by the RODTEP Scheme , exporters were previously permitted to request a portion of their duty credit, with each part limited to INR 5 lakh. The request could be made after the scrip had been issued, as long as it was made via an identical registration portal used when initially requested. But, this method was only applicable to ports that were Electronic Data Interchange (EDI) enabled. In the event of ports that are not EDI enabled it was impossible to divide the duty credit scrip after it was issued. The MEIS scheme provided exporters with the possibility of importing payments and settling them as well as eliminating several structural flaws that existed in previous incentive programs.

As part of the FTP 2015-20, MEIS intends to incentivize exports of products made by India or manufactured in India. The incentives will be given to goods frequently exported from India and industries that produce or produce these goods in order to make Indian imports competitive.

MEIS includes goods that are notified for the purposes to be covered by the scheme. The incentives offered under the schemes are calculated in percentages, which are 2 %, 3%, and 5% realization of FOB (Free-on-Board) value of exports in foreign exchange free of charge as well as FOB values of exported goods per shipping invoices in the free exchange. The incentives are distributed via the MEIS tax credit and a scrip for duty. "Free Forex is a foreign exchange earned via international credit cards as well as other instruments that are permitted to be used by the Reserve Bank of India (RBI).

MEIS Incentive Rates and How to Calculate It

Five schemes rewarded the export of items with varied duty credits, each with its own set of restrictions. In 2000, the Merchandise Exports from India Scheme replaced all previous schemes. MEIS Duty Credit Scrip was the mechanism by which MEIS benefits were delivered in proportions (2%, 33%, or 5%) of the FOB value of the covered exports. The scrip could be used to pay a variety of taxes and levies, including customs, excise, and service taxes. Script inputs and outputs were transferable. Exporters were thus allowed to use a broader choice of options.

Below are a few factors that were used to determine if MEIS was eligible:

• Any exporter, whether a manufacturer or a merchant exporter, could profit from MEIS incentives if their export items are listed in Appendix 3B of the MEIS Schedule.
• Eligibility was determined solely by the kind of product exported.
• Special Economic Zone (SEZ) Units and Export Oriented Units (EOU) could receive the benefits of MEIS.
• There was no specific minimum turnover requirement for qualifying for MEIS benefits.
• E-commerce platforms that sell their products through couriers could also be admissible to MEIS benefits.
• The product that was exported must be of Indian origin. Products that were returned to India weren't eligible.
• Shipping bills that included a Declaration of Intent and had the MEIS Scheme reward option marked as YES are suitable to be eligible for MEIS. MEIS Scheme.

The exporter is required to provide proof of landing documents for an MEIS reward. As evidence of landing of export consignment in notified Market the exporter can submit one of these documents:

• Self-attested copies of the entry bill for import submitted by the importer to the specific Market
• The delivery order is issued by port authorities.
• Notice of arrival from the carriers of goods
• Tracking report of the freight carrier (shipping lines, carriers, or accredited agent in India)
• Evidence of the delivery of export cargo at market destination
• Landlocked notified Markets, or Lorry receipts of transportation of products to and from Port towards Landlocked notified Market.
• Other documents that show the goods or products have been delivered to or have reached the notifying Market.

MEIS Application Filing procedure is described in step-by-step steps here:

• Go to the DGFT website and then proceed to Login by entering the username, password, and captcha. Then click the login button to sign in to the system.
• Select the service option located at the very top, and choose MEIS as the MEIS selection from the menu. user will be taken to MEIS page.
• Scroll down until you find an Apply to MEIS node, then click Explore on the MEIS node. You will be directed to the Application to MEIS Application page.
• To start a new application, click Start Fresh Application. Complete the required fields in the details section of the applicant.
• Complete all mandatory information on the screen. Click on the save and next button to go to the additional details page.\
• The declaration form is available, select"yes" to add the penalty information. Input the address and make the declaration official by pressing the box.
• Select the Print Summary tab to create the print summary of your application.
• To make a payment, click Pay Now. If you have successfully paid, an electronic receipt will be issued.

Registering with the Merchandise Exports from India Scheme (MEIS) costs 24,999 plus GST and is a one-time payment.

There are no additional government fees for MEIS registration.

I-Country Group A

II-Country Group B

III-Country Group C

It is believed that the MEIS scheme was important in improving the country's export potential, in addition to offering a duty credit incentive rate and addressing a variety of structural challenges confronting exporters. It enabled merchants and producers to expand their worldwide markets while maintaining economic stability. While MEIS has been replaced by the RoDTEP scheme, it actually opened the way for the development of India's standing in the global market. Exporters must also continue to look for new government schemes, such as the RoDTEP, to ensure that they benefit from the same advantages, as well as avoid violating new trade policy changes as they strengthen their positions on the global market.