MEIS Scheme: Govt incentives for Export of Goods 2 to 5%

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The Regional Authority may also ask for original proof of landing certificate, annexures attached to ANF’s or any other document, which has been uploaded digitally at any time within 3 years from the date of issue of scrip. In case of port of registration is a manual port, TRA required for imports at any other port. Duty Credit Scrip under MEIS shall be issued with a single port of registration which shall be the port of export. The applicant shall have the option to choose the Jurisdictional RA on the basis of Corporate Office/ Registered Office/ Head Office/ Branch Office address endorsed on the IEC for submitting the application.

This credit can be used to pay Basic Customs Duty on imported goods. Under the RoSCTL, the benefit to exporters shall be given by DGFT in the form of transferable duty credit scrips. The Indian government has disbursed 2,874.71 crore rupees ($388m) to beneficiaries of its production-linked incentive scheme.

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1% GST benefit for Merchant Exporters.– Merchant exporters/traders can obtain goods meant for export from the domestic supplier at a 0.1% concessional GST rate. This reduces the burden of GST & solves the working capital issues for merchant exporters to a great extent. The EOU scheme aims to provide a favorable ecosystem to the companies indulging in 100% exports by giving them certain waivers and concessions in compliance and taxation matters, thereby making it easier for them to conduct business.

Status recognition norms have been re-calibrated to enable more exporting firms to achieve 4 and 5-star ratings, leading to better branding opportunities in export markets. The Minister referred to the interaction that Prime Minister, Shri Narendra Modi with the exporters on 06th August, 2021 and encouraged them to increase exports and get more deeply involved in the global value chain. He lauded the vision and guidance of the Prime Minister who believed that given the size of the Indian economy and manufacturing & service sector base, the potential for the country to grow is manifold. DGFT – Government has released Rs 56,027 crore in order to clear pending export incentive dues to exporters, which is for various Schemes. In certain Schemes, such as MEIS, ROSCTL and ROSL, online applications are largely system approved, whereas for SEIS, TPS, FPS online applications require manual scrutiny and examination of documents. In case of exports through non EDI-port, the hard copy of the export promotion copy of non-EDI shipping bills and proof of landing in the prescribed manner is required to be submitted.

SEZ units and EOU/ STP/ BTP/ EHTP units not availing Direct Tax Exemption also are also eligible to claim benefit under this scheme. In case any discrepancy and/or over claim is found on such examination, the applicant shall be under obligation to rectify such discrepancy and/or refund over claim in cash with interest. The original holder of scrip, however, may refund such over claim by surrendering the same scrip whether partially issued or fully unutilised, without interest. In case of exports through the EDI Port – the hard copy of the application, shipping bill, e-BRC and RCMC are not required to be submitted.

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In our varied sectors of experience, we have observed that due to convolutions in the computation and maintenance of Average Export Obligation under the EPCG scheme, many companies had to return duty saved under the EPCG a… In case of export of goods through courier or foreign post office using e-commerce, incentives under this scheme are awarded for FOB Value upto Rs. 25,000 per consignment. In case the FOB Value is more than Rs. 25,000, the rewards are limited on value limited to Rs. 25,000 only. Afleo Group is a professional consulting firm providing consulting, documentation and representation with authorities for exporters and importers, global or international companies with business interests in India. It is primarily an insurance cover guarantee scheme that provides a cover of up to 90% of principal and interest as against the current credit guarantee of only up to 60% loss. The cover will include both the pre and post-shipment export credit.

Hence for better export pricing and to remain competitive in the global market it becomes extremely important to have complete knowledge about all the export promotion schemes/export benefits in India and make full use of them. Advance Authorization Scheme allows duty-free imports of raw materials, which are required to produce and manufacture final export products. The provision covers fuel, packaging material, and some wastage during the production of the final product. It allows exporters to import raw materials at 0% import duty if those raw materials will be used to manufacture export products. To become eligible for the SEIS scheme, a service provider being a partnership firm/ LLP/ company shall, in the preceding financial year, have a minimum net free foreign exchange earnings of $15,000. Whereas, in the case of individual service providers or proprietorships, the amount is $10,000.

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As a starting point, the consignment wise cap on E-Commerce exports through courier has been raised from ₹5Lakh to ₹10 Lakh in the FTP 2023. Depending on the feedback of exporters, this cap will be further revised or eventually removed.Integration of Courier and Postal exports with ICEGATE will enable exporters to claim benefits under FTP. Export claims relating to earlier years will need to be filed by the exporters by 31st December 2021 beyond which they will become time-barred. SEIS – An incentive of 3–7 percent of the net foreign exchange earnings is given to service exporters under this export incentive programme. To be eligible for a claim under the system, an exporter must have an active IEC with minimum net foreign exchange revenues of US$ 15,000 .

Merchandise Exports from India Scheme (MEIS Scheme)

The minimum investment in plants & machinery required is 1 Cr with exemptions to certain sectors. The major benefits of the EOU Scheme are – No Import duties while procuring raw materials or capital goods, faster custom clearance facilities, it can be set up anywhere in the country, unlike an SEZ unit. The EOU scheme was introduced in 1981, with an aim to increase exports from India. The objective of the EPCG Scheme is to facilitate the import of capital goods/machinery for producing quality goods and services and enhance India’s manufacturing competitiveness.

Subsequently, the export incentives in india 2021 may be extended to remaining Status Holders. Basic Custom duty paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback benefits. All the Forms and there procedures for filing application for claim of incentives under MEIS Scheme have been mentioned in this file – Detailed Guide on MEIS Scheme.

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Benefits of Self-Ratification Scheme for fixation of Input-Output Norms extended to 2 star and above status holders in addition to Authorised Economic Operators at present. Special Advance Authorisation Scheme extended to export of Apparel and Clothing sector under para 4.07 of HBP on self-declaration basis to facilitate prompt execution of export orders – Norms would be fixed within fixed timeframe. He stressed that every opportunity for export must be captured and utilised effectively. He also mentioned that in the next 5 months during India’s G20 presidency there should be a massive concentrated outreach with the world both sector-wise and country-wise. The government is likely to hold discussions with Vedanta informally on a possible stock market listing of Balco before a firm proposal is made to the aluminium company’s board, said people aware of the development.

Services listed in Appendix 3D are only eligible to claim the rewards. The objective of Service Exports from India Scheme is to encourage and maximize export of notified Services from India. LUT Bond Scheme – Exporters can export goods without paying any GST by obtaining a ‘Letter of Undertaking’ bond.

Government provides certain incentives to promote exports, which are directly linked to the value of the exports. The list of goods and services that are eligible for such incentives are defined. NIRVIK Scheme introduced by The Export Credit Guarantee Corporation of India to provide enhanced insurance cover and reduce premium for small exporters and a simplified claim settlement process. Any Exporter having an IEC Code and intending to import/domestically procure machinery for the production of the export products is eligible for the EPCG Scheme. Service Exporter should have minimum net free foreign exchange earnings of US$15,000 in the year of rendering the services for the Pvt.

EOU scheme was introduced with the aim to encourage exports by providing a few waivers and concessions in compliance and taxes. A 100% export-oriented unit is an industrial unit offering for export its entire production, excluding the permitted levels of domestic tariff area sales for manufacture of goods, including repair, re-making, reconditioning, re-engineering and rendering of services2. All government incentives by countries must be in compliance with the World Trade Organization , which keeps a check on legal and ethical world trade practices. Units undertaking to export their entire production of goods and services may be set up under this scheme for import/ procurement domestically without payment of duties. For details of the scheme and benefits available therein FTP may be required. Identification of products/goods eligible for various export incentive scheme.

The Free foreign exchange earned through International Credit Cards and other Instruments as permitted by RBI shall also be taken into account for computation of value of exports. Failure to submit such documents in original would make the applicant liable to refund the rewards granted with interest. It would be the responsibility of the applicant to maintain such documents, certificate etc. for a period of atleast 3 years from the date of issuance of scrips. In case the Duty Credit Scrip has been used for Imports, the Customs shall issue a certificate containing the particulars of scrips used, date of import of re-exported goods and the amount debited while importing such goods. Duty Credit Scrip needs to be registered at the port of exports prior to usage of duty credit. The documents which are not required to be submitted , are required to be retained by the applicant for a period of 3 years from the date of issuance of scrip.

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The RoDTEP scheme will replace the old MEIS in a phased manner from December 2020. India is home to hundreds of companies that export goods and services to other countries through a variety of channels, including the increasingly common e-commerce exports. The Government of India offers export incentives to exporters in order to encourage an increasing number of sellers to export from India and benefit them in their enterprises.

documents

You need to register your bank account and other details with the Customs department prior to your shipment. There is no restriction of Country, i.e. eligible products exported to any country in the world can avail the MEIS Scheme. As you all know that Exports play a major role in the economic development of a country.

It grants refund on taxes such as VAT on transportation fuel, captive power, ‘mandi’ tax and electricity duty. This scheme will be soon merged with the RoDTEP scheme in all sectors. DGFT – The Indian government has announced a one-time relaxation from maintaining average export obligation and an option to extend the export obligation period for certain sectors under the Export Promotion Capital Goods Scheme.

LUT Bond Facility– Exporters can export goods without paying any GST by obtaining a letter of undertaking/bond. RoSCTL scheme is only applicable to the Apparels & made-up Industry covering Chapters 61, 62 & 63 of ITC . You are a domestic manufacturer and supplying finished goods to SEZ or EOU Unit or any Advance Authorisation holder using imported raw materials? You are a manufacturer Exporter and using domestic raw materials, but your raw material is made by a domestic supplier using a majority of imported materials?

This scheme grants refund on taxes such as VAT on transportation fuel, captive power, ‘mandi’ tax and electricity duty. Under TEE Scheme towns producing the goods worth of Rs. 750 crores or more are notified as towns of export excellence for potential growth in exports. Exporters having valid IEC & good export performance may apply for status holder Certificate to boost the Marketable export efficiency.

A common digital platform for Certificate of Origin has been launched to increase Free Trade Agreement utilization by exporters. Exporters having past export performance shall be only be issued for items having entitled to Advance Authorization for Annual requirement. And other Government of India schemes for promoting international trade have been building an ecosystem that best supports sustainable export activities.

But the hard copies of applications to DGFT, electronic bank realisation certificate (e-BRC) and RCMC is not required to be submitted. Scanned copies of any other prescribed documents for claiming scrip are required to be submitted. EPCG scheme facilitates the imports of capital goods to produce goods and services by manufacturers. Under this scheme, exporters can partner with a manufacturer and import the required capital goods to produce export goods at 0% duty. Service exporters such as hotels, travel & tour operators, taxi operators, logistics companies and construction companies are some beneficiaries under this scheme.

Exports are instrumental in creating employment, increasing foreign exchange reserves, and reducing the current account deficit. These become the foremost reasons for the Indian Government to launch export incentive schemes. Here’s a complete guide to various export incentives in India provided by our government for promoting exports.

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Other sources such as donations, receipts, or repayment of loans or debt/equity participation are ineligible and will not be counted for SEIS entitlement. The FTP aims at building partnerships with State governments and taking forward the Districts as Export Hubs initiative to promote exports at the district level and accelerate the development of grassroots trade ecosystem. Allow duty free import of input, physically incorporated in export product, on the basis of Standard Input Output Norms or Self Declaration. Period for fulfillment of export obligation is 18 months from the date of issue of Authorization. AAS – AAS permits the import of raw materials, which are necessary for the production and manufacturing of final export products, at duty-free price. To make exports more competitive on the world market, the government collects less tax from them.

Grant of Status Holder to large exporters that gives them certain priviledges. There are certain terms and conditions attached to this scheme that need to be taken care of on the basis of the exporter profile prior to export. The Government has allocated Rs 40,951 crore for the incentive for 5 years. Objective of the scheme is to develop Mobile Manufacturing ecosystem in India. A new Scheme called Remission of Duties and Taxes on Exported Products has been introduced which shall refund the embedded duties suffered in export goods. Assistance in making timely compliances under any scheme availed by the exporter.

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