Government provides financial assistance to the exporters in the form of Government Incentive to help them secure market in the global market and to make Domestic Product competitive in the global market and these are the reason they should avail the benefits given by the Governments in the form of incentives. Export Incentives includes following –
- Export Subsidies
- Direct payments
- Low cost loans
- Tax exemption etc.
The Indian Government launched MEIS and SEIS scheme under foreign trade policy 2015-20 replacing various schemes present in earlier policy is to offset infrastructural inefficiency and associated cost involved in the export process.
MEIS Scheme replaced following schemes –
- Focus Product Scheme (FPS)
- Focus Market Scheme (FMS)
- Market Linked Focus Product Scheme (MLFPS)
- Agri Infrastructure incentive Scheme
- Vishesh Krishi Gramin Upaj Yojna (VKGUY)
Under MEIS Scheme exporters avail the benefits of 2% – 7% on the FOB value of exports in the form of Duty Credit Scrip which is transferable in nature
License will be valid for 24 months from the date of issue. Revalidation of the License are not permitted under MEIS Scheme.
Time Frame for Applying for MEIS:-
12 months from LEO (Let Export Order) or 3 months from date of a) uploading of EDI shipping bills by customs in DGFT server b) Printing/Release of shipping bills for Non- EDI shipping bills whichever is later.
MEIS For E- Commerce:-
Products which are eligible for MEIS Scheme through E-commerce
- Handicraft Items / Products
- Handloom products
- Books / Periodicals
- Leather Footwear
- Customized Fashion Garments
There is limit of 5 Lakh per consignment for this category will be applicable for application under MEIS scheme.
Documents required for MEIS application: –
- Shipping bills
- DGFT DSC
- Valid RCMC
Procedure to claim benefits under MEIS Scheme:-
Step 1 – Documents preparation – DGFT DSC, Shipping bills, Valid RCMC, e-BRC
Step 2 – Application preparation online on DGFT website
Step 3 – The Application form will be submitted along with ANF 3A by linking all the required details and attaching shipping bills and e-BRCs.
Step 4 – DGFT issue the License after reviewing it.
Step 5 – Verification of License done at custom office.
Step 6 – Selling of License done if the license holder does not intend to use it for waiver of import duty @ market rate.
Government discontinue MEIS Scheme and approved RoDTEP scheme.
Eligibility criteria under SEIS Scheme:
- Service Provider Should have active IEC (Import Export Code).
- Service Exporter should have minimum net free foreign exchange earnings of US$15,000 in the year of rendering the services for the Pvt. Ltd. , Partnership or LLP company.
- And for individual or proprietorship such minimum net free foreign exchange earnings criteria would be US$10,000.
- SEIS rewards are calculated on the basis of Net Foreign Exchange Earned. The services which are eligible for the benefits are given in Appendix 3E.
- In SEIS rates of rewards are in the range of 5% – 7% depending on the notified type of the services
Documents required under SEIS Scheme :-
- Invoice raised in the FY
- FIRC against invoice
- IEC copy
- Valid RCMC copy
- Justification & Brief writeup of services provided.
Procedure For application Under SEIS:
Step 1 – The Online Application can be done on DGFT website from there need to select Online Ecom Application under Services Tab
Step 2 -After that we need to select the financial year for which we would file the application for SEIS.
Step 3 – All the required details need to be filled in the form ANF 3B.
Step 4 – If there are more than one service then the applicant has to follow the classification as per appendix 3D and need to specify the Service Category Information.
Under SEIS application shall be filled within a period of 12 months from end of relevant financial year of claim period.
Application under SEIS can be done till next 3 Years after the end of relevant FY, in this case Late Cut would be applicable.
It is very much important to know, how Many times applications can be done in a financial Year for MEIS & SEIS Scheme?
- Under the MEIS Scheme application can be done Yearly, Half-yearly, or quarterly basis, or we can also submit one shipping bill also for claiming the benefits.
- The Shipping bills of different Financial Years can not be clubbed in one application.
- Application for SEIS has to be done on an annual basis ie. only one application can be filled in 1 FY.
The Ministry of Commerce had approved the continuation of the SEIS scheme for the FY 2019-20.
The Government may give confirmation for the application under SEIS scheme for the FY 2020-21 but as of now there is no confirmation given from them.