December 16, 2021

Exports From India Schemes

In order to encourage exports in India the Government provides certain benefits to exports to offset infrastructural inefficiencies and associated costs. These benefits are provided to both service providers and export of goods. There are two schemes to avail benefits namely
  1. Merchandise Exports from India Scheme (MEIS).
  2. Service Exports from India Scheme (SEIS).

1. Merchandise Exports from India Scheme (MEIS):

This scheme is for Merchandise exporter. The objective of the Merchandise Exports from India Scheme (MEIS) is to promote the manufacture and export of notified goods/ products. Eligibility: Exports of notified goods/products with ITC[HS] codes, to notified markets shall be rewarded under MEIS. The notified goods/products with ITC codes and rates are listed in Appendix 3B. The basis of calculation of reward would be on the realized FOB value of exports in free foreign exchange, or on FOB value of exports as given in the Shipping Bills in freely convertible foreign currencies, whichever is less, unless otherwise specified.

2. Service Exports from India Scheme (SEIS):

This Scheme is for Service exporter. Objective of Service Exports from India Scheme (SEIS) is to encourage and maximize export of notified Services from India. Eligibility:
  1. Service providers of notified services which shall be rendered in the manner prescribed in the Para 9.51(a) and Para 9.51(ii) of the policy, shall be rewarded under this scheme. The notified service list and rates are listed in the appendix 3D.
  2. Such service providers should have minimum net foreign exchange earnings of USD 15000 in the preceding financial year to be eligible for the benefits under SEIS.
  3. Service providers should have an active IEC at the time of rendering of services for which rewards are claimed.
  4. If the IEC holder is a manufacturer of goods as well as service  provider, then the foreign exchange earnings and total expenses /payment / remittances shall be taken into account for service sector only.
Rewards: The nature of rewards shall be granted in the form of Duty credit scripts under SEIS and MEIS scheme. These scripts shall be used for the payment of Basic Customs Duty and Additional Customs Duty specified under sections 3 (1), 3 (3) and 3 (5) of the Customs Tariff Act, 1975 for import of inputs or goods, including capital goods, as per DoR Notification, except items listed in Appendix 3A.

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