Export Incentives

Export Incentives

Merchandise Export Incentive Scheme (MEIS)

The government has been aiming to increase the export margin under the latest Five-Year Foreign Trade Policy in recent years by providing incentives for goods and services exporters. These schemes as- MEIS i.e. Merchandise Export Incentive Scheme.

More than 4000 export products are entitled to earn value under MEIS DGFT. Under MEIS SCrips are provided as rewards. The Scripts shall be transferable free of charge against goods imported/procured domestically. This initiative also covers First-time SEZ exporters.

 MEIS is a duty script granted to an exporter of products as a reward by the Government. The scripting value is 2 to 5 percent of the FOB value of the exported products. There are over 4000 lines of tariff that are valid for MEIS. The scripts can be used to counter import duties, and are transferable freely.

There's a time limit there. Applications must be submitted within 3 months from the date of uploading to the DGFT server of EDI shipping bills, or 3 months from the date of printing/release of shipping bills (for non-EDI bills) or twelve months from the date of Let Export (LEO), whichever is later, in respect of shipments for which a claim is filed.

Process of filing for MEIS

Applying for MEIS is an easy procedure and can be done online using a digital signature on the DGFT website using the related RA in AayatNiryat Form (ANF) 3A. The online application is linked to the E-BRC and the respective shipping bills. We will assist you in filing a MEIS submission.

Documents required

a. Import Export Code (IEC)

b. Exporting company registration number, Address, communication information

c. Importing company and country detail

d. Declaration

e. E-BRC (Electronic bank realization certificate)

f. Shipping bill

Service Export from India Scheme (SEIS Scheme)

India's government provides exporters with 3 % to 5% incentives to encourage exports. Under the SEIS scheme (Service Exports from India Scheme), SEIS benefits are provided to all service providers who are eligible and who provide services to other countries from India. This scheme was adopted as part of the New Foreign Trade Policy 2015-20, which replaces the previously existing Service from India Scheme (SFIC).

Eligibility

Notified Service Providers must be located in India. The (Company / LLP / Partnership Firm) in the preceding financial year should have a minimum net free foreign exchange earnings of USD15000. For proprietorships or individual service providers, the preceding financial year should include minimum net foreign exchange earnings of USD 10,000. At the time of rendering those services, service providers must have an active Import Export Code (IEC) for which rewards are claimed.

Scheme Script can Utilize

Goods imported against Duty Credit Scripts shall be transferable free of charge. It can be used to pay customs duties (BCD), anti-dumping duties (ADDs), it safeguards duties. The scripts cannot be used to pay IGST (Integrated Goods and Services Tax) and GST cessation in imports, and cessation of domestic procurement CGST, SGST, IGST, and GST compensation.

Process:

Applying for MEIS is an easy procedure and can be done online using a digital signature on the DGFT website using the related RA in AayatNiryat Form (ANF) 3B. The online application is linked to the E-BR, RCMC, and the respective shipping bills. We will assist you in filing a MEIS submission.

The SEIS scheme processing the claim takes 3 working days. However, if there are any deficiencies/discrepancies in the file then it can take longer to proceed.

Documents

a. Import Export Code (IEC)

b. RCMC certificate

c. Exporter detail

d. Import company detail and Importing country detail

e. Shipping detail

f. E-BRC

Advance Authorization Scheme

Advance Authorization is issued to allow duty-free raw material imports that are physically integrated into the export product. Gas, gasoline, a catalyst that is consumed during the export product production cycle, can also be permitted in the cycle. Advance Authorization may be granted to a manufacturer or merchant exporter linked to manufacturers' support.

The Advance Authorization Scheme is a system where duty-free imports of products (after making normal waste allowance) will be allowed if they are physically incorporated into a product to be exported. Usually, export duty is set as a prerequisite for granting an Advance Authorisation.

Eligibility

The Advance Authorization Scheme is available either directly to a manufacturer exporter or to a merchant exporter tied to a sponsor. The authorization for the following is available:

a. Physical exports

b. Intermediate Supply

c. Supplies made to specified categories of deemed exports

d. Supply of 'stores' on board a foreign vessel/aircraft given that the supplied goods are subject to strict Standard Input-Output.

e. Requirements (SION).

Benefits

Advance Authorisation is immune from the payment of basic customs duties, additional customs duties, anti-dumping duties, and customs duties. Authorization for the importation of tea, the minimum value added under the Advance Authorisation is 100%. The additional exemption is available according to the Central Excise Act, 1944 products listed in the Fourth Schedule. A. A Scheme, an exporter can import raw materials and related inputs under duty exemption schemes of 100 percent.

Validity

Advance Authorization shall be valid for 12 months from the date such Authorization is given. The Authorization is linked in the case of deemed exports to the contract duration of project execution or 12 months from the date of issuance of such Authorization, whichever is more.

The export duty can, however, be met within 18 months from the date of issuance of the Authorization or as informed by the DGFT. The export proceeds should be realized in free convertible currency unless specified

Export Promotion Capital Goods Scheme (EPCGS)

Under this scheme, the exporters are entitled to import new capital goods without paying customs duties. Under this scheme, the exporter can also purchase domestic capital goods by obtaining a Letter of Invalidation. The exporter is needed to achieve a predefined export level that is usually specified in the "number of duty time saved by the exporter"

EPCG is designed to promote exports, and the Indian government provides incentives and financial support to exporters with the help of this scheme. That provision could benefit heavy exporters. However, for those who do not intend to manufacture in quantity or plan to sell the product entirely within the country, it is not advisable to go ahead with this scheme, as it may become almost impossible to fulfill the obligations set out under this scheme.

Process

In order to acquire a License under the EPCG program, filing an application with the Director-General of Foreign Trade's licensing authority is a key requirement. The application and the company and personal information shall be attached along with the necessary documents.

Documents required:

The authorizing authority is the regulatory authority Director General of Foreign Trade (DGFT). ANF 5B and Self-certified versions of the following shall be filled in together:

a. IEC Import Export Code

b. Registration cum Membership Certificates (RCMC)

c. Signature Digital

d. Tourism Department registration certificate

e. Pan Card

f. Excise Registration (on request)

g. Certificate of registration with GST

h. Proforma Invoice

i. Brochure

j. Self-certified copy + initial Chartered Accountant Certification

k.Self-certified copy + initial Chartered Engineer's Certificate