MERCHANDISE

EXPORTS FROM
INDIA SCHEME
MANISH

NAMAN JHA B28

N E H A M I T TA L B 2 9

 Merchandise Exports from India Scheme (MEIS) under Foreign Trade Policy
of India (FTP 2015-20) is one of the two schemes introduced in Foreign
Trade Policy of India 2015-20, as a part of Exports from India Scheme.

FOREIGN TRADE POLICY 2015-2020

After every five years, government come up with Foreign Trade Policies giving details of
various benefits available to Exporters and Importers
FTP 2015-20 was announced by the Minister of Commerce and Industry, Mrs. Nirmala
Sitharam on 1st April 2015
FTP 2015-20 provides framework for:
Increasing Exports of Goods and Services
Generation of Employment
Increasing value addition in the country
Support and Boost important initiatives of Indian government Make in India, Skill India &
Digital India
Improving ease of doing business

 In order to increase exports of Goods and Services from India,

FTP 2015-20 introduces two new Export Promotion Schemes:
o Merchandise Exports from India Scheme(MEIS): For promoting exports of
notified goods to specified markets
o Service Exports from India Scheme(SEIS): For increasing exports of
notified services.

Earlier in FTP 2009-14, there were 5 different Export Promotion Schemes,

which are now merged into MEIS. The 5 schemes are:
Focus Product Scheme (FPS)
Focus Market Scheme (FMS)
Market Linked Focus Product Scheme (MLFPS)
Agri. Infrastructure incentive scheme
Vishesh Krishi Gramin Upaj Yojna (VKGUY)
As per the present FTP, the MEIS scheme does not aim to merely replace
these five schemes but also aims to rationalize the incentives and enlarges
their scopes by removing various restrictions.

 The following country groups fall under MEIS scheme under foreign trade policy
2015-2020.
Category A: Traditional Markets (30) - European Union (28), USA, Canada.
Category B: Emerging & Focus Markets (139), Africa (55), Latin America and
Mexico (45), CIS countries (12), Turkey and West Asian countries (13), ASEAN
countries (10), Japan, South Korea, China, Taiwan, Category
Category C: Other Markets (70).

 Ineligible categories under MEIS are given below: 1) EOU/EHTP/BTP/STP who are availing direct tax benefits/ exemption
2) Supplies made from DTA units to SEZ units
3) Exports of imported goods covered under para 2.46 of FTP
4) Exports through transhipment (goods originating in third country but transhipped through India)
5) Deemed exports
6) SEZ/EOU/EHTP/BTP/FTWZ products exported through DTA units
7) Items which are restricted/prohibited for export under schedule 2 of Export Policy in ITC (HS) unless specifically
notified in Appendix B
8) Service export
9) Red sanders/beach sand
10) Export products which are subject to Minimum Export Price or export duty
11) Diamond, gold, silver, platinum, other precious metals in any form, including plain and studded jewellery and
other precious and semi-precious stones.
12) Ores and concentrates of all types
13) Cereals of all types
14) Sugar of all types and all forms
15) Crude/petroleum oil and crude/primary and base products of all types and all formulations
16) Export of milk/milk products
17) Export of meat and meat products
18) Products wherein precious metal/diamond are used or articles which are studded with precious stones
19) Exports made by units in Free Trade Warehousing Zones

 Uses of duty credit scrips

(1) Duty credits scrips are granted under MEIS and SIES and goods imported/goods
domestically procured against them shall be freely transferable
(2) It can be used for : (a) Payment of Customs duty for import of inputs or goods except items listed in
Appendix 3A
(b) Payment of excise duty on domestic procurement of inputs or goods, including capital
goods as per DOR notification
(c) Payment of service tax on procurement of services as per DOR Notification
(d) Payment of Customs duty and fee as per para 3.18 of the policy
(e) Para 3.18 of the policy provides the facility of payment of Customs duty in case of
export obligation defaults and fee through duty credit scrips. This para reads as follows: "(a) Duty credit scrip can be utilized/debited for payment of Customs duty in case of EO
defaults for authorizations issued under Chapters 4 and 5 of this Policy. Such
utilization/usage shall be in respect of those goods which are permitted to be imported
under the respective reward schemes. However, penalty/interest shall be required to be
paid in cash.
(b) Duty credit scrips can also be used for payment of composition fee under FTP for
payment of application fee under FTP, if any, and for payment of value shortfall in EO
under para 4.49 of HBP 2015-20."