TMI BlogEXPORTS FROM INDIA SCHEMESX X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax on procurement of services as per DoR notification. (iv) Payment of Customs Duty and fee as per paragraph 3.18 of this Policy.] Merchandise Exports from India Scheme (MEIS) 3.03 Objective Objective of Merchandise Exports from India Scheme (MEIS) is to offset infrastructural inefficiencies and associated costs involved in export of goods/products, which are produced/manufactured in India, especially those having high export intensity, employment potential and thereby enhancing India s export competitiveness. 3.04 Entitlement under MEIS Exports of notified goods/products with ITC[HS] code, to notified markets as listed in Appendix 3B, shall be rewarded under MEIS. Appendix 3B also lists the rate(s) of rewards on various notified products [ITC (HS) code wise]. The basis of calculation of reward would be on realised FOB value of exports in free foreign exchange, or on FOB value of exports as given in the Shipping Bills in free foreign exchange, whichever is less, unless otherwise specified. 3.05 Export of goods through courier or foreign post offices using e-Commerce (i) Exports of goods through courier or foreign post office using e-c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (xx) Items, which are prohibited for export under Schedule-2 of Export Policy in ITC (HS) .] Service Exports from India Scheme (SEIS) 3.07 Objective Objective of Service Exports from India Scheme (SEIS) is to encourage export of notified Services from India. 3.08 Eligibility (a) Service Providers of notified services, located in India, shall be rewarded under SEIS, subject to conditions as may be notified. Only Services rendered in the manner as per Para 9.51(i) and Para 9.51(ii) of this policy shall be eligible. The notified services and rates of rewards are listed in Appendix 3D. (b) Such service provider should have minimum net free foreign exchange earnings of US$15,000 in preceding financial year to be eligible for Duty Credit Scrip. For Individual Service Providers and sole proprietorship, such minimum net free foreign exchange earnings criteria would be US$10,000 in preceding financial year. (c) Payment in Indian Rupees for service charges earned on specified services, shall be treated as receipt in deemed foreign exchange as per guidelines of Reserve Bank of India. The list of such services is indicated in Appendix 3E. (d) Net Forei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ign country Y routes not touching India at all. (i) Service providers in Telecom Sector. 3.10 Entitlement under SEIS Service Providers of eligible services shall be entitled to Duty Credit Scrip at notified rates (as given in Appendix 3D) on net foreign exchange earned. 3.11 Remittances through Credit Card and other instruments for MEIS and SEIS 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. 3.12 Effective date of schemes (MEIS and SEIS) The schemes shall come into force with effect from the date of notification of this Policy, i.e. the rewards under MEIS/SEIS shall be admissible for exports made/services rendered on or after the date of notification of this Policy. 3.13 Special Provisions (a) Government reserves the right in public interest, to specify export products or services or markets, which shall not be eligible for computation of entitlement of duty credit scrip. (b) Government reserves the right to impose restriction / change the rate/ceiling on Duty Credit Scrip under this chapter. (c) Government may al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horizations issued under Chapters 4 and 5 of Foreign Trade 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. 3.19 Risk Management System (a) A Risk Management System shall be in operation whereby every month Computer system in DGFT Headquarters, on random basis, will select 10% of cases for each RA where scrips have already been issued, under each scheme. RA in turn may call for original documents in all such selected cases for further examination in detail. 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 at the rate prescribed under section 28 A A of the Customs Act 1962, from the date of issue of scrip in the relevant Head of Account of Customs within one month. The origina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 500 Five Star Export House 2000 3.22 Grant of double weightage (a) The exports by IEC holders under the following categories shall be granted double weightage for calculation of export performance for grant of status. (i) Micro, Small Medium Enterprises (MSME) as defined in Micro, Small Medium Enterprises Development (MSMED) Act 2006. (ii) Manufacturing units having ISO/BIS. (iii) Units located in North Eastern States including Sikkim and Jammu Kashmir. (iv) Units located in Agri Export Zones. (b) Double Weightage shall be available for grant of One Star Export House Status category only. Such benefit of double weightage shall not be admissible for grant of status recognition of other categories namely Two Star Export House, Three Star Export House, Four Star export House and Five Star Export House. (c) A shipment can get double weightage only once in any one of above categories. 3.23 Other conditions for grant of status (a) Export performance of one IEC holder shall not be permitted to be transferred to another IEC holder. Hence, calculation of exports performance based on disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port realisation during preceding three licensing years. In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes. the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years. Such free of cost supplies shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme ] ----------------- Notes:- 1. Substituted vide Not. 08/2015-2020 - Dated 4-6-2015 w.e.f. 1 st April 2015 3.02 Nature of Rewards Duty Credit Scrips shall be granted as rewards under MEIS and SEIS. The Duty Credit Scrips and goods imported / domestically procured against them shall be freely transferable. The Duty Credit Scrips can be used for : (i) Payment of Customs Duties for import of inputs or goods, except items listed in Appendix 3A. (ii) Payment of excise duties on domestic procurement of inputs or goods, including capital goods as per DoR notification. (iii) Payment of service tax on procurement of services as per DoR notification. (iv) Payment of Customs Duty and fee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for recognition as a status holder. Status recognition depends upon export performance. An applicant shall be categorized as status holder upon achieving export performance during current and previous two financial years, as indicated in paragraph 3.21 of Foreign Trade Policy. The export performance will be counted on the basis of FOB value of export earnings in free foreign exchange. 6. Substituted vide Not. 4/2015-2020 - Dated 21-4-2017 , before it was read as, (a) Duty Credit Scrip can be utilised / debited for payment of Custom Duties 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. 7. Substituted vide Not. 23/2015-2020 dated 23-8-2017, before it was read as, (j) 4 [ Status holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of ₹ 10 lakh or 2% of average annual export realisation during preceding three licensing years, whichever is lower .] - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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