According to Foreign trade policy, merchandise export is the export of goods manufactured in India.

Merchandise Exports from India Scheme (MEIS) is the additional export incentive
scheme under which Credit Scrip or MEIS License is issued as a reward against eligible
exports.

The working of the MEIS Scheme can be explained in 5 simple steps, 1. Eligibility – Check that your product is eligible for MEIS benefits and check what is the rate of incentive; 2. Online Application – Prepare all the documents and make an application; 3. License Issuance – DGFT will issue MEIS License or raise a query; 4. License registration at Customs – Register the MEIS license at Customs; 5. The sale or use of License – Use the MEIS licence to pay your import duties or sell it in the open market and en-cash it. Please find the detailed explanation below:

1. Eligibility: For making shipping bills eligible for the MEIS scheme benefits, the scheme
   reward option should be mentioned “YES” on the Shipping bills.
2. Online Application: Online Application needs to be done on the DGFT website; relevant details shall be filled online with the help of shipping bill, e-Bank realization Certificate, and RCMC copy.
3. License issuance: DGFT will process the Application and issue the License within a week.
4. License registration: License registration is done at Customs, which takes two working days.
5. Selling of License: The License can be used to pay import duty, or it is transferable and can be sold in an open market with a premium rate.

All the goods Exporter, exporting products manufactured in India are eligible for
MEIS Incentives.

Under the MEIS Scheme, the benefit amount is calculated as a percentage of the FOB value
of eligible export.

Duty drawback enables Exporter to obtain a refund of customs duty paid on
imported goods, whereas MEIS is the additional export incentive given as 2% – 7% on FOB
value of eligible export.

Merchandise Exports from India Scheme (MEIS) & The Service Exports from
India Scheme (SEIS) are the two schemes under the Foreign Trade Policy 2015-20 for giving
incentives to the goods exporter and service exporter respectively in the form of duty credit
scrip.

The MEIS License is the Duty Credit Scrip obtained under MEIS scheme.

Reward under MEIS scheme can be claimed by filling online Application on
DGFT website and submitting all the required documents, and We are the team of DGFT
professionals having expertise in this domain from last ten years, Exporter only has to give us
documents and rest of the things will be taken care by our executives.

MEIS rate determines the quantum of reward given to the exporters. It can be
calculated as % of the FOB value of exports.

MEIS rate can be checked on the DGFT website 
http://dgftebrc.nic.in:8090/dgft_meis/homepage.jsp by just providing the eight-digit HS code
and product description. Before application submission, we provide our clients with an excel
sheet containing all their products and corresponding MEIS rate of benefit.

Yes, MEIS Benefits can be availed for the last three years, i.e., shipping bills are eligible
for the Application of last three years from the LEO date mentioned on the shipping bills with
Late Cut clause.

Application shall be filed within a period of 12 months from date of Let Export
Order (LEO) or three months from date of uploading EDI shipping bills onto DGFT site by
customs without Late Cut.

In case, exporters do the delay in filing of the Application under MEIS scheme of more than
12 months from the Let Export Order (LEO date), then they are imposed of Late cut clause,
and it is given as follows:

The Government fees of Rupees 1000/- need to be paid online while making
Applications on the DGFT website.

It takes seven working days to get MEIS scrip from DGFT, and we try to do it
within 2-3 working days by avoiding any kind of delay in the application process.

The Government of India announced the discontinuation of MEIS & approved a new scheme,
but the FTP 2015-20 is extended till 31st March 2021 due to Covid-19 Pandemic, under the
extended policy exporter can continue to avail the MEIS benefits till 31st December 2020 it
may extend till 31st march 2021.

MEIS Scheme has been replaced by Remission of Duties or Taxes on Export Products
(RoDTEP Scheme), implementation of the scheme will be done in a phased manner.

Yes, MEIS License is transferable. The License can be transferred from owner to buyer.

The Selling of License means to transfer the Scrip from owner to buyer.
For ease of doing business, DGFT had started an online platform to transfer Scrip from seller
to buyer by using DGFT Digital Signature. After the transfer process buyer can utilize the
same for the import duty payment.

As per the latest notification, the Validity Period of MEIS License is 24 months from the date
of the issue of License.

The MEIS Scrip should be utilized within the validity period, the scrip can be considered as a
piece of paper once the Validity gets expired and revalidation of the scrip shall not be
permitted under the MEIS Scheme unless it has expired in the custody of any Govt.
Authority.

MEIS Scrip holder can use the MEIS license for the waiver of customs duties or if he does not intend to use he can sell it into the open market at discounted rate.

MEIS License is issued by DGFT and used at Customs. Hence Customs authority need to
verify it to check its genuineness. MEIS License registration procedure is done at customs
where Exporter needs to provide an issued license to the custom, and after verification, it can
be used for waiver of duty.

Yes, It is mandatory to register the MEIS license at Customs to verify the genuineness of
License /scrip from DGFT.

Yes, MEIS License can be sold in the open market.

Yes, We at Afleo Consultants help our client in the selling of License without any hidden
cost by following a transparent procedure of selling.

As per updated notification, GST is not applicable to the sale of the MEIS License

No, the MEIS Scrip cannot be used for payment of IGST.