Merchandise Exports from India Scheme, popularly known as MEIS, is an export incentive program initiated by the Indian government to promote exports of goods and services from India. This scheme was introduced in the Foreign Trade Policy 2015-2020, with an aim to boost India’s exports and increase its share in the global market.
What is MEIS?
MEIS is a government scheme that provides incentives to exporters for exporting their products from India.
The scheme aims to encourage exports by providing financial assistance to exporters in the form of duty credit scrips, which can be used to pay various duties, including basic customs duty, anti-dumping duty, and safeguard duty. Under MEIS, exporters can claim incentives ranging from 2% to 7% of the value of their exports, depending on the product category and destination country.
Objectives of MEIS
The MEIS scheme has the following objectives:
- To boost India’s exports and increase its share in the global market.
- To incentivize export of goods and services from India.
- To enhance the competitiveness of Indian products in the global market.
- To promote manufacturing and production of goods and services in India.
- To create employment opportunities in India.
Eligibility Criteria for MEIS
To be eligible for MEIS, exporters must fulfill the following criteria:
- The exporter must be a registered member of a recognized export promotion council or commodity board.
- The exported goods must be manufactured in India.
- The exported goods must be shipped out of India from any port in India.
- The exporter must have a valid Import-Export Code (IEC).
- The value of exports must be in free foreign exchange.
- The exported goods must not be prohibited for export under any law.
How to Claim MEIS Incentives?
Exporters can claim MEIS incentives by filing online applications through the DGFT (Directorate General of Foreign Trade) website. The application must be filed within a prescribed time frame, usually within 60 days from the date of shipment of goods.
Exporters can claim MEIS incentives for exports made during the period specified in the Foreign Trade Policy. The incentives are provided in the form of duty credit scrips, which can be used to pay various duties, including basic customs duty, anti-dumping duty, and safeguard duty.
Benefits of MEIS
MEIS provides several benefits to exporters, such as:
- Financial assistance in the form of duty credit scrips.
- Competitive advantage in the global market.
- Reduction in the cost of exports.
- Increase in the profit margin.
- Boost in the manufacturing and production of goods and services in India.
- Creation of employment opportunities in India.
Challenges Faced by MEIS
Despite the benefits provided by MEIS, there are certain challenges that need to be addressed to make the scheme more effective. Some of the challenges are:
- Delay in the disbursement of incentives.
- Limited coverage of products and markets.
- Complex procedures for claiming incentives.
- High transaction costs.
- Need for better infrastructure and logistics.
Conclusion
MEIS is an important scheme initiated by the Indian government to promote exports and increase India’s share in the global market. The scheme provides financial assistance to exporters in the form of duty credit scrips, which can be used to pay various duties.
MEIS has several benefits, such as reducing the cost of exports, increasing the profit margin, and creating employment opportunities. However, there are certain challenges that need to be addressed to make the scheme more effective.
FAQs
- What is MEIS in exports? MEIS stands for Merchandise Exports from India Scheme, which is an export incentive program initiated by the Indian government to promote exports
- How can I claim MEIS incentives? Exporters can claim MEIS incentives by filing online applications through the DGFT (Directorate General of Foreign Trade) website within the prescribed time frame.
- What are the benefits of MEIS? MEIS provides several benefits to exporters, such as financial assistance, competitive advantage, reduction in export costs, and increase in profit margin, among others.
- What are the eligibility criteria for MEIS? To be eligible for MEIS, exporters must fulfill certain criteria, such as being a registered member of a recognized export promotion council or commodity board, having a valid IEC, exporting goods manufactured in India, and more.
- What are the challenges faced by MEIS? Some of the challenges faced by MEIS include the delay in disbursement of incentives, limited coverage of products and markets, complex procedures for claiming incentives, high transaction costs, and the need for better infrastructure and logistics.