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Exports from India Schemes (MEIS & SEIS) Exports from India Schemes There shall be following two schemes for exports of Merchandise and Services respectively: (i) Merchandise Exports from India Scheme (MEIS). (ii) Service Exports from India Scheme (SEIS). 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 as per paragraph 3.18 of this Policy. 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 under MEIS. Merchandise Exports from India Scheme (MEIS) as per Import Export Policy 2015-20 (FTP 2015-20) Objective of Merchandise Exports from India Scheme (MEIS) under Indian Foreign Trade Policy 2015-20 (FTP 2015-20) 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. Entitlement under MEIS Exports of notified goods/products with ITC [HS] code, to notified markets as listed in Appendix 3B Table I, shall be rewarded under MEIS. Appendix 3B Table 2 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. Ineligible categories under MEIS The following exports categories /sectors shall be ineligible for Duty Credit Scrip entitlement under MEIS (i) MEIS not available for EOUs / EHTPs / BTPs/ STPs who are availing direct tax benefits / exemption. (ii)MEIS not available for Supplies made from DTA units to SEZ units (iii) MEIS not available for Export of imported goods covered under paragraph 2.46 of FTP (iv) MEIS not available for Exports through trans-shipment, meaning thereby exports that are originating in third country but transshipped through India; (v) MEIS not available for Deemed Exports; (vi) MEIS not available for SEZ/EOU/EHTP/BPT/FTWZ products exported through DTA units; (vii) MEIS not available for Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS), unless specifically notified in Appendix 3B. (viii) MEIS not available for Service Export. (ix) MEIS not available for red sanders and beach sand. (x) MEIS not available for export products which are subject to Minimum export price or export duty. (xi) MEIS not available for diamond Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones. (xii) MEIS not available for ores and concentrates of all types and in all formations. (xiii) MEIS not available for cereals of all types. (xiv) MEIS not available for sugar of all types and all forms. (xv) MEIS not available for crude / petroleum oil and crude / primary and base products of all types and all formulations. (xvi) MEIS not available for export of milk and milk products. (xvii) MEIS not available for export of Meat and Meat Products. (xviii) MEIS not available for products wherein precious metal/diamond are used or Articles which are studded with precious stones. (xix) MEIS not available for exports made by units in FTWZ. 1519146036
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EPCG Scheme The objective of the EPCG Scheme is to facilitate import of capital goods for producing quality goods and services to enhance India’s export competitiveness. 5.01 EPCG Scheme (a) EPCG Scheme allows import of capital goods for pre-production, production and post-production at Zero customs duty. Alternatively, the Authorisation holder may also procure Capital Goods from indigenous sources in accordance with provisions of paragraph 5.07 of FTP. Capital goods for the purpose of the EPCG scheme shall include: (i) Capital Goods as defined in Chapter 9 including in CKD/SKD condition thereof; (ii) Computer software systems; (iii) Spares, moulds, dies, jigs, fixtures, tools & refractories for initial lining and spare refractories; and (iv) catalysts for initial charge plus one subsequent charge. (b) Import of capital goods for Project Imports notified by Central Board of Excise and Customs is also permitted under EPCG Scheme. (c) Import under EPCG Scheme shall be subject to an export obligation equivalent to 6 times of duty saved on capital goods, to be fulfilled in 6 years reckoned from date of issue of Authorisation. 1519146274
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“Deemed Exports” refer to those transactions in which goods supplied do not leave country, and payment for such supplies is received either in Indian rupees or in free foreign exchange. Supply of goods as specified in Paragraph 7.02 below shall be regarded as “Deemed Exports” provided goods are manufactured in India. Categories of Supply Supply of goods under following categories (a) to (d) by a manufacturer and under categories (e) to (h) by main / sub-contractors shall be regarded as “Deemed Exports”: A. Supply by manufacturer: (a) Supply of goods against Advance Authorisation / Advance Authorisation for annual requirement / DFIA; (b) Supply of goods to EOU / STP / EHTP / BTP; (c) Supply of capital goods against EPCG Authorisation; (d) Supply of marine freight containers by 100% EOU (Domestic freight containers-manufacturers) provided said containers are exported out of India within 6 months or such further period as permitted by customs B. Supply by main / sub-contractor (s): (e) (i) Supply of goods to projects financed by multilateral or bilateral Agencies / Funds as notified by Department of Economic Affairs (DEA), MoF, where legal agreements provide for tender evaluation without including customs duty. (ii) Supply and installation of goods and equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies/Funds as notified by Department of Economic Affairs (DEA), MoF, for which bids have been invited and evaluated on the basis of Delivered Duty Paid (DDP) prices for goods manufactured abroad. (iii) Supplies covered in this paragraph shall be under International Competitive Bidding (ICB) in accordance with procedures of those Agencies / Funds. (iv) A list of agencies, covered under this paragraph, for deemed export benefits, is given in Appendix 7A. 1519146439
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