Exports from India Schemes
India has two schemes in place to promote exports of merchandise and services:
(i) Merchandise Exports from India Scheme (MEIS).
(ii) Service Exports from India Scheme (SEIS).
► The DGFT, through Public Notice No. 07/2015-2020, has announced two schemes for the export of merchandise and services, namely Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS).
► SEIS benefits are applicable to certain services, as listed in Annexure 3E of the Public Notice, that has been paid for in Indian Rupees and is considered as receipts in Deemed Foreign Exchange under the guidelines of the Reserve Bank of India as per Para 3.08(c) of the FTP. These services are related to Maritime Transport Services, such as the rental of vessels with the crew, vessel maintenance and repair, pushing and towing services, and supporting services for maritime transport.
► The SEIS benefit has been extended to certain services provided in a Customs Notified Area to a foreign liner, for which payment is made in INR by the Indian Agent out of the remittable amount to the overseas principal.
► These amendments are applicable to services rendered from 1 April 2015, and a revised rate of reward is applicable for services rendered from 01.11.2017 till 31.03.02018. The list of notified services/rates is subject to review from 01.04.2018 onwards.
► DGFT, through Public Notice No.06/2015-2020, made changes to Table 2 of Appendix 3B which contains the ITC (HS) code-wise list of products with reward rates. This was done by imposing a single rate of 2% to 5% for the items specified in the notice, regardless of the country of export. This expansion of the market coverage of MEIS to all countries eliminates the need for landing certificates to claim benefits for the 2787 line items out of the 5012 lines previously listed in Table 2, which previously required such proof.
► It should be noted that separate applications are now required for exports made prior to and after the date of issuance of the Public Notice, and cannot be clubbed in one application for receiving the said incentive.
► These changes were effective immediately from the date of issuance of the public notice.
► Certain products such as MSME, agriculture, and labor-intensive products have increased rates of reward under the MEIS scheme. These revised rates will be applicable for exports made from 1 November 2017 to 30 June 2018.