MEIS / SEIS are Incentive Schemes introduced in the Foreign Trade Policy (FTP) of India (2015-2020). Incentive schemes are schemes which entitle the exporters to duty credit scrips subject to various conditions. SEIS was earlier called as Served from India scheme under FTP (2009-2014). These duty credit scrips are freely transferable, i.e., they can be sold in the market, if the holder of the duty credit scrip does not intend to import goods or services against the scrips.
The main objective of MEIS is to reduce inefficiencies caused by lack of infrastructure and the costs incurred during export of goods or products, which are produced or manufactured in India, especially those having a high export capacity, a good potential of employment and thus boosting India’s export competitiveness, whereas, the main objective of SEIS is to encourage export of notified services from India. Service Providers of notified services, located in India, shall be rewarded under SEIS. This scheme applies to export of services made on or after 01.04.2015.
Appendix 3B – MEIS Schedule
It provides with a list of countries with ITC (HS) code wise list of products with reward rates in %. The benefit under this scheme ranges from 2% to 5% on FOB Value which depends on the country to which the goods are exported. The list of export categories/sectors which is ineligible for Duty Credit Scrip entitlement has been notified unless such categories/sectors are specially notified in Appendix 3B. Since this license is transferable, it can be sold at an average premium of 95% to 100% to importers for payment of Customs duties.
Eligible Service Provider
An eligible service provider for availing SEIS is the one, who islocated in India, providing notified services rendered in the specified manner shall be eligible for reward at the notified rate(s) on the net foreign exchange earned provided that the net free foreign exchange earnings of such service provider in the preceding year financial year is:
- US$ 10,000 for individual service providers and sole proprietorship
- US$ 15,000 for other service providers
Net foreign exchange earnings of services only have to be taken into account for a person who is a manufacturer as well as service provider. The benefit under this scheme ranges from 3% to 5% on Net Foreign Exchange earned.
SERVICES WE PROVIDE
This license is purchased from service providers who export services but do not import any services against which such scrip can be used. It is transferable and is sold to importers for payment of customs duties.
We help the sellers to convert their credit into cash so as to increase the flow of working capital which can be put to use productively by providing them with buyers who need to pay customs duty since the sellers do not have any use for the incentives they have earned.
