Foreign Trade Policy
Foreign Trade Policy 2015-20 Foreign Trade Policy Statement The Foreign Trade Policy Statement explains the vision, goals and objectives underpinning the Foreign Trade Policy for the period 2015-2020. It describes the market and product strategy envisaged and the measures required not just for export promotion but also for the enhancement of the entire trade ecosystem. It is the first comprehensive statement on the government priorities in the Foreign Trade Sector. For improving foreign trade performance, it is necessary to develop a broader framework that provide the scope for coordinating with a number of administrative ministries. Through the FTP statement the overall thinking on external sector has been articulated, first it spells out the government strategy for addressing some of the structural and institutional issues which are relevant for improving the performance of Foreign Trade Sector. Secondly, it states the ways in which the government would make trade and economic integration agreements with trade partners and would work better for Indian enterprises. Foreign Trade Policy has taken ‘whole of government’s approach’. Through FTP a major ‘path breaking’ initiative that the department has taken is to mainstream States, Union Territories and various departments of Government of India in the process of international trade. The FTP introduces two new schemes, namely “Merchandise Exports from India Scheme (MEIS)” for export of specified goods to specified markets and “Service Exports from India Scheme (SEIS)” for increasing exports of notified services.
Merchandise Exports from India Scheme (MEIS)
MEIS is a major export promotion scheme, which seeks to promote export of notified goods manufactured/produced in India. At the time of introduction on April 1, 2015, MEIS covered 4,914 tariff lines at 8 digits. Keeping in mind the global economic downturn and the adverse environment faced by exporters, it was expanded to include additional lines and currently it covers 7,914 lines, all with global coverage. The incentives are issued as duty scrips that can be used for payment of a number of duties/taxes including the customs/excise duty/service tax. Scrips are fully transferable and can be used for payment of customs duty.
Applicable Products- 2 % to 5%
Major product groups covered under MEIS are:
Agricultural products, Fruits, Flowers, vegetables, Tea Coffee, Spices, Value added and packaged products, Handicraft, Handloom, Jute products, Textile and garments, Pharmaceuticals, Surgical, Herbals, Project Goods, Auto Components, Telecom, Computer, Electrical and Electronics Products, Railway, Transport Equipment, industrial machinery, IC engines, machine tools, parts, hand tools, pumps of all types, automobiles, two wheelers, bicycles, ships, planes, chemicals, plastics, rubber, ceramic and glass, leather garments, saddlery items, footwear, steel furniture, prefabs, lighters wood, paper, stationary ,iron, steel, and base metals, products.
The last date of filing of applications for obtaining duty credit scrips under MEIS shall be filed within a period of :
- 12 months from the Let Export Order date or
- 3 months from the date of
- a. Printing/ Release of shipping bills for non-EDI shipping bills and
- b. Uploading date of EDI shipping bills in the DGFT server by customs.
The duty credit scrip so obtained shall be valid for a period of 18 months from the date of issue of the scrips.
Application for issue of scrips
The incentives are given at a specified rate on the FOB value and would be lower of the following:-
- Realised FOB value of exports in free foreign exchange or
- The FOB value of exports as given in shipping bill in free foreign exchange whichever is less.
The procedure for claiming incentives under MEIS differs from normal exporters to ecommerce exporters. A detailed application in Form-ANF should submitted for issue of the scrips. The exporter shall have an active Import Export Code (IE Code) for obtaining filing the application.
In case of EDI enabled scrips, the applicant shall be able to choose any port as the port of registration. Otherwise, telegraphic release advise needs to be obtained.
If you require any further details in connection with obtaining the IE Code and MEIS scrips, kindly contact us firstname.lastname@example.org