MEIS scheme - How to claim incentives on lapsed / expired shipping bills

The Merchandise Exports from India Scheme (MEIS) is a duty-free scheme for export of goods manufactured in India. It was launched on 1 April 2015. The scheme is applicable to all types of goods, except prohibited and restricted items, as listed in Schedule I and II of the Foreign Trade Policy 2012-2015.

Merchandise exports from India scheme (MEIS) is an export promotion scheme for Indian manufacturers, exporters and service providers. MEIS provides duty free access to Indian manufactured goods for exports to countries with which India does not have a bilateral Free Trade Agreement (FTA). The scheme has been introduced with the objective of providing an incentive for exports, thereby helping in the growth of exports and employment opportunities in the country.

Everyone is aware that MEIS window for all the years has expired now and the exporters are no longer able to apply for MEIS. So what is to be done if some of your shipping bills have expired/lapsed due to any reasons? Will you be able to get benefit on those shipping bills or not?

The answer is Yes, You can still claim benefit on those expired shipping bills by applying to the Policy Relaxation Committee (PRC Committee) at DGFT HQ, New Delhi and take a special approval.

So in this blog, we will discuss about all the cases that might get cleared in the PRC committee and you might be able to claim the benefits. Please read the blog all the way through.

Case 1 – Payment realized within 3 years from LEO Dt. but e-brc not uploaded by Banker on time.

As everybody knows, that e-brc is a mandatory document to be submitted for MEIS claim. In this case e-brc was not generated on time. This is a mistake/delay on part of the banker and the exporter is not at fault, hence, this type of cases can get the approval from PRC committee.

Case 2 – Shipping Bills Not transmitted from Customs within time, but now transmitted.

Likewise, in this instance, the mistake/delay is on the part of Customs/online system and there is no fault of exporter. Such type of cases can also get approval. But the exporter has to make sure that the SB is now transmitted by the Customs and is available in the DGFT server for application.

Case 3 – IEC was in Alert or Defaulter List (DEL List), and now it is not.

Since the DGFT system does not allow to make an application when the exporter is in DEL list due to any reasons. Once the Exporter clears the pending issue and is out of the DEL list, then he can approach the PRC Committee to get a special approval to claim MEIS on all the expired/lapsed Shipping Bills.

Case 4 – Payment received after 3 years from LEO Dt. Of Shipping Bills

So what if Payment received after 3 years from LEO Dt. Of Shipping Bills, Mostly the PRC committee is rejecting such cases for MEIS Claim, unless there is a very genuine reason and merit in the case.

Case 5 – Shipping Bills expired due to premature Closure of MEIS window

As all aware, for a four-month application period i.e. September 2020 to December 2020, the Last date of application was 31^st August 2022. So practically exporters got only approx. 1.5 yrs. of time from the SB date to claim the benefits. Whereas RBI allows payment to be realized till 3 yrs. from LEO Dt. What if the exporter has realized payment after 1.5 yrs., but within 3 yrs. as per RBI limit? So in all such cases also, the exporter is not at fault and can apply to PRC committee for special approval.

Over and above all the above points, if any genuine difficulty was faced by the exporter, when it was made to shuffle between two authorities for getting the work done, and in the meanwhile the SB or Bill of Export got expired, then there is merit in the case and Relaxation may be granted.

DISCLAIMER:

Dear viewers please note that these are just the guidelines that we are sharing and it does not guarantee you any relaxation. The ultimate decision will be taken by the PRC committee on a case to case basis and on merit.

How can we help you?

We at Afleo Group, are a team of DGFT & Customs Experts having a rich experience of 10+ Years in Exim Consultancy & International Logistics. With our vast knowledge and experience in this field we can represent your case in front of the PRC Committee and ensure necessary special approvals.

So do get in touch with us for any of your requirements and our team will be happy to help you.

Let us know if you have any queries or requirements of such cases.

We request you to share this blog with your other Industry friends, Trade associations, as this information might help them as well.

Thank You.