Customs Drawback and MEIS is claimable both, Customs - Exim - SEZ

[PARTHASARATHY V]

Prior to the New FTP 2015-20 exporters were claimed the benefit of Customs Duty Drawback (All India Rate or fixation of special rates) and also the Export Incentive benefits form DGFT like SHIS, FPS etc. After the merger of the export Incentive scrip i.e. MEIS, is it permissible to claim the Customs Duty Drawback as well MEIS on the exports made.

Any expert come across this issue, please clarify the same which will help to the readers.

Posts / Replies

[MUKUND THAKKAR]

sir,

only one benefit you can claim, both the benefits are not allow against single export.

[Ashok Patil]

Yes, you can claim both the benefits as these are given under different Status and the purpose of both the Schemes is different. The drawback is given as a relief of Customs and Central Excise Duties suffered on the inputs used in manufacture of export products whereas MEIS benefits are available under Chapter 3 of FTP on FOB value of exports of notified products to notified markets.

[CS SANJAY MALHOTRA]

Dear Mr. Parthasarthy,

Please go ahead with Mr. Ashok Patil views as he's correct. You can avail both the incentives as different Acts are applied.

[YAGAY AND SUN]

MEIS and Duty Drawback schemes are two separate scheme. MEIS is the combination of and in lieu of chapter 3 reward scheme. In our opinion both are claimed simultaneously.

[Rakesh Gupta]

Yes, both the benefits can be claimed on an export shipment. In fact, these are being claimed by most exporters.

[Ashok Rao]

Sirs,

We are availing duty drawback and tried to file an application with ecom website of dgft for availing MEIS. Unfortunately, I do not see my shipping bills under SB Repository. It seems while searching for the shipping bills, the system searches for shipping bills under MEIS scheme. Is that true? Should I inform my forwarder to export under MEIS scheme separately as we do for drawback ? I have filed applications under FPY last year and did find my Shipping bills in the SB repository.

Kindly help.

Thanks

[CS SANJAY MALHOTRA]

Dear,

As per new FTP 2015-20, MEIS incentives can be claimed if the EDI Shipping Bills are transferred online from Customs to DGFT site. In the earlier policy provision of manual addition of SB were there, which is not available in the new FTP.

Please take up with the CHA or NIC Team officials present at the Custom port from exports have been effected and tell them to transmit SB to DGFT site....only then you will find the SB in the SB repository.

[CS SANJAY MALHOTRA]

Dear Mr. Ashok,

Please note the Shipping Bills should have mention of Declaration of Intent as follows for claiming MEIS benefit:

"We intend to claim rewards under Merchandise Export from India Scheme" and without this declaration, you may not be eligible for incentive even of the SB is appearing in the SB repository.

[Rakesh Gupta]

You are eligible to both the duty drawback as well as the MEIS incentive, provided the required declaration has been endorsed on the shipping bill.

As you have been claiming benefit under the FPS scheme earlier, you would be well aware of the importance of the declaration to be endorsed on the S.bill.

I would suggest that you check with your CHA.

[Ashok Rao]

Thank you Mr. Sanjay and Mr. Rakesh for your replies. I will check up with my CHA for this. With regard to FPS scheme, I did not give any declaration and still was able to file the application for FPS, as my Shipping bills were available in the SB repository. I probably think the shipping bills have not been forwarded to DGFT site. Let me find out. Thank you once again.

[Rakesh Gupta]

Further to the problem being faced by you, I have re-checked with our documentation department & it appears that apart from the declaration (which is mandatory if you wish to avail MEIS benefit), there is another box to be checked at the time of filing the s.bill to ensure that the s.bill reflects with the DGFT website post export.

In case the declaration is made, but the box is not checked at the time of filing the s.bill, the s.bill will not reflect at the DGFT website.

Rakesh Gupta

[Ashok Rao]

Thank you Mr. Rakesh Gupta for your valuable reply. I will do the needful.

[Pratiek Jain]

Sir,

We had sent a shipment to Nigeria by sea and the invoice was in INR. We have mentioned on the shipping bill that we intend to claim MEIS. Also i have the landing certificate and BRC. Is it possible that we dont get MEIS because the invoice is in INR ?

[CS SANJAY MALHOTRA]

Dear,

If the payment has been received through Vostro account, then your are eligible for MEIS benefit. You need to establish evidence to the DGFT Authorities as to same by arranging letter from the Bank.

Para 2.52(b) of FTP 2015-20 is reproduced below FYI:

(b) However, export proceeds against specific exports may also be realized in rupees, provided it is through a freely convertible Vostro account of a non resident bank situated in any country other than a member country of Asian Clearing Union (ACU) or Nepal or Bhutan. Additionally, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his non-resident bank (after deducting bank service charges)

[raghunandhaanan r vi]

Sir,

1. You can claim MEIS only if your product and market have been notified by DGFT for MEIS entitlement.

2. You have to check Appendix 3B to check your entitlement.

3. You should have ticked [Y] option for reward in shipping bill. Otherwise shipping bill not transmit to DGFT server.

4. Regarding realization of export proceeds in INR, I do agree with the advice of Mr. Sanjay Malhotra.

Thanks