MEIS FOR SEZ EXPORTS THROUGH MERCHANT EXPORTER, Customs - Exim - SEZ

[PRASENJIT CHAKRABORTY]

As per SEZ Rules 47(11) , SEZ Unit can export through merchant exporter by 2 step shipping billing i,e SEZ Unit to Merchant exporter ( Pink Shipping Bill) and further Merchant exporter to foreign Buyer ( Free Shipping Bill)

In above who can claim MEIS benefit? and how?

Posts / Replies

[KASTURI SETHI]

Your problem is solved through this DGFT Circular appended below:-

Clarification on eligibility of Exports made from SEZ/EOU units on behalf of the DTA units, but not through DTA units - DGFT

Policy Circular No. 20/2015-2020

[PRASENJIT CHAKRABORTY]

Thank you sir for prompt reply. Above circular is for exports made from SEZ Unit on behalf of the DTA Unit and in this the Exporter column in Shipping Bill is SEZ Unit and not Merchant Exporter and same to lodged in SEZ Customs. But in case of Merchant exporter model as per SEZ Rules 47(11), the exporter in Shipping Bill at export location ( different than SEZ location) is the Merchant Exporter. Can Merchant exporter claim MEIS in this case.

Warm Regards,

Prasenjit

[KASTURI SETHI]

In my view, Merchant Exporter can claim MEIS benefits if disclaimer certificate is obtained from SEZ unit & vice versa.

[PRASENJIT CHAKRABORTY]

So in a nutshell for Bulk cargoes and not containerised

Pink shipping Bill ( Ex Works Sale)

GST Invoice : NIL rated GST invoice as for exports only

Shipping Bill Exporter Column = SEZ Unit

Shipping Bill Consignee/Buyer Column : Merchant Exporter / Status holder

Free Shipping Bill (FOB Sales)

Commercial Invoice from Merchant exporter to foreign Buyer/trader

Shipping Bill Exporter column= Merchant Exporter / Status holder

Shipping Bill Consignee column = End Buyer / End user of bulk commodity outside india

Shipping Bill Buyer column = Foreign Buyer/ Trader

MEIS can be claimed by Merchant Exporter/ Status holder on his IEC subject to SEZ Unit gives a disclaimer letter to DGFT that they would not claim MEIS benefit on its account for particular transaction.

[KASTURI SETHI]

Yes, Sir. Both exporters are at par. Primary responsibility for discharging GST is of a manufacturer-exporter. So first right for benefit on account of export is of manufacturer-exporter.Firstly it is his duty to safeguard revenue for the purpose of export via merchant exporter. Both are legally bound through LUT/Bond but liability is of a manufacturer-exporter. That is why disclaimer certificate is required. In Central Excise era, such practice has been in force since the enactment of Central Excise Act, 1944 read with Central Excise Rules,1944. Same is the situation now and clarification has been issued due to implementation of GST Acts. Owing to GST Acts, changes have taken place in the Customs Act,62, SEZ Act/Rules and FTP.

[Hriday Roy]

If we export containerized cargo from sez unit then also the same procedure to be followed?