MEIS Scheme – How to Claim Incentive on Overdue/Overdue Freight Bills

Merchandise Exports from India Scheme (MEIS) is a duty-free scheme for the 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 goods, as listed in Schedule I and II of the Foreign Trade Policy 2012-2015.

Merchandise export 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 export to countries with which India does not have a bilateral free trade agreement (FTA). The system has been introduced with the aim of providing an incentive for exports and thereby contributing to the growth of exports and employment opportunities in the country.

Everyone is aware that the MEIS window for all years has expired now and the exporters can no longer apply for MEIS. So what to do if some of your shipping bills have expired/due due to any reason? Will you be able to get benefits on these shipping bills or not?

Answer is Yes, you can still claim benefits for these overdue freight bills by applying to Policy Relaxation Committee (PRC Committee) at DGFT HQ, New Delhi and taking special approval.

So in this blog we will discuss about all the cases which can be cleared in PRC committee and you may 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 was not uploaded by Banker in time.

As everyone knows, the e-brc is a mandatory document to be submitted for MEIS claims. In this case, the e-brc was not generated in time. This is a mistake/delay on the part of the bank and the exporter is not at fault, therefore this type of case can get approval from the China Committee.

Case 2 – Shipping bills Not sent from Customs in time, but sent now.

Likewise in this case the mistake/delay is on the part of the Customs/online system and there is no fault with the exporter. Such type of cases can also get approval. But the exporter has to ensure that the SB is now sent by the customs and is available in the DGFT server for enforcement.

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

As the DGFT system does not allow to make an application when the exporter is in the DEL list due to some reasons. Once the exporter clears the pending case and is off the DEL list, he can approach the PRC Committee for special approval to claim MEIS on all expired/expired waybills.

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 rejects such cases for MEIS claims, unless there is a very genuine reason and merit in the case.

Case 5 – Freight bills overdue due to premature closing of the MEIS window

As everyone knows, for an application period of four months, ie. September 2020 to December 2020, the application deadline was 31^St August 2022. So practically, exporters got only approx. 1.5 years. time from the SB date to claim the benefits. While RBI allows payment to be made up to 3 years. from LEO Dt. Imagine if the exporter has realized payment after 1.5 years, but within 3 years. as per RBI limit? So in all such cases the exporter is not at fault and can apply to the China Committee for Special Approval.

In addition to all the above points, if the exporter faced any real difficulties, when it had to shuffle between two authorities to get the work done, and during the time the SB or Export Bill of Export expired, then it is meritorious in the case and Relaxation can be granted.

WARNING:

Dear viewers, please note that these are just the guidelines that we share and it does not guarantee you any relaxation. The final decision will be made by PRC Committee on a case-by-case basis and on merit.

How can we help you?

We at Afleo Group are a team of DGFT and customs experts who have 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 before the PRC Committee and secure the necessary special approvals.

So contact us for your needs and our team will be happy to assist you.

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

We request you to share this blog with your other industry friends, industry associations as this information may help them as well.

Thanks.

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