1. Introduction:
1.1 The Export Promotion Schemes implemented by CBIC relate to those provided in respective Foreign Trade Policies issued from time to time. Presently the broad categories of schemes pertaining to FTP 2009-14 (effective till 31.3.2015) and FTP 2015-20 are as below:-
(a) Incentive or Reward schemes under which exporters are granted duty credit through a scrip which is permitted to be utilized for exemption by way of debiting certain duties/tax, subject to conditions.
(b) Duty exemption schemes like Advance Authorisation (AA) and Duty Free Import Authorization (DFIA) which permit duty free import of inputs related to export production. Export Promotion Capital Goods (EPCG) Scheme permits duty free import of capital goods against an obligation to export goods in a specific time frame.
(c) Duty remission scheme like the Post export EPCG duty credit scheme wherein duty credit scrip is issued based on Basic Customs duty paid in cash on Capital goods imported and utilized for fulfilment of export obligation.
2. Reward /Incentive Schemes:
2.1 The provisions of Reward/Incentive Schemes of FTP 2009-14 (effective for exports till 31.03.2015) viz. Served From India Scheme (SFIS), Vishesh Krishi and Gram Udyog Yojana (VKGUY), Agri. Infrastructure Incentive Scrip (AIIS), Focus Market Scheme (FMS), Focus Product Scheme (FPS) and Status Holders Incentive Scrip (SHIS) Schemes have been dealt at paras 2 to 7 of Chapter 23 of the Customs Manual 2014.
2.2 Under the FTP 2015-20,
(a) Merchandise Exports from India (MEIS) Scheme rewards export of notified goods listed in Appendix 3B of Handbook of Procedures generally @ 2% or 3% or 5% or 7% or 10% of certain FOB value of exports. It includes reward on export via foreign post offices or international courier terminals of specified items that are transacted using e-commerce platforms, subject to value limit of Rs. 5 lakh per consignment. In order to claim reward under MEIS, it is mandatory that exporter declares intent to claim reward at the time of export on shipping bills / bills of export that are filed on or after 1.6.2015.
(b) Service Exports from India (SEIS) Scheme incentivizes export of notified services listed in Appendix 3D of Handbook of Procedures by service provider located in India who have specified minimum net free foreign exchange earnings in preceding financial year. Only services rendered in the manner as per Para 9.51(i) and Para 9.51(ii) of the Foreign Trade Policy (FTP) 2015-20 are eligible. The entitlement is either 3% or 5% or 7% of net foreign exchange earned.
(c) Under these two schemes, based on FOB value of exports/net foreign exchange earnings, DGFT issues duty credit scrips viz. MEIS & SEIS scrips. Both, MEIS and SEIS scrips are freely transferable and can be used for payment of Basic Customs Duty (BCD) on import of any item except those listed in Appendix 3A of Foreign Trade Procedures, or for domestic procurement of items that continue to be subject to Central Excise duties in GST regime. Basic Customs duty paid through debit under these scrips is allowed to be adjusted as Duty Drawback. Additional Customs duty/ post GST remnant excise duty paid through debit in these scrips is also allowed to be adjusted as CENVAT Credit or Duty Drawback.
[Refer Notifications Nos. 24 and 25 /2015-Customs, Nos.20 and 21 /2015-C.E., all dated 8-4-2015]
(d) Duty Credit Scrips issued under FTP 2015-20 can also be utilized / debited for payment of Customs duties in case of EO defaults for authorizations issued under Chapter 4 and 5 of FTP 2015-20.However, Duty Credit Scrips cannot be used to discharge penalty or interest which are required to be deposited in cash. [Refer Circular No. 11/2015-Customs dated 01.04.2015]
(e) Clearance of goods from Customs Bonded warehouses using MEIS and SEIS duty credit scrips for duty payment is allowed as per the same procedure as is prescribed for DEPB scrips.
[Refer Para 3.11 of Foreign Trade Procedure 2015-20 and Circular No. 68/2000 dated 18.8.2000 and 72/2003-Cus dated 11.8.2003].
2.3 Verification related to duty credit scrips:
Where export of goods under specific shipping bills/bills of export (not filed electronically in Customs EDI) shown in annexure/condition sheet of the reward duty credit scrip is involved, the backing shipping bills need to be verified for genuineness. However, if the shipping bills were filed electronically in Customs EDI but scrip was not received simultaneously online through electronic transmission from DGFT, such verification of genuineness of shipping bills shall be restricted to not more than 5% randomly selected scrips for which EDI shipping bill details (irrespective of port of export) shall be viewed in house using the role ‘enq_cntry’ in ICES v. 1.5, without seeking documents from exporter. The Custom Houses need not verify genuineness of shipping bills when the reward scrip has been simultaneously received online through electronic transmission from DGFT. Customs can also carry out complete verification of scrip only where specific intelligence suggests misuse or requirement of an investigation.
[Refer Circulars No. 5/2010-Cus.dated 16-3-2010, No.17/2012-Cus., dated 5-7-2012, No. 14/2015-Cus. dated 20-4-2015, 12/2016-Cus dated 28-3-2016 and Instruction No.609/119/2010-DBK., dated 18-1-2011]
3. Advance Authorization Scheme:
3.1 Advance Authorisations (AA) are issued to allow duty free import of inputs that are physically incorporated in the export product (after making normal allowance for wastage) as well as certain items like fuel, oil, catalysts which are consumed in the course of their use to obtain the export product. The raw materials/inputs are allowed in terms of Standard Input-Output Norms (SION) or self-declared norms of exporter. The AA are issued on pre-export or post export basis in accordance with the FTP and procedures in force on the date of issue.
3.2 AA are issued for physical exports as well as deemed exports. The holder is required to fulfil export obligation (EO) by exporting specified quantity/value of resultant product. The AA and the materials imported are not transferable even after completion of EO.
3.3 AA usually have a minimum of 15% value addition (except for Gems and Jewellery Sector) as prescribed under para 4.09 of FTP. The value addition for gems and jewellery and for specified goods is less than 15% as prescribed in Para 4.61 of Handbook of Procedures. In case of Tea, the minimum value addition is 50%. As per Appendix 11 in HBP 2009-14 (Appendix 4C in HBP 2015-20), higher value addition is prescribed for export for which payment are not received in freely convertible currency.
3.4 Normally, All Industry Rate (AIR) of Duty Drawback is not admissible with AA. However, a new scheme called Special Advance Authorisation for export of articles of apparels and clothing accessories of Chapters 61 & 62 of ITC (HS) is introduced w.e.f. 01.09.2016, wherein exporters are eligible for claiming AIR of Duty Drawback for non-fabric inputs on the exports and the value of any other input (non-fabric inputs) on which drawback is claimed or intended to be claimed shall be more or equal to 22% value of export realized. Further, Brand Rate of Duty Drawback may be claimed in respect of duty-paid inputs (not specified in the norms) which are used in the export product provided such duty paid inputs have been endorsed by RA for drawback payment on the AA. This specification ensures value addition norms.
[Refer Circular No. 37/2016 dated 13.08.2016 & DGFT Not. No. 21/2015-20 dated. 11.08.2016]
3.5 AA are also issued on the basis of annual requirements of exporter, which enables planning for manufacturing / exports on a longer term basis. However, self-declared norms are not permitted under annual requirement under FTP 2015-20. Advance Authorisation for Annual Requirement is also not available in respect of SION where any item of input appears in Appendix 4-J of FTP 2015-20.
[Refer Notifications Nos. 20/2015-Customs & 21/2015-Customs both dated 01.04.2015]
3.6 Certain items that are otherwise prohibited for export may be exported under AA scheme, with conditions stricter than otherwise imposed including the export being allowed only from specified EDI enabled ports, subject to pre-import condition under notified SION/prior fixation of norms by Norms Committee, export obligation period being 90 days from import clearance without extensions and import being subject to non-transfer, including for job work and actual user condition, and the inapplicability of provisions for regularisation of default, etc.
[Refer Notification Nos. 1/2014-Cus., dated 17-1-2014 and No. 22/2015-Cus.,dated 1-4-2015 and Circular No.4/2014-Cus., dated 10-2-2014]
3.7 AA are issued either to a manufacturer exporter or merchant exporter tied to supporting manufacturer(s) or to sub-contractors in respect of supplies of goods to specified projects provided the name of such sub-contractor appears in the main contract.
3.8 The AA holders are required to file a bond with 100% Bank Guarantee for the duty difference with the Customs at the time of importing duty free inputs. Certain categories of exporters are conditionally exempt from filing Bank Guarantee in terms of CBIC Circular No. 58/2004-Cus dated 21-10-2004 as amended last by Circular No. 15/2014-Cus dated 18.12.2014. In case AA holder exports first by using imported inputs/indigenously procured inputs, he can seek waiver of Bond condition from DGFT in terms of Para 4.47 of HBP 2015-20. In cases where the AA/DFIA/EPCG authorisation holder is a registered member of an Export Promotion Council, he shall produce a certificate of export performance or payment of duty/GST to claim exemption from furnishing Bank Guarantee from the concerned Export Promotion Council. Those who are not registered with Export Promotion Council, may produce such certificate by a practising Chartered Accountant who is registered with the GST Department (Centre/State/UT) for payment of GST.
[Refer Circular No.31/2019-Customs dated 13.09.2019]
3.9 Validity of an AA for making imports is 12 months but there is provision for RA to consider request of original authorization holder and grant one revalidation for six months from expiry date as prescribed in Para 4.41 of Handbook of Procedure, 2015-20. For fulfilment of EO, normally a period of 18 months from the date of issue is specified, with certain exceptions of shorter or longer periods as prescribed in Para 4.42 of Handbook of Procedure 2015-20.
3.10 Under the FTP 2015-20, the exporters of gems and jewellery can import/procure duty free inputs for manufacture of export product under various schemes viz. (i) Advance Procurement /Replenishment of Precious Metals from Nominated Agencies; (ii) Replenishment Authorization for Gems; (iii) Replenishment Authorization for Consumables and (iv) Advance Authorization for precious Metals. Import of gold for jewellery sector under Advance Authorization is on pre-import basis with actual user condition.
[Refer Para 4.31 to Para 4.53 of FTP 2015-20]
3.11 Keeping in view nuances of individual variants of Advance Authorization, individual notifications issued by Revenue have certain variations in conditions, inter alia, related to prevention of dual or unintended benefits.
[Refer Notification Nos. 96 and 99/2009-Cus., both dated 11-9-2009 and No.112/2009Cus., dated 29-9-2009 and Nos.18, 20 and 21/2015-Cus., all dated 1-4-2015]
3.12 After introduction of GST, imports are liable to levy of IGST and Compensation Cess. However w.e.f. 13.10.2017, imports under AA are exempted from IGST and Compensation Cess. Such exemption is available only for physical exports and is subject to pre-import condition.
[Refer Notification No.18/2015-Cus dated 1-4-2015 as amended by Notification No. 79/2017-Cus. Dated 13.10.2017 &DGFT Notification No. 33/2015-20 dated 13.10.2017]
3.13 Domestic supplies to holder of AA are treated as deemed export under Section 147 of CGST Act, 2017. Supplier or recipient of such supplies is eligible for refund of GST paid on such supplies.
[Refer Notification No. 47/2017-Central Tax dated 18-10-2017 & Notification No. 48/2017-Central Tax dated 18-10-2017]
4. Duty Free Import Authorisation (DFIA):
4.1 DFIA issued under the FTP 2009-14 are similar to AA in many aspects including requirement of monitoring. However, DFIA has a minimum value addition requirement of 20% and once export obligation is completed, transferability of the authorization and / or material imported against it is permitted. The DFIA is issued only where SION are notified. After the annual supplement 2013 to the FTP 2009-14, the exemption from antidumping duty and safeguard duty is not available when materials are imported against a DFIA made transferable. In case imported materials are transferred, the importer is to pay an amount equal to the anti-dumping and safeguard duty leviable on the material, with interest. These aspects apply subject to specified conditions.
4.2 Under the FTP 2015-20, only post-export transferable DFIA with exemption from only Basic Customs duty is issued by RA. Such DFIA is not available for Gems and Jewellery sector or where SION prescribes actual user condition (for example, fuel). The admissibility of brand rate of duty drawback is as per para 4.26 of the FTP. For transferrable DFIA, prior to registration it is to be verified that the details of the exports given along with the DFIA match the record of exports and is genuine. If any discrepancy is found it need to be first referred to the RA.
[Refer Circular No. 12/2016) [Refer Circulars No.11/2009-Cus., dated 25-2-2009 and No.6/2011-Cus dated 18-1-2011 and Notification No.98/2009-Cus dated 11-09-2009 and No.19/2015-Customs dated 1-4-2015]
5. EPCG Scheme:
5.1 Under FTP 2015-20, –
(a) Zero duty EPCG scheme allows import of capital goods (except those specified in negative list in Appendix 5F of Handbook of Procedure). The Export Obligation is equivalent to 6 times of the duties/taxes and cess saved on the capital goods imported with EO period of 6 years (extendable by 2 years) from the date of issue of Authorization. A more favourable dispensation for EO is provided for export of specified green technology products as well as units located in North Eastern States, Sikkim and Jammu and Kashmir. The EO for spares for imported/domestically sourced capital goods is same as that for capital goods.
(b) The import of capital goods has to be made within 18 months from the date of issue of the Authorisation.
(c) EO is to be fulfilled in two blocks i.e. 4 years and 2 years wherein 50% EO is to be fulfilled in the respective blocks. The RA can grant extension of block-wise period or overall period of fulfilment subject to specified conditions. In the case of manufacturer/merchant/service exporters, the EO is required to be fulfilled by exporting goods manufactured or capable of being manufactured or services rendered by the use of capital goods imported under the scheme. The EO is to be over and above the average level of exports achieved in the preceding three licensing years for the same and similar products. Certain sectors as specified in Para 5.13 of the Handbook of Procedure 2015-20are not required to maintain average level of exports.
(d) The Authorizations are issued to manufacturer exporters and merchant exporters with or without supporting manufacturer, and service providers and also available to Common Service Provider (CSP). The authorizations specify the value/quantity of the export product to be exported against it.
(e) The Authorization holder is required to file bond with 100% Bank Guarantee with the Customs prior to commencement of import of capital goods. Certain categories of exporters get benefit of exemptions from Bank Guarantee in terms of the Circular No. 58/2004-Cus dated 21-10-2004 as amended last by Circular No. 15/2014-Customs dated 18.12.2014. The CG imported are subject to actual user condition and the goods imported cannot be transferred or sold, etc. till the fulfilment of EO.
(f) Third party exports are permitted with respect to exported goods manufactured by the authorisation holder and conditions have been specified to ensure this aspect.
(Refer para 5.04 of FTP 2015-20 read with 5.10 of HBP 2015-20).
(g) Installation Certificates (ICs) for capital goods are permitted to be obtained from jurisdictional Customs Authority or independent Chartered Engineer at the latter case, the authorization holder would send copy of IC to the jurisdictional Customs office to the authorisation holder’s option. Capital goods may be installed at supporting manufacturer’s premises if prior to such installation the latter’s details are endorsed on the authorisation by RA, who would intimate the change to jurisdictional Customs office and the Customs location where authorisation is registered in terms of para 5.02 of FTP 2015-20.
(h) The EPCG Authorization holder is required to indicate the EPCG Authorization No./date on the shipping bill/invoice (in case of deemed exports). After fulfilment of specified EO, relevant documents are to be submitted to RA for obtaining EODC. This is taken into account by Customs authority at port of registration for purposes of redemption of bond/Bank Guarantee, subject to prescribed checks including intelligence based checks.
(i) The export obligation is lower by 25% when capital goods are sourced indigenously. This is implemented by RA.
(j) The EPCG authorisation for annual requirement, the provisions for technological upgradation and for transfer of EPCG capital goods to group companies in certain cases/sectors are discontinued in FTP 2015-20.
[Refer Notification No.16/2015- Customs, dated 1-4-2015]
5.2 After introduction of GST, imports are liable to levy of IGST and Compensation Cess. W.e.f. 13.10.2017, imports under EPCG by all sectors are exempted from IGST and Compensation Cess. This exemption is optional for the EPCG holder. Such exemption is available only for physical exports.
[Notification No.16/2015- Cust, dated 1-4-2015 as amended by Notification No. 79/2017Cus. Dated 13.10.2017 & DGFT Notification No. 33/2015-20 dated 13.10.2017]
5.3 Domestic supplies to holder of EPCG are treated as deemed export under Section 147 of CGST Act, 2017. Supplier or recipient of such supplies is eligible for refund of GST paid on such supply.
[Notification No. 47/2017-Central Tax dated 18-10-2017 & Notification No. 48/2017Central Tax dated 18-10-2017]
6. Post Export EPCG Duty Credit Scrip Scheme:
6.1 Post Export EPCG Duty Credit Scrip is available to exporters who intend to import capital goods on full payment of applicable duties in cash and choose to opt for this scheme. Basic Customs duty paid on Capital Goods shall be remitted in the form of freely transferable duty credit scrip(s), similar to those issued under Chapter 3 of FTP. Upon initial application by an exporter, RA shall issue a post export EPCG authorisation specifying “Not for imports” on the body of the authorisation and specify average EO if any. Specific EO shall be 85% of the applicable specific EO as mentioned in the authorisation. EO period shall commence from the authorisation issue date. Installation and use of the imported capital goods and other conditions including non-disposal of the capital goods till the date of last export shall be applicable to this authorisation. Further, all provisions of the erstwhile EPCG Scheme shall apply insofar as these are not inconsistent with this scheme.
6.2 Upon completion of the specific as well as average EO mentioned in the authorisation, RA shall issue a freely transferable duty credit scrip equivalent to the proportionate EO fulfilled based on Basic Customs duty paid. The said scrip shall be produced before the proper officer of Customs at the time of import for debit of applicable duties leviable on the imported goods. The validity of the scrip shall be 18 months from the date of issue and the said scrip has to be valid at the date of import for debits.
[Refer notification No.17/2015-Customs dated 1-4-2015]
7. General provisions relating to Export Promotion Schemes:
7.1 Imports and exports under the Export Promotion schemes are permitted at the ports, airports, ICDs and LCSs, as specified in the respective Customs duty exemption notifications. However, these notifications empower the Commissioners of Customs to permit export/import under these schemes from any other place which has not been notified, on case to case basis by making suitable arrangements at such places. In addition, international courier terminals and foreign post offices, as notified are included as port of export for rewards on exports of goods subject to value limit of Rs. 5 lakh per consignment.
[Refer DGFT Notification No. 22/2015-20 dated 26.07.2018 and Customs Notification No. 24/2015-Cus dated 8.4.2015 as amended vide Notification No. 63/2018-Cus dated 18.09.2018]
7.2 Facility to execute a common bond for specified export promotion schemes like Advance Authorization/Duty Free Import Authorization and EPCG is permitted to authorization holders, subject to certain conditions.
[Refer Circular No.11(A)/ 2011-Cus., dated 25-2-2011]
7.3 Facility for suomoto payment of Customs duty in case of bona fide default in export obligation under the Advance/ EPCG authorisations is provided in procedure prescribed vide Circular No. 11/2015-Customs dated 01.04.2015. Para 4.50 and para 5.23 of HBP 2015-2020 refer to this facility.
8. Verification and Monitoring related to AA, DFIA, EPCG and Post Export EPCG authorizations:
8.1 The AA holder is required to maintain a true and proper account of consumption and utilization of duty free imported/domestically procured goods for a specified minimum period. The AA No./date is to be indicated on the shipping bill/ bill of export or invoice (in case of deemed exports). The imports/exports under AA and their utilization require monitoring. The AA holder is to submit relevant export documents to RA to obtain an Export Obligation Discharge Certificate (EODC). An AA holder is required to deposit Customs duties with interest in case EO is not fulfilled. The RA informs details of payments to Customs at the port of registration or Commissioner of Customs having jurisdiction over the factory of AA holder, as the case may be. The EODC or redemption letter is taken into account by Customs authority at port of registration for purposes of redemption of Bond/Bank Guarantee, subject to prescribed checks including intelligence based checks.
8.2 The jurisdictional Commissioners of Customs are required to take action to monitor fulfilment of export obligation. Field formations are now also enabled to view in EDI the authorization-wise all India export details which would assist in identifying actionable cases under Advance Authorization and EPCG scheme. Commissioners are to put in place an institutional mechanism for periodical meetings with RA to exchange intelligence, check misuse and pursue issues such as EO fulfilment status in cases where EO period has expired in that quarter/ previous quarter so that concerted action can be taken against the defaulters. In case of defaulters, the field formation may issue simple notice to the Authorisation holder for submission of proof of discharge of export obligation. In case, where the Authorization holder submits proof of their application having been submitted to DGFT, the matter may be kept in abeyance till the same is decided by DGFT. Further, timely action taken in all cases of default is required to be initiated to safeguard revenue. The action to safeguard revenue is monitored through CBIC’s Comprehensive MIS formats DGI – Cus 11& 11A. All field formations are required to update this data on regular basis.
[Refer Circular 16/2017 Dated 02.05.2017]
8.3 Apart from the checks prescribed in Board’s extant instructions, the jurisdictional Commissioners of Customs are also to cause random verification for some of the authorizations issued under EPCG/ DFIA/ Advance Authorization schemes to check correctness of address on the Authorizations. The correctness of installation certificates issued by the Chartered Engineers is required to be verified on a random basis and has been restricted to 5% cases. When address verification or Installation Certificate verification is requested by the Customs authorities in respect of EPCG authorizations, the authorities should include in their verification, a check of the periodical utility bills (containing the address) as one of the means enabling verification of installation/operation/ licensee premises. Wherever aforesaid checks are prescribed, the verification shall be carried out through the jurisdictional Customs authorities.
[Refer Instruction issued vide F.No. 605/71/2015-DBK dated 14.10.2016]
8.4 To rule out fabricated export documents used to show fulfilment of EO, the genuineness of shipping bills or bills of export not on Customs EDI (i.e. manual) is to be expeditiously verified while registering a duty credit scrip or post export EPCG duty credit scrip or processing EODC/redemption letters based on document purported to be of Customs non-EDI ports
[Refer Circulars No.5/2010-Cus., dated 16-3-2010, No.25/2012 Cus., dated 6-9-2012, Instruction No.609/119/2010-DBK, dated 18-1-2011 and Circular No.14/2015-Cus., dated 20-4-2015]
9. Older Export Promotion Schemes:
9.1 Target Plus Scheme (TPS) was introduced for the Star Export Houses w.e.f. 1-9-2004 and provided rewards in the form of duty free credit based on incremental export performance. Initially, the entitlement was5% to 15% of the incremental growth in exports. W.e.f. 1-42005, it was reduced to 5%. The scrip and goods imported are subject to actual user condition. Imports allowed were inputs, capital goods including spares, office equipment, professional equipment and office furniture. The scheme ended on1-4-2006. The reduction in rate of entitlement and exclusion of certain products retrospectively from the Target Plus Scheme has been set aside by Hon’ble Supreme Court vibe judgement dated 27.10.2015. In terms of the aforesaid judgment, DGFT is in the process of issuing Target Plus duty credit scrips.
[Notification was No.32/2005-Cus., dated 8-4-2005 as amended]
10. Scheme for Rebate of State and Central Taxes and Levies on export of garments and made ups (RoSCTL).
10.1 RoSCTL is a Scheme for Rebate of State and Central Taxes and Levies on export of garments and made-ups notified by Ministry of Textiles (MoT), which has come into effect from 07.03.2019, discontinuing the existing Rebate of State Levies (RoSL) scheme for garments and made-ups. Under this Scheme, the benefit to exporters shall be given by DGFT in form of Merchandise Exports from India Scheme (MEIS) type duty credit scrips.
[Refer Circular No. 10/ 2019-Customs dated. 12.03.2019, Notification No. 14/26/2016-IT (Vol II) dated 7.3.2019]
10.2 Electronic Duty Credit Ledger Regulations, 2021 issued vide notification No. 75/2021-Customs (N.T.) dated 23.09.2021 have been amended vide notification No. 79/2022 – Customs (N.T.) dated 15.09.2022. As an effect of these amendments, the validity period of scrips is increased from one year to two years from the date of their generation.
[Refer Circular No. 22/2021-Customs dated. 30.09.2021 & Circular No. 22/2022-Customs dated. 26.09.2022]
10.3 After introduction of RoSCTL scheme, DGFT vide their Public Notice (PN) No. 58/2015-20 dated 29.01.2020 has withdrawn the benefit under Merchandise Exports from India Scheme (MEIS) for items falling under Chapters 61, 62 and 63 w.e.f. 07.03.2019. Further, with a view to compensate exporters affected under the RoSCTL scheme, vide MoT’s notification no. 14/26/2016-IT/Vol. II dated 14.01.2020 has notified the scheme for Additional Ad-hoc Incentive of upto 1% of FoB value to be given to such exports of garments and made- ups. Under the RoSCTL and Additional Ad-hoc Incentive schemes, the rebate will be granted by DGFT in the form of electronic duty credit scrips similar to the scrips issued under MEIS. The benefit under the two schemes will be given in single electronic scrip to be utilized for payment of duties of Customs and Central Excise. The scrips issued under the schemes will be freely transferable.
[Refer Circular No. 13/2020-Cus dated. 19.02.2020]
11. Phasing out of physical copies of MEIS/SEIS Scrips
11.1 DGFT phased out physical copies of MEIS and SEIS Duty Credit Scrips issued with EDI port as port of registration to enhance the ease of doing business for exporters. DGFT has issued Public Notice No. 84/2015-2020 dated 03.04.2019 and Trade Notice No. 03/2015-2020 dated 03.04.2019 notifying this change. This shall come into effect for MEIS/SEIS duty credit scrips issued by DGFT from 10.04.2019 onwards for cases where the port of registration is an EDI port. No TRA shall be issued in respect of these paperless scrips issued electronically by DGFT. Consequently, such paperless scrips issued for EDI ports cannot be used for making imports at non-EDI ports. DGFT shall continue to issue scrips in physical form on security paper as per current practice for non-EDI ports. The facility of TRA would be available for such physical scrips for making imports at other EDI/non-EDI ports.
[Refer Circular No. 11/2019 dated.09.04.2019]
Source – Custom Duty Manual 2023
