Export from India schemes under Chapter three for the foreign trade policy. There are schemes which provide benefits to exporters of certain goods or services. The objective of the scheme is to reward the exporter to offset the infrastructural inefficiencies and other costs that the exporters face while exporting from India. The reward is equivalent to a percentage of the total export value. This is given to provide the Indian exporter a level playing field in the international market. The rewards are given under two schemes: Merchandize Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS). Not all exports are eligible for MEIS benefits. Whether an export item is eligible and what is the percentage of reward is based on the type of item and the country of export. This can be checked on the DGFT website under important links or under appendix three B of the FTP. MEIS benefits are also given for export of goods through Korea or foreign post offices and their e-commerce. Besides the export through standard land, sea, and airports. Similarly, for SEIS, only the list of notified services is eligible for benefits. The notification is available on the DGFT website. What are the benefits under MEIS? The reward given is a percentage of the total value of the export measured in FOB terms. This would range between two to five percent usually. FOB stands for Free on Board. By FOB, we mean the price of goods at the time of loading at the domestic port and do not include loading, shipment, and insurance costs. The rewards are given not in cash but in terms of freely transferable duty credit scripts. These scripts are financial pieces of paper of a stated value which can be used to pay customs duty, excise duty, or service tax....
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