FOREIGN TRADE POLICY ANALYSIS:

Chapter 3 Export Promotion Schemes

Sr. FTP / Para New Provision Comments / Impact

HBOP
No.
FTP-3 3.00 The objective of schemes under this chapter is to provide
rewards to exporters to offset infrastructural
(Objective) inefficiencies and associated costs involved and to
provide exporters a level playing field.
FTP-3 3.01 There shall be following two schemes for exports of Existing FPS, MLFPS, VKGUY, FMS & Agri.
Merchandise and Services respectively: Infrastructure Incentive Scripts schemes have been
(Export from India (i) Merchandise Exports from India Scheme (MEIS). merged into a single reward scheme i.e. MEIS. Thus
Schemes) (ii) Service Exports from India Scheme (SEIS). simplifying the application process for obtaining duty
credit scripts.

Existing SFIS has been simplified and covered under

Service Exports from India Scheme (SEIS)

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FTP-3 3.02 Duty Credit Scrips shall be granted as rewards under MEIS
and SEIS. The Duty Credit Scrips and goods imported /
(Nature of Rewards) domestically procured against them shall be freely
transferable. The Duty Credit Scrips can be used for :
(i) Payment of Customs Duties for import of inputs or
goods, except items listed in Appendix 3A.
(ii) Payment of excise duties on domestic procurement of
inputs or goods, including capital goods as per DoR
notification.
(iii) Payment of service tax on procurement of services as
per DoR notification.
(iv) Payment of Customs Duty and fee as per paragraph
3.18 of this Policy.
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1. SEIS & MEIS scrips are freely transferable as compared
to earlier SFIS scrip which was non-transferable
2. The SEIS/ MEIS scrip also can be used for payment of
Custom duty/ Excise duty on procurement of inputs &
capital goods and SEIS scrip can be used for payment of
service tax on procurement of services. In SFIS the scrip
was allowed only for payment of custom duty/ excise duty
on procurement of capital goods/ spares/ office
equipment /consumables/ office furniture etc.
3. It is welcome provision whereby custom duties in case
of EO defaults & fees can now be paid through SEIS/ MEIS
scrip, however penalty/ interest is required to paid in cash.
Even for payment of value for shortfall in EO can be made
through the scrip.
4. Due to merger of all the 5 schemes as mentioned above.
The new duty credit script, whether it is MEIS or SEIS, the
same can be utilised for payment of duties, whether
customs, excise, service tax & at the same time avail
cenvat credit or even duty drawback.
5. Transferability clause continues even for these new
scripts.
6. Big relief is either of the duty credit scripts can be used
for import/procurement of goods & services.
3.04 (Entitlement Exports of notified goods/products with ITC[HS]
under MEIS) code, to notified markets as listed in Appendix 3B,
shall be rewarded under MEIS. Appendix 3B also lists
the rate(s) of rewards on various notified products
[ITC (HS) code wise]. The basis of calculation of
reward would be on realised FOB value of exports in
free foreign exchange, or on FOB value of exports as
given in the Shipping Bills in free foreign exchange,
whichever is less, unless otherwise specified.
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Appendix 3B has been notified covering almost all the
products ranging benefit of duty credit scrip
amounting to 0-5% of FOB value of exports
depending on product and market categories i.e.
traditional market, potential and focus market and
other market covering 239 countries vide Not No.
02/2015-2020 dated 1-04-2015
Basis for reward will continue to be on realization
value in FCC or value as per shipping bill, whichever is
less
 3.05 (Export of 1. Exports of goods through courier or foreign post Looking into the growth in e-commerce activity, the
goods through office using e-commerce, as notified in Appendix ministry has decided to extend the FTP benefits for
courier or foreign 3C, of FOB value upto Rs. 25000 per consignment goods exported through courier or foreign posts.
post offices using shall be entitled for rewards under MEIS.
e-Commerce) 2. If the value of exports using e-commerce Maximum benefit will be restricted as a percentage
platform is more than Rs 25000 per consignment to FOB value of Rs. 25000 or less per shipment.
then MEIS reward would be limited to FOB value
of Rs.25000 only.
3. Such goods can be exported in manual mode
through Foreign Post Offices at New Delhi,
Mumbai and Chennai

Export of such goods under Courier Regulations shall

be allowed manually on pilot basis through Airports
at Delhi, Mumbai and Chennai as per appropriate
amendments in regulations to be made by
Department of Revenue. Department of Revenue
shall fast track the implementation of EDI mode at
courier terminals

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 3.06(Ineligible The following exports categories /sectors shall be ineligible
The list of ineligible categories in the earlier schemes
categories under for Duty Credit Scrip entitlement under MEIS continues more or less the same. As a matter of fact
MEIS) there is not a single EOU/EHTP/BTP who is availing
1. EOUs / EHTPs / BTPs/ STPs who are availing direct tax
benefits / exemption. direct tax benefit since direct tax benefit has been
2. Supplies made from DTA units to SEZ units withdrawn since 2010.
3. Export of imported goods covered under paragraph 2.46
of FTP Goods manufactured by SEZ/EOU but exported from
4. Exports through trans-shipment, meaning thereby exports DTA ought to have been allowed such benefit since
that are originating in third country but trans-shipped
through India
SEZ/EOU are also allowed to avail such benefit under
5. Deemed Exports this scheme.
6. SEZ/EOU/EHTP/BPT/FTWZ products exported through
DTA units Exports like exports of onion, marble, rice etc. where
7. Items, which are restricted or prohibited for export under minimum export price is fixed and products like iron
Schedule-2 of Export Policy in ITC (HS), unless specifically
notified in Appendix 3B
ore on which export duty is collected will not be
8. Service Export eligible for the benefit under the scheme.
9. Red sanders and beach sand
10. Export products which are subject to Minimum export
price or export duty
11. Diamond Gold, Silver, Platinum, other precious metal in
any form including plain and studded jewellery and other
precious and semi-precious stones
12. Ores and concentrates of all types and in all formations
13. Cereals of all types
14. Sugar of all types and all forms
15. Crude / petroleum oil and crude / primary and base
products of all types and all formulations
16. Export of milk and milk products
17. Export of Meat and Meat Products
18. Products wherein precious metal/diamond are used or
Articles which are studded with precious stones
19. Exports made by units in FTWZ

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1 FTP-3 3.07 (Objective) Objective of Service Exports from India Scheme (SEIS) is SEIS shall apply to Service Providers located in India
to encourage export of notified Services from India. instead of Indian Service Providers. All service providers
providing notified services are covered under this scheme.

FTP-3 3.08(a) (Eligibility) Service Providers of notified services, located in India,
shall be rewarded under SEIS, subject to conditions as
may be notified. Only Services rendered in the manner as
per Para 9.51(i) and Para 9.51(ii) of this policy shall be
eligible. The notified services and rates of rewards are
listed in Appendix 3D.
Service provider has been defined in Para 9.51. Services
provided from India to other country i.e. Cross border
trade & services supplied to the consumer(s) of any other
country i.e. services consumed abroad will be eligible for
SEIS.
Similar service providers of services listed in Appendix
41 of HBP v1 are specified in Appendix 3D only a new
service- Airport Operations & Ground Handling under
Air Transport Service category have been included.

FTP-3 3.08 (b) Such service provider should have minimum net free Service providers having minimum Net free foreign
foreign exchange earnings of US$15,000 in preceding exchange earning US $ 15,000 in preceding F.Y. are only
financial year to be eligible for Duty Credit Scrip. For eligible for this scheme However for Individual service
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 Individual Service Providers and sole proprietorship, such providers and sole proprietorship, minimum limit of net
minimum net free foreign exchange earnings criteria free foreign exchange earnings would be US$10,000 in
would be US$10,000 in preceding financial year. preceding financial year.

In SFIS the eligibility was based Free foreign exchange

earnings and now in SEIS the eligibility is based on Net free
foreign exchange earnings.

Earlier minimum requirement for SFIS was at least Rs. 10

lakhs free foreign exchange earnings in current financial
year and in case of Individual Indian service providers
minimum requirement was Rs. 5 lakhs free foreign
exchange earnings.

FTP-3 3.08 (c ) For certain notified service payment in Indian rupees as

Payment in Indian Rupees for service charges earned on
specified services, shall be treated as receipt in deemed
foreign exchange as per guidelines of Reserve Bank of
India. The list of such services is indicated in Appendix 3E.
FTP-3 3.08 (d) & (e ) Net Foreign exchange earnings for the scheme are
defined as under:
Net Foreign Exchange = Gross Earnings of Foreign
Exchange minus Total expenses / payment / remittances
of Foreign Exchange by the IEC holder, relating to service
sector in the Financial year.
service charges shall be considered as receipt in deemed
foreign exchange. The list of specified services will be
notified in Appendix 3E
Net foreign Exchange= Gross earnings in foreign exchange
relating to service sector by the IEC holder- Total
expenses/ payments/ remittances in foreign exchange
relating to service sector by IEC Holder.

If the IEC holder is a manufacturer of goods as well as

service provider, then the foreign exchange earnings and
Total expenses / payment / remittances shall be taken
into account for service sector only.

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FTP-3 3.08 (f) In order to claim reward under the scheme, Service
provider shall have to have an active IEC at the time of
rendering such services for which rewards are claimed.
FTP-3 3.09(1) Foreign exchange remittances other than those earned
for rendering of notified services would not be counted
(Ineligible categories for entitlement. Thus, other sources of foreign exchange
under SEIS) earnings such as equity or debt participation, donations,
receipts of repayment of loans etc. and any other inflow
of foreign exchange, unrelated to rendering of service,
would be ineligible.
FTP-3 3.09 (2) (a) (2) Following shall not be taken into account for
calculation of entitlement under the scheme
(a) Foreign Exchange remittances:
I. Related to Financial Services Sector
(i) Raising of all types of foreign currency Loans;
(ii) Export proceeds realization of clients;
(iii) Issuance of Foreign Equity through ADRs / GDRs or
other similar instruments;
(iv) Issuance of foreign currency Bonds;
(v) Sale of securities and other financial instruments;
(vi) Other receivables not connected with services
rendered by financial institutions; and
II. Earned through contract/regular employment abroad
(e.g. labour remittances);
FTP-3 3.09 (2) (b-i)
(b) Payments for services received from EEFC Account;
(c) Foreign exchange turnover by Healthcare Institutions sector which were eligible under SFIS now will not be
like equity participation, donations etc.
(d) Foreign exchange turnover by Educational Institutions
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Needless to say only service providers having active IEC at
the time of rendering services can claim the rewards under
SEIS
Other than notified categories of services are ineligible
under SEIS. Further any foreign exchange earnings from
other sources which are not related to rendering of service
would be ineligible.
Certain remittances received in Foreign Exchange by
financial service sector shall not be considered for
calculating entitlement under the scheme. Further any
foreign exchange earned through contract/ regular
employment abroad like labour remittances shall also not
be entitled under the scheme. Similar conditions which
were earlier applicable to Served from India Scheme (SFIS)
w.r.t ineligible remittances are specified for SEIS.
Same categories of ineligible remittances of SFIS are
applicable to SEIS. Only Service provider under telecom
entitled for SEIS.
 like equity participation, donations etc. Even though SEZ units exporting the goods are eligible for
(e) Export turnover relating to services of units operating MEIS. IT & ITES SEZ/EOU units will not be entitled for SEIS.
under SEZ / EOU / EHTP / STPI / BTP Schemes or supplies
of services made to such units;
(f) Clubbing of turnover of services rendered by SEZ / EOU
/EHTP / STPI / BTP units with turnover of DTA Service
Providers;
(g) Exports of Goods.
(h) Foreign Exchange earnings for services provided by
Airlines, Shipping lines service providers plying from any
foreign country X to any foreign country Y routes not
touching India at all.
(i) Service providers in Telecom Sector.
FTP-3 3.10 Service Providers of eligible services shall be entitled to Duty Credit Scrip on net foreign exchange earned at the
Duty Credit Scrip at notified rates (as given in Appendix rates specified in Appendix 3D will be available to eligible
(Entitlement under 3D) on net foreign exchange earned. service provider. Duty credit scrip up to maximum of 5% of
SEIS) Net foreign exchange earning can be availed.

Earlier in SFIS the entitlement was duty credit scrip

equivalent to 10% of free foreign exchange earned during
current financial year.

FTP-3 3.11 Free Foreign Exchange earned through international Similar provisions of eligible remittances are continued in
credit cards and other instruments, as permitted by RBI SEIS.
(Remittances shall also be taken into account for computation of value
through Credit Card of exports.
and other
instruments for
MEIS and SEIS)

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FTP-3 3.12 The schemes shall come into force with effect from the The scheme is effective from 1-April-2015 as per Not
date of notification of this Policy, i.e. the rewards under 01/2014-2020 dated 1-April-2015.
Effective date of MEIS/SEIS shall be admissible for exports made/services
schemes (MEIS and rendered on or after the date of notification of this
SEIS) Policy.
HBoP-3 3.01 (Merchandise (a) Policy for Merchandise Exports from India As far as application is concerned, it continues to be
Exports From India Scheme (MEIS) is given in Chapter 3 of FTP. filed online using digital signature on DGFT website.
Scheme (MEIS))
(b) An application for claiming rewards under MEIS Instead of ANF 3C, application will be filed in ANF 3A
on exports(other than Export of goods through & the relevant shipping bills & eBRC shall be linked
courier or foreign post offices using e-Commerce), with online application.
shall be filed online, using digital signature, on
DGFT website at http://dgft.gov.in with RA For exports under EDI ports, applicant need not
concerned in ANF 3A. The relevant shipping bills submit hard copy of applications to DGFT, including
and e BRC shall be linked with the on line shipping bills, BRCs, etc.
application.
For non EDI ports, applicant continues to submit EP
(c) If application is filed for exports made through copy of the shipping bill. But at same time, need not
EDI ports, then hard copy of the following submit hard copy of application to DGFT, eBRC &
documents need not be submitted to RA: hard RCMC.
copy of applications to DGFT, EDI shipping bills,
electronic Bank Realisation Certificate (e-BRC) and Original documents not submitted at the time of
RCMC. The applicant shall submit the proof of application has to be retained by the applicant for a
landing in the manner prescribed under paragraph period of 3 years from the date of issue of the script,
3.03 of HBP. & needs to be presented on demand at any time
within 3 years.
(d) In case application is filed for exports made
through non EDI ports, then applicant need to Non production of documents will result into
submit export promotion copy of non EDI shipping surrendering the script or in case if used, liable to

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bills. The applicant shall submit the proof of duties, along with interest.
landing in the manner prescribed under paragraph
3.03 of HBP. The applicant shall upload scanned
copies of any other prescribed documents for
claiming scrip unless specified otherwise. However
applicant need not submit hard copy of
applications to DGFT, electronic Bank Realisation
Certificate (e-BRC) and RCMC in this case also.

(e) Applicant shall file separate application for each

port of export.

(f) Processing of Non EDI Shipping bills at RA: In

cases the Non EDI shipping bills or the shipping
bills not received through the Message Exchange
from Customs, concerned RA shall verify the
details entered by the exporter from the original
shipping bills before grant of scrip

(g) No manual feeding allowed for EDI shipments:

For EDI Shipping Bill, no manual feeding of
Shipping bill details shall be allowed to the
applicants in the online system. Rewards will be
granted by RAs without the need for cross
verifying EDI Shipping Bill details.

(h) RA shall process the electronically

acknowledged files and scrip shall be issued after

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 due scrutiny of electronic documents.

(i) The documents which are not required to be

submitted in original, shall be retained by the
applicant for a period of 3 years from the date of
issuance of script.

(j) Licensing Authority may call such documents in

original at any time within 3 years. In case the
applicant fails to submit the original documents on
demand by Licensing Authority the applicant shall
be liable to refund the rewards granted along with
interest at the rate prescribed under Section 28 AA
of Customs Act 1962, from the date of issuance of
scrip.

(k) Eligibility of product, corresponding ITC[HS] code,

and markets(as given in Appendix 3B) for claiming
rewards under MEIS shall be determined from Let
Export Date as per Paragraph 9.12 of HBP.
HBoP-3 3.02 (Applications (a) Application shall be filed on line, using digital Procedure remains to be online application, but RA
for Export of signature, in ANF 3D by exporter. The applicant will manually examine the submitted documents
goods through shall submit the proof of landing in the manner before issuing the script.
courier or foreign prescribed under paragraph 3.03 of HBP.
post offices using
e-Commerce) (b) Applicant shall file separate application for
each port of export.

(c) RA will manually examine the submitted

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 documents before grant of scrip.
HBoP-3 3.03 (Proof of (a) Wherever the reward under MEIS is available to Going forward, wherever proof of landing is required
Landing) all countries, proof of landing shall not be required at the time of application the scanned copy of BOE
to be submitted for claiming the reward filed by the importer can be digitally uploaded by the
exporter under his digital signature.
(b) Uploading/submission of documents, as a proof
of landing: In case of Three/Four or Five Star export house
categories, tracking report from goods carrier duly
As a measure of ease of doing business, certified by them shall be uploaded as proof of
documents as a proof of landing of export landing.
consignment in notified market can be digitally
uploaded in the following manner:- In other cases, original copies of delivery order issued
by port authorities, arrival notice issued by goods
(i) Any exporter may upload the scanned copy of carrier or any other documents satisfying RA will be
document as mentioned at paragraph 3.03 (c) (i) submitted to DGFT & not uploaded.
under his digital signature.

(ii) Status holders falling in the category of Three

Star, Four Star or Five Star export house category
may upload scanned copies of documents as
mentioned at paragraph 3.03(c) (iv).

(iii) In all other cases the physical copy, in original,

shall be filed by all categories of exporters.

(c) Applicant shall be required to submit or upload,

as the case may be, any one of the following
documents as a proof of landing of export

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consignment in notified Market:

(i) A self attested copy of import bill of entry filed

by importer in specified market, or

(ii) Delivery order issued by port authorities, or

(iii) Arrival notice issued by goods carrier, or

(iv) Tracking report from the goods carrier

(Shipping Line/Airline etc. or his accredited agent
in India) duly certified by them, evidencing arrival
of export cargo to destination Market, or

(v) For Land locked notified Market, Rail/Lorry

receipts of transportation of goods from Port to
Land locked notified Market,

(vi) Any other document that may satisfactorily

prove to RA concerned that goods have landed in /
reached the notified Market.

(d) In case of (iv) and (vi) above, the accredited

agent of the Goods Carrier must certify that he is
the accredited agent of the concerned Goods
Carrier on the date of issuance of the tracking
report / document.

(e) Further, in the case of issuance of any other

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 document under (vi) above, the accredited agent
must state that proof of landing of goods in
relevant notified Market is given based on
information available in the Goods Carriers
backup database and he has verified the same and
issued this document accordingly.

(f) In cases of exports using e commerce, exporter

may submit express operator landing
certificate/online web tracking print out indicating
airway bill number as prescribed in enclosure (B)
to ANF 3D.
HBoP-3 3.04 (a) Policy for Service Exports From India Scheme (SEIS) is Application for SEIS scrip to be made on annual basis
given in Chapter 3 of FTP. through ANF 3B which is to be digitally signed. In SFIS
Service Exports from (b) An application for grant of duty credit scrip for eligible application was allowed to be filed monthly/ quarterly/
India Scheme (SEIS) services rendered shall be filed online for a financial year half yearly/ annually in ANF 3B.
on annual basis in ANF 3B using digital signature.
(c) RA shall process the application received online after Now the procedure will be simpler and faster due to
due scrutiny. online application digitally signed in Form ANF 3B.

HBoP-3 3.05 (a) For the goods exported or services rendered upto the
date of notification of current Foreign Trade Policy, which
(Transitional were otherwise eligible for issuance of scrip under
Arrangement) erstwhile chapter 3 of the earlier Foreign Trade Policy(ies)
and scrip is applied on or after the date of notification of
current Foreign Trade Policy against such export of goods
or services rendered, the application shall be made to
Jurisdictional RA in the form with documents as
prescribed in the HBP v I 2009-2014.
The exports of service & goods made up to 31-March-2015
which were eligible for FPS/MLFPS/VKGUY/SFIS can submit
the respective application in formats as prescribed under
HBP v1 2009-14 up to 30-June-2015 however after 1-July-
2015 application for duty scrip is required to to be made
as per Para 3.01 or 3.04 of HBP 2015-20.
Application for SHIS, IEIS & Agri Infrastructure incentive
scheme to made in form and as per procedure prescribed
in previous policy(ies).

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 (b) Up to 30th June 2015, applicants in respect of exports
on which FPS/MLFPS/FMS/VKGUY/SFIS are claimed, shall
have a choice to file applications in the manner
prescribed in the previous policy(ies) or in the manner
given in paragraph 3.01 or paragraph 3.04, as applicable,
of HBP 2015-20. From 1st July 2015, all such applications
shall be submitted in the manner given in paragraph 3.01
or paragraph 3.04, as applicable, of HBP 2015-20 only.

(c) Applicants shall continue to file application in respect

of SHIS, IEIS and Agri Infrastructure incentive scheme
scrip in the application form and manner prescribed in
the previous policy (ies).
HBoP-3 3.06 Applicant shall have option to choose Jurisdictional RA on Similar provisions are continued from earlier Chapter 3
the basis of Corporate Office/ Registered Office/Head however once the option of RA is exercised at the
(Jurisdictional RA / Office / Branch Office address endorsed on IEC for beginning of a financial year it can be changed after the
RA Concerned) submitting application/applications under MEIS and SEIS. end of financial year instead of no change in RA was
This option need to be exercised at the beginning of allowed in earlier Chapter 3.
financial year. Once an option is exercised, no change
would be allowed for claims relating to that year. To Once the RA is selected for particular financial year all the
illustrate, if an exporter has chosen RA Chennai for claims for exports made during that respective year should
claiming rewards for exports made in 2015-16,then all be made to same RA even if RA is changed subsequently.
claims for exports made in 2015-16, irrespective of the
date of application shall be made to RA Chennai only.
HBoP-3 3.07 Provisions contained in Chapter 2 and 9 of this HBP shall Similar provision.
apply to MEIS and SEIS.
(Applicability of
Provisions
contained in
Chapter 2 and 9 of
this HBP)

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HBoP-3 3.08 (a) Port of Registration under MEIS would be as follows: Similar provision. In case SEIS the port of registration
(i) Duty Credit Scrip (including splits) under MEIS shall be needs to be specified in the registration itself and RA will
(Port of Registration issued with a single port of registration which shall be the issue the scrip with such port of registration.
of Scrips) port of export.
(ii) Duty credit scrip needs to be registered at the port of
exports. This is to be done prior to allowing usage of duty
credit. Once registered at EDI port, scrip can be
automatically used at any EDI port for import and at any
manual port under Telegraphic Release Advise (TRA)
procedure.
(iii) In case port of registration is a manual port, TRA shall
be required for imports at any other port.
(b) In case of scrip applied under Service Exports from
India Scheme, the applicant can choose any port as port
of registration and mention it in the application at the
appropriate column. RA will issue the scrip with such port
of registration. Such Duty credit scrip needs to be
registered at the port of registration of duty credit. Once
registered at EDI port, scrip can be automatically be used
at any EDI port for import and at any manual port under
Telegraphic Release Advise (TRA) procedure. In case port
of registration is a manual port, TRA shall be required for
imports at any other port.
HBoP-3 3.09 (a) On request, split certificates of Duty Credit Scrip Similar provision as per Chapter-3 HBP v1 2009-2014.
subject to a minimum of Rs. 5 Lakh each and multiples
(Facility for Split thereof may also be issued, at the time of application.
Scrips) (b) Once Duty Credit Scrip has been issued, request for
splits can be permitted with same port of registration as
appearing on the original Scrip. The above procedure
shall be applicable only in respect of EDI enabled ports.
(c) In case of export through non-EDI ports, the facility of

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 splits shall not be allowed after issue of Scrip.
HBoP-3 3.10 (a) In order to move towards paperless processing of Similar provision as per Chapter-3 HBP v1 2009-2014.
reward schemes, an electronic procedure is being
(Procedure to developed to upload digitally signed documents by
upload documents Chartered Accountant / Company Secretary / Cost
by Chartered Accountant. Such documents like annexure attached to
Accountant / ANF 3 B, ANF 3C and ANF 3D, which are at present signed
Company Secretary by these signatories, can be facilitated by this procedure.
/ Cost Accountant) (b) Till such time it is made mandatory to upload these
annexure digitally, such annexures attached to ANF 3B,
ANF3C, ANF3D would continue to be submitted in
physical from to RA.
(c) Exporter shall link digitally uploaded annexure with his
online applications after creation of such facility.
HBoP-3 3.11 Entitlement can be used for import from private / public Similar provision as per Chapter-3 HBP v1 2009-2014.
bonded warehouses subject to fulfilment of paragraph
(Import from private 2.36 of FTP and terms and conditions of DoR notification.
/ public Bonded
warehouses)
HBoP-3 3.12 Goods imported which are found defective or unfit for Similar provision as per Chapter-3 HBP v1 2009-2014.
use, may be re-exported, as per DoR guidelines. Where
(Re-export of Duty Credit Scrip has been used for imports, Customs
defective / unfit shall issue a certificate containing particulars of Scrip
goods) used, date of import of re-exported goods and amount
debited while importing such goods. Based on this
certificate, upon application, a fresh Scrip shall be issued
by concerned RA to extent of 98% of debited amount,
with same port of registration and valid for a period
equivalent to balance period available on date of import
of the defective / unfit goods.

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 3.13 Duty Credit Scrip shall be valid for a period of 18 months Duty credit scrip shall be valid for a period of 18 months
from the date of issue and must be valid on the date on and nor revalidation of duty credit scrip is allowed unless
(Validity period and which actual debit of duty is made. Revalidation of Duty covered under paragraph 2.20(c) of HBP.
Revalidation) Credit Scrip shall not be permitted unless covered under
paragraph 2.20(c) of HBP.
HBoP-3 3.14 (a) Export shipments filed under all categories of the Declaration of intent to claim rewards under MEIS is
Shipping Bills would need the following declaration on mandatory w.e.f. 1-June-2015 while filing all categories of
(Declaration of the Shipping Bills in order to be eligible for claiming shipping bills
Intent on shipping rewards under MEIS: We intend to claim rewards under
bills for claiming Merchandise Exports From India Scheme (MEIS). Such
rewards under MEIS declaration shall be required even for export shipments
including export of under any of the schemes of Chapter 4 (including
goods through drawback), Chapter 5 or Chapter 6 of FTP. In the case of
courier or foreign shipping bills (other than free shipping bills), such
post offices using e- declaration of intent shall be mandatory with effect from
Commerce.) 1st June 2015.
(b) Whenever there is a decision during the financial year
to include any new product/goods or new markets then
to avail such rewards:

(i) For exports of such products/goods, to such markets, a

grace period of one month from the date of
notification/public notice will be allowed for making this
declaration of intent.

(ii) After the grace period of one month, all exports (of
such products/goods or to such markets) would have to
include the declaration of intent on all categories of
shipping bills.
(iii) For exports made prior to date of notification/public
notice of products/markets, such a declaration would not

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 be required since such exports would have already taken
place.

HBoP-3 3.15 (a) Application for obtaining Duty Credit Scrip under MEIS The application for duty credit scrip under MEIS is to filed
shall be filed within a period of : within a period of 12 months from let export date or 3
(Last date of filing of (i) Twelve months from the Let Export (LEO) date or months from the date of uploading EDI shipping bill on
application for Duty (ii) Three months from the date of : DGFT server by customs and printing/ release of shipping
Credit Scrips) (1) Uploading of EDI shipping bills onto the DGFT server bills for non EDI shipping bills whichever is earlier.
by Customs.
(2) Printing/ release of shipping bills for Non EDI shipping For SEIS the last date for filing of application is 12 months
bills. from the end of relevant financial year.
Whichever is later, in respect of shipments for which
claim is being filed.
(b) For SEIS, the last date for filing application shall be 12
months from the end of relevant financial year of claim
period.
HBoP-3 3.16 (a) Shipments from EDI Ports and Non-EDI Ports cannot Similar provision as per Chapter-3 HBP v1 2009-2014.
be clubbed in one application.
(Application for (b) Port of registration for EDI enabled ports shall be the Multiple applications can be filed maximum up to 50
Shipments from EDI port of export. Accordingly separate application shall be shipping bills however no supplementary cut will be
Ports and Non-EDI filed for each EDI port. allowed
Ports under MEIS) (c) In case of exports through non-EDI port, the port of
registration shall be the relevant non EDI port of exports.
Accordingly separate application shall be filed for each
non EDI port.
(d) Multiple applications can be filed and supplementary
cut shall not be applicable. However, an application can
be filed with upto a maximum of 50 shipping bills.
HBoP-3 3.17 The policy relating to Risk Management System is given in New internal audit/ scrutiny within department is
Paragraph 3.19 of FTP. The Risk Management System introduced.
(Risk Management shall be in operation as under:-

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 System) (a) Computer System in DGFT HQ, on random basis, will
select 10% of cases for each RA which has issued scrips in
the preceding month by 10th of the month.
(b) The list of such selected cases will be sent to
concerned RA by NIC by 15th of the month.
(c) Concerned RA, will in turn, ask for the original
documents by 30th of the month for examination in
detail.
(d) The applicant shall be under obligation to submit the
document asked for in the next 15 days.
(e) Concerned RA in turn will examine such documents in
next 15 days. In cases, there is any deficiency the
applicant shall rectify it in next one month from the date
of communication by RA. In case of excess availment of
rewards, the applicant shall refund the excess claim with
interest as prescribed in paragraph 3.19 of FTP.
(f) In case the applicant fails to submit the original
documents/ rectify the deficiencies / refund the excess
claim as stipulated above, RA will initiate action as per
FTDR Act and Rules.
FTP-3 3.13 (a) Government reserves the right in public interest, to
specify export products or services or markets, which
(Special Provisions) shall not be eligible for computation of entitlement of
duty credit scrip.
(b) Government reserves the right to impose restriction /
change the rate/ceiling on Duty Credit Scrip under this
chapter.
(c) Government may also notify goods in Appendix 3A
which shall not be allowed for debiting through Duty
Credit Scrips in case of import.
(d) Government may prescribe value cap of any kind for a

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 product(s) or limit total reward per IEC holder under this
chapter at any time.
FTP-3 3.14 For the goods exported or services rendered upto the For goods exported and services rendered up to 31-March-
date of notification of this Policy, which were otherwise 2015 of eligibility entitlement, transferability, usage of
(Transitional eligible for issuance of scrips under erstwhile Chapter 3 of scrip and any other condition in force at the time of export
Arrangement) the earlier Foreign Trade Policy(ies) and scrip is applied / of goods or rendering of the services, shall be applicable to
issued on or after notification of this Policy against such such scrips.
export of goods or services rendered, the then prevailing
policy and procedure regarding eligibility, entitlement,
transferability, usage of scrip and any other condition in
force at the time of export of goods or rendering of the
services, shall be applicable to such scrips.
FTP-3 3.15 Additional Customs duty/excise duty/Service Tax paid in Now even service providers can avail CENVAT credit or
cash or through debit under Duty Credit scrip shall be duty drawback against Additional Customs duty/excise
(CENVAT/ adjusted as CENVAT Credit or Duty Drawback as per DoR duty/Service Tax paid in cash or through debit under Duty
Drawback) rules or notifications. Basic Custom duty paid in cash or Credit scrip. Further CENVAT credit/ Duty drawback of
through debit under Duty Credit scrip shall be adjusted service tax paid through debit under duty credit scrip is
for Duty Drawback as per DoR rules or notifications. allowed to manufacturer and service provider.
FTP-3 3.16 Utilization of Duty Credit Scrip shall be permitted for Similar provision as per Chapter-3 HBP v1 2009-2014.
payment of duty in case of import of capital goods under
(Import under lease lease financing in terms of provision in paragraph 2.34 of
financing) FTP.
FTP-3 3.17 (a) Transfer of export performance from one IEC holder Similar provision as per Chapter-3 HBP v1 2009-2014.
to another IEC holder shall not be permitted. Thus, a
(Transfer of export shipping bill containing name of applicant shall be
performance) counted in export performance / turnover of applicant
only if export proceeds from overseas are realized in
applicants bank account and this shall be evidenced from
e - BRC / FIRC.
(b) However, MEIS, rewards can be claimed either by the
supporting manufacturer (along with disclaimer from the

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 company / firm who has realized the foreign exchange
directly from overseas) or by the company/ firm who has
realized the foreign exchange directly from overseas.
FTP-3 3.18 (a) Duty Credit Scrip can be utilised / debited for payment
of Custom Duties in case of EO defaults for Authorizations
(Facility of payment issued under Chapters 4 and 5 of this Policy. Such
of custom duties in utilization /usage shall be in respect of those goods which
case of E.O. defaults are permitted to be imported under the respective
and fee through reward schemes. However, penalty / interest shall be
duty credit scrips) required to be paid in cash.
(b) Duty credit scrips can also be used for payment of
composition fee under FTP, for payment of application
fee under FTP, if any and for payment of value shortfall in
EO under para 4.49 of HBP 2015-20.
FTP-3 3.19 (a) A Risk Management System shall be in operation
whereby every month Computer system in DGFT
(Risk Management Headquarters, on random basis, will select 10% of cases
System) for each RA where scrips have already been issued, under
each scheme. RA in turn may call for original documents
in all such selected cases for further examination in
detail. In case any discrepancy and/ or over claim is found
on such examination, the applicant shall be under
obligation to rectify such discrepancy and/or refund over
claim in cash with interest at the rate prescribed under
section 28 A A of the Customs Act 1962, from the date of
issue of scrip in the relevant Head of Account of Customs
within one month. The original holder of scrip, however,
may refund such over claim by surrendering the same
scrip whether partially utilized or fully unutilized, without
interest.
(b) Regional Authority may ask for original proof of
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The SEIS/ MEIS scrip also can be used for payment of
Custom duty/ Excise duty on procurement of inputs &
capital goods and SEIS scrip can be used for payment of
service tax on procurement of services. In SFIS the scrip
was allowed only for payment of custom duty/ excise duty
on procurement of capital goods/ spares/ office
equipment /consumables/ office furniture etc.
New internal audit/ scrutiny within department is
introduced. In case of discrepancy found on such
examination the applicant is required to rectify such
discrepancy and/or over claim in cash with interest @ 15%
within 1 month. The holder of scrip may surrender the
same scrip whether fully/ partially utilized without
interest.
The RA may ask for original proof landing certificate,
annexure to ANF, any other document at any time within 3
years from the date of issue of scrip. It is now mandatory
for the applicant to maintain such documents, certificate
etc. for a period of at least three years from the date of
issuance of scrips.
landing certificate, annexures attached to ANFs or any
other document, which has been uploaded digitally at
any time within three years from the date of issue of
scrip. Failure to submit such documents in original would
make applicant liable to refund the reward granted along
with interest at the rate prescribed under section 28 A A
of the Customs Act 1962, from the date of issuance of
scrip. It would be the responsibility of applicant to
maintain such documents, certificate etc. for a period of
at least three years from the date of issuance of scrips.

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