Recording of information about Transfer of MEIS and SEIS scrips on DGFT Website becomes Mandatory

Jan 29, 2019 | by Avantis RegTech Legal Research Team

On January 11, 2019, the Director General of Foreign Trade (DGFT) has decided to discontinue issue of MEIS and SEIS scrips in physical form. In order to improve ease of doing business only the owner of the scrip should be allowed to use the scrip online for duty payment. DFGT website has been created to record the information about the transfer of the scrip. Each and every transfer of scrip should be mandatorily recorded in the website instead of recording it in physical form. Before the owner is allowed to use the scrip for payment purpose, the Customs Authority will check the ownership information of the scrip. The recording of information is for the purpose of DGFT and Customs.

From January 14, 2019 onwards, it will be mandatory for all the owners to record the information about the transfer of scrips on DGFT website.

The owners of the scrip will continue to transfer the scrip to another IEC as per the terms and conditions between buyer and seller and transfer of scrip to more than one firm will not be allowed. It is important for both the transferor and transferee to record the information on the DGFT website and the new owner will not able to utilise the scrip for duty payment unless recorded on DGFT website.

After the information is recorded, the old owner cannot record further transfer, only the new owner can record any further transfer.

[Trade Notice No. 42/2015-2020]



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