DGFT clarifies on eligibility of Exports made from SEZ/EOU units on behalf of the DTA units, but not through DTA units

Feb 25, 2019 | by Avantis RegTech Legal Research Team


The Directorate General of Foreign Trade (DGFT) on February 22, 2019 has given clarification on eligibility of Exports made from SEZ/EOU units on behalf of the DTA units, but not through DTA units.

DGFT has received references from exporters seeking clarification on eligibility of Exports made from SEZ/EOU units on behalf of DTA units under the Merchandise Exports from India Scheme (MEIS), in the context of the Para 3.06 –ineligible categories of MESI, sub-para (v), which states that SEZ/EOU/EHTP/BTP/FTWZ products exported through DTA units are ineligible for MESI rewards.

The matter has been examined by the DGFT and it is clarified that the exports which are made/have been made directly from a EOU/SEZ unit to Foreign consumer in which export documents are prepared and filed at the customs office of concerned SEZ/EOU Unit, mentioning the name of the EOU/SEZ unit along with the name of the DTA unit on whose behalf the export is made would be eligible for MEIS, benefits subject to conditions that only one of the said units i.e. either EOU/SEZ unit or the DTA unit can claim the benefits under MEIS. It has been further clarified that the eligibility as above, is applicable to only those cases where goods are produced by the EOU/SEZ unit and are exported directly to the foreign consumer, with the name of the DTA.

It has been further clarified that the MEIS benefits may be taken by the SEZ/EOU or DTA and not both, on the basis of disclaimer from the other firm, subject to fulfillment of certain criterion for every shipping bill for which claim has been made under MEIS.

[Policy Circular No. 20/2015-2020]

 

URL: https://dgft.gov.in/sites/default/files/Policy%20Circular%2020.pdf


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