Claim of MEIS benefits for exports made to countries in the OFAC List such as Iran and for Vostro payments

May 17, 2019 | by Avantis RegTech Legal Research Team

The Directorate General of Foreign Trade (DGFT) on May 16, 2019, has issued revised procedure for claiming of Merchandise Exports from India Scheme (MEIS) benefits for exports made to countries in the Office of Foreign Assets Control (OFAC) List such as Iran and for Vostro payments.

However, vide Public Notice 8/2015-20 dated May 14, 2019, a revised procedure for making online MEIS applications or claims has been notified for exports made to countries in the OFAC List such as Iran and for Vostro payments.

Ø  Under the revised procedure:

(i)      In case shipment has been made to countries in OFAC List and e-BRC has not been generated for that specific shipment, then the exporter while making the MEIS application or claim has to submit to the Regional Authority (RA)

i.                     A declaration to that effect, along with

ii.                   A self attested copy of the proof of payment such as Foreign Inward Remittance Certificate or Statement

(ii)    Also, if e-BRC has been generated in INR and payment is under the Vostro mechanism, a letter from the concerned bank is required to be submitted to the RA confirming that the payment for the particular shipment has been received through Vostro Mechanism in freely convertible currency.

Ø  In the MEIS Online E-com module:

(i)      For OFAC Shipment:

a)      The exporters are required to submit all such shipments in 1 application.

b)      An option of ‘Shipment to OFAC countries’ is required to be ticked for building the application with such shipping bills. After that the system would segregate such applications and classify them under ‘manual’ mode.

c)       Then for the relevant shipping bill the applicant is required to fill the details of foreign exchange realized manually and submit the application. Exporters will also need to submit the hard copy of documents. It may be noted that such ‘manual’ applications would not be auto processed by the system and will require due scrutiny by the RAs before MEIS scrips are approved or issued.

d)      For all such applications, the RAs can change the Foreign Inward Remittance Certificate (FIRCs) details after scrutiny of the physical copy of the FIRC or statement.

e)      For such application with shipping bills of the April 01, 2015 to May 15, 2019, the RAs shall consider the date of Let Export Date as May 15, 2019 and accordingly modify and impose the appropriate late cut.

(ii)    For Vostro Payments, the E com module will identify and segregate the e BRCs which are in INR for processing in manual mode.

[Trade Notice No. 15/ 2015-20]


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