MEIS and SEIS: Important Update on Scrip Transferability Rules

While the Foreign Trade Policy 2023 shifted focus toward RoDTEP and RoSCTL, many exporters continue to manage legacy credits under the Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS). Recent clarifications from the CBIC and DGFT emphasize the strict compliance required for the transfer and utilization of these duty credit scrips. These scrips, which were issued to offset infrastructural inefficiencies and associated costs, remain a vital asset for exporters looking to optimize their customs duty outflows. As per DGFT Trade Notices regarding the transition to electronic systems, all scrip transfers must be recorded on the DGFT online platform to be considered valid for customs clearance. Physical transfers without electronic synchronization are no longer recognized. Furthermore, the validity of these scrips is non-extendable; therefore, exporters must monitor their portfolios to ensure utilization before expiry. This is especially relevant for service providers who earned SEIS benefits for forex earnings in previous fiscal years. ## What this means for exporters Exporters should conduct an immediate audit of their MEIS/SEIS scrip balances. If you have unutilized scrips nearing their expiry date, consider using them for the payment of Basic Customs Duty (BCD) on eligible imports or transferring them to other importers through the official portal. Ensure that all 'Transfer of Scrip' entries match the records in the ICEGATE system to prevent delays during the Bill of Entry filing process.