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Basic custom duty & meis

Mansi ( ) (130 Points)

19 September 2016

Hello, Can the basic custom duty paid on import of inputs be draw backed under the MEIS Scheme? (FTP 2015-2020).

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3 Replies

Ajit Hegde (CA - Final) (1367 Points)
Replied 20 September 2016

There is no relation to the scheme with the duty paid. MEIS purely depends on the prduct and country of export irrespective of the fact that duty is paid on the inputs or not

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Mansi ( ) (130 Points)
Replied 20 September 2016

Arent there two forms of rewards under the MEIS Scheme:-

A) Export Incentive based on the specified rates for goods sold to eligible countries.

B) Duty Credit Scrips.

Thus the doubt is whether under the duty credit scrip nature of reward.

1. For the goods imported and used in production of goods meant for export - the Basic Custom Duty (BCD), Additional Custom Duty (ACD), Special Additional Custom Duty (SAD) can ALL be drawn back.

2. Also with respect to the goods imported and to be sold locally - the BCD, ACD, SAD can ALL be drawn back against the duty credit scrip

3. Whether the duties under 1 & 2 are exempt from payment upfront or need to be paid first and then need to be drawnback.

Kindly provide your feedback. Is the above analysis correct?

Appreciate your time.