Further relaxation in timelines / validity for MEIS, SEIS applications / scrips and AEO Certificates
This is in furtherance to our update NITYA’s Insight | Issue 109 | Legislative changes under GST, other Indirect Taxes, Foreign Trade Policy and Legal Metrology law amid COVID-19 outbreak dated April 6, 2020 (referred in trail mail).
Recently, the Government has extended due date of filing of applications of Merchandise Exports from India Scheme (‘MEIS’) and Service Export from India Scheme (‘SEIS’) application for various Financial Years (‘FY’). Further, it has extended validity of MEIS and SEIS scrips and Authorized Economic Operators (‘AEO’) Certificates. The gist of relaxations is as under:
A. Extension in filing of MEIS & SEIS claim (with late cut)
- MEIS Applications
- MEIS benefit due to be claimed on March 1, 2020 with late cut, period between March 1, 2020 and June 30, 2020 shall not be counted and last date of submission of applications with late cut shall be re-determined, accordingly.
NITYA Comments: Para 9.02 of the Foreign Trade Policy, 2015-20 provides for late cut where application is filed after 12 months from date when such benefit can be claimed [Let Export Order (‘LEO’) date in case of MEIS].
Time limit for filing claims for MEIS with LEO date falling between February 2019 to May 2019 has already been extended to 15 months. Therefore, late cut shall be applicable after expiry of 15 months (i.e. May 2020 to August 2020). Notably, no extension has been granted where 12 months got complete between June 1, 2020 and June 30, 2020. Accordingly, late cut will be applicable in such cases.
- SEIS Applications
- Last date for filing SEIS application is extended till June 30, 2020 with late cut of 10 percent. Thereafter, SEIS benefit cannot be claimed.
- Late date for filing SEIS application continues to be March 31, 2021. Till June 30, 2020, late cut at the rate of 5 percent would apply. Post June 30, 2020, late cut at the rate of 10 percent would apply.
NITYA Comments: Exporters who have filed MEIS and SEIS applications post April 1, 2020 assuming late cut of 10 percent (and where late cut of 5 percent is now applicable) can file an intimation letter with DGFT for re-computation of value of scrip and requesting DGFT for issuance of scrip with correct value or issuance of additional scrip (if scrip has already been issued).
B. Extension of validity of MEIS and SEIS Scrips
- Validity of scrips issued between March 2018 and June 2018 is extended till September 30, 2020. 7
C. Extension in validity of AEO Certificates
- Validity of AEO Certificates expiring between March 2020 and May 2020 is extended till June 30, 2020.
(Refer: Public Notice 8/2015-2020 dated June 1, 2020 and Circular No. 27/2020 – Customs dated June 2, 2020)