Is everything importable against MEIS/SEIS?

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The general perception is that the scrips that are issued to an exporter as an incentive against his exports of goods or services can be utilised to import any importable item. Many times importers use the scrips even for items for which it is not allowed, as it is not blocked by the customs software, and then later face notices to payback the duty paid through these scrips.

To avoid such situations, it necessary for the importers to understand what all items cannot be imported against these scrips. Here is the list of such items.

Coconut, Areca Nut, Oranges, Lemon, Fresh Grapes, Apple and Pears and all other fruits with a Duty of more than 30% under Chapter 8 of ITC (HS) Classification of Export and Import items.

Sl.No.Name of the Product
01Garlic, Peas and all other Vegetables with a Duty of more than 30% under Chapter 7 of ITC (HS) Classification of Export and Import items.
02Coconut, Areca Nut, Oranges, Lemon, Fresh Grapes, Apple and Pears and all other fruits with a Duty of more than 30% under Chapter 8 of ITC (HS) Classification of Export and Import items.
03All Spices with a Duty of more than 30% under Chapter 9 of ITC (HS) Classification of Export and Import items (except Cloves)
04Tea, Coffee and Pepper as per Chapter 9 of ITC (HS) Classification of Export and Import items.
05All Oil Seeds under Chapter 12 of ITC (HS) Classification of Export and Import items.
06Natural Rubber as per Chapter 40 of ITC (HS) Classification of Export and Import items.
07

Capital Goods

  1. General-purpose agricultural tractors above 25 HP and upto 75 HP.
  2. Stationary Diesel Engines.
  3. Irrigation pumps.
  4. Threshers for cereals.
  5. Combine harvesters suitable only for wheat and paddy crops.
  6. Animal driven implements.

Knowing this will help importers in deciding not to buy or use MEIS/SEIS scrips for these items.

What does the duty as mentioned in Sr. No. 1, 3 mean? Does it include IGST, CVD etc. too?

This has been a source of confusion for long time and many times customs used to stop some importable items because of this. Now as per Policy Circular 7 dt. 23.5.2018, Govt has clarified that this means only Basic Customs Duty. Hope it will give relief to some importers.

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