Circular No. ES/ 357/2018-19 January 12, 2019
To: Members of the Council
Dear Member,
DGFT has issued Trade Notice No. 42/2015-20 dated 11th January, 2019 informing about the mandatory recording of information about transfer of MEIS/SEIS scrips issued on or after 14.01.2019 on the DGFT website. An e-com module for the recording the transfer shall be made available on the website.
According to the Trade Notice, DGFT is planning to discontinue the issuance of MEIS/SEIS Scrips in physical form and to have the information of the current MEIS Scrip holder online so that the scrip holder can use the scrip for duty payment, by Customs Authorities.
Therefore, a facility has been created on DGFT website to record the information about transfer of scrip, before discontinuing with the physical issue of scrip. It has also been decided that each transfer of every scrips should be mandatorily recorded on this DGFT facility, and Customs Authorities will check the ownership information of the scrip, before the owner is allowed to use the scrip for payment of duty.
Members please note that transfer of MEIS/SEIS Scrips issued on or after 14.1.2019 onwards for EDI ports only, will have to be mandatory recorded on the DGFT website (www. dgft.gov.in). Detail procedure for recording of transfer of MEIS/SEIS scrips is given in the Annexure.
Members may kindly make a note of the following-
MEIS/ SEIS scrip owner will continue to ‘transfer’ the scrip to another IEC firm/ company in the same manner as was being done by them earlier i.e. as per the negotiated terms & conditions between the buyer and seller.
The information about the new owner (transferee) has to be recorded on the DGFT website by the current owner (transferor), before the new owner (transferee) can utilise the scrip.
It is very important for both transferor and transferee to ensure that information regarding transfer is recorded by the transferor.
After the information is recorded on the DGFT website, the old owner cannot record further transfer, and only the new owner can record any further transfer, if any.
The recording of information is for the purpose of DGFT and Customs. Unless recorded on DGFT website, the new owner (transferee) will not be able to utilise the scrip for duty payment.
Therefore, the new owner (transferee) has to ensure that the scrip is recorded in his favour by the old owner (transferor). DGFT/ Customs are not responsible for any lapse by the old or new owner or any dispute between them in this regard.
Applicants will continue to apply for MEIS/ SEIS as per current procedure on DGFT website and the Regional Authorities will continue to issue the MEIS/ SEIS scrips on security paper for use by the exporters till it is decided to discontinue the issue in physical form. The decision to discontinue the issue in physical form shall be notified separately.
No simultaneous transfer of scrip to more than one firm will be allowed.
In case you find any difficulty while implementing these provisions, you may please bring to the notice of the Directorate immediately.
Members are requested to make a note of the above and do the needful as advised.
Thanking you,
Yours faithfully,
S.BALARAJU
EXECUTIVE DIRECTOR
