Export under CT-1 - manufacture eligble to get DBK and MEIS incentive

[Pradeep Jain]

Sir,

We are manufacturer and exporting under CT-1 form taken by our Customer.

We both will be signing the ARE-1 form.

Now query is that

1- Are we entitled to get the DBK and MEIS export incentives?

2- Are .we eligible to fulfil export obligation when machine is imported under EPCG for the manufacture of the said goods.?

Kindly repl.

Regards

Pradeep Jain

Payment may be received in INR/ USD.

Please confirm.

[MUKUND THAKKAR]

As per my view as a spporting manufacturer you are not eligable for getting DBK claim. as well export incentive MEIS. you can claim EPCG export obligation subject to require documents after export. but ensure that your name should be appear as a spporting mfg .in Shipping Bill. and also mention your EPCG lic no in ARE-1 also.

[Ganeshan Kalyani]

Sir when the export is done against CT-1 no duty would have been paid right. This itself is a benefit. When one benefit is availed no further benefit is allowed. Thanks.

[Kishan Barai]

Respected Pradeep Jain,

In above case you are deemed exporter, so you do not have to pay duty as exports is against CT-1.

DBK & MEIS benefits would be available to merchant exporter in this case.

You may be eligible for fulfillment of EO only when your mfg unit name is shown in S/B for Exports & ARE-1 must mention your EPCG licence name.

No problem if payment is received in INR or USD.

Cordially yours,

Kishan Barai

[PAWAN KUMAR]

Dear Sir,

1. MEIS can be claim by the exporter exporting goods through Merchant exporter under CT-1 subject to disclaimer form from the merchant exporter. Further DBK can also be claimed.

2.You may fulfill your EO against the EPCG authorization.

[Raghunandhaanan rvi]

Dear Sir,

1. Drawback and MEIS will be granted to Exporter whose name mentioned in the shipping bill as Exporter using his

IEC.

2. I dont think disclaimer facility now exist as drawback is directly credited to the bank account of exporter through E-Payment

3. this export can be counted for export obligation purpose against EPCG licence provided the export item

is specifically mentioned in the EPCG Authorization.

Thanks

[CSSANJAY MALHOTRA]

Dear Friends,

Mix of views as above. For better clarity, summarise as below:

1. MEIS benefit can be claimed by anyone. If Manufacturer Exporter has to claim the said benefit, then his name should appear on the SB as Supporting Manufacturer. (Benefit is available once E-BRC is uploaded at DGFT site and furthermore Disclaimer is given by the Merchant Exporter). Online MEIS system has provision for attaching third party BRC for claiming MEIS.
2. EPCG beenfits can be availed by the Supporting Manufacturer provided his name is mentioned on the Shipping Bill alongwith the Licence No. (Disclaimer & E-BRC to be given by Merchant Exporter besides other documents as listed in Chapter 5 of HBP 2015-20 for Third Party Exports).
3. Drawback Benefit will be credited to the Bank account of Merchant Exporter.

 

AI Summary

Supporting Manufacturers Ineligible for DBK & MEIS Benefits; Must Appear on Shipping Bill for EPCG Obligations Fulfillment A manufacturer inquires about eligibility for DBK and MEIS export incentives when exporting under a CT-1 form and fulfilling export obligations under EPCG. Responses indicate that as a supporting manufacturer, they are not eligible for DBK or MEIS benefits, which are available to the merchant exporter. However, they can fulfill EPCG obligations if their name appears on the shipping bill and ARE-1 form, with necessary documentation. The discussion highlights that MEIS benefits require the supporting manufacturer's name on the shipping bill and that DBK is directly credited to the merchant exporter's bank account.