Drawback and MEIS available in case of Merchanting Trade?

[Rahul Agrawal]

Is Drawback and MEIS available in case of Merchanting Trade?

Can anyone clarify or provide all the aspects or FAQs of merchanting trade.

Eg. 1. How to make payments?

2. How to clear the BRC of the same as Shipping Bill not available?

AI Summary

Merchanting Trade transactions ineligible for Drawback and MEIS benefits due to non-Indian goods origin under Foreign Trade Policy. A discussion on the availability of Drawback and MEIS benefits for Merchanting Trade concludes that these benefits are not applicable. Merchanting Trade involves transactions where goods are not originating from India, and thus, do not meet the documentary requirements necessary for these export promotion schemes. Despite receiving foreign currency in India, the lack of Indian-manufactured goods in these transactions disqualifies them from such benefits. The discussion references the Foreign Trade Policy, emphasizing that MEIS aims to support exports of Indian-produced goods to enhance competitiveness, which does not align with the nature of Merchanting Trade.