SEIS Scrips

[Adarsh Gupta]

Dear Sir's

A Company is engaged in the manufacture and sale of goods. It has export sales in which freight is also charged from the customers. It wishes to apply for entitlement under the Service Export from India Scheme (SEIS) under the category freight transport agency for the freight charged from the customers.

Request your views on the eligibility of the same.

Regards.

[YAGAY andSUN]

Freight Transport Agency Service is mentioned in the appendix 3d which was notified by DGFT vide PUBLIC NOTICE No. 3 /2015-20 April 1, 2015. it's CPC is 748 which enumerates whether the service provided by you will be eligible under SEIS or not.

748 - Freight Transport Agency Service - Freight Brokerage Services, Freight Forwarding Services (primarily transport organization or arrangement service on behalf of the shipper or consignee), ship and aircraft space brokerage services, and freight consolidated and break -bulk services.

In our view you had exported under CIF INCOTERMS and hence, not eligible. However, please check the facts in your matter and act accordingly as we are not aware about the nature of your business.

[YAGAY andSUN]

The central Product classification (CPC) is a detailed product classification consisting of all goods and services. Enforced by the United Nation Statistical Commission, CPC was introduced to be an international standard, clearly defining and explaining all the goods and service classified under it and assigning to each of them a CPC Code for correct recognition. This classification was necessary to provide the claimants a clear idea under which category their product falls and what percentage of benefit they are entitled to. In simple words, CPC Classification provides a description of services harmonized by different codes which are centrally acceptable in many countries. Therefore, this CPC classification plays an important role in deciding whether the service provided by you will be eligible under SEIS or not.

AI Summary

Freight Transport Agency service: freight invoiced under CIF Incoterms is not eligible for SEIS benefits. Freight charged by an exporter may qualify under SEIS only if it constitutes a distinct Freight Transport Agency Service as defined in the Central Product Classification (covering brokerage, forwarding, space brokerage and consolidation). Freight invoiced as part of a goods sale under CIF Incoterms is treated as part of the goods price, not a separate export service, and thus is not eligible for SEIS; claimants must examine contractual terms and the CPC classification to determine entitlement.