In order to improve ease of doing business, it is being planned to discontinue issue of MEIS/SEIS scrips in physical form. For this purpose, it is important to have information about the current owner of the scrip online so that the current owner only can be allowed, to 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 it is decided to discontinue with physical issue of scrip, it is planned that each transfer of every scrip 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.

2. In view of the above, it has been decided that transfer of MEIS/SEIS scrips, which have been issued on or after 14.1.2019,for EDI ports only, will have to be mandatory recorded on the DGFT website (dgft.gov.in). Detailed procedure for recording of transfer of MEIS/SEIS scrips is at Annexure.

3. 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 the seller. However, 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. Thus, 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.

4. It should be noted that 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.

5. 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 of scrip in physical form will be notified separately.

6. No simultaneous transfer of scrip to more than one firm will be allowed.

7. Difficulties, if any, in implementation of these provisions may please be brought to the notice of this Directorate immediately.

This is issued with the approval of the DG.
 

Nikunj Kumar Srivastava
(Additional Director General of Foreign Trade)

Annexure

Recording information about transfer of MEIS/SEIS scrips

I The MEIS/SEIS scrip owner will need to carry out the following steps for recording the transfer information to another IEC entity on the DGFT website :

Step 1: Go to Services —> MEIS/SEIS View/Transfer —> Record Transfer Information

Log In with the Digital Signature Certificate (DSC);

Step 2: Enter MEIS/SEIS scrip number for which transfer details are to be recorded in the EDI system;

Step 3: The MEIS/SEIS scrip owner (say entity A) will then need to input the IEC number of the firm/company in favour of whom the ‘transfer’ information is to be recorded (say entity B). Thereafter, the name/address of the firm or company to whom the transfer is being intended (i.e. entity B) will be reflected by the system. After confirmation by entity A, the system will instantaneously record the transfer information for that particular MEIS/SEIS to entity B and the system will now reflect the ‘current owner’ as entity B.

II It may be noted that ‘transfer’ information cannot be reversed and the MEIS/SEIS transferor has to exercise due caution before recording any transfer information in the System. It is being clarified that this online facility is not in any manner a tool for ‘transfer’ and is only an electronic aid for recording information relating to transfer of MEIS/SEIS from entity A to entity B.

III Once transfer information is recorded electronically in the system, as explained in Step I (3) the particular MEIS/SEIS will start getting reflected in the transferee’s account i.e. in the account of entity B. Exporter ’13’ can now further record transfer information of this scrip received in their account to another IEC entity as per procedure explained above.

Viewing Current Ownership of Scrip

I For ascertaining the ‘current owner’ of the particular MEIS/SEIS scrip as recorded in the DGFT system, following steps need to be followed i.e.

Step 1: Go to Services —> MEIS/SEIS View/Transfer Information —> View Ownership

Step 2: Add the MEIS/SEIS scrip number whose ‘current owner’ is to be obtained; enter Captcha and log in [no Digital Signature Certificate (DSC) required for log in];

II System will display the basic issuance details of the MEIS/SEIS; the ‘current owner’ of the scrip and the transfer history. It may be noted that if no information on ‘transfer’ has been recorded in the System, the ‘current owner’ field will reflect the original owner. In case, information on multiple transfers has been recorded in the System i.e. from IEC number A to B to C, then the ‘current owner’ field will show the details of the last transfer recorded (i.e. of C)