SEIS service export from India scheme

UNIT 3 Concept –

 Service Exports from India Scheme (SEIS) aims to promote export of

services from India by providing duty scrip credit for eligible exports.
 A Duty Credit Scrip is like a credit certificate issued by the Director General
of Foreign Trade (DGFT) and can be used to pay various duties/taxes to
the Central Govt.
 Under the scheme, service providers, located in India, would be rewarded
under the SEIS scheme, for all eligible export of services from India.
 SEIS was earlier termed as Served from India Scheme (SFIS).
 The scheme is implemented and administrated by the Government’s
Ministry of Commerce and Industry, in association with the Directorate
General of Foreign Trade (DGFT).

Eligibility

 Service Providers of notified services, located in India are eligible for the
Service Exports from India Scheme.
 To be eligible, a service provider (Company / LLP / Partnership Firm)
should have a minimum net free foreign exchange earnings of USD 15000
in the preceding financial year to be eligible for duty credit scrips.
 For proprietorships or individual service providers, minimum net foreign
exchange earnings of USD10,000 in the preceding financial year is
required to be eligible for the scheme.
 Also, in order to claim reward under the SEIS scheme, the service provider
shall have to have an active Import Export Code (IE Code) at the time of
rendering such services for which rewards are claimed.
Merchandise Exports from India Scheme (MEIS)

 MEIS was launched with an objective to enhance the export of notified

goods manufactured in a country.
 This scheme came into effect on 1 April 2015 through the Foreign Trade
Policy and was in existence till 2020.
  It intended to incentivize exports of goods manufactured in India or
produced in India.
 The incentives were for goods widely exported from India, industries
producing or manufacturing such goods with a view to making Indian
exports competitive.
 The MEIS covered almost 5000 goods notified for the purpose of the
scheme .

Service Eligible for SEIS

Only Services rendered under the Service Exports from India Scheme (SEIS):

 Mode I: Cross Border Trade, i.e., Supply of assistance from India to any other country
 Mode II: Consumption abroad, i.e., Supply of service from India to service consumers of
any other country. Benefits not Eligible: Supply of a Service through
 Mode III: Commercial Presence, i.e., Supply of service from India through Commercial
Presence in any other Country
 Mode IV: The presence of Natural persons in any other country is not eligible for a
reward under this Scheme. Different categories of ineligible services may be found in
Public notice 45 dated 05.12.2017.

OBJECTIVES OF SEIS :
 Increased Access: Expanding access to affordable, reliable, and modern
energy services, particularly in underserved communities or regions.
 Renewable Energy Deployment: Promoting the adoption and scaling up of
renewable energy sources, such as solar, wind, hydro, and biomass, to reduce
reliance on fossil fuels and mitigate climate change.
 Energy Efficiency: Enhancing energy efficiency measures across various
sectors to reduce energy consumption and optimize resource utilization.
 Sustainability: Ensuring that energy projects are environmentally sustainable,
socially inclusive, and economically viable in the long term.
 Innovation and Technology Transfer: Encouraging innovation and
facilitating the transfer of clean energy technologies to enable more efficient
and sustainable energy solutions.

Common provisions for SEIS as per current EXIM policy

1. Financial Support: Providing financial assistance, such as loans, grants, or

guarantees, to support sustainable energy projects, particularly those focused
on renewable energy deployment and energy efficiency improvements.
2. Technical Assistance: Offering technical expertise and support to help
implement sustainable energy projects effectively, including project planning,
feasibility studies, and capacity building.
3. Risk Mitigation: Developing mechanisms to mitigate risks associated with
sustainable energy investments, such as political, regulatory, financial, and
technical risks, to attract private sector investment.
4. Policy Alignment: Ensuring alignment with national energy policies, goals,
and regulations to promote consistency and coherence in sustainable energy
initiatives.
5. Partnerships: Facilitating partnerships between governments, private sector
entities, development organizations, and other stakeholders to leverage
resources, expertise, and networks for sustainable energy projects.
6. Monitoring and Evaluation: Establishing monitoring and evaluation
frameworks to track the progress, impact, and effectiveness of SEIS initiatives,
including key performance indicators related to energy access, renewable
energy deployment, and energy efficiency improvements.

Different between seis under foreign trade policy 2015-20 & scheme under
2009-14

1. Period of Operation:
o FTP 2015-20: This scheme operated under the Foreign Trade Policy
covering the period from 2015 to 2020.
o FTP 2009-14: This scheme operated under the Foreign Trade Policy
covering the period from 2009 to 2014.
2. Inclusion of Sectors:
o FTP 2015-20: The SEIS scheme under FTP 2015-20 covered various
service sectors, including professional services, technical services,
research and development services, communication services, and
others.
o FTP 2009-14: The SEIS scheme under FTP 2009-14 also covered similar
service sectors but might have had different eligibility criteria and rates
of rewards.
3. Rate of Rewards:
o FTP 2015-20: The rate of rewards under the SEIS scheme for eligible
service sectors varied between 3% to 7% of the net foreign exchange
earnings.
o FTP 2009-14: The rate of rewards under the SEIS scheme for eligible
service sectors might have been different from the rates specified
under FTP 2015-20.
4. Eligibility Criteria:
 o FTP 2015-20: The eligibility criteria for availing benefits under the SEIS
scheme might have been revised or updated compared to the criteria
specified under FTP 2009-14.
o FTP 2009-14: The eligibility criteria for availing benefits under the SEIS
scheme might have been different from those specified under FTP
2015-20.
5. Administrative Procedures:
o The administrative procedures, documentation requirements, and
mechanisms for claiming benefits might have been revised or
streamlined in the FTP 2015-20 compared to those in FTP 2009-14.
6. Objective Alignment:
o The overall objective of promoting and incentivizing service exports
from India remained consistent across both periods, but the specific
policy focus, targets, and strategies might have evolved to reflect
changing economic priorities and trade dynamics.