Last Updated: April 18, 2026 by RASP International Editorial Team

Discontinued Scheme | Historical Reference

MEIS

Merchandise Exports from India Scheme. Discontinued on 1 January 2021 and replaced by RoDTEP. Critical history for every Indian exporter to understand.

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Important notice: MEIS is no longer available

The Merchandise Exports from India Scheme (MEIS) was officially discontinued for exports made on or after 1 January 2021. If you are reading this page looking for a live incentive to claim, you need to be on our RoDTEP page instead. RoDTEP is the replacement scheme and has been the operative export rebate mechanism for merchandise exports since January 2021.

We keep this MEIS page live for a few important reasons. First, if your business has historical MEIS scrips unused or partially used, the utilisation rules still matter. Second, understanding why MEIS was withdrawn explains why RoDTEP is structured the way it is, and why the rebate mechanics today look different from the pre 2021 era. Third, some legacy disputes and scrip redemption cases are still being worked out with Customs and DGFT. Understanding MEIS remains relevant.

What was MEIS and why it mattered

MEIS was introduced under the Foreign Trade Policy 2015 to 2020 as the flagship export incentive scheme for merchandise exports from India. It consolidated and replaced five earlier incentive schemes: Focus Product Scheme, Focus Market Scheme, Market Linked Focus Product Scheme, Agri Infrastructure Incentive Scheme, and Vishesh Krishi Gramin Udyog Yojana. The consolidation simplified the incentive architecture and brought most merchandise categories under a single scheme with notified rates by ITC HS code.

Under MEIS, exporters received Duty Credit Scrips worth a percentage of the FOB value of their exports. The rebate rate varied by product category and destination market. Rates commonly ran between 2 percent and 7 percent. High priority products like agricultural goods, handicrafts, handloom, and marine products attracted the upper end of the range. Engineering goods, textiles, pharmaceuticals, and chemicals got mid tier rates. The scrips were fully transferable and could be used to pay Basic Customs Duty on imports or sold in the open market at a modest discount.

For most of its life, MEIS was the single largest export incentive in the Indian system. Its discontinuation in 2021 was a major structural change that reshaped how Indian exporters think about pricing and incentive planning.

Why MEIS was discontinued

The WTO challenge

MEIS was challenged at the World Trade Organization by the United States in 2018. The core argument was that MEIS constituted a prohibited export subsidy under the WTO Agreement on Subsidies and Countervailing Measures. Prohibited subsidies are those contingent on export performance. Since MEIS rebates were calculated purely on export value, the WTO panel found in favour of the United States in October 2019.

India appealed, but the Appellate Body was effectively non functional by then and the ruling could not be tested further. India accepted the finding and committed to winding down the scheme within a reasonable transition period. Detailed analysis is available from multiple legal and policy sources.

The MEIS Rs 2 crore cap: the first compression

In September 2020, MEIS was capped at a maximum benefit of Rs 2 crore per IEC for exports made between 1 September 2020 and 31 December 2020. This was a transitional measure to manage fiscal exposure while the replacement scheme was designed. Large exporters who previously enjoyed unlimited MEIS benefits suddenly faced a hard cap that materially reduced their annual incentive.

The 31 December 2020 sunset

On 31 December 2020, MEIS was formally discontinued for exports made on or after 1 January 2021. The legal basis was the Notification issued under FTP 2015-20. RoDTEP, the replacement scheme, was notified to take effect from 1 January 2021.

What replaced MEIS: understanding RoDTEP

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme replaced MEIS effective 1 January 2021. The transition was not a like for like swap. RoDTEP is structurally different from MEIS in important ways.

Rebate basis

MEIS rates were notified as export incentives (effectively a subsidy on exports). RoDTEP rates reflect the embedded duties and taxes not refunded through other mechanisms. The legal rationale is fundamentally different and is designed to be WTO compliant. A detailed legal comparison is available in the EY RoDTEP tax alert.

Rate levels

RoDTEP rates are generally lower than MEIS rates were for the same products. Most ITC HS lines see RoDTEP rates in the 0.3 percent to 4 percent range. Compare that to MEIS rates of 2 percent to 7 percent. Exporters relying on MEIS incentive to price export contracts had to recalibrate when the transition happened.

Recent rate cuts under RoDTEP

On 23 February 2026, RoDTEP rates for HS Chapters 25 to 98 were cut by a further 50 percent via DGFT Notification No. 60/2025-26. This is yet another compression of the post MEIS incentive landscape. Agri and food exports in HS Chapters 1 to 24 are exempt from the cut.

Mechanism

Both schemes use Duty Credit Scrips as the rebate vehicle. RoDTEP scrips work similarly to how MEIS scrips worked: transferable, tradeable, usable for Basic Customs Duty on imports. The claim filing workflow through shipping bills and ICEGATE is largely the same.

Annual RoDTEP Return

RoDTEP introduced an Annual RoDTEP Return filing requirement that did not exist under MEIS. Non filing blocks future claims. Staying current on the ARR is a new compliance line item.

For the full 2026 state of RoDTEP, read our detailed guide: RoDTEP Rates 2026 Complete Guide.

What to do if you have unused legacy MEIS scrips

Scrip validity

MEIS scrips issued before the 31 December 2020 sunset retain their validity as per the terms of issue. Most MEIS scrips have a 24 month validity from the date of issue. If you are holding scrips issued in late 2020, those would typically have expired by end of 2022. If you have scrips from 2021 issue (for exports made in 2020), check expiry carefully.

Utilisation

Valid MEIS scrips can still be used at Customs for payment of Basic Customs Duty on imports, subject to the standard scrip utilisation rules. Present the scrip at port of import via ICEGATE.

Transfer

MEIS scrips remain transferable through the ICEGATE scrip transfer module during their validity. Market discount is typically 2 to 5 percent depending on scrip size and buyer demand.

Redemption of partially used scrips

If a scrip has partial unused balance and is nearing expiry, list it on the scrip transfer module promptly. Expired scrips have zero utility and cannot be extended.

Disputes and legacy claims

Some MEIS claims filed before the sunset are still being processed or are caught in dispute with DGFT Regional Authorities. If you have a pending legacy claim, escalate through the Policy Relaxation Committee if the amount justifies it. Our DGFT consultants handle legacy scrip redemption cases.

The broader lesson for Indian exporters

MEIS taught Indian exporters a hard lesson: incentive structures built on WTO vulnerable premises do not last. Any scheme designed as a direct export subsidy is at risk of being challenged internationally. Exporters who built entire business cases on 5 to 7 percent MEIS incentives found themselves holding unviable contracts when the scheme was withdrawn.

The takeaway is structural, not tactical. Build your export pricing on fundamentals like product margin, operating leverage, and market access. Treat incentives as a bonus layer. When incentives are strong, they enhance profitability. When they are cut or withdrawn, your business should still work.

The same logic applies today to RoDTEP. The 50 percent rate cut in February 2026 is another reminder that rebate schemes are subject to fiscal and policy cycles. Our complete export incentives overview lays out how to build an incentive stack that does not over rely on any single scheme.

Frequently Asked Questions

Can I still claim MEIS today?

No. MEIS was discontinued for exports made on or after 1 January 2021. No new claims can be filed. The active replacement is RoDTEP.

Are my old MEIS scrips worth anything?

If they are within their validity period, yes. Use them at Customs for BCD payment or transfer them on ICEGATE. If they have expired, they are void.

How does RoDTEP compare to MEIS in terms of benefit value?

Generally RoDTEP rates are lower than MEIS rates were for the same products. Following the February 2026 rate cut for non agri lines, the gap widened further. Agri products in HS Chapters 1 to 24 retain their full RoDTEP rate and are relatively protected.

Was Services Exports from India Scheme (SEIS) also discontinued?

Yes. SEIS was discontinued from 1 April 2020 for service exports. It has not been replaced by an equivalent scheme for services. Service exporters currently do not have a dedicated remission scheme comparable to RoDTEP.

Will a MEIS type scheme return?

Unlikely in its original form. Any future incentive must be structured to withstand WTO scrutiny. RoDTEP’s remission based design is the model going forward. Schemes that look like direct export subsidies are off the table.

What documents should I preserve from my MEIS era filings?

Keep all shipping bills, MEIS scrips (even expired ones for audit trail), eBRCs, and any correspondence with DGFT for at least seven years. Legacy audits and disputes can surface years after a scheme ends.

Can MEIS era legal disputes still be raised?

Yes. If DGFT has demand notices or show cause notices pending on past MEIS claims, they must be responded to. Ignoring a legacy demand can escalate to recovery action. Engage a DGFT consultant if you have open legacy matters.

What should I claim now instead of MEIS?

For merchandise exports, claim RoDTEP. For apparel and made ups, RoSCTL. For manufacturing inputs with imported BCD incidence, Duty Drawback. For capital goods imports, EPCG. Full overview: Export Incentives.

How RASP International can help

Legacy MEIS scrip audit

We audit your historical MEIS scrip inventory, identify any scrips still within validity, advise on utilisation or transfer, and coordinate sale on the ICEGATE scrip transfer module.

MEIS era dispute resolution

Pending demand notices, show cause notices, or Policy Relaxation Committee cases from the MEIS era get handled by our DGFT team. We respond on your behalf and coordinate with Regional Authorities.

Transition to RoDTEP and beyond

We help exporters fully transition their incentive stack to post MEIS schemes. RoDTEP, RoSCTL, Duty Drawback, EPCG. We ensure you are not missing any active benefit while legacy MEIS matters are closed out.

Annual incentive strategy

Every financial year we review your incentive claims across RoDTEP, RoSCTL, Drawback, and EPCG. We quantify what is being claimed versus what could be claimed. Gap closure typically delivers a 15 to 30 percent uplift in total annual incentives for exporters new to our audit process.

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