NATURE OF INCENTIVE UNDER FOREIGN TRADE POLICY

NATURE OF INCENTIVE UNDER FOREIGN TRADE POLICY

DEFINITION

DUTY CREDIT SCRIP

The duty credit scrip is document that permits the entitled holder to pay import custom duties which have been levied on the import of various services and goods. The SEIS incentives are provided in the form of duty credit scrip. This document is also known as the SEIS scrip or SEIS license. These duty-free scrips are issued by the government, and the department that issues them is the DGFT.

These SEIS Scrips are “Freely Transferable” in nature. This means if the scrip holder does not import anything, he or she can sell this SEIS scrip/license in the open market at a premium rate. The service providers of eligible services will be entitled to duty credit scrip at notified rates on the net foreign exchange that has been earned.

The duty credit scrips can be utilized for the payment of custom duties/excise duties/GST on procurement of services. It can also be utilised to pay custom duty in the case of default in fulfilment of export obligation under Advance Authorization/EPCG, etc. A duty credit scrip is valid for a period of 24 months from the date of issue.