Scrip, an alternative to legal tender, is pivotal in India's Foreign Trade Policy, specifically through 'Duty Credit Scrips', offering export incentives from the government to exporters, facilitating the payment of various central government taxes and duties.

The Duty Credit Scrips are distributed by the Director-General of Foreign Trade (DGFT) and are applicable for Customs Duty payments. Eligible for both goods and services exporters, these scrips are part of different schemes mentioned in the Foreign Trade Policy, typically valued between 2% to 5%.

The main objective of these scrips is to motivate exports by providing import duty concessions to exporters. As a result, exporters enjoy lower import duties, computed as a set percentage of their export value.

Additionally, duty credit scrips enable duty deduction or tax exemption for a predefined duration. The value or tax reduction depends on a percentage of the exporter's turnover. To encourage adaptability, these scrips are transferable, granting exporters the option to transfer to importers.

SEIS scrip, or Service Exports from India Scheme, is designed to boost India's service exports, offering duty scrip credits for eligible service exports. Indian service providers can earn these credits by meeting criteria like achieving a net free foreign exchange earnings of at least USD 15,000 in the last fiscal year and maintaining an active Import Export Code during service delivery.

Conversely, MEIS scrip, known as Merchandise Exports from India Scheme, incentivizes goods exporters who produce or manufacture within India. Under this scheme, exporters receive duty credit scrips usable for customs duty payment, including safeguard, anti-dumping, and other specified duties in the Foreign Trade Policy 2015-2020. MEIS scrips are also transferable and can facilitate goods import.

In summary, duty credit scrips enable Indian exporters to settle customs duties and taxes, thereby promoting exports. These scrips significantly enhance international trade by supporting both service and goods exports from India, fulfilling the policy's objectives of fostering global commerce.