News on discontinuation of MEIS from January false: FIEO President
January 3, 2020: Sharad Kumar Saraf, president, Federation of Indian Export Organisations (FIEO) responded to the reports in the media regarding discontinuation of Merchandise Exports From India Scheme (MEIS) benefits with effect from January 01, 2020.
January 3, 2020: Sharad Kumar Saraf, president, Federation of Indian Export Organisations (FIEO) responded to the reports in the media regarding discontinuation of Merchandise Exports From India Scheme (MEIS) benefits with effect from January 01, 2020. He said that these reports are not factually correct and possibly refer to the withdrawal of additional MEIS benefits of 2% on certain exports products.
FIEO clarified that MEIS continues till March 31, 2020, as per the FTP 2015-2020, which is valid till March 31, 2020. However, the additional MEIS of 2% given on some products were only for shipment with Let Export Order date up to 31.12.2019. However, such products will continue to be entitled to normal MEIS benefits.
President FIEO said that he has been given to understand that the issue of MEIS benefits on specified products of apparel and made-ups is likely to be resolved soon and thereafter exporters of such products would be eligible for MEIS benefits till 31.12.2019 along with Rebate of State and Central Taxes and Levies (RoSCTL) benefits. A decision on MEIS benefits for apparel & made-ups for shipment with Let Export Order date on or after January 01, 2020, is likely to be notified shortly.
MEIS is a scheme introduced under the foreign trade policy of India to offset infrastructural inefficiencies and the associated costs of exporting products produced in India.
To make India’s products more competitive in the global markets, the scheme provides an incentive in the form of duty credit scrip to the exporter to compensate for his loss on payment of duties. The incentive is paid as percentage of the realized FOB value (in free foreign exchange) for notified goods going to notified markets.