Tuesday, September 22, 2020
Home News Reports Commerce ministry caps MEIS benefit to exporters during last 4 months of the scheme,...

Commerce ministry caps MEIS benefit to exporters during last 4 months of the scheme, govt says move aimed at protecting genuine exporters

The MEIS will expire on 31tst December, the government is bringing a new scheme RoDTEP in its place from 1st January 2021 to promote exports

After the Commerce ministry announced a cap on benefits given to exporters under the Merchandise Export from India Scheme (MEIS), the ministry has said that only 2% exporters who claim the benefit will be impacted by the change. According to an analysis done by the Department of Commerce, 98 percent of the exporters who claim MEIS will be unaffected by the changes.

The department added that the unaffected exporters who have already factored in MEIS in the pricing of their products do not face any change or uncertainty. This is because, neither coverage of products nor rates of MEIS will be changed for them. “Genuine exporters are protected and allowed to claim benefits for exports in the period and the possibility of fraud by taking new Importer Exporter Code (IEC) to circumvent the cap is avoided,” a statement issued by the department said. It also added that advance notice of four months of the end date of MEIS provides certainty for future pricing decisions.

On 1st September, the Department of Commerce under the ministry of Commerce and Industry had announced caping MEIS benefits to exporters to Rs 2 crores for the period 1st September t0 31st December. Amending the relevant sections of the Foreign Trade Policy, it was announced that total reward granted to an IEC holder under the MEIS scheme will not exceed Rs 2 crore on exports made during this period.

It also says that any IEX holder who has not made any export with Let Export Order (LEO) date during the period 1st September 2019 to 31st August 2020, or any new IEC obtained after 1st September 2020 will not be eligible to claim any benefits under MEIS for any export made after 1st September 2020. The ceiling of Rs 2 crore may be reduced further so that the total benefit given under the scheme does not exceed Rs 5,000 crore, the allocation determined the union govt.

- Advertisement -

Benefits under MEIS will not be available for exports made from 1st January 2021. Which means, the scheme will be withdrawn from the beginning of the calendar year 2021.

Under the MEIS, the govt provides rewards to exporters to offset infrastructural inefficiencies and associated costs. The rewards vary according to products and country, and it is calculated as percentage of realised free-on-board value, which may be 2%, 3% or 5%. Exporters receive Duty Credit Scrips for their scripts, which freely transferable, and they can be used for making various payment like basic customs duty, additional customs duty, central excise duty etc on import or domestic procurement of goods. The objective of the Merchandise Exports from India Scheme (MEIS) is to promote the manufacture and export of notified goods/ products.

Earlier this year, the Commerce Ministry had announced that the MEIS will not be available after 31st December 2020. The government is bringing a new export incentive scheme in its place, the Remission of Duties and Taxes on Export Products (RoDTEP) scheme. The new scheme will reimburse the taxes and duties incurred by exporters such as local taxes, coal cess, mandi tax, electricity duties and fuel used for transportation, which are not getting exempted or refunded under any other existing scheme. The rebate would be claimed as a percentage of the Freight On Board (FOB) value of exports. The MEIS was also not compatible with WTO guidelines, while the RoDTEP complies with all WTO guidelines on export incentives.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

‘Remember Kamlesh Tiwari? The same will happen to you’: Asst Stores Officer Shakeel Ahmad threatens UP Minister Rajeshwar Singh

As per police, a case has been filed against Shakeel Ahmed under Sections 504, 506, and 507 of IPC. Once the police finish investigation, they will arrest Ahmed as per law.

For AltNews, Muslims cease to be Muslims if they do not hate Narendra Modi or the RSS

AltNews questions the religiosity of Muslims who extend their support or are associated with the BJP and the RSS

NCB summons KWAN Agency CEO. Did you know Anurag Kashyap aide and film producer Madhu Mantena co-founded KWAN as well as Phantom films

Interestingly, until now, all the big Bollywood names which have emerged in the NCB's probe have links with KWAN Agency

Pakistan’s vicious narco-terrorism plan in India and its connection to Khalistan movement

Understanding Narco-Terrorism and how Pakistan is helping Khalistani movement by pushing drugs in India

Rajya Sabha Deputy Chairman Harivansh Singh serves tea to protesting MPs who had attacked and heckled him, PM praises the gesture

In a video shared by ANI, Harivansh Singh can be seen taking out plates, cups, and tea flask from his bag and serving it to the MPs.

Coronavirus: Daily new cases show a perceptible decline as India registers highest ever recovery at over 1 lakh cases

While it is too soon to celebrate decline of coronavirus in India, if the trend continues, we can take a sigh of relief that the worst is behind us.

Recently Popular

‘Whoever doesn’t want to watch the show, can go and read a novel, or turn off the TV’: Justice Chandrachud on Sudarshan News ‘UPSC...

"Read a novel, or turn off the TV", justice Chandrachud stated that if anyone doesn't like the content of the Sudarshan News show, they can choose not to watch it.

An eyewitness tells media that Disha Salian was gang-raped by 4 men in the party held on the eve of her death: Here are...

An eyewitness has told News Nation that Disha Salian was gang-raped by 4 men in the party which she attended on the eve of her death on June 8.

Fact Check: Is India going under lockdown once again from September 25?

PIB has debunked rumours on social media about the reimposition of lockdown from September 25 in the wake of Coronavirus surge.

OpIndia, Indic Collective Trust and UpWord file intervention application in SC in Sudarshan News case, ‘Saffron terror’, fake news demonising Hindus find mention

OpIndia, Indic Collective Trust and UpWord Foundation have filed an application seeking an audience with the Supreme Court in a matter of Sudarshan News and UPSC Jihad show

Bollywood drug web has extended links internationally, money is used for narco-terrorism: NCB chief Rakesh Asthana

Asthana informed that NCB has knowledge about the drug abuse in Bollywood parties and that the agency is gathering more evidence.

‘Maal you have?’ Deepika Padukone’s name emerges in the Bollywood drug abuse probe as NCB investigation intensifies

In a sensational revelation, Bollywood's top actress Deepika Padukone's name has emerged in the latest drug abuse probe carried out by the Narcotics Control Bureau (NCB)

‘Remember Kamlesh Tiwari? The same will happen to you’: Asst Stores Officer Shakeel Ahmad threatens UP Minister Rajeshwar Singh

As per police, a case has been filed against Shakeel Ahmed under Sections 504, 506, and 507 of IPC. Once the police finish investigation, they will arrest Ahmed as per law.

Reading, UK: ‘Are you Taliban?’, Sikh taxi driver attacked by four white men in apparent hate crime

Vaneet Singh, a Sikh Taxi Driver from Reading, has informed the Police that he was attacked by four white men on Sunday.

For AltNews, Muslims cease to be Muslims if they do not hate Narendra Modi or the RSS

AltNews questions the religiosity of Muslims who extend their support or are associated with the BJP and the RSS

NCB summons KWAN Agency CEO. Did you know Anurag Kashyap aide and film producer Madhu Mantena co-founded KWAN as well as Phantom films

Interestingly, until now, all the big Bollywood names which have emerged in the NCB's probe have links with KWAN Agency

Pakistan’s vicious narco-terrorism plan in India and its connection to Khalistan movement

Understanding Narco-Terrorism and how Pakistan is helping Khalistani movement by pushing drugs in India

NIA arrests two terrorists, including 2008 Bengaluru blast accused, from Riyadh, Saudi Arabia

The terrorists had red corner notices against them. They were arrested by a special team of NIA in Riyadh.

Fantasy Sports like Howzat engage over 90 million users

A KPMG report considers India the largest emerging market when it comes to gaming app downloads.

Rajya Sabha Deputy Chairman Harivansh Singh serves tea to protesting MPs who had attacked and heckled him, PM praises the gesture

In a video shared by ANI, Harivansh Singh can be seen taking out plates, cups, and tea flask from his bag and serving it to the MPs.

Coronavirus: Daily new cases show a perceptible decline as India registers highest ever recovery at over 1 lakh cases

While it is too soon to celebrate decline of coronavirus in India, if the trend continues, we can take a sigh of relief that the worst is behind us.

Al-Qaeda terrorists nabbed by NIA possessed explosives, had mobilised masses for anti-CAA violence in Murshidabad: Reports

The terrorists were escorted to the National Capital by NIA on Monday and will be produced before the Patiala High Court today.

Connect with us

244,181FansLike
454,471FollowersFollow
16,400SubscribersSubscribe