Centre caps export incentives under MEIS at Rs 2 cr per exporter

New Delhi [India], Sep 2 (ANI): The central government has capped export incentives under the Merchandise Exports from India Scheme (MEIS) at Rs 2 crore per exporter on outbound shipments made during the period from September 1 to December 31 this year.
A notification issued by the Directorate General of Foreign Trade (DGFT) on Tuesday said that the total reward which may be granted to an Import Export Code (IEC) holder under the scheme shall not exceed Rs 2 crore per IEC of exports made in the period from September 1 to December 31 this year.
"It has also been informed that any IEC holder who has not made any exports for a period of one year preceding September 1 or any new IECs obtained on or after September 1 would not be eligible for submitting any claim under MEIS. In addition, the MEIS scheme is withdrawn with effect from January 1, 2021," said an official release of Ministry of Commerce and Industry.
The above ceiling will be subject to further downward revision to ensure that the total claim under MEIS for the period September 1 to December 31, 2020 does not exceed prescribed allocation by the government which is Rs 5,000 crore, it said.
It is estimated that 98 per cent of the exporters' claim of MEIS will be unaffected by the changes.
"The unaffected exporters who have already factored in MEIS in the pricing of their products do not face any change or uncertainty since neither coverage of products nor rates of MEIS will be changed. Advance notice of 4 months of the end date of MEIS provides certainty for the future pricing decisions," the release said. (ANI)