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Merchandise Exports from India Scheme (MEIS)

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    4th Sep, 2020
  • MEIS was launched with an objective to enhance the export of notified goods manufactured in a country.
  • The scheme has been introduced through the Foreign Trade Policy (FTP) and came into effect on 1 April 2015.
  • The Ministry of Commerce and Industry is responsible for the implementation of the MEIS.
  • The MEIS will be applicable till the year 2020 and will replace the below 5 incentive schemes that were earlier available under the Foreign Trade Policy 2014-2019:
    • Market Linked Focus Product Scheme (MLFPS)
    • Focus Product Scheme (FPS)
    • Agriculture Infrastructure Incentive Scrip (AIIS)
    • Focus Market Scheme (FMS)
    • Vishesh Krishi Gramin Upaj Yojana (VKGUY)
  • Under this scheme, over Rs.22, 000 crore per year has been allocated by the Government of India for exports.
  • Under MEIS, a percentage of realized FOB (Free on Board) value (2, 3, or 5%) of the exports are payable as incentives.
  • The rewards are paid in the form of the MEIS duty credit scrip that can be used to pay for a number of taxes/duties including
    • Excise duty
    • Customs duty
    • Service tax.
  • Imported inputs and scrips can be transferred fully offering flexibility to exporters.
  • The incentives that are available under MEIS are also available to units located in Special Economic Zones (SEZs).

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