Ceiling/ cap on MEIS benefits available to exporters on exports made from 1st September, 2020 to 31st December, 2020

Circular No. ES/323 /2020-21                                          2nd September, 2020   

 

To: Members of the Council

  

Sub: Ceiling/ cap on MEIS benefits available to exporters on exports made from 1st September, 2020 to 31st December, 2020

 

Dear Member,

 

We would like to inform you that DGFT has issued Notification No: 30/2015-2020 dated 1st September, 2020  by making following amendments in the Foreign Trade Policy 2015-20 with immediate effect:

 

Two new paragraphs, 3.04A and 3.04B are inserted in the Foreign Trade Policy which is given here-below:

 

"Para 3.04 A”

 

The total reward which may be granted to an IEC holder under the Merchandise Exports from India Scheme (MEIS) shall not exceed Rs. 2 Crore per IEC on exports made in the period 01.09.2020 to 31.12.2020 [period based on Let Export Order (LEO) date of shipping bills)]. Any IEC holder who has not made any export with LEO date during the period 01.09.2019 to 31.08.2020 or any new IEC obtained on or after 01.09.2020 would not be eligible for submitting any claim for benefits under MEIS for exports made with effect from 01.09.2020. The aforesaid ceiling may be subject to further downward revision to ensure that the total claim under the Scheme for the period (01.09.2020 to 31.12.2020) does not exceed the allocation prescribed by the Government, which is Rs 5,000 Cr.

 

As per the above para –

  • The government has capped the export incentives under the MEIS at Rs 2 crore per exporter on export shipments made during the period from 1st September, 2020 to 31st December, 2020.

  • A limit on total reward under MEIS has been imposed so that for exports made in the period September 1, 2020 to December 31, 2020, the total reward which can be claimed by an IEC (Import Export Code) holder does not exceed the ceiling of Rs 2 crore.

  • New Import-Export Codes (IEC), obtained on or after the date of the notification of the above changes, will not be eligible for submitting any MEIS claim for exports made with effect from September 1, 2020.

  • Any IEC holder who has not made any exports for a period of one year preceding September 1, 2020 or any new IECs obtained on or after the date of publication of this notification would not be eligible for submitting any claim under this scheme.

  • The ceiling will be subject to further downward revision to ensure that the total claim under MEIS for the period (1st September to 31st December 2020) does not exceed the prescribed allocation by the government, which is Rs 5,000 crore. 

 

 

“Para 3.04 B”

 

Benefits under MEIS shall not be available for exports made with effect from 01.01.2021.

 

Members may kindly make a note of the above and avail the benefit of the Scheme extended to you.

 

Thanking you,

 

Yours faithfully,

 

S.BALARAJU

EXECUTIVE DIRECTOR 

 

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