Merchandise Exports from India Scheme (MEIS)
- Posted By
10Pointer
- Categories
Economy
- Published
4th Sep, 2020
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- 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).
