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MEIS scheme has replaced 5 incentive schemes that gave different types of duly credit scrips. The 5 incentive schemes that are replaced are, Focus Product Scheme (FPS), Focus Market Scheme (FMS), Agriculture Infrastructure incentive Scrip (AIIS), Vishesh Krishi Gramin Upaj Yojana (VKGUY), and Market Linked Focus Product Scheme (MLFPS). Thus, in this article we will look in the MEIS in depth.
MEIS stands for Merchandise Exports from India Scheme. It is a scheme which is designed to boost the export of the goods notified, produced & manufactured in the country. The scheme became operational w.e.f 1st April 2015, through the Foreign Trade Policy & will exists till 2020.
The MEIS Scheme is applicable till 2020 and it has replaced 5 scheme incentives that were available under Foreign Trade Policy 2014 – 2019.
The 5 scheme incentives are:
For MEIS’s implementation, the Ministry of Commerce & Industry is responsible. Under the scheme, more than Rs. 22,000 crore per year has been allocated by the government for exports.
The objective of MEIS scheme is to enhance the infrastructural inefficiencies and the costs related to the export of products or goods manufactured in India.
The scheme will emphasis on products or goods with high employment potential, this in turn will enhance the India’s competitiveness in exports.
The following are the features of MEIS Scheme:
Certain rewards are given to the exporter of goods under the MEIS Scheme. The incentives given are at the pre- dominated rate and it varies from country to country & from product to product.
The countries that are receiving incentives are categorised under 3 categories that are:
The percentage of incentives is in between 2% and 5%, for most of the goods and it will vary from product to product.
The exporters of goods, i.e., Merchant or manufacturer exporter are eligible to claim rewards under MEIS scheme.
The MEIS rewards can be claimed by the supporting manufacturer or by the company or firm that has realized foreign exchange directly from overseas.
The ineligible export categories under MEIS scheme are:
A few points are needed to keep in mind while applying under MEIS scheme:
Where the goods are exported via foreign post office or courier fore – commerce, the incentives are awarded for goods with a FOB value of Rs. 25,000 per consignment. For the FOB over Rs. 25,000 the rewards are limited to Rs. 25,000 only.
These steps are to be followed to claim rewards for the goods exported trough foreign post office or courier for e- commerce:
The MEIS Scheme was introduced by the Indian Government to enhance the export of goods or products in a country. The scheme came into force from 1st April 2015 and will be operational till 2020 only.
Also, Read: Remission of Duties or Taxes on Export Products: RoDTEP Scheme
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