Merchandise Export from India Scheme

Why in News?

The customs department is planning simplified procedures for exports by India Post, including permitting e-commerce shipments through all foreign post offices.

 

FACTS FOR PRELIMS

Background

Since 2016, e-commerce exports had been allowed through Foreign Post Offices (FPOs) under MEIS (Merchandise Export from India Scheme) incentives from the post offices at Chennai, Mumbai & Delhi.

With imports and exports by Post being the sixth highest cited citizen grievances under CPGRAMs, the customs department and Directorate General of Foreign Trade (DGFT) have been working together for last one year to liberalise, reform and align laws relating to imports by it.

 

Merchandise Export from India Scheme

The Government of India has introduced Merchandise Exports from India Scheme (MEIS) through the Foreign Trade Policy (FTP) 2015-20 w.e.f. April 1, 2015. It seeks to promote the export of notified goods manufactured/ produced in India. MEIS is a major export promotion scheme of GOI implemented by the Ministry of Commerce and Industry.

 

Salient Features-

i)Earlier there were 5 different schemes for rewarding merchandise exports with different kinds of duty scrips with varying conditions attached to their use. Now all these schemes have been merged into a single scheme, namely Merchandise Exports from India Scheme (MEIS).

 

ii)Rewards under MEIS are payable as a percentage ( 2, 3 or 5% ) of realized FOB ( Free on Board ) value of covered exports, by way of the MEIS duty credit scrip. The scrip can be transferred or used for payment of a number of duties/taxes including the customs/excise duty/service tax.

 

NOTE4STUDENTS-A scrip literally means a “chit” and refers to a form of credit. The Duty-free scrips are provided to the exporters under various export promotion schemes of the government.

 

iii)Incentives under MEIS are available to units located in SEZs also.

 

Source-The Indian Express.