Lok Sabha Question No. 3671 (UNSTARRED), answered on 2016-08-08
Subject: Merchandise Export from India Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: NARANBHAI KACHHADIA, HARI OM PANDEY, CHANDRA PRAKASH JOSHI

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 3671

## TO BE ANSWERED ON 08 TH  AUGUST, 2016

## MERCHANDISE EXPORT FROM INDIA SCHEME

## 3671.   SHRI NARANBHAI KACHHADIYA: SHRI HARI OM PANDAY: SHRI CHANDRA PRAKASH JOSHI:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether  the  Government  has  recently  started  "Merchandise  Export  from  India  Scheme (MEIS)";
- (b)
- if so, the details thereof along with the salient features of this scheme; and
- (c) the manner in which the said scheme is likely to help in growing merchandise exports from
- the country particularly to Europe, the United States of America and Africa?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) & (b) 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  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. Details of the scheme are available at the website of the Directorate General of Foreign Trade at http://dgft@gov.in .  Salient features of MEIS are as under :
- i) MEIS is result of major consolidation and simplification:

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) MEIS incentive Rates :

Rewards under MEIS are payable as a percentage ( 2, 3 or 5% ) of realized  FOB  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. Scrips and inputs imported under the scrips are fully transferable. This has provided much flexibility to exporters. Earlier schemes had many  conditions  attached  with  the  scrips  about  their  usage  and importability of items.

## iii)  Allocation and Product Coverage:

At  the  time  of  introduction  on  April  1,  2015,  MEIS  covered  4914 tariff lines. The product and market coverage was worked out keeping in  view  the  annual  allocation  of  Rs  18000  Crore  by  Department  of Revenue.    In  light  of  the  major  challenges  being  faced  by  Indian exporters in the backdrop of the global economic slowdown, Department of Commerce introduced increased support for export of various  products  and  included  some  additional  items  under  the Merchandise  Exports  from  India  Scheme  (MEIS)  through  Public Notice 44 issued on 29 th October,  2015.    MEIS  currently  incentives total 5012 tariff lines. This enhanced the estimated allocation to Rs. 21,000 Crore.  Thereafter, as a measure of ease of doing business and to reduce transaction cost, the requirement of landing certificate for claiming MEIS has been dispensed with by giving global coverage to  2787 lines which did not have such coverage earlier, vide Public Notice  No.  6/2015-20  dated  4.5.2016,  which  raised  the  envisaged allocation to Rs. 22000/- Crore per annum.

## iv)    Duty  credit  scrips  are  freely  transferable  and  usable  for payment of custom duty, excise duty and service tax

All  scrips  issued  under  MEIS  and  the  goods  imported  against these scrips fully transferable.

## v) Incentives to be available for SEZs

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

(c) The reward/incentives provided by the Government makes the exporters competitive in the international market including Europe, The United States of America and Africa.  These three markets are covered under the scheme for all notified 5012 tariff lines.

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